Tellurian Inc. is an oil and gas exploration and production (E&P) company based in the United States. The company focuses on developing a portfolio of natural gas production, liquefied natural gas (LNG) marketing, and infrastructure assets. Its primary asset is an approximately 27.6 million tons per annum LNG export facility and an associated pipeline, located in the Haynesville Shale trend of northern Louisiana.
The company was founded in 2016 and is headquartered in Houston, Texas. It currently employs 171 full-time employees and is led by its President and CEO, Meg Gentle. Other officers include Chief Financial Officer Andrew J. Wood, Chief Commercial Officer Rajesh K. Desai, Chief Legal and Regulatory Officer Allison L. Lau, and Chief Investment Officer Manoj Khurana.
Tellurian Inc. maintains an online presence on its website, https://www.tellurianinc.com, which is updated regularly with news and information about the company and its energy projects. It is also active in the investment community, presenting its plans for the future and meeting with potential investors.
Tellurian Inc. is a publicly traded company in the gas and oil industry, with its shares traded on the Nasdaq stock exchange. The company’s overall performance has been mixed; it has experienced both highs and lows and overall has been performing in line with the industry average.
Tellurian Inc.’s current stock price is 1.30, which is 31.54 percent below the company’s 12-month high. Its current ratio is 2.18, which is just slightly above the industry average, and the total debt is 5.08684E8 (508.68 million U.S. dollars). The company’s profit margins are -3.62 percent, which is significantly below the industry average. Its revenue per share is 0.549 U.S. dollars, while its earnings growth is flat when compared to industry averages. On the other hand, its gross profits for the last nine months amounted to 1.53595E8 (153.59 million U.S. dollars) and its total cash per share amounts to 0.267 U.S. dollars.
Other indicators of Tellurian Inc.’s performance include its return on equity, which is -1.83 percent, and its return on assets, which is -0.49 percent. Its operating cash flow for the last nine months was 4.9885E7 (49.88 million U.S. dollars), while its free cash flow was -3.64276128E8 (-364.28 million U.S. dollars). The company’s EBITDA margins, an indicator of profitability, amount to 18.47 percent, while its gross margins amount to 61.36 percent. Tellurian Inc.’s debt-to-equity ratio is 78.80, which is higher than the industry average.
Taking all the above information into consideration, the consensus among analysts is currently to “hold” Tellurian Inc.’s stock. The average price target for the company is 2.90 U.S. dollars, with a low target of 1.00 U.S. dollars and a high target of 10.00 U.S. dollars.
Given the global economic recession and the unrelenting volatility of the U.S. energy sector, the oil and gas industry has been especially hard hit. Despite the downturn, Tellurian Inc. has managed to stay successful, taking a careful approach to invest and grow.
To mitigate the economic risks associated with the recession, Tellurian Inc. has focused on fiscal discipline. It has reduced its capital expenditure budget, re-evaluated its resources, and curtailed production. The company has also identified core assets that offer potential opportunities and has optimized production to operate efficiently in the current conditions. It has also adopted cost-cutting measures and diversified revenue sources, in order to buffer itself against any immediate financial losses during the recession. To prepare for its long-term success, it has also increased its diligence in developing its portfolio of projects and investments.
In addition, Tellurian Inc. has suspended dividends to shareholders and used the money saved to invest in growth. This allows the company to invest more in its core assets and improve their productivity. In addition, it has increased its presence in the U.S. energy sector, and has been actively marketing and selling natural gas and LNG to customers around the world.
Overall, Tellurian Inc. has been able to weather the recession and stands as one of the strongest names in the energy sector. With its diversified portfolio of assets, the company is well-prepared to capitalize on the recovery and capitalize on the opportunities presented by the global energy market.
To face high inflation, it is necessary for Tellurian Inc. to develop strategies that will help to sustain and/or increase its profits. The company can develop products that are more cost-efficient, by leveraging technological advancements and innovative business strategies to reduce costs of production. Moreover, the company can diversify its revenue streams by entering into joint ventures and exploring new markets and opportunities. This will help to minimize the risks typically associated with highly inflationary environments.
In addition, Tellurian Inc. must employ sound asset management practices. This means monitoring, analyzing, and adjusting interest rates and currency exchange rates to keep production costs under control. It must also develop strategies to hedge against risks such as currency instability. In order to do this, the company must utilize foreign currency markets and derivatives to effectively protect against the losses that can arise from rapid inflation.
Beyond this, Tellurian Inc. must also examine its portfolio and reduce assets that can become overstretched and devalued amidst high inflation. This means selling any assets that are vulnerable to inflation and not necessary for operational success. Simultaneously, it should invest in and develop more efficient and sustainable resources that provide reliable and longer-term returns.
Overall, Tellurian Inc. faces a challenging environment amidst the persistent fears of inflation. Its success is dependent on an understanding of the risks associated with high inflation, the implementation of sound strategies to reduce costs, and the development of innovative assets for long-term returns. With a comprehensive strategy in place, the company can ensure its resilience in a highly unpredictable economic environment.
Potential risks associated with an investment in Tellurian Inc.’s stock include the inherent risk associated with the gas and oil industry, the company’s high debt to equity ratio, the fact that its return on equity and return on assets are both below the industry average, and the company’s unused tax credits, which have not been reported on at all. In addition, the company faces political risk due to fluctuations in the pricing of natural gas, the increasing demand for liquefied natural gas worldwide, and the potential for expanded government regulations. Finally, the company’s high operating costs due to its large infrastructure projects may lead to decreased profit margins in the near future.
