We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tellurian (TELL) Gets FERC Approval for Driftwood Completion
Read MoreHide Full Article
Tellurian Inc.’s three-year extension, granted by the U.S. Federal Energy Regulatory Commission (“FERC”), to complete the construction of its Driftwood LNG facility has been upheld by the U.S. regulatory body. The FERC denied a rehearing request from the environmental group Sierra Club regarding the extension approval. Sierra Club argued that the Biden administration’s decision to put a pause on its LNG export authorizations to certain countries should impact the Commission’s decision to grant an extension for the construction of Driftwood, noting that Driftwood LNG already had a license to export LNG to the “non-FTA” countries.
The regulatory body did not agree with the argument, stating that the FERC’s analysis was not influenced by the federal government’s decision to temporarily halt its authorization of LNG exports to some other countries. The FERC mentioned that it had valid reasons to grant the extension to Tellurian. To complete the construction of Driftwood LNG, it appeared before the commission and took the necessary actions to proceed with the construction. Driftwood also engaged with the commission staff and received the authorization required to proceed with the construction activities.
Tellurian has invested more than $1 billion to construct Driftwood LNG over several years. The LNG facility, with a capacity of 27.6 million metric tons per annum (mtpa), to be constructed near Lake Charles, LA, has received an extension from the FERC to complete the project by Apr 18, 2029.
Tellurian also recently sold off its integrated upstream assets to Aethon Energy Management in order to pay off its borrowings and proceed with the construction of the LNG facility. Aethon also signed an agreement to purchase 2 mtpa of liquefied natural gas (LNG) from Tellurian’s Driftwood LNG after the completion of the first phase.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops, and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
Chevron is one of the largest publicly traded oil and gas companies in the world, with its operations spread around the globe. It is currently in the process of acquiring Hess Corporation. The acquisition is seen as a major win for Chevron, as it will give the company access to Hess' high-quality assets in Guyana and the Bakken Formation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Tellurian (TELL) Gets FERC Approval for Driftwood Completion
Tellurian Inc.’s three-year extension, granted by the U.S. Federal Energy Regulatory Commission (“FERC”), to complete the construction of its Driftwood LNG facility has been upheld by the U.S. regulatory body. The FERC denied a rehearing request from the environmental group Sierra Club regarding the extension approval. Sierra Club argued that the Biden administration’s decision to put a pause on its LNG export authorizations to certain countries should impact the Commission’s decision to grant an extension for the construction of Driftwood, noting that Driftwood LNG already had a license to export LNG to the “non-FTA” countries.
The regulatory body did not agree with the argument, stating that the FERC’s analysis was not influenced by the federal government’s decision to temporarily halt its authorization of LNG exports to some other countries. The FERC mentioned that it had valid reasons to grant the extension to Tellurian. To complete the construction of Driftwood LNG, it appeared before the commission and took the necessary actions to proceed with the construction. Driftwood also engaged with the commission staff and received the authorization required to proceed with the construction activities.
Tellurian has invested more than $1 billion to construct Driftwood LNG over several years. The LNG facility, with a capacity of 27.6 million metric tons per annum (mtpa), to be constructed near Lake Charles, LA, has received an extension from the FERC to complete the project by Apr 18, 2029.
Tellurian also recently sold off its integrated upstream assets to Aethon Energy Management in order to pay off its borrowings and proceed with the construction of the LNG facility. Aethon also signed an agreement to purchase 2 mtpa of liquefied natural gas (LNG) from Tellurian’s Driftwood LNG after the completion of the first phase.
Zacks Rank and Key Picks
Currently, TELL carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , Hess Midstream Partners LP (HESM - Free Report) and Chevron Corporation (CVX - Free Report) .SM Energy presently sports a Zacks Rank #1 (Strong Buy), while Hess Midstream and Chevron carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops, and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
Chevron is one of the largest publicly traded oil and gas companies in the world, with its operations spread around the globe. It is currently in the process of acquiring Hess Corporation. The acquisition is seen as a major win for Chevron, as it will give the company access to Hess' high-quality assets in Guyana and the Bakken Formation.