Tellurian Inc. reported a net loss of $40.7 million for the first quarter of 2020. The company said it reduced corporate overhead to $6 million/month to begin in June.
During the quarter, the company raised $50 million in gross proceeds through issuance of $56 million zero coupon, unsecured notes and amended its 2019 term loan, reducing the principal balance by $22.1 million and extending its maturity to November 2021.
The company is focused on delivering its first project, Driftwood LNG, said Meg Gentle, president and chief executive officer. In February, the company extended its MOU with Petronet LNG Ltd. wherein Petronet and its affiliates intend to negotiate the purchase of up to 5 million tonnes/year of LNG from the Driftwood project, concurrent with an equity investment in Driftwood Holdings. The Driftwood LNG project consists of two main components: the construction and operation of the LNG facility, which includes five LNG plant facilities to liquefy natural gas, three tanks to store the LNG, LNG carrier loading and berthing facilities, and other appurtenant facilities at a site near Carlyss, Calcasieu Parish, La.; and the construction and operation of about 96 miles of pipeline, three compressor stations, and 15 meter stations.
The company ended the quarter with $55.5 million in cash and cash equivalents and $128.6 million in long-term debt. Tellurian’s balance sheet consisted of $364.3 million in assets.