HOUSTON–(BUSINESS WIRE)–Tellurian Inc. (NYSE American: TELL) announced today that it has closed the previously reported sale of its integrated upstream assets for $260 million to affiliates of Aethon Energy Management LLC, fulfilling a key objective outlined in May and substantially strengthening its balance sheet as it advances the Driftwood liquefied natural gas (LNG) project. The Company utilized proceeds from the sale to retire the $230 million of non-convertible Senior Secured Notes scheduled to mature in 2025.
“With the retirement of the senior secured debt, Tellurian is in a much-improved commercial position as we work to advance Driftwood LNG,” said Tellurian President Daniel Belhumeur.
“As a private equity firm and operator, we are excited to enhance our strategic footprint by integrating Tellurian’s upstream and midstream assets into our extensive Haynesville position,” said Gordon Huddleston, President and Partner of Aethon Energy. “Our goal is to generate compelling returns while supporting the communities we operate in as we make progress towards providing net zero natural gas to both domestic and international customers. We continue to work with Tellurian on a long-term sale and purchase agreement for two mtpa of LNG and believe in the many benefits that low emission exports have for the broader energy transition.”
“This transaction is a significant step in securing our balance sheet and progressing Driftwood,” added Tellurian Executive Chairman Martin Houston. “The partnership between Aethon and Tellurian is vital as we continue securing buyers for Driftwood’s remaining capacity and advance its development. Our agreement validates the role of U.S. LNG as the global transition fuel and in providing energy security to America’s partners around the world.”
About Tellurian Inc.
Tellurian aims to generate shareholder value by establishing a competitive, LNG enterprise, effectively supplying natural gas to customers worldwide. Headquartered in Houston, Texas, Tellurian is actively developing Driftwood LNG, an approximately 27.6 mtpa LNG export facility and associated pipeline network. Tellurian is publicly traded on the NYSE American under the symbol “TELL”. For more information, please visit www.tellurianinc.com.
