(Tellurian, 1.Jul.2024) — Tellurian Inc. closed the previously reported sale of its integrated upstream assets for $260mn 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 $230mn 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,” Huddleston said.
“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,” Houston said.
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