Tellurian Eyes Debt Reduction, Divests Integrated Upstream Assets To Aethon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 29 2024
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Source: Benzinga
- Tellurian Inc. Deal with Aethon Energy Management: Tellurian Inc. has agreed to sell its integrated upstream assets to Aethon Energy Management for $260 million. Aethon will also purchase two million tons per annum of liquefied natural gas (LNG) from Tellurian's Driftwood LNG plant.
- Expansion of Aethon's Footprint: The deal will expand Aethon's presence in the Louisiana Haynesville and Bossier shale basins, including around 31,000 net acres and gathering systems with a capacity of up to 100 MMcf/d.
- Heads of Agreement for Offtake: The parties have a Heads of Agreement for a 20-year offtake deal, indexed to Henry Hub plus a liquefaction fee, to support project financing of Driftwood LNG.
- Expected Closing and Use of Proceeds: The transaction is set to close in the second quarter of 2024. Tellurian plans to use the proceeds to reduce borrowings and for general corporate purposes.
- Statement by Tellurian Executive Chairman: Tellurian's Executive Chairman, Martin Houston, highlighted that the sale of upstream assets will help retire senior secured notes and strengthen the company's balance sheet for long-term growth.
Analyst Views on XOP
Wall Street analysts forecast XOP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOP is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
