Unlike its largest publicly rival, Cheniere Energy (LNG)  , TELL is a global integrated natural gas company on the works, with holdings in natural gas reserves, major pipeline infrastructure projects, a liquefaction development and a strong LNG marketing arm with international delivery of cargoes that started in 2017. In contrast, LNG is asset heavy and cost intensive, concentrate in operating two multi-billion liquefaction facilities in Sabine Pass, Louisiana and Corpus Christi, Texas.

TELL's upstream assets include 1.4 Tcf resources in 11,620 acres at the core of the prolific Haynesville Shale. TELL also has over $7 billion of planned natural gas pipelines connecting major hubs like the Permian in West Texas and the Haynesville shale in East Texas/Louisiana and a $15 billion in liquefaction development.

Tellurian has a strong balance sheet consisting of approximately $373.5 million in assets, of which $90 million represents its proved natural gas properties.

Driftwood Facility, Pay to Play

Tellurian's LNG liquefaction facility buildout model includes TELL offering equity interests in Driftwood Holdings to LNG buyers. Driftwood Holdings will consist of: 1) a Production Company, 2) a Pipeline Network and 3) an LNG Terminal, with around 27.6 million metric tons per annum (mtpa) near Lake Charles, Louisiana. TELL currently has around 25 customer/partners conducting due diligence.

TELL is planning to retain 12 mtpa and 40% of the assets with an estimated $2 billion annual cash flow back to TELL once the assets are sold. TELL has already signed agreements with major players like Total (TOT), Bechtel and General Electric (GE).

Tellurian closed two open seasons on proposed pipelines in 2Q18 - the Permian Global Access Pipeline and the Haynesville Global Access Pipeline - receiving non-binding indications of interest for both projects in excess of available capacity.

This asset diversification provides TELL with a solid base and multiple avenues for growth in the upstream and midstream space and a natural hedge to the various parts of the industry.

https://realmoney.thestreet.com/articles/08/10/2018/here-what-sets-...