Executive Summary

Q1 2024 revenue was $25.5M and net loss was $44.0M (EPS -$0.06); revenue fell sharply year over year on lower realized gas prices and volumes, while EPS aligned with management’s disclosure .
The company highlighted regulatory momentum: Driftwood LNG’s construction authorization and Section 404 permit were extended through 2029, reducing regulatory risk and supporting FID efforts .
Versus Street, third-party sources indicate Tellurian missed revenue expectations (consensus range ~$30.7–$34.2M) and EPS was mixed (consensus -$0.05 to -$0.06); therefore, revenue was a significant miss and EPS broadly in line to slightly below, depending on source .
Liquidity tightened: cash and equivalents fell to $51.8M from $75.8M at year-end, underscoring the urgency of asset monetization and financing for Driftwood LNG .

What Went Well and What Went Wrong

What Went Well

Regulatory certainty improved: Driftwood LNG received FERC and U.S. Army Corps extensions through 2029, a key de‑risking event for schedule and permitting .
Management signaled a sharpened operational focus: “laser‑focused on bringing Driftwood to final investment decision” and aligning commercial offerings to customer needs .
Corporate actions aimed at balance sheet stability and liquidity runway were emphasized in the shareholder letter (cost cuts, debt amendments, upstream sale exploration) to enable higher engagement with counterparties and financing sources .

What Went Wrong

Revenue deteriorated materially YoY: $25.5M vs $50.9M, driven by lower realized gas prices and production volumes; net loss widened to $44.0M from $27.5M .
Street comparisons were unfavorable: third-party trackers show a revenue miss versus ~$30.7–$34.2M consensus and EPS generally in line to slightly below, highlighting top‑line pressure despite disciplined cost focus .
Liquidity trended down: cash fell to $51.8M, reinforcing execution risk tied to asset sales and project financing for Driftwood LNG despite total assets of ~$1.3B .

Financial Results

Sequential trend (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$43.2	$40.0 (Upstream)	$25.5
Net Loss ($USD Millions)	$(65.4)	N/A	$(44.0)
Diluted EPS ($USD)	$(0.12)	N/A	$(0.06)
Cash & Equivalents ($USD Millions)	$59.3	$75.8	$51.8
Total Assets ($USD Billions)	~$1.3	~$1.3	~$1.3

YoY comparison (Q1)

Metric	Q1 2023	Q1 2024
Revenue ($USD Millions)	$50.9	$25.5
Net Loss ($USD Millions)	$(27.5)	$(44.0)
Diluted EPS ($USD)	$(0.05)	$(0.06)

Margins (derived from reported figures)

Metric	Q3 2023	Q1 2024
Net Income Margin %	-151.5% (Net Loss $65.4M; Rev $43.2M)	-172.5% (Net Loss $44.0M; Rev $25.5M)

Segment and KPIs (as available)

KPI	Q3 2023	Q4 2023	Q1 2024
Upstream Revenue ($USD Millions)	$43.2	$40.0	$25.5 (natural gas revenues)
Upstream Adjusted EBITDA ($USD Millions)	$18.3	$21.7	N/A
FERC/USACE Permits	Existing approvals	FERC pipeline certificate secured	Driftwood LNG construction and Section 404 permits extended through 2029
Cash & Equivalents ($USD Millions)	$59.3	$75.8	$51.8

Actual vs Estimates (non‑SPGI references; SPGI unavailable)

Metric	Actual (Q1 2024)	Street Consensus (Range)	Outcome
Revenue ($USD Millions)	$25.5	$30.68 – $34.19	Bold miss
EPS ($USD)	$(0.06)	$(0.06) – $(0.05)	In line to slight miss

Note: S&P Global consensus estimates were unavailable via our tool for TELL.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Driftwood LNG construction authorization deadline	Through 2029	Prior authorization earlier date	Extended to April 18, 2029 (FERC and Section 404)	Raised timeline certainty
Driftwood Phase 1 FID	2024	Targeted; not time‑specific in prior press materials	Management “laser‑focused” on achieving FID in 2024	Maintained/clarified timeline
Bechtel Full Notice to Proceed (Phase 1)	2H 2024	Not previously dated	Expects to issue FNTP in 2H 2024	New timing disclosure
First LNG (Phase 1)	2028	Previously indicated	First LNG anticipated in 2028	Maintained
Upstream asset sale	2024 process	Upstream part of integrated model	Exploring sale to strengthen balance sheet and reduce indebtedness	Strategic shift

Earnings Call Themes & Trends

(Transcript not available in our document catalog; themes derived from Q3 2023 press release and Q4 2023 shareholder letter vs Q1 2024 press release.)

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023/Shareholder Letter)	Current Period (Q1 2024)	Trend
Regulatory/Permits	Progress on construction and permitting	FERC extension to construct all five plants; DOE non‑FTA export authorization confirmed	FERC and USACE extensions through 2029 reiterated	Improving regulatory certainty
Financing/FID	Discussions with counterparties for equity partnership and LNG offtake	Balance sheet actions, debt amendments, cost reductions; aim to enhance engagement with financing sources	“Laser‑focused” on reaching FID and improving liquidity	Intensifying focus on financing
Upstream strategy	Upstream production growth and segment KPIs	Upstream “no longer a core strategic need”; exploring sale with Lazard	Revenue driven by natural gas but volumes/prices lower; monetization path emphasized	Pivot to divest upstream
Construction execution (Bechtel)	On‑target; production first LNG in 2027 (prior outlook)	Construction advanced; long‑lead equipment and work re‑timed	Phase one construction continued with Bechtel	Ongoing, de‑risking early works
Macro prices	Average realized price fell YoY; price view improving into year-end (2023)	Noted price headwinds in 2023	Lower realized prices impacted Q1 revenue	Persisting headwind

Management Commentary

“Our senior team has sharpened its focus on stability, financial discipline and execution, and we are laser‑focused on bringing Driftwood to final investment decision.” — Executive Chairman Martin Houston .
“We received our extension authorization from FERC… we are now one of a few facilities with uncontracted capacity for LNG deliveries in 2028.” — Shareholder letter .
“We aim to sell the upstream business… and have amended… notes to reduce our cash obligations in the short term and provide incremental financial flexibility.” — Shareholder letter .
“Driftwood plans to issue a full notice to proceed to Bechtel… in 2H 2024” and “produce first LNG by 2028.” — Corporate presentation in 8‑K .

Q&A Highlights

The Q1 2024 earnings call transcript was not available in our document catalog; external trackers list a call time on May 2, 2024, but no transcript was retrievable via our tools .
As such, specific analyst Q&A themes and management clarifications cannot be cited; narrative insights reflect press release and shareholder letter content .

Estimates Context

S&P Global consensus data for TELL was unavailable via our estimates tool.
Third‑party sources indicate revenue consensus ~$30.68M to $34.19M and EPS consensus -$0.06 to -$0.05 for Q1 2024; actuals of $25.5M revenue and -$0.06 EPS imply a clear revenue miss and EPS roughly in line to slight miss versus these sources .

Key Takeaways for Investors

Driftwood’s extended construction authorization through 2029 is a meaningful de‑risking catalyst, supporting the path to FID and project financing discussions .
The quarter’s top‑line shortfall and widened loss underscore sensitivity to gas prices and volumes; near‑term equity reaction often tracks revenue surprises, making the miss an overhang until financing or offtake updates materialize .
Liquidity compression (cash to $51.8M) heightens the importance of executing the upstream asset sale and debt flexibility measures to sustain runway ahead of FID milestones .
Management’s “laser‑focused” stance and clarified timelines (Bechtel FNTP in 2H 2024; first LNG 2028) provide tangible markers for monitoring execution and potential re‑rating catalysts .
Regulatory positioning (non‑FTA export authorization; permitting extensions) is a competitive advantage amid broader industry permitting uncertainty, potentially improving commercial traction .
Trading: near‑term moves likely hinge on financing announcements, upstream sale progress, and any SPA signings; revenue volatility and cash levels argue for a catalyst‑driven approach. Medium‑term thesis depends on Driftwood Phase 1 reaching financeable structure with credible counterparties and partners .

TELLURIAN INC. /DE/ (TELL)·Q1 2024 Earnings Summary