Woodside has completed the acquisition of Tellurian Inc. (Tellurian) and its US Gulf Coast Driftwood LNG development opportunity. Woodside has acquired ail issued and outstanding Tellurian common stock for approximately $900 million cash, or $1.00 per share. The implied enterprise value is approximately $1,200 million (1)
Woodside is pleased to also announce it has renamed the Driftwood LNG development opportunity Woodside Louisiana LNG.
Woodside Louisiana LNG is an under-construction, pre-final investment decision (FID), LNG production and export terminal in Calcasieu Parish, Louisiana. It is a high-quality, scalable development opportunity, with a total permitted capacity of 27.6 million tonnes perannum.
Woodside CEO Meg O'Neill said bringing Woodside Louisiana LNG into the global portfolio represented a significant new chapter for the company.
"This is a major growth opportunity that significantly expands our US LNG position, enabling us to better serve global customers and capture further marketing optimisation opportunités across both the Atlantic and Pacific Basins.
"Our acquisition provides a new strategie direction for this development. Woodside's world class expertise in project execution, operations and marketing means we are well- positioned to unlock the development and generate value.
"Woodside Louisiana LNG is a competitively advantaged opportunity. It is fully permitted, front-end engineering design is complété, and site civil works are well advanced.
"Woodside is targeting FID readiness from the first quarter of 2025, with the experienced Tellurian team and engineering, procurement and construction contracter Bechtel having completed substantial work to advance the opportunity to this stage.
"We are also pleased with the inbounds received from multiple parties looking to enter the opportunity as a strategie partner."
(1) Includes $50 million for Tellurian's Sériés C Convertible Preferred equity shares, ~$65 million of net debt, ~$20 million net working capital adjustment, ~$50 million for management and debt change of control costs and ~$135m of intérim funding from signing to close. Does not include management construction incentive payment awards. The accounting treatment of the purchase price will be included in Woodside's 2024 Annual Report and will include share purchase considération, intérim funding and other items.
About Woodside
Woodside led the development of the LNG industry in Australia. With a focused portfolio, Woodside is recognised for its world-class capabilities as an integrated upstream supplier of energy. Woodside's proven track record and distinctive capabilities are underpinned by 70 years of experience.
About Tellurian
Tellurian (NYSE: TELL) aims to generate shareholder value by establishing a competitive LNG enterprise, effectively supplying natural gas to customers worldwide. Headquartered in Houston, Texas, Tellurian is developing Driftwood LNG, an approximately 27.6 Mtpa LNG export facility and associated pipeline.