Australian energy producer Woodside Energy (WDS, Financial) experienced a decline of over 2.3%, with shares priced at $17.17. The drop comes after the company announced the completion of its acquisition of U.S. liquefied natural gas developer Tellurian.
TELL moves closer to deal closing as shareholders approve the acquisition by Woodside Energy for $1.2 billion.
Woodside Energy said on Wednesday it has completed the acquisition of U.S. liquefied natural gas developer Tellurian , including its U.S. Gulf Coast LNG export project, for $1.2 billion including debt.
OVERLAND PARK, KS / ACCESSWIRE / October 8, 2024 / Tortoise Capital today announced that Tellurian Inc (NYSE:TELL) will be removed from the Tortoise Decarbonization Infrastructure Indexsm (DCRBN) as a result of its announced acquisition by Woodside Energy Group LTD. As a result, TELL will be removed from the Index when the market opens on Oct. 10, 2024.
Tellurian shareholders have voted in favor of the U.S. LNG developer's proposed $1.2 billion acquisition by Australian energy producer Woodside Energy Group , the company said on Friday.
Woodside Energy expects to close its acquisition of liquefied natural gas (LNG) project developer Tellurian Inc. in October, Woodside Chief Executive Meg O'Neill said at the GasTech conference on Tuesday.
Tellurian's sale to Woodside leaves investors with one less way to cash in on the LNG boom. Cheniere Energy is already an LNG leader (something Tellurian had hoped to become).
A pending acquisition leaves investors with some choices.
Tellurian agreed to a buyout offer last month. The all-cash deal should close later this year.
Income Growth Advisors LLC believes Tellurian Inc. shares have upside potential of $1.2/share to $3/share. Tellurian's Driftwood LNG project is valued at $4 billion, making Woodside's $1.2 billion bid unfair to shareholders. LNG sector growth, potential cash flows, and interest from other investors suggest Tellurian's $1/share bid is undervalued and could be improved.
Woodside Energy is buying Tellurian in an all-cash deal. The transaction provides value certainty for Tellurian shareholders.
Tellurian has a deal to be acquired for $900 million in cash, with an impressive premium over Friday's close. But the offer price is still well below where the struggling company traded just a few years ago.