Tellurian has agreed to sell its upstream natural gas production business. The buyer also agreed to support Tellurian's Driftwood LNG project.
LNG developer Tellurian will use most of the proceeds from the sale of its natural gas assets to Aethon Energy to pay off long-term debt, a company spokesperson said on Wednesday.
Tellurian (NASDAQ: TELL) stock price has rebounded sharply from its lowest point this year as investors assess the company's turnaround. It has recovered by over 70% from its lowest point this year, giving it a market cap of over $467 million.
Aethon Energy will acquire Tellurian's upstream assets for $260 million and purchase two million tons per annum (mtpa) of liquefied natural gas (LNG) from its Driftwood LNG plant, the companies said on Wednesday.
Tellurian (TELL) witnesses a hammer chart pattern, indicating support found by the stock after losing some value lately. This coupled with an upward trend in earnings estimate revisions could mean a trend reversal for the stock in the near term.