Woodside Energy is an Australian oil exploration and production company. The company desires to become one of the biggest independent manufacturers of liquefied natural gas. Woodside, the Australian company, intends to end an agreement to acquire all outstanding and issued common stock of Tellurian. This agreement includes the Tellurian US Gulf Coast Driftwood LNG growth opportunity.
Woodside is an oil and gas exploration and production company that operates petroleum production in Australia. Woodside is the largest independent oil and gas company in Australia. Besides Australia, Woodside explores, develops, and operates in Canada, the United States, Senegal, and other countries. Woodside operates the Enfield, Vincent, and Pyrenees oil fields offshore in Western Australia.
Tellurian Inc. is a natural gas company based in Houston, Texas. In 2017, Tellurian acquired $85 million in shale assets. The Tellurian planned project was a liquefied natural gas production project, Driftwood LNG, in the Calcasieu River, south of Lake Charles, in Louisiana. This project makes the company the first United States developer to produce fuel for its export terminal.
Today, Tellurian News announced that the company signed a definitive agreement with Woodside Energy Group Ltd. Woodside will get all the outstanding shares of Tellurian stock for $1.00 per share. The total value is $1.2 billion, counting a cash payment of some $900 million. What matters is that Woodside can take Tellurian’s Driftwood LNG project in Louisiana from its initial phase of progress. The company will produce 27 million metric tons per year of super-chilled fuel.
According to Tellurian News, the purchase price is a 75% premium to Tellurian stock closing price on July 19, 2024. It also represents a 48% premium to Tellurian stock. The price is the highest value for Tellurian stock over the past 30 days, being considered Driftwood LNG’s premier site.
Tellurian News stated: ”This transaction provides substantial and certain value for our shareholders. Following our strategic repositioning in December, our new leadership has strengthened Tellurian’s position and advanced Driftwood LNG. Woodside’s offer reflects this progress, providing a significant premium to our share price,” said Martin Houston, Executive Chairman, Tellurian Board of Directors.
The Chief Executive, Meg O’Neill declared on Monday that the transaction positions Woodside a ”global LNG powerhouse”. The declaration is accurate because if the agreement ends successfully, the Driftwood project can be the second-largest independent LNG producer in the world.
The transaction is expected to end in Q4, 2024, when the Tellurian shareholders approve it. Buying Tellurian and Driftwood LNG presents many benefits. It expands Woodside’s position as a leading independent LNG organization and allows value creation through marketing improvements and geographic diversification.
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