Woodside to acquire Tellurian and Driftwood LNG

The consideration for the transaction is an all-cash payment of approximately US$900 million, or US$1.00 per share of outstanding Tellurian common stock. The implied enterprise value is approximately US$1200 million.¹ This represents an attractive entry into an opportunity with more than US$1 billion of expenditure incurred to date.

“The acquisition of Tellurian and its Driftwood LNG development opportunity positions Woodside to be a global LNG powerhouse,” said Woodside CEO, Meg O’Neill.

“It adds a scalable US LNG development opportunity to our existing approximately 10 million tpy of equity LNG in Australia. Having a complementary US position would allow us to better serve customers globally and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins. The Driftwood LNG development opportunity is competitively advantaged. Woodside expects to leverage its global LNG expertise to unlock this fully permitted development and expand our relationship with Bechtel which is the EPC contractor for both Driftwood LNG and our Pluto Train 2 project in Australia. Through this acquisition, we are delivering on our strategy to thrive through the energy transition. Woodside believes that LNG will play a key role in the energy transition and is well positioned to deliver the energy the world needs while delivering significant value to our shareholders.”

¹Includes US$50 million for Tellurian’s Series C Convertible Preferred equity shares, ~US$90 million of net debt, a ~US$90 million net working capital adjustment, ~US$65 million for management and debt change of control costs. Does not include expected interim funding from signing to close or management construction incentive payment awards.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/22072024/woodside-to-acquire-tellurian-and-driftwood-lng/