US LNG export project developer, Tellurian has reduced its debt by $57 million.
The company said it has made a voluntary principal prepayment of $43 million on its 2018 term loan.
The debt prepayment was funded using cash on hand and from its upstream unit, Tellurian Production Holdings, resulting in interest savings of approximately $2.4 million in 2021.
Tellurian has also made $13.6 million in other debt repayments year-to-date to other creditors, for a total debt reduction of $57 million
After the prepayment, Tellurian has approximately $80 million in unrestricted cash and $25 million in borrowings that mature in 2021, of which $17 million will be paid from Tellurian production.
President and CEO Octávio Simões said, “Tellurian is delivering on our debt reduction plan and strengthening our balance sheet, with comfortable liquidity for operations and a market capitalization value of over $1 billion.”
He added that the company is producing natural gas from its Haynesville position as the global natural gas market restructure with liquefied natural gas (LNG) supply tightening and prices rising.
“As an LNG supplier, we are well-positioned with our integrated Driftwood partnership to control supply cost, effectively manage emissions through our own production, and produce LNG at a very low and stable cost that is globally competitive,” Simões said.
This post appeared first on Offshore Energy.