Here's Why Tellurian Stock Is Down 21% Thursday
Shares of LNG exporter start-up Tellurian (NASDAQ: TELL) were down 21.2% at 1:40 p.m. EDT on Thursday, in an ugly day on Wall Street that's hitting energy stocks particularly hard. At this writing, the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) is down a brutal 4.6%, while the Energy Select SPDR ETF (NYSEMKT: XLE) is down 7.1%.
Tellurian, like most oil and gas companies, has had a brutal 2020. What's a little different for this company, though, is that it's still in start-up mode, raising capital and lining up partners to build its $20-billion-plus Driftwood LNG export facility and associated pipelines. The coronavirus pandemic that has ravaged the global economy and energy markets has forced essentially the entire energy sector to slash costs just to make ends meet.
As a result, Tellurian has seen one big investor back out of a potential deal to help fund Driftwood, and has struggled to find anyone else to step in as a replacement. The problem for Tellurian is that without any other meaningful sources of revenue besides funding from lenders or partners for Driftwood, the company won't survive.
Source Fool.com
