At $7.80 USD on the NASDAQ, TELL stock is on the lower side of what these shares have fetched this year. At the highest in April, stock sold for $11.24. There has been market-wide anticipation for Natural Gas company Tellurian Inc. (NASDAQ:TELL) to deliver on certain aims that are likely to send shares soaring.
Will TELL Stock Soar?
With a market cap of $1.86 billion, Tellurian is a small-cap play in the energy sector. The Houston-based natural gas company wants to build a massive liquefied natural gas (LNG) export facility on the US Gulf Coast. If it manages to deliver on this, then it is in line for big things because Natural gas production across the US is set to grow significantly. Business is boosted further by the fact that the price of US gas undercuts prices elsewhere in the globe.
With natural gas so abundant and cheap, LNG exporters are potentially about to reap the benefits. TELL stock is relying on the company’s decision regarding its export facility. But the company is estimating that at “today’s gas prices in the US and abroad, it will generate about $8.55 per share in annual cash flow — more than what the stock trades for today.”
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If that target is reached, it will mean a premium upwards of 11% from current prices. Things look good for Tellurian; it has already received all the necessary permits from regulatory bodies and is looking for investment partners to pay for the construction of the facility.
It’s early days for Tellurian as the ground hasn’t even broken on the facility; however, if things do go according to plan, then investors have a potential stock surge ahead. It remains to be seen, and these shares remain highly speculative, but for those who enjoy potential and risk in equal measure, TELL stock is worth watching.
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