Tellurian Inc (NYSEAMERICAN:TELL) Stock Tanks 16% On High Volume

There was no fresh news about Tellurian Inc (NYSEAMERICAN:TELL) on Wednesday but the company’s stock suffered from a sharp selloff nonetheless and ended up with losses of as much as 15.50%.

Market Stats

On Wednesday, TELL stock slumped  16% at $3.80 with more than 24.82 million shares, compared to its average volume of 11.81 million shares. The stock has moved within a range of $3.7100 – 4.3000 after opening the trade at $4.20. Moreover, the stock is down another 15% in the pre-market session.

Tellurian Reports Third Quarter 2021 Results

While it is true that the decline in the stock may appear a bit random in nature, it should be noted that the company had been in the news earlier on in the month. Back on November 3, it emerged that the company had managed to complete the sales from the Driftwood LNG’s capacity meant for two plants.

It was revealed that the company signed agreements with regards to three million tonnes per annum worth of purchase and sales agreements with the energy giant Shell. In addition to that, Tellurian also managed to raise fresh capital to the tune of as much as $116 million through a public stock offering in the third fiscal quarter of 2021.

The company is currently quite cash rich considering the fact that at the end of the third fiscal quarter it had cash and cash equivalents to the tune of as much as $210.8 million. It now remains to be seen if the stock can actually make a recovery any time soon.

Key Quote

President and CEO Octávio Simões said, “Tellurian recently brought production online from two newly completed natural gas wells, adding to our financial strength and integrated model that provides a valuable hedge to volatile global prices. By year end 2021 we plan to produce approximately 70 million cubic feet equivalent per day (mmcfed). In addition, we have authorized a new drilling program and plan to drill 12 – 14 wells to produce approximately 220 mmcfed by year end 2022. We have turned our focus to financing Driftwood LNG and plan to give Bechtel notice to proceed with construction in early 2022.”

Traders Corner

TELL stock is trading above the 200-Day and 50-Day Moving averages of $3.27 and $3.65 respectively. However, the stock is trading below the 20-Day moving average of $4.03. The stock is up 11% in the past month.