Tellurian(TELL) - 2022 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2022, was $391.9 million, a significant increase from $71.3 million in 2021[251] - The company reported a net loss of approximately $49.8 million for 2022, a decrease from a net loss of $114.7 million in 2021[255] - Consolidated net loss for the year ended December 31, 2021, was approximately $114.7 million, a decrease from a net loss of approximately $210.7 million in 2020[258] Natural Gas Sales - Natural gas sales reached $271.0 million in 2022, up from $51.5 million in 2021, driven by higher realized prices and production volumes[251] - Natural gas sales rose by approximately $21.1 million, attributed to increased realized natural gas prices, despite decreased production volumes[259] Expenses and Costs - General and administrative expenses increased by approximately $40.5 million, driven by a $14.6 million rise in professional services and a $9.0 million increase in donations to a university for global energy research[259] - Interest expense, net increased by approximately $4.5 million due to higher interest charges from increased borrowing obligations in 2022 compared to 2021[259] - Increase of approximately $38.6 million in general and administrative expenses primarily due to a $32.2 million rise in compensation expenses[260] - Decrease of approximately $5.7 million in depreciation, depletion, and amortization (DD&A) expenses due to a lower net book value from prior impairment charges[259] Cash and Liquidity - The company had approximately $474.2 million in cash and cash equivalents as of December 31, 2022, providing sufficient liquidity for at least twelve months[238] - As of December 31, 2022, the company had total indebtedness of approximately $557.7 million, with $166.7 million subject to redemption by holders of the Convertible Notes[239] Investments and Projects - Cash used in investing activities increased by approximately $507.7 million in 2022, primarily due to spending on natural gas acquisition and development activities[242] - The total estimated cost of the Driftwood Project and related pipelines is approximately $25.0 billion, with a liquefaction capacity of up to 27.6 Mtpa[247] - The company completed the acquisition of natural gas assets in the Haynesville Shale basin for an adjusted purchase price of approximately $133.8 million[234] - The company commenced construction of Phase 1 of the Driftwood terminal on April 4, 2022, following a limited notice to proceed issued to Bechtel[232] - The company plans to pursue various commercial arrangements and potential acquisitions to expand its asset base and enhance its operations[229] Other Income and Financial Instruments - Other income increased by approximately $6.6 million, mainly from an $8.7 million unrealized gain on natural gas financial instruments[260] - The fair value of natural gas financial instruments as of December 31, 2022, was $10,463 million, with a sensitivity analysis showing a potential range of $7,711 million to $13,446 million for a 10% price change[266] Accounting Standards - The company does not anticipate any material effects from recently issued accounting standards that are not yet effective[265]