What next for Tellurian (TELL) stock price?

By:
on Mar 25, 2024
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  • Tellurian share price has crashed by more than 50% from its YTD high.
  • The company is facing huge headwinds as natural gas prices slump.
  • It could benefit from the recent ban on LNG projects in the US.

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Tellurian (TELL) stock price has come under intense pressure this year as concerns about the company remained. It crashed to $0.50 on Monday, its lowest level since February 8th of this year. The stock has plunged by over 50% from its highest point this year and by over 97% from its 2017 high.

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Turnaround is underway

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Tellurian is a company seeking to be a major player in the natural gas industry. This is a sector that is growing at a fast pace, helped by the substantial demand from the European Union.

However, Tellurian is a company in trouble, as evidenced by its decision to fire Charif Souki, its founder. Souki also founded Cheniere Energy, a company now valued at over $24 billion. Its CEO, Octavio Simoes also resigned this month.

The company is also going through challenges with its Driftwood project, which requires billions of dollars in financing. It is unclear whether this project will go on since Tellurian’s balance sheet cannot handle it. 

The most recent results showed that Tellurian had over $81 million in cash and short-term investments while the project needs over $10 billion.

Tellurian also lost deals with some big companies like Total Energies and Shell that were to offtake its gas. 

Worse, it is in the natural gas industry at a time when the price of the commodity has plunged by over 81% from its all-time high. It is hovering near its lowest level since July 2020.

Still, there are a few positives about Tellurian. First, the company is exploring strategic alternatives, which could include a sale. In a recent statement, Williams said that it considered making a bid for the company.

Second, a potential sale would be attractive now that the Biden administration has paused more licenses for LNG terminals. This is notable since Tellurian’s Driftwood is one of the licensed plants in the country.

Tellurian stock price forecast

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TELL chart by TradingView

The daily chart shows that the TELL share price has been in a strong bearish trend in the past few days. It has lost over 50% of its value after peaking at $1 this month.

The 50-day and 25-day Arnaud Legoux Moving Averages (ALMA) have made a bearish crossover, which is a bearish sign. It has also crashed to the psychological point at $0.50. 

Meanwhile, the Relative Strength Index (RSI) and the Stochastic Oscillator have pointed downwards. Therefore, the outlook for the stock is extremely bearish, with the next point to watch being at $0.3463, its lowest point in February.

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