Why Tellurian Stock Rocketed 22% Higher at the Open Today
Shares of Tellurian (NASDAQ: TELL), which operates in the U.S. energy sector, exploded higher in the first half-hour of trading on Thursday, gaining just over 22% at one point in early trading. There's no question about what got investors so enthusiastic here, as the company announced a major contract today.
One of the biggest themes with Tellurian is that it is building energy infrastructure, including a natural gas pipeline and a liquified natural gas export facility. Both will be operated under the name Driftwood. These are big and expensive projects that will take a fairly long time to complete, and the company is still in the early stages of the process.
While management is working on that task, however, it has also been looking to ink deals with potential customers so it can lock in future revenue. That was the big news today, as Tellurian agreed to a 10-year deal to supply energy trader Vitol with LNG from the proposed Driftwood LNG export facility. The contract is projected to generate as much as $12 billion in revenue over its life.
Source Fool.com
