Why Under-$2 Stock Tellurian Skyrocketed Today
Shares of Tellurian (NYSEMKT: TELL) are on fire today, rallying 12.6% as of 12:45 p.m. ET Wednesday after the liquified natural gas (LNG) stock reported a huge jump in production and revenue for its fourth quarter on a day when natural gas prices also rebounded.
Tellurian stock fell sharply on Tuesday, a day ahead of earnings after the U.S. natural gas prices plummeted to levels not seen since September 2020 on high supply and lower-than-expected demand thanks to mild weather. Tumbling natural gas prices have weighed heavily on Tellurian stock in recent months, as lower prices have not only made its recent acquisitions look pricey but have also put a question mark on the fate of its key project, Driftwood LNG.
This morning, though, natural gas prices rebounded and were trading 7% higher as of 1 p.m. ET. Today, Tellurian too reported a fourfold jump in its natural gas production for the fourth quarter. In the full year, Tellurian generated roughly $392 million in revenue from the sale of LNG and natural gas, up more than fivefold from 2021 thanks to higher production and natural gas prices.
Source Fool.com
