Liquefied natural gas (LNG) specialist Tellurian (TELL 7.71%) was targeted with a widespread investor sell-off on Monday. The market seemed to be in panic mode following some concerning developments at the company and briskly traded out of the stock. It fell by almost 24% on the day, indicating sharply rising doubts about the company's viability.
CEO steps down; possible sale to be explored
In a one-two punch that sent investors reeling, Tellurian revealed that its leader has stepped down, and that it is considering a sale of the company.
CEO Octávio Simões stepped down from his role the preceding Friday, the company said, and will serve Tellurian in an advisory capacity until his planned retirement in June. He is the second top executive at the energy company to head for the exit door in nearly as many months -- last December, Tellurian pushed out Charif Souki from the position. Souki was also the company's chairman at the time, and is one of its founders.
Tellurian said that company presidents Samik Mukherjee and Daniel Belhumeur will together manage commercial activities. Samik Mukherjee, president of Driftwood Assets, is to serve as president of Tellurian Investments. In this role, he is to be responsible for the development of all company assets. This includes the troubled Driftwood LNG export project.
Drifting away?
On top of that, Tellurian said that it is considering all options for its future. It has directed its advisor, investment bank Lazard, to explore such options. The company had originally drafted Lazard to aid it with financing Driftwood; that mandate has now been extended.
The expensive Driftwood is a mounting problem for which Tellurian has still not found a viable solution. Some investors clearly saw Monday's developments as the company starting to throw in the towel.
