Retail investors in Tellurian (TELL) attracted by the company's ambitious plans for a liquefied natural gas terminal, are facing significant losses after the firm agreed to be acquired by Woodside Energy Group (WDS) for $1 per share. Many had invested when the stock traded much higher, feeling a sense of betrayal as the company's charismatic co-founder, Charif Souki, had courted nonprofessional shareholders with promises of a bright future.
The acquisition ends Tellurian's independent development of its LNG project, Driftwood, and underscores the challenges faced by meme-stock investors. Despite initial excitement and a surge in stock price, the project struggled with financing and competition. The sale to Woodside, expected to close in the fourth quarter, leaves retail investors with substantial losses.
Market Overview:
- Tellurian agrees to $1 per share acquisition by Woodside Energy.
- Retail investors face significant losses; many had bought in at higher prices.
- Acquisition concludes Tellurian's independent LNG project ambitions.
Key Points:
- Charif Souki engaged retail investors through social media.
- Financing difficulties and competition impacted Tellurian's LNG project.
- Retail investors transitioning investments to Woodside.
Looking Ahead:
- Sale expected to close in Q4, pending approvals.
- Woodside's acquisition may offer potential recovery for investors.
- Retail investors left considering future investment strategies.
Charif Souki's efforts to engage with retail investors included frequent social media updates, positioning the company as a promising play on the transition to cleaner energy. However, the harsh realities of financing and market competition led to a sharp decline in share value, culminating in Souki's ouster in December.
While Tellurian's management will receive bonuses from the sale, retail investors are left with diminished returns. Some, like investor Ryan Panno, are transitioning their investments to Woodside, hoping to recoup losses through the new ownership.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
