In a recent filing with the Delaware Secretary of State, Houston-based Tellurian (NYSE:TELL) Inc. (NYSE American: TELL) has amended its certificate of incorporation to include a previously omitted attachment detailing its Series C Convertible Preferred Stock. The corrected amended and restated certificate of incorporation, submitted on Thursday, corrects the prior oversight by formally attaching the Certificate of Designations.
The adjustment was purely administrative in nature, ensuring that the Certificate of Designations is now explicitly part of the company's Certificate of Incorporation. Prior to this correction, the Certificate of Designations was incorporated by reference but not attached to the document.
This legal update comes as part of routine corporate governance, with no immediate impact on Tellurian's operations or financial standing. Tellurian, categorized under the crude petroleum and natural gas industry, remains focused on its core business activities.
In other recent news, Tellurian has announced a deal to sell its Haynesville gas-producing assets to Aethon Energy for $260 million, slightly below the $280 million initially projected by analysts.
In addition to the asset purchase, Aethon Energy has also agreed to a Heads of Agreement (HoA) to buy 2 million tons per annum of liquefied natural gas from Tellurian's Driftwood project.
However, Stifel, who maintains a sell rating on Tellurian, noted that the rate of conversion from HoAs to Sales and Purchase Agreements is typically low, casting doubt on the commercial significance of this agreement.
The deal, which is expected to be finalized in the second quarter of 2024, is aimed at managing Tellurian's debt obligations while advancing the Driftwood project. However, Stifel's evaluation suggests that the company's equity value remains significantly below the current trading price, reaffirming their sell rating.
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