• Adjusted EBITDA: $92 million for Q3 2024, up 4% from the previous quarter.
• Maintenance CapEx: $4 million for Q3 2024; $35 million year-to-date through Q3.
• Total Debt: $716 million at the end of Q3 2024.
• Cash and Cash Equivalents: $608 million at the end of Q3 2024.
• Revolver Capacity: Approximately $350 million available for borrowings at quarter end.
• Share Repurchase: 364,000 shares repurchased for over $7 million in Q3 2024; $28 million utilized year-to-date from a $50 million program.
• Quarterly Dividend: Increased to 6 per share, payable on December 5, 2024.
• 2024 Adjusted EBITDA Guidance: Raised to $335 million - $345 million for the full year.
• 2024 Maintenance CapEx Guidance: Expected to range between $40 million and $50 million.
• 2024 Committed Growth Capital: Expected to range between $70 million and $80 million.

• Warning! GuruFocus has detected 8 Warning Signs with EE.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Excelerate Energy Inc (NYSE:EE) reported a strong third quarter with an adjusted EBITDA of $92 million, driven by lower operating costs and higher gas sales margins.
• The company has a robust contract portfolio with about $4 billion in future revenue and a weighted remaining term of seven years, providing a solid foundation for growth.
• Excelerate Energy Inc (NYSE:EE) increased its quarterly dividend to 6 cents per share, more than doubling the previous amount, reflecting confidence in its cash generation capabilities.
• The company achieved operational reliability in excess of 99.8% and zero recordable safety incidents, highlighting its commitment to operational excellence.
• Excelerate Energy Inc (NYSE:EE) is actively pursuing growth opportunities, including a new build FSRU expected to be delivered in June 2026 and potential LNG carrier acquisitions to support future projects.

Negative Points

• The company faces uncertainties related to the ongoing transition in the Bangladesh government, although existing contracts are reportedly secure.
• Excelerate Energy Inc (NYSE:EE) will incur an off-hire impact due to dry docking of two FSRUs in 2025, expected to last 40 to 50 days per vessel.
• The company has not yet secured long-term contracts for its new build FSRU, which is scheduled for delivery in 2026.
• There is a potential increase in maintenance CapEx for 2025 due to upcoming dry docks, which could impact financial flexibility.
• The timeline for converting an LNG carrier to an FSRU is uncertain and depends on various factors, including the specification and donor vessel.

Q & A Highlights

Q: Can you clarify the new supply agreement and whether supply has been secured? What is the expected EBITDA generation from this agreement? A: Oliver Simpson, Chief Commercial Officer, explained that the agreement is a locked-in margin on purchase and sale, described as a multi-year deal. It leverages Excelerate's base business and global footprint, allowing for the acquisition of an LNG carrier to support growth opportunities.

Q: Will the LNG carrier be used consistently for your portfolio, or will there be opportunities for spot trading? A: Oliver Simpson stated that the carrier could be used for the contract and optimized for commercial business, including spot charters and other deals, as it makes sense.

Q: Are there growth opportunities outside of FSRUs, and are you considering onshore regasification investments? A: Steven Kobos, CEO, confirmed that while Excelerate is a leader in FSRUs, they are open to other LNG delivery methods to meet global demand, indicating a willingness to explore diverse asset classes.

Q: With two dry docks planned for next year, will maintenance CapEx increase in 2025 compared to 2024? A: Dana Armstrong, CFO, indicated that maintenance CapEx is expected to increase due to the two capitalized dry docks planned for the second half of 2025, with more details to be shared in February.

Q: How quickly can an LNG carrier be converted to an FSRU, and what types of projects would it serve? A: David Liner, COO, explained that conversion timelines depend on specifications and the donor vessel, generally taking about a year less than new builds. The converted FSRU would target smaller send-out customers and could be versatile for various projects.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.