Release Date: February 27, 2025

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

Positive Points

• Excelerate Energy Inc (NYSE:EE) delivered record adjusted EBITDA of $348 million for 2024, surpassing the high end of their guidance range.
• The company achieved a net income of $153 million, marking a 21% increase year-over-year.
• Excelerate Energy Inc (NYSE:EE) maintained a high fleet reliability of 99.9%, the highest in its history.
• The company completed its 3000th LNG ship-to-ship cargo transfer, highlighting its operational excellence.
• Excelerate Energy Inc (NYSE:EE) has a strong balance sheet with $538 million in cash and cash equivalents, providing significant financial flexibility.

Negative Points

• The transition of the FSRU Sequoia from gas sales in Brazil to a 10-year time charter party agreement led to a partial offset in income increases.
• The company faces ongoing geoeconomic uncertainties, particularly in Europe, which could impact future operations.
• There is no inclusion of potential growth opportunities in the 2025 guidance, indicating uncertainty in realizing these opportunities.
• The final payment for the new build FSRU is expected to be roughly $200 million, which could strain financial resources.
• Excelerate Energy Inc (NYSE:EE) has utilized all of its $50 million share repurchase program, with no immediate plans for a new authorization.

Q & A Highlights

• Warning! GuruFocus has detected 6 Warning Signs with EE.

Q: What is implied in the 2025 adjusted EBITDA guidance, and are there any growth opportunities outside of FSRUs included in this guidance? A: Dana Armstrong, CFO: The guidance is based on the base business, including the FSRU fleet and LNG supply optimization. Other growth opportunities are not currently included in the guidance, but we are pursuing them. We expect to update the guidance once we have commitments on additional assets.

Q: Can you provide further details on the LNG carrier you plan to acquire for FSRU conversion, and what potential markets are you interested in? A: Oliver Simpson, Chief Commercial Officer: We are assessing different options for LNG carriers that fit our near-term needs for cargo optimization and future FSRU projects. We have inspected several vessels and are in discussions to proceed with acquisitions this year.

Q: How much of the maintenance CapEx for 2025 will be expensed versus capitalized? A: Dana Armstrong, CFO: The $60 to $70 million maintenance CapEx is all capitalized. Previous dry docks in Bangladesh were expensed, but going forward, all other vessels' maintenance will be capitalized.

Q: Have you seen a change in demand for your services given the global macroeconomic environment, particularly with peace talks in Russia and Ukraine? A: Stephen Cobos, CEO: While I can't comment on peace negotiations, the macroeconomic environment remains tight for our asset class due to geoeconomic and geopolitical factors. For example, Germany plans to add 50 gas-fired power plants, indicating a need for increased gas imports.

Q: Are there any updates on the Vietnam and Alaska projects? A: Stephen Cobos, CEO: In Alaska, the focus is on export projects, but there is still a near-term need for gas imports. In Vietnam, we continue to work on opportunities, and the fundamentals remain positive. We are confident in our ability to address these projects with our new build and conversion strategies.

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