Excelerate Energy, Inc. Q3 FY2024 earnings call

• Steven Kobos introduced Excelerate as a global leader in FSRUs and downstream LNG infrastructure, highlighting a strong Q3 with adjusted EBITDA $92M. The core regas business has $4B in future revenue, and the FSRU/terminals business offers growth flexibility. The quarterly dividend was more than doubled to $0.06 per share. Operationally, reliability was over 99.8% with 0 recordable safety incidents, and the FSRU Excellence crew achieved 250th ship-to-ship LNG cargo transfer. Discussed fleet growth strategy, LNG supply strategy, and projects in Bangladesh, Vietnam, and Alaska.
• Dana Armstrong reported adjusted EBITDA Q3 $92M, up 4% from prior quarter, driven by lower operating costs and higher gas sales margins. Maintenance CapEx Q3 $4M, YTD $35M. Total debt $716M, cash $608M. Capital allocation strategy includes growth investment, fleet maintenance, dividends, and share repurchases. Board approved dividend increase to $0.06 per share. Raised 2024 adjusted EBITDA guidance to $335M-$345M, maintenance CapEx $40M-$50M, and committed growth capital $70M-$80M.

In Q3 2024, Excelerate Energy achieved adjusted EBITDA of $92 million. The core regas business is underpinned by a contract portfolio with approximately $4 billion in future revenue and a weighted remaining term of seven years. The FSRU and terminals business provides flexibility for growth in the near, mid, and long term.

• Raised 2024 adjusted EBITDA guidance to $335M-$345M.
• 2024 maintenance CapEx expected $40M-$50M, committed growth capital $70M-$80M (including $50M milestone payment for new build paid in October).
• In 2025, two FSRUs will go into dry dock with an off-hire impact of 40-50 days per vessel, details to be shared in February.

• Forward-looking statements involve risks and uncertainties where actual results may differ materially from forward-looking statements.

Q: Just wanted to clarify on the new supply agreement that was just signed here. Do you guys have -- I guess, have you secured supply for that agreement? And is there an agreed upon kind of spread or margin that we should be thinking about there? Just in terms of how to frame a medium-term agreement in terms of is that three years, five years, seven years? And what could that mean in terms of expected EBITDA generation?

A: Steven Kobos turned it over to Oliver Simpson, who said it's a great add to the base business, a locked-in margin on purchase and sale, midterm deal, and synergies with shipping for acquiring an LNG carrier.

Q: First, I want to touch on what you're seeing with other growth opportunities outside of FSRUs. Are you still focused on investing additional assets and vessels and infrastructure for onshore regasification efforts with potential smaller players maybe for more near-term earnings uplift?

A: Steven Kobos said they are agnostic and will evaluate other means of getting LNG to those in need, looking to advance such efforts.

Q: Maybe just to follow up on the last question. Dana, I realize you haven't put the numbers out there yet, but can you say with those two dry docks and some of the CapEx billing -- maintenance CapEx billing into next year relative to 2024, would we think that 2025 would be up maintenance CapEx versus 2024?

A: Dana Armstrong said they expect maintenance CapEx to be up in 2025 due to two capitalized dry docks next year, with details to be shared in February.

Q: So, I just wanted to ask on the LNG carrier to FSRU. I was just curious how quickly could you convert that LNG carrier to an FSRU? And could you maybe give us more detail as to what type of projects this converted FSRU would fit?

A: David Liner said conversion is considerably less time than new build, targeted for smaller projects, and getting the vessel starts the timeline for conversion engineering and deployment.