EE - Earnings call transcript Q3 2024 | Excelerate Energy, Inc.

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Operator

Hello, and welcome to the Excelerate Energy Third Quarter 2024 Earnings Conference Call. My name is Alex, and I'll be coordinating the call today. (Operator Instructions.) I'll now hand it over to your host, Craig Hicks, Vice President, Investor Relations. Please go ahead.

Craig Hicks

Welcome to Excelerate Energy's Third Quarter 2024 Earnings Call. today Chief Kobos, Financial call and Executive the Armstrong, Dana Officer. on are Chief Steven Officer Participating Also joining the Commercial Officer call today are David Chief Oliver Liner, Operating Officer. and Simpson, Chief

and that XXXX be statements results uncertainties. and quarter risks making be our like forward-looking I on involve on of at found released and that to third Our remind can press release everyone a yesterday presentation number earnings afternoon ir.excelerateenergy.com. would call website this were we will

materially those them. to to expressed differ will forward-looking may and we obligation financial these refer results no statements, update actual Our measures. from certain non-GAAP also Today's in make revise or remarks

is a at pass the my GAAP reconciliation provided Kobos. most the call financial over have to the directly the measures of Steven comparable it pleasure We back to to that, presentation. With

Steven Kobos

Thank Excelerate our are all you, who we we infrastructure. and the familiar to morning. story, a LNG I by you you simply proposition. the that Energy, you call, are as Excelerate start stating to downstream value with of company. At But good on to are Craig. leader many those who I in are being of global to know the of And FSRUs call committed new today's for want

another experience Our for of $XX quarter us. globe unrivaled is quarter abundant aim adjusted This EBITDA to across solid was leverage that resulted of operational a fantastic performance. I delivered and the LNG we customers help strong our million. financial unlock in proud supply. QX access and to am

This driven future a quality about a portfolio our real by by results $X business a has years. consistent and contract is foundation. high of weighted core deliver billion is strong of This generate flow to in seven term with ability is underpinned cash remaining revenue Our regas that business. the

hard going decision to and increase are I in double term. more long over our FSRU the why confident $X.XX on Excelerate our each considering needs dividend incidents. near, seafarers energy to Global want customers It's is and in day. who to team. quarter are every we also the speak us invest our the during ample to opportunity our vessels. every obsess excellence. take to a are per They our XX.X% growth more that's quarterly Quite business recordable flexibility why work operationally pool remarks. to mid safety of in We reliability to XXX stellar terminals met ensure this X gives to and Dana impressive member with of about operational served over statistics her Our the and than excess of had we share. These thank of frankly, dividend

those driving transfers hear of the transfer morning's On ship-to-ship their our Bangladesh. value the the midterm call, occurred terminal creation. During this is and you cargo crew than to near in More Energy safely this year. What team. a MLNG milestone. going LNG themes. Excelerate FSRU an new amazing three They XXXth performed Excellence accomplishment are for of the quarter, achieved XX at

and earnings, are disciplined sustainable executing generating We we a allocation are plan. capital

which more Star. about is strategy, let's talk Now our our North

FSRU it's is as are recognize fleet remains deployment also our fleet, enhance last present occur infrastructure next core some you and our LNG we of opportunities vessel, for returns. I've and pleased the Industries about projects look going our again, projects Hull the At spend regasification projects that optimize to business cutting focused support Korea. steel our FSRU. markets I'll it supply a like is XXXX. shareholders. that quarters, and milestone South with send-out would plan gas. say themselves strategy be for an XXXX and When one high of of taking for I'm our are natural said Hull before, leveraging new keel value is markets Growing We've on fleet the to day obvious our This of XXXX. the our it we report these newbuild and existing feet capable our June Hyundai in new build require our needs. around that same talked in FSRU track Heavy discussing that to Several a This terminals reached both the portfolio per is in time our want March world. best-in-class I at catalysts FSRUs. [send cornerstone it constructed on Today, important we October, delivery to our to laying our strategic are expected making how increase in of business for for cubic our growing growth pipeline FSRU responsibly Over the our company. range The smaller of ideal in the steps being them we have for conversions. we previously the by few we part and to suited a have makes time, wide XXXX is well our advancing presence of in the delivering maximize need out.] In for milestone will and to billion we XXXX.

projects. LNG cost-efficient integrated terminal evaluating currently conversion is and carrier analyzing candidates options is for our team Our

near are we're in in XXXX. In LNG volumes our portfolio. to LNG to deliveries term, carrier future LNG eyeing of the We acquisition need carrier an support going an

our enhances global this into you understand supply investments. our demand regasification returns customers. develop to tailored delivery LNG and infrastructure market dive presence together, Excelerate's strategy. how fits So, LNG strategy to knowledge help on utilize and LNG core let's provide to molecule solutions complements our our existing our all and We business it

and several agreements. tangible Additionally, our this we're work. a at support proof have strategy to portfolio establishing diversified supply LNG We points now sale of purchase

increased FSRUs deal this. is approximately generate up to $XX the million our purchase roughly in our subsequently know, deal of capacity Global We volumes. will Venture our Bangladesh annually. In through XXXX. in the will million to per Venture of XX Bangladesh, we The cargoes volumes Excelerate of the Global Energy. commercial starting annum sell for a also per sourced in XX have one of LNG one EBITDA expected beginning As from deal X.X market supply position from to Petrobangla agreement, We of years to accomplish $XX million to This pipeline. annum per signed to to in for tonnes Under portfolio, the tons Qatar These help support you LNG FOB our XX-year year. million equates opportunities XXXX. we in

our additional is team marketing further supply LNG Our pursuing deals portfolio. optimize to

in signed midterm LNG which the we business. of for XXXX, Basin Excelerate agreements in sales purchases do Atlantic and example, As QX an one in regions

on once efforts first our eventually index make portfolio. and Like again, same the our approximately Over deal helps we've these first the be will to spoken selling X.XX purchase tons about our be buying calls, expand The the would And our terms agreements, and carrier fourth a pricing will XXXX. purchase for on derisk made as in This serve million natural sell It Excelerate quarter to to investment will FSRU of also on these because the total we of it our are during of based index. a the derisking under furthers major LNG. agreements, we and conversion. LNG that other in deals great next margin. we gas European year is plan

install shared quarter, to being market. order of is This Vietnam in decades I'm we a attractive economic our a pivotal currently in are reliquefaction rapid pleased fuels growth market true is we is the for We and two in are for units a our LNG economies It our interest Last for transitions fastest-growing foreign emerging that kit with we will is we from investment. consistent. Last is also discussions for intermittent to come. there commercial This our the from in in introduces renewables. as first discussed fleet. role Southeast our Vietnamese and the increase Vietnam one especially demand carbon-intensive as very play our energy. Asia. in quarter, energy driving interest entering fleet. customers you expected, reliq

the PetroVietnam, a partnership company with Technical opportunities lower develop economy. and historically solutions subsidiary September, throughout or Alaska of of gas we region expand the state-owned local Corporation, are They we fueling heating LNG supplement LNG Vietnam. In U.S. Cook import a need country. the for are natural the discussed FSRU-based We supply use Services presence, that quarter, the our energy on to a counterparties partnership, on region remain invest South studying most and project. Last Through with FSRU-based a company. global of infrastructure an agreement are local Alaska. the Central of declining As and in Excelerate Inlet Cook also PetroVietnam PTSC. relied with we strategic Inlet a in domestic negotiations LNG natural in solution gas to pursuing confidential signed systems, in gas electricity generation The for the has

However, Cook natural meeting is their as early solution expected Alaskans region gas FSRU-based depleted to bridge terminal the by to This is that the Inlet import starting and XXXX. energy future. means as need fully even domestic the best helping to XXXX. An will be needs sooner, LNG supply integrated state's to near-term

with integrated surveys technical work will we We terminal engineering. that utilities officials, continue design local the state conducting and are and to inform LNG and

Yunus the of appetite know Petrobangla is our government. earnings talked Bangladesh. more Chief that call On existing advisers. about Nobel ongoing business to meet and Bottom SPA to we we the reality From over in the initiatives. Today, in Bangladesh contracts Dana, meet natural the had respect energy Mohammad supply. leader country ensuring discussions, needs of of remain ready the to and current also I'd in the natural Excelerate's supply to Laureate, two many look in infrastructure investment to more the future our We forward Bangladesh opportunity government, Adviser, are then, these with that to Since I've an visit XX% government the line, those turn cabinet-level government's I for are FSRUs even secured. like they transition prospective Before address needs advance of the of the last our when with that our call, foreign the the and and future the several there deliver same. is all development agreements supporting country. The support projects the energy projects gas. Bangladesh's We deliberate fundamentals country. gas and approach approximately an

to turn support years partner Dana. to committed to many the a With that, we people are I will positioned call long-term well to the for come. and Bangladesh, of are Bangladesh over We now

Dana Armstrong

Thanks, good everyone. Steven, and morning,

had primarily last across quarter driven several pleased $XX financial the by regas we for million up and was said, Steven third As EBITDA about great X% margins. versus are million, projects results. costs gas sales third quarter, and operating or Adjusted a quarter with $X lower up our higher

dry are our quarter, FSRUs vessel for capitalized to From the third year-to-date the maintenance our spent million of between and be that spend quarter, time. in guidance in our financial along per the $XXX our to inclusive we $XXX was and our equivalents release by more flow by to we near-term our financial Our of through half the Most the for of million quarter an stellar we on core finance our the recently will quarter and the when all sufficient both this including million. We'll capacity CapEx XXXX had off-hire debt, for perspective, Bangladesh, to was as the income generated of incurred capacity for of have of two balance expected provided was XXXX go $X dry available fleet. In regas docks leases, balance we'll robust the cash hand. CapEx. assumptions maintenance is Roughly XX docks dry sheet. and borrowings cash advance growth equipment relation dock, the our other which the project, of impact incur vessel with regas further maintenance million year's in roughly second February. At an cash transit docks of various we statement next dry liquidity XXXX, information into vessels sheet XXXX Unlike $XXX share for be our our XX the spend free end million, than Excelsior dry to of third of CapEx fund CapEx end. time With Germany vessel, the the opportunities. cost dock. revolver purchases will on revolver, support full total our of we next maintenance upgrades $XX Year-to-date on in to days for business, was

repurchases. through a to our is recap Next, quarterly I'd fleet allocation investing like of growth, and share dividends strategy. allocation returning maintaining our capital Excelerate's focused capital provide and strategy our on best-in-class in capital

to catalysts. committed shareholder returns to while are advance in enhancing our term growth we We continue on the strategic near

share reminder, $XX As two-year a this earlier year. million announced we repurchase program a

shares over that quarter, was Class price third A million average $X roughly the we've million at million $XX of weighted per or a XXX,XXX purchased through we the common share. utilized our third previously roughly During Year-to-date of $XX of authorized. quarter, just stock the $XX.XX

confidence reflects have generation. of the of XXXX. strategy of allocation stock, $X.XXX our A or Additionally, capital share dividend of XX, of level. representing increase Board core November last to December This the our our close our on payable we the XXXX, sheet, stability common $X.XX strength is cash Directors on is business quarterly previous balance approved of aligned quarter to week, per dividend cash business A per The record as of in and X.Xx our dividend and Class increase equal with the an regas the Class of a common stockholders X,

Next, performance we Based on narrowing previously raising our let's and XXXX. adjusted XXXX. on date, financial communicated our guidance for to for update to guidance an turn are our EBITDA

For The across in increase several the range primarily and the are regas was guidance adjusted between spend. to driven development EBITDA we higher expecting vessel full $XXX projects, by $XXX and costs lower now business margins lower-than-anticipated million operating million. range year,

For milestone we $XX is CapEx $XX is million build October. million. million $XX that the maintenance between range paid the new to to for of between expect in now full range Committed and million. capital $XX inclusive This range and still growth million year, the payment $XX expected we

As committed allocated capital for specific previously a and approved to investments capital defined reminder, is capital as committed projects. growth

predictable we cash to great our recap, to and business positive another deliver had base So quarter with earnings continuing flows. consistent results

financially for open positioned call well while we'll that, to financial Q&A. extremely the invest return opportunities capital in flexibility are the strategic still We to to growth shareholders. With up maintaining

Operator

Bank. comes Chris of today (Operator Robertson Instructions.) for Our first from question Deutsche

Christopher Robertson

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

Steven Kobos

our turn Officer. that over Steven. Commercial say This excited I that would I'm Chris. Thanks, is this. going we're just to Simpson, about to Oliver Chief

you're of LNG index once to selling are things to familiar it But seeing elaborate. that to in knowledge, at this that to One see access going places much we're the and market I about and like how turn to buying is, the liberty same again, I'd as us. and like in using I Oliver mentioned, market us

Oliver Simpson

think our this echoing Steven. I Thanks, to I Yes, excited Chris. what about add Thanks, we're great said, It's base Steven mean, a business. transaction.

and on sale. I it's it's to purchase a think margin locked-in fair say the

said deal, of length the the of midterm. I terms In think we

Think say. leverage our Steven it a I of I we as think on and what I deliver to where on business But it to footprint building leave and it. at would ability LNG multiyear, global it's have about kind our think our example customers. great to of that's base said,

we that I about we're us think our our an something and LNG the is like also iterate allows quite side that on shipping point carrier, I'd can growth which that carrier towards it that's of the additionally, to pipeline a acquire to opportunities. also excited use

leaning pipeline. that see and into great synergies our it's between on business, So, the base growing project our to then

Christopher Robertson

that service you contract? it state that opportunities? being to, spot? brought trade any, use own your it carrier guess be carrier, there for to Or Or you guess, for kind needed of seasonal opportunities will guess, be versus follow-up portfolio the up a as I how I will guess, envision sub-chartering I steady question, I do since in consistent

Oliver Simpson

sell to that. some point us, and that some the base our I on think buy we're of leveraging markets ability servicing for the in, and shown again, had we've past, we've business in leading -- the service on -- spot of the cargoes the

the to carrier, our we'll think optimize can as sense. spot business, commercial other if So, carrier go it for we we of this, it this deals and around for charters an purchasing I use but this, down look route LNG makes certainly

Operator

JPMorgan. comes Jeremy question next Our from Tonet from

Noah Katz

This Jeremy. is Katz for on Noah

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

Steven Kobos

certainly one made was we of to this make say I FSRUs. are the customers understands, need Noah, the yes, We we understand reasons more those. the want who opportunities -- to brought the think to market I clear. we're that while than people that of But the I LNG And life. know -- to means there that we we're is be think. want evaluate other think Vietnam we've FSRUs, sure I to of again. LNG, that leader certainly We in will we in If hope one getting Steven agnostic. want do leader we

-- we asset and to rely that solve will one LNG. advancing is global is don't to a class We getting on want want be need, affordable to We access to what pressing those.

tried make -- point. I that we've So, to do

continue looking at for And We reason. things in will are to I that effort. that that hope progress we

Noah Katz

CapEx maintenance good. the you CapEx for Sounds see maintained year, the as slightly guidance. guidance full then but I the And a growth lowered follow-up,

on guidance fourth guess might the ask in us I the seen quarter? trends but year? just full your what you if can decrease You what thus And based the thoughts already, about about tell can I into into went then have far the said XXXX initial you've for

Dana Armstrong

this Dana. Noah, is

quite on question just on maintenance first year-to-date equipment. of that as spent a your right spend is basis. much now CapEx, for CapEx. to vessel we report that on maintenance regard vessel upgrades, Most in haven't We CapEx it's So, cash

lumpiness that how spend payment. cash and of the payments, timing little a So, the there's we bit in of the

we're trail be. So, likely slightly just we'd into thought of XXXX. That will short we where

on XXXX, your on two to will we So, year. those as CapEx. We're question next have have will -- maintenance call, regard docks we the running we assume in said it's I still dry but through numbers,

will CapEx share those on built information maintenance February. be And into more we'll our So, next XXXX in obviously year.

Operator

Our next Scialla question Michael from comes Stevens. of

Michael Scialla

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

Dana Armstrong

Mike, [Summit] you dock, capitalized. expect aware, probably was did for that was dry as because dry our year, that be up. on structure. boot to yes, a not our vessel, It was it included that's we dock CapEx but not we This a have are maintenance in

CapEx two now And we the which of next but specific share February. have year, we're dry up the because and more timing in details not docks. to counterparties, those capitalized those half in second right vessels because go So, expect do we're our of the we working sharing are year, will the our through maintenance with still should

Michael Scialla

you new and here growth and obviously and you've will drivers? in visibility Very can longer-term to given Anything got serve that guess, mid-XXXX, as some with projects there that Vietnam. good. between between some Alaska And on here the and look point of you've at FSRU with us a growth I XXXX good the

Steven Kobos

at looking to things are if would binary Oliver, those Steven. at if obviously aware going Mike, in turn an but that terms make, beyond aren't But have Oliver. to impact. this opportunity we I'm one But Mike can see make be you don't just give and could looking this why you over more or that set. certainly any say I don't you XXXX of be color? we It's going to should is

Oliver Simpson

Thanks, XXXX, towards the And on. I build we working we'll the have Yes. mentioned, new Thanks, we're coming Yes, conversion. obviously, Steven. think obviously, see, we've as Mike.

projects continue So, and organic have. to for growth of work see I But look in at think near-term near add we opportunities value. conversions the the new pipeline we term, will inorganic that we build of would the towards kind

there's think of I a number ongoing discussions.

we're on financial the thing think comes if right great to act in something position a I up.

we'll can. looking we're come those on back we those, So, at when and

Operator

(Operator question Northland Our of Instructions.) next Brooks Bobby Capital from comes Markets.

Robert Brooks

the would to quickly us you So, that to how like customers' -- to wanted an of bay LNG guessing type of energy it's you those I probably smaller maybe just convert curious needs for a changes more as that's doesn't probably LNG policy FSRU. FSRU? it's fit? a carrier I And give Inlet. just insurance FSRU on to this ask could probably backup where like crazy carrier could a and in it's less projects detail what experience converted was project it's environmentally, in I'm more Cook

Robert Brooks

this David great is Liner. Yes, question. Bobby,

And it for project, So, for excited of one send-out on that only long smaller about, Cook could It's would any available to me, project, in would that for could we're you into XXXX be for policy. those a can't Indeed, without or engineering that areas. that the smaller wouldn't would get reason. be the a pipeline. that prospect. go those us are conversion lead be do versatile targeted not -- excuse an be necessarily use Oliver items. insurance project but those just It the sensitive for on we about projects spoke versatile to really go a the environmentally vessel probably customers. By that anywhere, our to conversion or in -- be start smaller -- expect projects that could we It asset for it Inlet having a the it conversion

without without items vessel. you engineering lead can't do do and a engineering the can't You the long

line to by bring our the vessel, clock the market. vessel we're to that that on time spoke about, starting so, hands a getting And you

getting clock You're asset. on that starting by the hands your

specification vessel total than to the things Conversion considerably for a a that the it's market. that, There's three half a of less the dependent very driving time was on less bring that So, use you're in of that that, going and three last into years to to conversion. about on than year a notionally is go conversion. order vessel terms earnings on new line a spoke donor that that to but line, time call, also the lot we of

So, fully out comfortable don't asset have the that flushed feel but that and to on time don't sense feel specification, comfortable roughly to our hands until for hope have the speaking you exact I gives a what expect. we line,

Robert Brooks

I terrific that's that. No, color. appreciate

you so, get out And -- well vessel long kind laid the the really of it lead time maybe there the items. that to you have before engineering full

infrastructure? would right? and to earlier to about deliver So, for it the values. me LNG right you it I those in right I could that you're were carrier carrier items, be doing -- the FSRU you the about midterm then you right? could your an thinking way call, Am having I Am that long LNG talking get thinking buy be Am it about the volumes And ordering while current delivering those LNG engineering for -- and to actually conversion. could that lead time

David Liner

Yes, that's preparing model conversion. this spot get to of on. That's trade asset we is while for we're the that the beauty

or engineering work. don't of Spot do on an have you all And vessel longer so, you absorb to months while idle on. downtime that even

Robert Brooks

generation build the in don't ultimately will discussions you I up of that's of here, can above EBITDA? right impressive. like time XXXX, be already per August it by Wow, of that generates are I kind then too new delivered also, September am notably to that on year, in your build ship June the I I guess would Okay. go? EBITDA current And generation? or generating that right want being of then we assume be get build, is had on from If likely really fleet vessel but the terms And that that a what much assume where to new would then take new

Oliver Simpson

light long-term without the it's one. I'll shed try and But I think contract without contracted to to in FSRU, into going mean of what to it. say this here. discussions. some the -- commercial think not we're was attached that's only Oliver that specifics I newbuild take it's Bobby, contracted that I'd is go FSRU a I

it's So, the fleet. a asset in I think unique

fantastic at I the for send you send a needs that higher a look it's think out, asset size project out. that that of

So, the for about very prospects bringing fleet the excited that asset and into that. we're

come So, again, come but back into asset having out in we specifics, can when these it's one of our excited say we'll things fleet. we're on XXXX about that more

Operator

this time, have further no questions. currently we At

I'll for to any further Kobos Steven So, hand remarks. back

Steven Kobos

Again, is like I incredible everyone said company us really I would thank conversation. an call do. for we are to the the appreciate we we is This what on summary, would today. In doing joining that driving markets doing big FSRUs things in heard globe. LNG is are all why you downstream infrastructure. midterm in the value the that industry and we around leader That is we near today and are What creation.

allocation generates are for very you, executing value maximize that, we sustainable much your for a strategy to We have shareholders. our earnings, capital disciplined that With rock-solid base business valued and thanks a time.

Operator

Thank today's call. you joining for

may your now disconnect lines. You

Excelerate Energy (EE) 7 Nov 242024 Q3 Earnings call transcript