Financial Performance - Excelerate Energy reported a net income of $46.1 million for Q4 2024 and $153.0 million for the full year 2024, representing an increase from $126.8 million in 2023[7][3]. - Adjusted EBITDA for Q4 2024 was $91.6 million, with a full year total of $348.2 million, slightly up from $346.8 million in 2023[7][3]. - Revenues for Q4 2024 were $274.6 million, compared to $193.4 million in Q3 2024, while full year revenues decreased to $851.4 million from $1,159.0 million in 2023[3][7]. - The increase in net income and Adjusted EBITDA for 2024 was primarily due to charter rate increases and a full year of earnings from the FSRU Excelsior[5][6]. - For the three months ended December 31, 2024, total revenues were $274,572,000, a significant increase from $193,419,000 for the previous quarter[26]. - Net income for the year ended December 31, 2024, was $153,034,000, compared to $126,844,000 for the previous year, representing a year-over-year growth of approximately 20.5%[30]. - Operating income for the year ended December 31, 2024, was $214,995,000, compared to $210,605,000 for the previous year, indicating a stable performance[26]. - Cash flows from operating activities for the year ended December 31, 2024, were $244,437,000, an increase from $231,885,000 in the previous year[30]. - The company’s net income attributable to shareholders for the year ended December 31, 2024, was $32,878,000, up from $30,412,000 in the previous year[26]. - For the three months ended December 31, 2024, net income was $46,071,000, an increase from $45,546,000 in the previous quarter[34]. - Adjusted EBITDA for the full year ended December 31, 2024, was $348,195,000, slightly up from $346,822,000 in the previous year[34]. Future Projections - The company expects full year 2025 Adjusted EBITDA to range between $340 million and $360 million, with maintenance Capex projected between $60 million and $70 million[8][11]. - The company projects Adjusted EBITDA for 2025E to be between $340,000,000 and $360,000,000[34]. - The company expects interest expense for 2025E to be between $50,000,000 and $60,000,000[34]. Operational Insights - Excelerate's operational performance was impacted by higher operating costs related to scheduled maintenance in Q4 2024[6][5]. - The transition of the FSRU Sequoia to a time charter party agreement in Q1 2024 partially offset earnings growth in 2024[5][6]. - The company plans to focus on expanding its fleet and optimizing its LNG supply portfolio in 2025[2][11]. Shareholder Returns - The company declared a quarterly cash dividend of $0.06 per share, payable on March 27, 2025[10][7]. - The company repurchased $50,000,000 of Class A Common Stock during the year, reflecting a commitment to returning value to shareholders[30]. Financial Position - Excelerate's cash and cash equivalents stood at $537.5 million as of December 31, 2024, with $327.2 million of undrawn capacity available under its revolver[9][11]. - The company’s total assets as of December 31, 2024, were $2,883,215,000, a slight increase from $2,860,379,000 as of December 31, 2023[28]. - Current liabilities increased to $216,104,000 as of December 31, 2024, compared to $203,756,000 as of December 31, 2023[28]. - The weighted average shares outstanding for basic shares was 24,187,118 for the three months ended December 31, 2024[26]. Expenses - The company reported an adjusted gross margin of $408,082,000 for the full year ended December 31, 2024, slightly down from $412,404,000 in the previous year[33]. - Interest expense for the three months ended December 31, 2024, was $14,818,000, down from $15,122,000 in the previous quarter[34]. - Provision for income taxes for the full year ended December 31, 2024, was $26,099,000, compared to $33,247,000 in the previous year[34]. - Long-term incentive compensation expense for the full year ended December 31, 2024, was $7,245,000, significantly higher than $3,639,000 in the previous year[34]. - Depreciation and amortization expense for the full year ended December 31, 2024, was $98,939,000, down from $114,323,000 in the previous year[34]. - Accretion expense for the full year ended December 31, 2024, was $1,856,000, compared to $1,774,000 in the previous year[34]. - The company has not reconciled the Adjusted EBITDA outlook to net income due to the difficulty in estimating income taxes with precision[34].

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Gulfport Energy, SM Energy, and Excelerate Energy [1][2][3]. Company Summaries - **Gulfport Energy (GPOR)**: - Focuses on exploration and development of natural gas and oil properties in North America - Holds a Zacks Rank 1 (Strong Buy) - Current year earnings estimate increased by 0.4% over the last 60 days - Shares gained 29.6% over the last three months, outperforming the S&P 500 which declined by 0.6% - Possesses a Momentum Score of A [1][2]. - **SM Energy (SM)**: - Engaged in exploration, exploitation, development, acquisition, and production of natural gas and crude oil in North America - Holds a Zacks Rank 1 - Current year earnings estimate increased by 0.2% over the last 60 days - Shares gained 4.3% over the last three months, also outperforming the S&P 500's decline of 0.6% - Possesses a Momentum Score of A [2][3]. - **Excelerate Energy (EE)**: - Provides floating liquefied natural gas terminals primarily in the United States and several other countries - Holds a Zacks Rank 1 - Current year earnings estimate increased by 4.2% over the last 60 days - Shares gained 17.9% over the last three months, again outperforming the S&P 500's decline of 0.6% - Possesses a Momentum Score of B [3][4].

Core Viewpoint - JP Morgan analyst Jeremy Tonet downgraded Excelerate Energy, Inc from Neutral to Underweight while raising the price target from $22 to $31, citing flat EBITDA expectations from 2023 to 2025 despite growth opportunities mentioned at the IPO [1][2]. Group 1: Financial Performance - Excelerate Energy's EBITDA is expected to remain flat from 2023 to 2025, indicating a lack of growth despite previous expectations [1]. - The company experienced a significant outperformance in 2024, achieving a 97% total shareholder return compared to the AMNA index's 44% [2]. Group 2: Growth Opportunities and Risks - The anticipated delivery of FSRU in 2026 is expected to boost EBITDA, but growth from the IPO has been slow to materialize, leading to a lagging track record compared to peers [2]. - The analyst highlights risks associated with operating in developing countries, including challenges related to contract law and legal enforceability [3]. Group 3: Market Conditions - With ongoing reforms in Bangladesh and a caretaker government in place, the risks of investing in a global company like Excelerate Energy are considered higher compared to a U.S.-focused midstream company [4]. - As of the latest check, EE shares are trading lower by 6.78% to $29.55 [4].

Core Insights - Current volatility in the energy sector may present strategic entry points for long-term investment opportunities as the landscape evolves [1][4] - The energy sector has faced struggles, but periods of underperformance can create appealing opportunities for growth-focused investors, especially with economic momentum and easing inflation [3][4] Company Summaries - **Gulfport Energy**: A natural gas-focused exploration and production company that has emerged from bankruptcy with a stronger balance sheet. The company prioritizes Utica development to drive free cash flow, reduce debt, and align with ESG-focused investor expectations. The Zacks Consensus Estimate for Gulfport Energy's 2024 earnings per share indicates a significant year-over-year growth of 108.1% [5][10] - **Excelerate Energy**: Specializes in LNG infrastructure and services, representing 20% of the global FSRU fleet and 5% of global regasification capacity. The company aims to expand into LNG-to-power generation and gas distribution, with a Zacks Consensus Estimate for 2024 earnings per share indicating a year-over-year growth of 10.8% [11][18] - **Flotek Industries**: A leading chemistry and data technology company that enhances operational efficiency and environmental performance for hydrocarbon producers and renewable energy sectors. The Zacks Consensus Estimate for Flotek Industries' 2024 earnings per share indicates a remarkable year-over-year growth of 125% [12][19] Market Trends - Despite challenges such as oversupply and demand fluctuations in oil, economic recovery in Asia offers optimism for gradual improvement in the energy sector. Natural gas prices are also rising due to forecasts of colder weather, which may boost demand [8][14] - The S&P 500 has surged by 28% this year, while the Oil/Energy sector has only delivered 4% total returns, reflecting global economic uncertainties [14]

Core Viewpoint - Excelerate Energy is showing strong performance in the Oils-Energy sector, with a Zacks Rank of 2 (Buy), indicating a positive earnings outlook and potential for continued outperformance [1]. Group 1: Company Performance - Excelerate Energy has returned 97.6% year-to-date, significantly outperforming the average return of 1.2% for Oils-Energy companies [5]. - YPF Sociedad Anonima has achieved a year-to-date return of 148.9%, indicating strong performance within the sector [2]. - Both companies are positioned favorably within their respective industries, with Excelerate Energy in the Alternative Energy - Other industry ranked 76 and YPF in the Oil and Gas - Integrated - International industry ranked 134 [3][6]. Group 2: Earnings Estimates - The Zacks Consensus Estimate for Excelerate Energy's full-year earnings has increased by 7.7% over the past 90 days, reflecting improving analyst sentiment [8]. - YPF Sociedad Anonima's consensus EPS estimate has risen by 46.4% in the last three months, contributing to its Zacks Rank of 1 (Strong Buy) [9]. Group 3: Sector and Industry Rankings - The Oils-Energy sector, which includes Excelerate Energy, is ranked 12 in the Zacks Sector Rank, based on the average Zacks Rank of individual stocks [4]. - The Alternative Energy - Other industry, which includes Excelerate Energy, has an average gain of 59.1% this year, indicating a strong performance relative to other industries [6].

Industry Overview - The U.S. electric vehicle market is expected to experience solid growth, driven by the electrification of the transportation sector, which will positively impact alternative energy stocks [1] - The Zacks Alternative Energy industry is divided into two segments: one focuses on the generation and distribution of alternative energy, while the other is involved in the development and installation of renewable projects [2] - Global spending on clean energy technologies is projected to reach $2 trillion in 2024, indicating significant growth opportunities in the clean energy sector [2] Key Trends - Wind energy is a major growth catalyst, contributing approximately 10.2% of total U.S. utility-scale electricity generation in 2023, with a projected 6.6% year-over-year increase in 2024 [3] - The U.S. electric vehicle market saw new registrations of 1.4 million in 2023, reflecting over 40% growth from 2022, with an expected CAGR of 6.6% from 2024 to 2029 [4] Challenges - Rising costs of renewable installations, particularly due to increased steel prices, are posing challenges for clean energy installers [5] - The average price of key minerals in the wind industry has risen by 93% from January 2020 to March 2023, leading to a nearly 50% increase in the levelized cost of electricity for U.S. offshore wind projects from 2021 to 2023 [6] - The strained U.S.-China relationship could impact the green energy supply chain, as China accounts for up to 90% of the refining capacity for rare earth elements essential for green energy products [6] Market Performance - The Zacks Alternative Energy industry has outperformed both its sector and the S&P 500, with a collective stock surge of 55.6% over the past year compared to a 6.3% decline in the Oils-Energy Sector and a 30.2% gain in the S&P 500 [9] Valuation - The industry is currently trading at an EV/EBITDA ratio of 11.05, significantly lower than the S&P 500's 19.01, indicating potential undervaluation [11] Notable Companies - **Excelerate Energy (EE)**: Projected 2025 sales of $2.29 billion, reflecting a 16.3% improvement from the previous year, with a long-term earnings growth rate of 11.2% [15] - **FuelCell Energy (FCEL)**: Expected fiscal 2025 sales improvement of 83.7%, with a four-quarter average earnings surprise of 18.75% [18] - **TXNM Energy**: Anticipated 2024 sales improvement of 11.5%, with a long-term earnings growth rate of 3% [21] - **GEVO Inc.**: Projected 2025 sales improvement of 101.5%, with a recent earnings surprise of 10% [24]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 was $92 million, an increase of $3 million or approximately 4% compared to the previous quarter, primarily driven by lower operating costs and higher gas sales margins [26][7] - Total debt, including finance leases, was $716 million, with cash and cash equivalents of $608 million at the end of Q3 2024 [28] - The company raised and narrowed its adjusted EBITDA guidance for 2024 to a range of $335 million to $345 million, driven by higher margins and lower vessel operating costs [32] Business Line Data and Key Metrics Changes - The core regasification business continues to deliver consistent results, underpinned by a contract portfolio with about $4 billion in future revenue and a weighted remaining term of seven years [7] - Maintenance CapEx for Q3 2024 was $4 million, with year-to-date spending of approximately $35 million, primarily for upgrades to the Excelsior vessel [26] Market Data and Key Metrics Changes - Excelerate's two FSRUs deliver approximately 34% of Bangladesh's natural gas supply, highlighting the company's significant market presence [25] - A new 15-year LNG supply agreement with Petrobangla is expected to generate approximately $15 million to $18 million of EBITDA annually starting in 2026 [15] Company Strategy and Development Direction - The company aims to be the global leader in FSRUs and downstream LNG infrastructure, focusing on optimizing its core regasification business and expanding its fleet [6][11] - Excelerate is pursuing opportunities in Vietnam, a rapidly growing market for LNG, through a strategic partnership with PetroVietnam Technical Services Corporation [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable earnings and execute a disciplined capital allocation plan [10][56] - The company is well-positioned to support Bangladesh's energy needs and is committed to future energy projects in the region [24][25] Other Important Information - The company announced a quarterly cash dividend increase to $0.06 per share, reflecting the strength of its balance sheet and cash generation capabilities [31] - A two-year $50 million share repurchase program is underway, with approximately $28 million utilized year-to-date [30] Q&A Session Summary Question: Clarification on the new supply agreement - The new supply agreement is expected to have a locked-in margin, and while the length is described as midterm, it is considered a multiyear deal [35][36] Question: Growth opportunities outside of FSRUs - The company is open to investing in additional assets and infrastructure for onshore regasification to meet pressing global LNG needs [40] Question: Maintenance CapEx guidance decrease - The decrease in maintenance CapEx guidance is due to lower-than-expected spending on vessel upgrades, with expectations for an increase in 2025 due to two dry docks [41][44] Question: LNG carrier conversion timeline - The conversion of an LNG carrier to an FSRU is expected to take about a year, depending on specifications and engineering requirements [50] Question: New build FSRU delivery and EBITDA generation - The new build FSRU is expected to generate EBITDA shortly after delivery in June 2026, with potential for higher per vessel generation compared to the current fleet [53][54]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $193,419 thousand, compared to $275,471 thousand for the same period in 2023, representing a decrease of approximately 30%[12] - Net income for the three months ended September 30, 2024, was $45,546 thousand, slightly down from $46,505 thousand in the same period of 2023, indicating a decrease of about 2%[12] - Operating income for the three months ended September 30, 2024, was $59,739 thousand, compared to $67,498 thousand for the same period in 2023, reflecting a decline of approximately 11%[12] - Net income attributable to shareholders for the three months ended September 30, 2024, was $8,955 thousand, down from $13,892 thousand in the same period of 2023, reflecting a decrease of approximately 36%[12] - Comprehensive income attributable to shareholders for the three months ended September 30, 2024, was $7,489 thousand, down from $14,723 thousand in the same period of 2023, indicating a decrease of approximately 49%[13] - The company reported a decrease in direct cost of gas sales to $41,399 thousand for the three months ended September 30, 2024, compared to $106,109 thousand for the same period in 2023, representing a significant reduction of approximately 61%[12] - The company reported a net income of $36,591,000 for the nine months ended September 30, 2024, compared to $45,546,000 for the same period in 2023, a decrease of 19.7%[14] - The total comprehensive income for the nine months ended September 30, 2024, was $1,380,400,000, down from $1,882,600,000 for the same period in 2023, a decline of 26.6%[14] Assets and Liabilities - Cash and cash equivalents increased to $608,447 thousand as of September 30, 2024, up from $555,853 thousand at the end of 2023, marking an increase of about 9%[9] - Total current assets rose to $763,975 thousand as of September 30, 2024, compared to $699,612 thousand at the end of 2023, representing an increase of approximately 9%[9] - Total liabilities decreased to $981,736 thousand as of September 30, 2024, down from $1,051,025 thousand at the end of 2023, indicating a reduction of about 7%[10] - The company’s total assets as of September 30, 2024, were $2,500,000,000, reflecting a growth of 5% compared to the previous quarter[14] - As of September 30, 2024, total long-term debt, net is $299.206 million, down from $333.367 million as of December 31, 2023, representing a decrease of approximately 10.2%[46] - The company’s total debt as of September 30, 2024, was $351.300 million, down from $383.193 million as of December 31, 2023, a decrease of approximately 8.3%[46] Equity and Shareholder Information - Total equity as of September 30, 2024, was $1,880,600,000, compared to $1,848,800,000 as of June 30, 2024, reflecting an increase of 1.7%[14] - The balance of retained earnings as of September 30, 2024, was $59,715,000, indicating a growth from $51,432,000 as of June 30, 2024[14] - The total outstanding Class A Common Stock decreased from 26,263,403 shares on January 1, 2024, to 24,687,324 shares by September 30, 2024, reflecting a decline in ownership percentage from 24.3% to 23.1%[52] - During the nine months ended September 30, 2024, the company repurchased 1,625,784 shares of Class A Common Stock at a weighted average price of $17.24 per share, totaling approximately $28.0 million[56] - The company declared a dividend of $1,529,000 for Class A Common Stock for the quarter ended September 30, 2024, with a dividend per share of $0.060[54] Cash Flow and Expenditures - Cash flows from operating activities for the nine months ended September 30, 2024, were $194.818 million, compared to $195.274 million in 2023, indicating a stable cash flow performance[17] - The company made capital expenditures of $49.706 million during the nine months ended September 30, 2024, compared to $304.426 million in the same period of 2023[17] - Cash, cash equivalents, and restricted cash at the end of the period were $626.485 million, up from $626.182 million at the end of September 2023[17] - The company reported cash paid for taxes of $18.9 million for the nine months ended September 30, 2024, compared to $19.3 million for the same period in 2023[95] Revenue Recognition and Contracts - The Company recognized revenue from gas sales at the point of transfer to the customer, typically when LNG is regasified and injected into a pipeline[26] - The Company’s gas sales revenues are recognized at the point in time when each unit of natural gas or LNG is transferred to the control of the customer[26] - Revenue from contracts with customers for the nine months ended September 30, 2024, reached $576,865 million, compared to $918,899 million for the same period in 2023[73] - Revenue from leases for the nine months ended September 30, 2024, is $414,555,000, up from $338,040,000 in 2023, indicating an increase of about 22.6%[68] - Operating lease income for the three months ended September 30, 2024, is $120,900,000, compared to $102,948,000 in 2023, representing an increase of approximately 17.5%[68] Derivative Instruments and Risk Management - The fair value of derivative financial instruments as of September 30, 2024, included current assets of $761 thousand and non-current assets of $213 thousand, with net derivative liabilities of $(641) thousand[38] - The Company reported derivative financial instruments with gross notional values of $226.783 million as of September 30, 2024[36] - The company has entered into long-term interest rate swap agreements to hedge a portion of its exposure to changes in interest rates associated with external bank loans[153] - The company may utilize derivative instruments to manage market risks, including changes in interest rates and foreign currency exchange rates[152] - The company is exposed to commodity price risk primarily through purchases of LNG, with no commodity derivative instruments held as of September 30, 2024[154] Taxation - The provision for income taxes for Q3 2024 was $6.2 million, down from $8.2 million in Q3 2023, reflecting a decrease in the geographical distribution of income[87] - The effective tax rate for Q3 2024 was 11.9%, compared to 15.0% in Q3 2023, primarily due to changes in income distribution and tax regimes[87] Stock-Based Compensation - Stock-based compensation expense for the three months ended September 30, 2024, was $1,966 million, up from $1,129 million in the same period of 2023[78] - The company recognized long-term incentive compensation expense of $5,263 million for the nine months ended September 30, 2024, compared to $2,560 million in 2023[78] - The company had 303,947 stock options outstanding as of September 30, 2024, with a weighted average exercise price of $24.00[79] - Unvested restricted stock units increased to 674,105 shares as of September 30, 2024, with $8.5 million in unrecognized compensation costs expected to be recognized over 2.0 years[82]

Excelerate Energy (EE) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.38%. A quarter ago, it was expected that this provider of floating liquified natural gas terminals would post earnings of $0.32 per share when it actually produced earnings of $0.26, delivering a surprise of -18. ...

Financial Performance - Reported Net Income of $45.5 million for Q3 2024, an increase from $33.3 million in Q2 2024[2] - Adjusted EBITDA for Q3 2024 was $92.3 million, up from $89.0 million in Q2 2024[2] - Full Year 2024 Adjusted EBITDA guidance raised to a range of $335 million to $345 million[2] - Revenues for Q3 2024 were $193.4 million, compared to $183.3 million in Q2 2024[3] - Operating Income for Q3 2024 was $59.7 million, up from $49.9 million in Q2 2024[3] - Total revenues for Q3 2024 reached $193.4 million, a 5.9% increase from $183.3 million in Q3 2023[24] - Operating income increased to $59.7 million, up 19.4% from $49.9 million in the same period last year[24] - Net income attributable to shareholders was $8.96 million, compared to $6.67 million in Q3 2023, representing a 34.3% increase[24] - Basic net income per common share rose to $0.36, up from $0.27 in Q3 2023, reflecting a 33.3% increase[24] - Net income for the three months ended September 30, 2024, was $45,546,000, compared to $33,277,000 for the same period in 2023, representing a year-over-year increase of approximately 37%[29] - Adjusted EBITDA for the three months ended September 30, 2024, was $92,289,000, compared to $88,963,000 for the same period in 2023, showing a growth of about 3%[29] Cash and Assets - As of September 30, 2024, Excelerate had $608.4 million in cash and cash equivalents[7] - Cash and cash equivalents increased to $608.4 million as of September 30, 2024, compared to $555.9 million at the end of 2023[25] - Total assets slightly increased to $2.86 billion from $2.86 billion at the end of 2023[25] - Total equity rose to $1.88 billion, up from $1.81 billion at the end of 2023[26] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $194.8 million, compared to $195.3 million in the same period last year[27] Dividends and Stock - Quarterly cash dividend increased by 140% to $0.06 per share, payable on December 5, 2024[2] - The company repurchased $27.2 million of Class A Common Stock during the quarter[27] Expenses and Provisions - Interest expense decreased to $15,122,000 in the latest quarter from $15,476,000 in the prior year, reflecting a reduction of approximately 2%[29] - Provision for income taxes was $6,158,000 for the three months ended September 30, 2024, down from $7,427,000 in the same period last year, indicating a decrease of about 17%[29] - Depreciation and amortization expense decreased to $23,031,000 from $30,400,000 year-over-year, a reduction of approximately 24%[29] - Long-term incentive compensation expense increased to $1,966,000 from $1,920,000, reflecting a rise of about 2%[29] Strategic Initiatives - Excelerate signed medium-term agreements for LNG purchases and sales totaling approximately 0.65 million tonnes[5] - Strategic partnership with PetroVietnam Technical Services Corporation established to explore LNG import solutions in Vietnam[6] Future Outlook - Committed Growth Capital for 2024 expected to range between $70 million and $80 million[9] - The company provided an outlook for 2024E Adjusted EBITDA with a low case of $335,000,000 and a high case of $345,000,000[29] - Income before income taxes for the 2024E forecast is estimated to be between $162,000,000 and $181,000,000[29] - The company reported an increase in accretion expense to $466,000 from $463,000 year-over-year, a slight increase of about 1%[29] - The company has not reconciled the Adjusted EBITDA to net income due to the complexity of estimating without unreasonable effort[29]