Excelerate Energy(EE) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the full-year 2024, Excelerate Energy delivered record adjusted EBITDA of $348 million, exceeding the high end of guidance [10][28] - Net income for 2024 was$ 153 million, reflecting a 21% increase year-over-year [10][29] - Total debt, including finance leases, was $696 million, with cash and cash equivalents of$ 538 million, resulting in net debt of $158 million [30][31] Business Line Data and Key Metrics Changes - The earnings growth was attributed to successful recontracting of FSRUs at elevated market rates and optimization of the core regasification business [11][12] - The company recorded a reliability of 99.9% across its fleet, the highest in its history [13] Market Data and Key Metrics Changes - The supply/demand balance for FSRUs is expected to remain tight due to ongoing geoeconomic uncertainties, particularly in Europe [19][62] - The company delivered 272 cargoes of LNG in 2024, averaging about 2.5 billion cubic feet of natural gas daily [16] Company Strategy and Development Direction - Excelerate Energy aims to expand its fleet and invest in core regasification while pursuing strategic initiatives for value creation [18][24] - The construction of a new build FSRU, Hull 3407, is on track for delivery in 2026, capable of delivering 1 billion cubic feet per day [19][20] - The company is also exploring LNG carrier acquisitions for conversion to FSRUs, which would provide flexibility and meet diverse market needs [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the core business and the ability to capture LNG supply optimization opportunities for 2025 [35] - The anticipated tightness in the supply/demand balance for FSRUs is expected to drive demand for long-term contracts [62][92] Other Important Information - The company announced a quarterly cash dividend of$ 0.06 per share, consistent with previous dividends [33] - A $50 million share repurchase program was fully utilized, with plans to consider new authorizations in the future [32][81] Q&A Session Summary Question: Insights on 2025 adjusted EBITDA guidance - Management indicated that the guidance does not include potential growth opportunities outside of the FSRU fleet at this time [44] Question: Details on the LNG carrier acquisition - Management is assessing multiple vessels for acquisition, focusing on near-term needs and optimization opportunities [47][102] Question: Financial outlook for maintenance CapEx - All maintenance CapEx for 2025 is expected to be capitalized, with specific amounts guided [52] Question: Updates on Vietnam and Alaska projects - Management remains optimistic about opportunities in both regions, with ongoing discussions [73][70] Question: Stock repurchase plans - Management is pleased with the previous repurchase program and is considering future authorizations based on market conditions [80][81]