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Excelerate Energy Reports Strong First Quarter 2024 Results
RECENT HIGHLIGHTS
Reported Net Income of $28.1 million for the first quarter Reported Adjusted EBITDA of $75.4 million for the first quarter Commenced 10-year charter with Petrobras for the floating storage and regasification unit (FSRU) Sequoia in January Signed a long-term contract to purchase 0.85 to 1.0 MTPA of LNG from QatarEnergy on a delivered ex-ship basis in Bangladesh for 15 years, beginning January 2026 Declared a quarterly dividend of $0.025 per share, payable on June 6, 2024
CEO COMMENT
"We are pleased to have delivered strong first quarter financial results. Our performance during the quarter reflects the fundamental earnings power of Excelerate's core regasification business that provides us with the financial strength and flexibility to pursue new opportunities around the world," said Steven Kobos, President and Chief Executive Officer of Excelerate.
Kobos continued, "As a global energy company and a leading provider of integrated LNG solutions, Excelerate Energy is committed to advancing our powerful growth story. In the first half of the year, we have made good progress towards our plan to drive meaningful value creation for our shareholders. We are in advanced discussions with several counterparties for LNG infrastructure investments and strategic partnerships that would expand our global presence and could serve as catalysts to build on our expected earnings growth."
FIRST QUARTER 2024 FINANCIAL RESULTS
For the three months ended
--------------------------------------------------------------------------------------------------------------
March 31, December 31, March 31,
(in millions, except per share amounts) 2024 2023 2023
--------- ------------ ---------
Revenues $ 200.1 $ 240.1 $ 211.1
Operating Income $ 45.2 $ 39.9 $ 49.6
Net Income $ 28.1 $ 20.0 $ 30.7
Adjusted Net Income (1) $ 28.1 $ 20.0 $ 32.7
Adjusted EBITDA (1) $ 75.4 $ 71.4 $ 79.9
Earnings Per Share (diluted) $ 0.24 $ 0.14 $ 0.26
Net Income and Adjusted EBITDA for the first quarter of 2024 increased sequentially from last quarter primarily due to the timing of vessel operating costs, and the timing of certain selling, general and administrative expenses, including business development expenditures, which were lower in the first quarter of this year as compared to the last quarter of last year.
Net Income and Adjusted EBITDA for the first quarter of 2024 decreased from the prior year first quarter primarily due to the drydocking of the FSRU Summit LNG, and a decrease in Brazil gas sales as the FSRU Sequoia transitioned to a time charter party agreement in Brazil, partially offset by a full quarter of our charter with Germany, the commencement of the FSRU Sequoia time charter party agreement in Brazil, and the impact of various charter rate increases executed during 2023.
KEY COMMERCIAL UPDATES
Capital Deployment Plan
Excelerate is making progress towards its plan to drive value creation for its shareholders. The Company expects to deploy significant growth capital over the next few years in support of its portfolio of inorganic and organic commercial opportunities. Capital expenditures associated with incremental commercial opportunities are expected to be reflected in committed growth capital, which is defined as capital allocated and committed to specific investments currently in execution, upon the execution of definitive agreements.
QatarEnergy
In January 2024, Excelerate signed a 15-year LNG Sales and Purchase Agreement ("SPA") with QatarEnergy. Under the agreement, Excelerate will purchase 0.85 to 1.0 million tonnes per annum ("MTPA") of LNG from QatarEnergy on a delivered ex-ship basis beginning in January 2026. Excelerate will purchase 0.85 MTPA of LNG in 2026 and 2027 and 1.0 MTPA from 2028 to 2040. The contract is expected to provide reliable LNG supply for Excelerate's previously announced SPA with Petrobangla in Bangladesh.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2024, Excelerate had $578.9 million in cash and cash equivalents, $40 million of letters of credit issued and no outstanding borrowings under its $350 million revolving credit facility.
On May 2, 2024, Excelerate's Board of Directors approved a quarterly cash dividend equal to $0.025 per share of Class A common stock, which will be paid on June 6, 2024, to shareholders of record as of the close of business on May 22, 2024.
2024 FINANCIAL OUTLOOK
Excelerate is reaffirming its full year guidance range. The Company expects Adjusted EBITDA to range between $315 million and $335 million for the full year 2024. Committed Growth Capex is expected to range between $70 million and $80 million. Maintenance Capex for 2024 is expected to range between $50 million and $60 million.
Actual results may differ materially from the Company's outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below.
INVESTOR CONFERENCE CALL AND WEBCAST
The Excelerate management team will host a conference call for investors and analysts at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Thursday, May 9, 2024. Investors are invited to access a live webcast of the conference call via the Investor Relations page on the Company's website at www.excelerateenergy.com. An archived replay of the call and a copy of the presentation will be on the website following the call.
ABOUT EXCELERATE ENERGY
Excelerate Energy, Inc. is a U.S.-based LNG company located in The Woodlands, Texas. Excelerate is changing the way the world accesses cleaner forms of energy by providing integrated services along the LNG value chain with an objective of delivering rapid-to-market and reliable LNG solutions to customers. The Company offers a full range of flexible regasification services from FSRUs to infrastructure development to LNG supply. Excelerate has offices in Abu Dhabi, Antwerp, Boston, Buenos Aires, Chattogram, Dhaka, Doha, Dubai, Helsinki, London, Manila, Rio de Janeiro, Singapore, and Washington, DC. For more information, please visit www.excelerateenergy.com.
USE OF NON-GAAP FINANCIAL MEASURES
The Company reports financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). Included in this press release are certain financial measures that are not calculated in accordance with GAAP. They are designed to supplement, and not substitute, Excelerate's financial information presented in accordance with U.S. GAAP. The non-GAAP measures as defined by Excelerate may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude non-recurring items, should not be construed as an inference that Excelerate's future results, cash flows or leverage will be unaffected by other nonrecurring items. Management believes that the following non-GAAP financial measures provide investors with additional useful information in evaluating the Company's performance and valuation. See the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure, including those measures presented as part of the Company's 2024 Financial Outlook, in the section titled "Non-GAAP Reconciliation" below.
Adjusted Gross Margin
We use Adjusted Gross Margin, a non-GAAP financial measure, which we define as revenues less direct cost of sales and operating expenses, excluding depreciation and amortization, to measure our operational financial performance. Management believes Adjusted Gross Margin is useful because it provides insight on profitability and true operating performance excluding the implications of the historical cost basis of our assets. Our computation of Adjusted Gross Margin may not be comparable to other similarly titled measures of other companies, and you are cautioned not to place undue reliance on this information.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure included as a supplemental disclosure because we believe it is a useful indicator of our operating performance. We define Adjusted EBITDA as net income before interest expense, income taxes, depreciation and amortization, accretion, non-cash long-term incentive compensation expense and items such as charges and non-recurring expenses that management does not consider as part of assessing ongoing operating performance.
Adjusted Net Income
The Company uses Adjusted Net Income, a non-GAAP financial measure, which it defines as net income plus the non-cash write-off of deferred financing costs related to our prior credit agreement. Management believes Adjusted Net Income is useful because it provides insight on profitability excluding the impact of non-recurring charges related to our IPO.
The Company adjusts net income for the items listed above to arrive at Adjusted EBITDA and Adjusted Net Income because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA and Adjusted Net Income should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company's operating performance or liquidity. These measures have limitations as certain excluded items are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. The Company's presentation of Adjusted EBITDA and Adjusted Net Income should not be construed as an inference that its results will be unaffected by unusual or non-recurring items. The Company's computations of Adjusted EBITDA and Adjusted Net Income may not be comparable to other similarly titled measures of other companies. For the foregoing reasons, each of Adjusted EBITDA and Adjusted Net Income has significant limitations which affect its use as an indicator of its profitability and valuation, and you are cautioned not to place undue reliance on this information.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Excelerate Energy, Inc. ("Excelerate," and together with its subsidiaries "we," "us," "our" or the "Company") and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding our future results of operations or financial condition, business strategy and plans, expansion plans and strategy, economic conditions, both generally and in particular in the regions in which we operate or plan to operate, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "consider," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "opportunity," "plan," "potential," "predict," "project," "shall," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including, but not limited to, the following: unplanned issues, including time delays, unforeseen expenses, cost inflation, materials or labor shortages, which could result in delayed receipt of payment or project cancellation; the competitive market for liquified natural gas ("LNG") regasification services; changes in the supply of and demand for and price of LNG and natural gas and LNG regasification capacity; our need for substantial expenditures to maintain and replace, over the long-term, the operating capacity of our assets; our ability to obtain and maintain approvals and permits from governmental and regulatory agencies with respect to the design, construction and operation of our facilities and provision of our services; our ability to access financing on favorable terms; our debt level and finance lease liabilities, which may limit our flexibility in obtaining additional financing, or refinancing credit facilities upon maturity; our financing agreements, which include financial restrictions and covenants and are secured by certain of our vessels; our ability to enter into or extend contracts with customers and our customers' failure to perform their contractual obligations; our ability to purchase or receive physical delivery of LNG in sufficient quantities to satisfy our delivery and sales obligations under gas sales agreements and/or LNG sales agreements or at attractive prices; our ability to maintain relationships with our existing suppliers, source new suppliers for LNG and critical components of our projects and complete building out our supply chain; risks associated with conducting business in foreign countries, including political, legal, and economic risk; the technical complexity of our floating storage and regasification units ("FSRUs") and LNG import terminals and related operational problems; the risks inherent in operating our FSRUs and other LNG infrastructure assets; customer termination rights in our contracts; adverse effects on our operations due to disruption of third-party facilities; infrastructure constraints and community and political group resistance to existing and new LNG and natural gas infrastructure over concerns about the environment, safety and terrorism; acts of terrorism, war or political or civil unrest; compliance with various international treaties and conventions and national and local environmental, health, safety and maritime conduct laws that affect our operations; our ability to pay dividends on our Class A common stock; and other risks, uncertainties and factors set forth in any of our filings with the Securities and Exchange Commission (the "SEC"). These risks and uncertainties are described more fully in our other filings with the SEC, including our most recent Annual Report on Form 10-K. All forward-looking statements are based on assumptions or judgments about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Excelerate. The occurrence of any such factors, events or circumstances would significantly alter the results set forth in these statements.
Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. For example, the current global economic uncertainty and geopolitical climate, including international wars, may give rise to risks that are currently unknown or amplify the risks associated with many of the foregoing events or factors. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Excelerate Energy, Inc.
Consolidated Statements of Income (Unaudited)
For the three months ended
March 31, December 31, March 31,
2024 2023 2023
------------------------------ ------------------------------ ------------------------------
(In thousands, except share and per share amounts)
Revenues
$ 156,994 $ 129,594 $ 118,577
FSRU and terminal services
43,119 110,470 92,479
Gas sales
-------------------- ---------- -------------------- ---------- -------------------- ----------
200,113 240,064 211,056
Total revenues
Operating expenses
70,613 71,519 58,792
Cost of revenue and vessel operating expenses (exclusive of items below)
39,879 79,407 55,185
Direct cost of gas sales
22,910 25,197 25,193
Depreciation and amortization
21,552 24,083 22,317
Selling, general and administrative expenses
-------------------- ---------- -------------------- ---------- -------------------- ----------
154,954 200,206 161,487
Total operating expenses
-------------------- ---------- -------------------- ---------- -------------------- ----------
45,159 39,858 49,569
Operating income
Other income (expense)
(12,146 ) (13,108 ) (11,955 )
Interest expense
(3,460 ) (3,750 ) (3,592 )
Interest expense - related party
531 625 416
Earnings from equity method investment
4,957 4,163 3,904
Other income, net
-------------------- ---------- -------------------- ---------- -------------------- ----------
35,041 27,788 38,342
Income before income taxes
(6,901 ) (7,744 ) (7,603 )
Provision for income taxes
-------------------- ---------- -------------------- ---------- -------------------- ----------
28,140 20,044 30,739
Net income
21,816 16,336 23,895
Less net income attributable to non-controlling interest
-------------------- ---------- -------------------- ---------- -------------------- ----------
$ 6,324 $ 3,708 $ 6,844
Net income attributable to shareholders
==================== ========== ==================== ========== ==================== ==========
Net income per common share - basic $ 0.24 $ 0.14 $ 0.26
Net income per common share - diluted $ 0.24 $ 0.14 $ 0.26
Weighted average shares outstanding - basic 26,161,691 26,261,774 26,254,167
Excelerate Energy, Inc.
Consolidated Balance Sheets
March 31, 2024 December 31, 2023
------------------------------ ------------------------------
(Unaudited)
ASSETS (In thousands)
Current assets
Cash and cash equivalents $ 578,882 $ 555,853
Current portion of restricted cash 3,613 2,655
Accounts receivable, net 66,416 97,285
Current portion of net investments in sales-type leases 18,034 16,463
Other current assets 26,651 27,356
-------------------- ---------- -------------------- ----------
693,596 699,612
Total current assets
-------------------- ---------- -------------------- ----------
Restricted cash 14,157 13,950
Property and equipment, net 1,650,204 1,649,779
Net investments in sales-type leases 378,184 383,547
Investment in equity method investee 21,038 21,269
Deferred tax assets, net 41,812 42,948
Other assets 58,690 49,274
-------------------- ---------- -------------------- ----------
$ 2,857,681 $ 2,860,379
Total assets
==================== ========== ==================== ==========
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 7,304 $ 13,761
Accrued liabilities and other liabilities 93,611 89,796
Current portion of deferred revenue 20,719 27,169
Current portion of long-term debt 44,383 42,614
Current portion of long-term debt - related party 8,487 8,336
Current portion of finance lease liabilities 22,411 22,080
-------------------- ---------- -------------------- ----------
196,915 203,756
Total current liabilities
-------------------- ---------- -------------------- ----------
Long-term debt, net 322,527 333,367
Long-term debt, net - related party 169,361 171,693
Finance lease liabilities 184,474 189,807
TRA liability 67,060 67,061
Asset retirement obligations 42,289 41,834
Other long-term liabilities 46,857 43,507
-------------------- ---------- -------------------- ----------
$ 1,029,483 $ 1,051,025
Total liabilities
-------------------- ---------- -------------------- ----------
Commitments and contingencies
Class A Common Stock ($0.001 par value, 300,000,000 shares authorized, 26,366,192 shares issued as of March 31, 2024 and 26,284,027 shares issued as of December 31, 2023) 26 26
Class B Common Stock ($0.001 par value, 150,000,000 shares authorized and 82,021,389 shares issued and outstanding as of March 31, 2024 and December 31, 2023) 82 82
Additional paid-in capital 465,667 465,551
Retained earnings 45,405 39,754
Accumulated other comprehensive income 1,052 505
Treasury stock (648,356 shares as of March 31, 2024 and 20,624 shares as of December 31, 2023) (10,677 ) (472 )
Non-controlling interest 1,326,643 1,303,908
-------------------- ---------- -------------------- ----------
$ 1,828,198 $ 1,809,354
Total equity
-------------------- ---------- -------------------- ----------
Excelerate Energy, Inc.
Consolidated Statements of Cash Flows (Unaudited)
For the three months ended
------------------------------------------------------------------------------------------------------------
March 31, 2024 March 31, 2023
---------------------------------- ----------------------------------
Cash flows from operating activities (In thousands)
Net income $ 28,140 $ 30,739
Adjustments to reconcile net income to net cash from operating activities
22,910 25,193
Depreciation and amortization
429 7,428
Amortization of operating lease right-of-use assets
455 436
ARO accretion expense
877 3,345
Amortization of debt issuance costs
1,119 682
Deferred income taxes
(531 ) (416 )
Share of net earnings in equity method investee
1,377 357
Long-term incentive compensation expense
-- 1,326
(Gain)/loss on non-cash items
Changes in operating assets and liabilities:
30,869 24,528
Accounts receivable
(7,344 ) 36,756
Other current assets and other assets
(13,421 ) (99,381 )
Accounts payable and accrued liabilities
(6,450 ) 17,357
Current portion of deferred revenue
3,792 3,366
Net investments in sales-type leases
2,439 (4,919 )
Other long-term liabilities
-------------------- -------------- -------------------- --------------
$ 64,661 $ 46,797
Net cash provided by operating activities
Cash flows from investing activities
(12,769 ) (14,929 )
Purchases of property and equipment
-------------------- -------------- -------------------- --------------
$ (12,769 ) $ (14,929 )
Net cash used in investing activities
Cash flows from financing activities
(8,418 ) --
Repurchase of Class A Common Stock
(9,638 ) (4,829 )
Repayments of long-term debt
(2,181 ) (1,990 )
Repayments of long-term debt - related party
-- (4,582 )
Payment of debt issuance costs
(5,002 ) (5,297 )
Principal payments under finance lease liabilities
(652 ) --
Dividends paid
(2,051 ) --
Distributions
209 337
Minority owner contribution - Albania Power Project
-------------------- -------------- -------------------- --------------
$ (27,733 ) $ (16,361 )
Net cash used in financing activities
Effect of exchange rate on cash, cash equivalents, and restricted cash 35 (420 )
Net increase in cash, cash equivalents and restricted cash 24,194 15,087
Cash, cash equivalents and restricted cash
$ 572,458 $ 537,971
Beginning of period
-------------------- -------------- -------------------- --------------
Excelerate Energy, Inc. Non-GAAP Reconciliation (Unaudited)
The following table presents a reconciliation of adjusted gross margin to the GAAP financial measures of gross margin for each of the period indicated.
For the three months ended
------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, 2024 December 31, 2023 March 31, 2023
--------------------------- ---------------------------- ---------------------------
(In thousands)
FSRU and terminal services revenues $ 156,994 $ 129,594 $ 118,577
Gas sales revenues 43,119 110,470 92,479
Cost of revenue and vessel operating expenses (70,613 ) (71,519 ) (58,792 )
Direct cost of gas sales (39,879 ) (79,407 ) (55,185 )
Depreciation and amortization expense (22,910 ) (25,197 ) (25,193 )
-------------------- ------- -------------------- -------- -------------------- -------
Gross Margin $ 66,711 $ 63,941 $ 71,886
Depreciation and amortization expense 22,910 25,197 25,193
-------------------- ------- -------------------- -------- -------------------- -------
The following table presents a reconciliation of Adjusted EBITDA to the GAAP financial measures of net income for each of the period indicated.
For the three months ended
------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, 2024 December 31, 2023 March 31, 2023
--------------------------- ---------------------------- ---------------------------
(In thousands)
Net income $ 28,140 $ 20,044 $ 30,739
Interest expense 15,606 16,858 15,547
Provision for income taxes 6,901 7,744 7,603
Depreciation and amortization expense 22,910 25,197 25,193
Accretion expense 455 451 436
Long-term incentive compensation expense 1,377 1,079 357
-------------------- ------- -------------------- -------- -------------------- -------
The following table presents a reconciliation of Adjusted Net Income to the GAAP financial measures of net income for each of the period indicated.
For the three months ended
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, 2024 December 31, 2023 March 31, 2023
---------------------------------- ---------------------------------- ------------------------------
(In thousands)
Net income $ 28,140 $ 20,044 $ 30,739
Add back:
-- -- 1,990
Non-cash debt issuance costs
-------------------- -------------- -------------------- -------------- -------------------- ----------
2024E 2024E
(In millions) Low Case High Case
------------------------ ------------------------
Income before income taxes $ 146 $ 184
65 55
Interest expense
96 86
Depreciation and amortization expense
6 9
Long-term incentive compensation expense
2 1
Accretion expense
-------------------- ---- -------------------- ----
Note: We have not reconciled the Adjusted EBITDA outlook to net income, the most comparable measure, because it is not possible to estimate, without unreasonable effort, our income taxes with the level of required precision. Accordingly, we have reconciled these non-GAAP measures to our estimated income before taxes.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508246302/en/
SOURCE: Excelerate Energy, Inc.
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Investors Craig Hicks Excelerate Energy Craig.Hicks@excelerateenergy.com Media Stephen Pettibone / Frances Jeter FGS Global Excelerate@fgsglobal.com or media@excelerateenergy.com
COMTEX_452081316/1006/2024-05-08T16:30:12