[Management's Discussion and Analysis of Financial Condition and Results of Operations](index=5&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Overview and Recent Developments](index=5&type=section&id=Overview%20and%20Recent%20Developments) CoolCo, an LNGC pure-play, secured a 14-year newbuild charter, upsized a $200 million loan, and maintained $0.41 quarterly dividends - The company's strategy focuses on being an LNGC pure play with a mix of short and long-term charters, funded growth from **two newbuild vessels**, and potential market consolidation[12](index=12&type=chunk) - Secured a **14-year charter** with GAIL (India) Limited for one of its two newbuild MEGA LNG carriers, commencing early 2025[13](index=13&type=chunk) - Upsized an existing term loan facility by **$200 million** to prepare for the maturity of two sale and leaseback facilities in Q1 2025[14](index=14&type=chunk) - Declared quarterly cash dividends of **$0.41 per common share** for Q4 2023 and Q1 2024[15](index=15&type=chunk) [Operating Results](index=6&type=section&id=Operating%20Results) H1 2024 total operating revenues decreased **9%** to **$171.5 million**, with average daily TCE rate down **6%** Operating Results Comparison (Six Months Ended June 30) | Metric (in thousands of $) | 2024 | 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | 171,497 | 188,965 | (17,468) | (9)% | | Vessel operating expenses | (34,631) | (37,423) | 2,792 | (7)% | | Administrative expenses | (11,323) | (12,865) | 1,542 | (12)% | | Other non-operating income | — | 42,549 | (42,549) | (100)% | | Gains on derivative instruments | 15,366 | 10,704 | 4,662 | 44% | | Average daily TCE rate ($) | 77,800 | 82,500 | (4,700) | (6)% | - Time and voyage charter revenues decreased by **$18.1 million (10%)** due to vessel idling and dry dock maintenance[18](index=18&type=chunk) - Vessel operating expenses decreased by **$2.8 million (7%)**, primarily due to the sale of the Golar Seal vessel in March 2023[20](index=20&type=chunk) - H1 2024 lacked 'Other non-operating income', contrasting with a **$42.5 million gain** from the Golar Seal vessel sale in H1 2023[21](index=21&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Capital%20Resources) H1 2024 cash decreased to **$86.5 million**, operating cash flow fell **31%**, and total contractual obligations reached **$1.19 billion** Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity (in thousands of $) | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 81,369 | 117,581 | (36,212) | | Net cash (used in) / provided by investing activities | (25,377) | 182,996 | (208,373) | | Net cash used in financing activities | (106,829) | (120,207) | 13,378 | | **Net (decrease) / increase in cash** | **(50,837)** | **180,370** | **(231,207)** | | **Cash at end of period** | **86,501** | **313,447** | **(226,946)** | - Cash from operations decreased by **$36.2 million**, primarily due to higher dry dock expenditure and working capital timing[27](index=27&type=chunk) - Investing activities used **$25.4 million** for newbuilds and upgrades, contrasting with **$183.0 million** provided by the Golar Seal sale in the prior year[28](index=28&type=chunk) - Financing activities used **$106.8 million**, including **$58.0 million** in debt repayments and **$44.0 million** in dividend payments[29](index=29&type=chunk) Contractual Obligations as of June 30, 2024 | Obligation Type (in millions of $) | Total | Remainder of 2024 | 2025-2026 | 2027-2028 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt (CoolCo & VIE) | 1,009.4 | 139.1 | 153.7 | 448.4 | 268.2 | | Interest commitments | 175.6 | 29.0 | 97.4 | 42.4 | 6.8 | | Operating lease obligations | 3.2 | 0.5 | 1.2 | 1.0 | 0.5 | | **Total** | **1,188.2** | **168.6** | **252.3** | **491.8** | **275.5** | [Quantitative and Qualitative Disclosures About Market Risk](index=10&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) [Key Market and Operational Risks](index=10&type=section&id=Key%20Market%20and%20Operational%20Risks) The company manages interest rate risk with swaps covering **70%** of debt, faces foreign currency exposure, and navigates significant operational risks - Interest rate risk on floating-rate debt is managed with swaps, hedging **70%** of exposure on major facilities at an average fixed rate of **3.42%** as of June 30, 2024[35](index=35&type=chunk) - Foreign currency risk from NOK and EUR expenses means a hypothetical **10% USD depreciation** would increase H1 2024 expenses by **$0.5 million (NOK)** and **$1.1 million (EUR)**[36](index=36&type=chunk)[37](index=37&type=chunk) - Operational risks encompass marine disasters, mechanical failures, piracy, and political events, potentially causing revenue loss, property damage, and increased insurance costs[40](index=40&type=chunk) - Credit risk is concentrated with major reputable banks, which the company considers a remote risk[39](index=39&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Financial Performance (Statements of Operations & Comprehensive Income)](index=13&type=section&id=Financial%20Performance) H1 2024 net income decreased to **$63.3 million** from **$114.8 million**, with basic and diluted EPS falling to **$1.17** Consolidated Statements of Operations Highlights (Six Months Ended June 30) | Metric (in thousands of $) | 2024 | 2023 | | :--- | :--- | :--- | | Total operating revenues | 171,497 | 188,965 | | Operating income | 85,458 | 97,506 | | Other non-operating income | — | 42,549 | | **Net income** | **63,290** | **114,778** | | Net income attributable to Owners | 62,641 | 113,835 | | **Basic and diluted EPS ($)** | **$1.17** | **$2.12** | [Financial Position (Balance Sheets)](index=15&type=section&id=Financial%20Position) Total assets decreased to **$2.02 billion**, liabilities fell to **$1.19 billion**, and equity rose to **$826.9 million** as of June 30, 2024 Consolidated Balance Sheet Highlights | Metric (in thousands of $) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | 84,362 | 133,496 | | Vessels and equipment, net | 1,685,936 | 1,700,063 | | Newbuildings | 206,549 | 181,904 | | **Total assets** | **2,017,695** | **2,056,943** | | Current portion of long-term debt | 175,156 | 194,413 | | Long-term debt | 827,241 | 866,671 | | **Total liabilities** | **1,190,750** | **1,250,363** | | **Total equity** | **826,945** | **806,580** | [Cash Flows (Statements of Cash Flows)](index=17&type=section&id=Cash%20Flows) H1 2024 saw a net cash decrease of **$50.8 million**, with operating cash flow down **31%** and **$106.8 million** used in financing activities Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric (in thousands of $) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | 81,369 | 117,581 | | Net cash (used in) / provided by investing activities | (25,377) | 182,996 | | Net cash used in financing activities | (106,829) | (120,207) | | **Net (decrease) / increase in cash** | **(50,837)** | **180,370** | | **Cash at end of period** | **86,501** | **313,447** | [Notes to the Financial Statements](index=21&type=section&id=Notes%20to%20the%20Financial%20Statements) Notes detail company structure, **two newbuild vessel** commitments, over **$900 million** in outstanding debt, and derivative use for interest rate risk [Newbuildings (Note 12)](index=32&type=section&id=Newbuildings) The company is acquiring **two newbuild LNG carriers** for **$235 million each**, with **$206.5 million** capitalized and **$269.6 million** remaining committed - Exercised option to acquire **two newbuild LNG carriers** for approximately **$235 million each**, scheduled for late 2024 delivery[103](index=103&type=chunk) Newbuildings Expenditure as of June 30, 2024 | Component (in thousands of $) | Amount | | :--- | :--- | | Shipyard Installments | 202,984 | | Onsite Supervision Costs | 900 | | Interest cost capitalized | 1,754 | | Other Costs | 911 | | **Total Newbuildings** | **206,549** | - As of June 30, 2024, remaining commitments for newbuild vessels are approximately **$269.6 million**[103](index=103&type=chunk) [Debt (Note 15)](index=33&type=section&id=Debt) Total debt reached **$1.0 billion** as of June 30, 2024, primarily from two major facilities, with a **$200 million** upsize for refinancing Debt Summary as of June 30, 2024 | Debt Component (in thousands of $) | Amount | | :--- | :--- | | Current portion of long-term debt | 175,156 | | Long-term debt | 827,241 | | **Total Debt (net of deferred charges)** | **1,002,397** | - The **$520 million** term loan facility was upsized by **$200 million** in March 2024 to refinance Q1 2025 sale & leaseback maturities[112](index=112&type=chunk) - The company was in compliance with all financial covenants under its debt agreements as of June 30, 2024[116](index=116&type=chunk) [Subsequent Events (Note 22)](index=38&type=section&id=Subsequent%20Events) On August 29, 2024, the company declared a cash dividend of **$0.41 per ordinary share** for Q2 2024 - On August 29, 2024, a cash distribution of **$0.41 per share** was declared for the three months ended June 30, 2024[135](index=135&type=chunk)

Financial Data and Key Metrics Changes - Average Time Charter Equivalent (TCE) rate increased to $78,400 per day from $77,200 in the previous quarter, expected to rise further in Q3 due to full chartering of the existing fleet [3][18] - Total operating revenues for Q2 2024 were reported at $83.4 million, aligning with guidance and slightly above consensus estimates [18] - Adjusted EBITDA for Q2 2024 was $55.7 million, down from $58.5 million in Q1 2024, primarily due to lower TCE revenues [19][22] - Net income decreased to $26.1 million in Q2 from $36.6 million in Q1, largely due to reduced unrealized gains on interest rate swaps [22] Business Line Data and Key Metrics Changes - TCE revenues for the quarter were $76.4 million, a slight decrease from $78.7 million in the previous quarter, impacted by one vessel in dry dock and lower floating rates [18][19] - The Kool Blizzard vessel transitioned to a new 12-month charter, expected to generate approximately $10,000 more per day compared to its previous earnings [6] Market Data and Key Metrics Changes - The LNG market has been quiet during the summer, but expectations for increased activity in the winter season due to new supply and tender activity are anticipated [4][8] - The Asia Pacific region shows strong appetite for LNG, which is beneficial for shipping due to increased shipping distances [10] Company Strategy and Development Direction - The company maintains a strong backlog of $1.8 billion, equivalent to approximately 62 years of backlog, with an average TCE rate of $79,000 per day per vessel [23] - The company is focused on securing long-term charters while balancing the optionality of higher rates in the future [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the LNG market sentiment is split between long-term and short-term charterers, with optimism for securing long-term deals [28] - The company expects a moderate increase in TCE rates and charter revenues in Q3 compared to Q2, despite ongoing dry dock activities [20][21] Other Important Information - The company has maintained a dividend of $0.41 per share, with a payout ratio of approximately 70% of net income [22][24] - Cash and cash equivalents totaled approximately $84 million, down from $106 million in the previous quarter, primarily due to debt amortization [24] Q&A Session Summary Question: Current market sentiment for the uncommitted newbuild - Management indicated a split market with some looking for long-term contracts while others are hesitant due to short-term market conditions [27][28] Question: Impact of upgraded TFDEs on vessel desirability - Management highlighted potential for increased day rates and attractiveness compared to older vessels, with expectations of sharing upside with charterers [29][30] Question: Outlook for the spot market - Management suggested two favorable scenarios for shipping: a cold winter increasing demand or volumes heading to emerging markets [35][36] Question: Long-term charter rates for Kool Tiger - Management expressed confidence in achieving competitive long-term rates similar to previous deals, with expectations of around $95,000 for shorter-term charters [38][39] Question: Impact of the Suez Canal on shipping routes - Management noted that while the Suez Canal's closure could affect arbitrage opportunities, it would not significantly impact overall shipping demand [37]

Financial Performance - The average TCE (Time Charter Equivalent) was $78,400 per day in Q2 2024[3, 5] - CoolCo's Q2 2024 total operating revenues reached $834 million[3, 5] - Adjusted EBITDA for Q2 2024 was $557 million[3, 6] - Net income for Q2 2024 was $261 million, including a $41 million mark-to-market gain on interest rate swaps[3] Backlog and Charters - The company's backlog is approximately $18 billion[3] - CoolCo secured a 14+2 year charter with GAIL (India) Limited for a newbuild, starting in early 2025[5] - A one-year time charter agreement was secured for a TFDE vessel starting in Q3 2024[5] Dividends and Debt - A dividend of $041 per share was declared for Q2 2024[3, 5] - The company's net debt is $1024 billion, with an average interest rate of approximately 58%[3] - The hedge ratio is approximately 76%[3, 33] Market Outlook - LNG supply is expected to grow significantly from 2023 to 2030, with a 75% increase[11]

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Core Insights - Dutch Bros Coffee has introduced new summer drinks, including the Cookie Dough Freeze, Sherbert Rebel, and Tropical Frosted Lemonade, available at over 900 locations [1][4][5] - The company emphasizes a nostalgic theme with these drinks, reflecting '90s vibes and summer fun [4][5] - Dutch Bros is committed to community engagement, donating several million dollars annually through its foundation and local operators [6] Product Offerings - The Cookie Dough Freeze combines chocolate chip cookie dough coffee with Soft Top™ and cookie dough pieces [7] - The Sherbet Rebel features sweet cream infused into an orange and passion fruit energy drink, topped with a strawberry float [7] - The Tropical Frosted Lemonade blends passion fruit, coconut, and blue raspberry, finished with strawberry fruit and sweet cream [7] - The Firecracker Rebel™ is a festive drink for the 4th of July, featuring blue poppin' candy over a red raspberry energy drink [8] Company Background - Dutch Bros Coffee, founded in 1992 in Grants Pass, Oregon, operates over 900 locations across 18 states [3] - The company focuses on specialty coffee, smoothies, freezes, teas, and its exclusive Dutch Bros Rebel™ energy drink [3]

Here are two stocks with buy rank and strong value characteristics for investors to consider today, June 26th: SPAR Group (SGRP) : This company which is a supplier of in-store merchandising and marketing services, and premium incentive marketing services throughout the United States and Canada, carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 416.7% over the last 60 days. SPAR Group's has a price-to-earnings ratio (P/E) of 6.77 comp ...

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The key is finding reasonably valued stocks tapping into massive market opportunities. According to value investor Mohnish Pabrai, the "magic" compound growth rate is 26% annually. At that rate, money doubles every 3 years. So a stock growing earnings at 26% for a decade can easily become a tenbagger. Source: Moab Republic / Shutterstock And this growth seems far from over. For example, Apple continues to expand into new areas like financial services, augmented reality, artificial intelligence, streaming en ...