Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted EBITDA of $100 million, an increase of $9 million or approximately 10% compared to the previous quarter [17] - Adjusted net income for the first quarter was $56 million, up $10 million or 20% sequentially from Q4 2024 [17] - Total debt, including finance leases, stood at $677 million, with cash and cash equivalents of $619 million as of March 31, 2025 [18] Business Line Data and Key Metrics Changes - The core regasification infrastructure business drove the strong financial results, with over 90% of estimated full-year adjusted EBITDA supported by a high-quality take-or-pay customer contract portfolio [8][17] - Operational reliability exceeded 99.9% during the quarter, reflecting the company's commitment to operational excellence [9] Market Data and Key Metrics Changes - The company is expanding its LNG terminal presence in key natural gas markets globally, with a focus on enhancing energy security and supporting a lower carbon future [5][6] - The acquisition of the integrated LNG infrastructure and power platform in Jamaica is expected to enhance long-term contract revenue and margins while diversifying geographic exposure [12][13] Company Strategy and Development Direction - The company is pursuing strategic growth catalysts, including the acquisition of the Jamaica LNG platform, which is expected to be immediately accretive to EPS and enhance operating cash flow [14][15] - The construction of a new FSRU, Hull 3407, is on track for delivery in mid-2026, with ongoing discussions regarding its deployment [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's robust business model, which is not significantly impacted by tariffs, and highlighted the strong demand for LNG imports in various markets [71][66] - The company raised its adjusted EBITDA guidance for 2025 to a range of $345 million to $365 million, excluding contributions from the Jamaica acquisition [21] Other Important Information - The company completed an equity offering of 8 million shares at $26.5 per share, raising $212 million, and closed an $800 million offering of senior unsecured notes [20] - Fitch Ratings and S&P Global Ratings assigned inaugural credit ratings of BB and BB+, respectively, reflecting the company's strong financial health [19] Q&A Session Summary Question: What are the remaining steps to close the Jamaica transaction? - Management indicated that they are well into the closing process, with routine deliverables and consents expected to be completed without major impediments [27] Question: What are the growth opportunities in Jamaica? - Management highlighted lower hanging fruit opportunities and incremental drivers for growth, emphasizing the strategic fit of the Jamaica assets [28][30] Question: Update on Hull 3407 and market dynamics? - Management confirmed serious discussions regarding Hull 3407, with intense interest from potential counterparties [32][33] Question: Impact of international gas prices on demand? - Management noted that lower LNG prices have increased interest from developing countries, leading to potential fast-track projects [93][94] Question: Updates on LNG vessel conversion plans? - Management confirmed ongoing discussions and engineering advancements for LNG vessel conversions, with plans to acquire an asset this year [75][76] Question: Update on Vietnam MOU? - Management stated ongoing discussions with PetroVietnam and a focus on enhancing the relationship, with positive momentum observed [84] Question: Maintenance and operations impact on EBITDA? - Management indicated that some overachievement in Q1 was due to timing of costs, with expectations of catch-up in subsequent quarters [87]

Group 1: Earnings Performance - Excelerate Energy reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and up from $0.24 per share a year ago [1] - The earnings surprise for the quarter was 25.64%, with the company previously expected to post earnings of $0.32 per share but actually producing $0.40 per share [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $315.09 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 53.54%, compared to year-ago revenues of $200.11 million [3] - Excelerate Energy has topped consensus revenue estimates two times over the last four quarters [3] Group 3: Stock Performance and Outlook - Excelerate Energy shares have declined approximately 15.3% since the beginning of the year, while the S&P 500 has declined by 4.7% [4] - The company's earnings outlook is mixed, with current consensus EPS estimate for the coming quarter at $0.30 on revenues of $248.17 million, and $1.38 on revenues of $915.22 million for the current fiscal year [8] - The Zacks Industry Rank for Alternative Energy - Other is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [9]

Financial Performance - Excelerate Energy reported Adjusted EBITDA of $100.4 million in 1Q 2025, a 10% sequential increase from 4Q 2024[17, 28] - Adjusted Net Income for 1Q 2025 was $55.6 million, representing a 21% sequential increase from the previous quarter[17, 28] - Adjusted Earnings Per Share (diluted) for 1Q 2025 reached $0.49, a 23% sequential increase[17] - The company achieved a high operational reliability of 99.9% in 1Q 2025[17] Growth Strategy & Jamaica Acquisition - Excelerate Energy is focused on optimizing its core business to maximize shareholder value[19] - The company is growing its fleet through selective acquisitions and new vessel construction[21] - Excelerate Energy acquired an integrated LNG and power platform in Jamaica for just over $1 billion, expected to be immediately accretive to earnings per share[22, 34] - The Jamaica business includes a Clarendon CHP Plant, storage & distribution assets, and provides approximately 30 TBtu of annual LNG supply[23] Capital Structure & Outlook - Excelerate Energy completed an equity offering of 8 million shares at $26.50 per share, raising $212 million in gross proceeds[34] - The company closed an $800 million offering of 8% senior unsecured notes due in 2030[35] - The company revised its full year 2025 Adjusted EBITDA guidance to a range of $345 million - $365 million, exclusive of the pending Jamaica acquisition[38]

Financial Results - Excelerate Energy, Inc. announced a preliminary financial result for Q1 2025, with a term loan outstanding of $163.6 million as of December 31, 2024[7]. Credit Agreements - The company entered into a Fifth Amendment to its Senior Secured Credit Agreement, extending the maturity of the revolving facility to March 17, 2029, and increasing commitments to $500 million[5]. - The Fourth Amendment to the Credit Agreement included additional covenant baskets to permit the Pending Acquisition and incurrence of related debt[12]. Acquisitions - Excelerate Energy Limited Partnership plans to acquire New Fortress Energy, Inc.'s business in Jamaica for $1.055 billion, contingent upon certain conditions[5]. - The company intends to offer $700 million in Senior Notes due 2030, with proceeds to fund the Pending Acquisition and repay the Term Loan[10].

Company Overview - Excelerate Energy (EE) is expected to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.39, reflecting a +62.5% change [3][12] - Revenues are anticipated to reach $205.21 million, marking a 2.6% increase from the previous year [3] Earnings Expectations - The earnings report is scheduled for release on May 7, 2025, and could influence stock movement based on whether actual results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised down by 11.81% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +9.85% for Excelerate Energy, suggesting a likelihood of beating the consensus EPS estimate [11][10] - The company currently holds a Zacks Rank of 3, indicating a hold position, which combined with the positive Earnings ESP suggests a potential earnings beat [11] Historical Performance - In the last reported quarter, Excelerate Energy exceeded the expected EPS of $0.32 by delivering $0.40, resulting in a +25% surprise [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times [13] Industry Comparison - Constellation Energy Corporation (CEG), another player in the alternative energy sector, is expected to report an EPS of $2.14 for the same quarter, reflecting a +17.6% year-over-year change, with revenues projected at $4.46 billion, down 27.7% from the previous year [17] - CEG's consensus EPS estimate has been revised up by 1.6% in the last 30 days, and it also has a positive Earnings ESP of 2.18%, indicating a likely earnings beat [18]

Core Viewpoint - Excelerate Energy is positioned well to continue its streak of beating earnings estimates, having consistently exceeded expectations in recent quarters [1][2]. Group 1: Earnings Performance - For the most recent quarter, Excelerate Energy reported earnings of $0.40 per share, surpassing the expected $0.32 per share, resulting in a surprise of 25% [2]. - In the previous quarter, the company reported $0.35 per share against an expectation of $0.32 per share, achieving a surprise of 9.38% [2]. - The average surprise for the last two quarters was 17.19% [1]. Group 2: Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Excelerate Energy, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Excelerate Energy is +1.84%, suggesting analysts have recently become more optimistic about the company's earnings prospects [8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. Group 3: Zacks Rank and Future Outlook - Excelerate Energy holds a Zacks Rank of 1 (Strong Buy), which, combined with its positive Earnings ESP, indicates a high probability of another earnings beat [8]. - The next earnings report for Excelerate Energy is expected to be released on May 7, 2025 [8].

Core Insights - Investors in the Alternative Energy sector may consider Excelerate Energy (EE) and Talen Energy Corporation (TLN) as potential undervalued stocks [1] Valuation Metrics - Excelerate Energy has a Zacks Rank of 1 (Strong Buy), while Talen Energy Corporation has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for EE [3] - EE has a forward P/E ratio of 18.22 compared to TLN's 25.41, suggesting that EE is more attractively priced [5] - The PEG ratio for EE is 0.94, while TLN's PEG ratio is significantly higher at 3.41, indicating better expected earnings growth relative to its price for EE [5] - EE's P/B ratio is 1.49, while TLN's P/B ratio is 7.46, further highlighting EE's superior valuation metrics [6] - Overall, EE has a Value grade of B, while TLN has a Value grade of C, reflecting EE's stronger valuation metrics and estimate revision activity [6][7]

Core Viewpoint - Excelerate Energy has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Excelerate Energy for the fiscal year ending December 2025 is projected at $1.46 per share, reflecting a 15% increase from the previous year's reported figure [9]. - Over the past three months, the Zacks Consensus Estimate for Excelerate Energy has risen by 1.2%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, making it a reliable tool for investors to gauge stock performance [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting Excelerate Energy's strong position in terms of earnings estimate revisions [10][11]. Market Implications - The upgrade to Zacks Rank 1 suggests that Excelerate Energy's improving earnings outlook could lead to increased buying pressure and a potential rise in its stock price [4][6]. - The correlation between earnings estimate revisions and stock price movements underscores the importance of tracking these revisions for investment decisions [7].

Core Insights - The U.S. Energy Department reported a higher-than-expected increase in natural gas supplies, with stockpiles rising by 37 billion cubic feet (Bcf) for the week ended March 21, surpassing analysts' expectations of a 25 Bcf increase [2]. - Despite bearish inventory data, natural gas prices rose, closing at $4.065, marking a 2% increase for the week and a 13.4% gain in the first quarter of 2025 [4]. - The market outlook remains positive, with U.S. natural gas inventories over 6% below the five-year average, supporting prices around $4/MMBtu in the near term [7]. Industry Overview - Natural gas stockpiles in the lower 48 states are currently at 1,744 Bcf, which is 557 Bcf (24.2%) below the 2024 level and 122 Bcf (6.5%) lower than the five-year average [3]. - The total supply of natural gas averaged 110.8 Bcf per day, with daily consumption rising to 107.7 Bcf, reflecting increased residential and commercial usage [3]. - The U.S. has become the world's largest LNG supplier, with exports averaging 16 Bcf per day, driven by European and Asian demand for American LNG [6]. Company Insights - **Expand Energy (EXE)**: The company has solidified its position as the largest natural gas producer in the U.S. following a merger, with a projected 422.7% year-over-year increase in 2025 earnings per share [8][10]. - **Excelerate Energy**: Specializing in LNG infrastructure, the company represents 20% of the global Floating Storage Regasification Unit (FSRU) fleet, with a projected 11.8% year-over-year growth in 2025 earnings per share [11][12]. - **The Williams Companies**: Positioned to benefit from long-term U.S. natural gas demand growth, the company has a projected 14.1% year-over-year growth in 2025 earnings per share [13][14].

Core Viewpoint - Excelerate Energy Inc. has agreed to acquire New Fortress Energy Inc.'s assets in Jamaica for $1.055 billion, with the transaction expected to close by the June quarter of 2025 [1] Group 1: New Fortress Energy's Debt Reduction Strategy - The divestment is part of New Fortress Energy's strategy to optimize its asset portfolio and reduce its $8.4 billion debt burden by the end of 2024 [2] - New Fortress Energy paused shareholder dividend payments and engaged with bondholders regarding short-term debt maturities amid financial difficulties [2] Group 2: Transaction Details - The transaction includes NFE's LNG import terminal in Montego Bay, the Old Harbour offshore floating storage and regasification terminal, and a 150 MW Combined Heat and Power Plant in Clarendon [3] - Proceeds from the sale will be utilized to pay off corporate debt and meet general corporate needs [3] Group 3: New Fortress Energy's Role in Jamaica - New Fortress Energy has been instrumental in transitioning Jamaica's energy landscape from oil-based fuels to cleaner energy resources since entering the market in 2016 [4] - The company has collaborated with the government and local communities to enhance access to reliable and cost-effective clean energy [4] Group 4: Excelerate Energy's Strategic Position - The acquired assets align with Excelerate Energy's operational capabilities and will support existing LNG supply agreements [5] - The 150 MW Clarendon power plant, which supplies nearly 65% of Jamaica's electricity, has potential for expansion [5] - Jamaica's strategic location enhances Excelerate Energy's position as LNG export facilities in the region are on the rise [5] Group 5: Deleveraging Trends in the Energy Sector - The divestment aligns with broader deleveraging trends in the energy sector, where companies like Phillips 66 are also focusing on asset dispositions to strengthen their balance sheets [6] - Phillips 66 has committed to achieving $3 billion in asset divestitures in 2023 and aims to reduce total debt to $17 billion by 2025 [7]