Excelerate Energy(EE)2024-11-07 22:23Financial 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]