Excelerate Energy(EE) - 2025 Q2 - Quarterly Results

Company Overview & Highlights Excelerate Energy's Q2 2025 results, Jamaica acquisition, and increased dividend reflect strong performance and strategic growth Recent Highlights Excelerate Energy reported strong Q2 2025 results, including $20.8 million Net Income and $107.1 million Adjusted EBITDA, raised full-year guidance, and increased its quarterly dividend by 33% Q2 2025 Key Financial Highlights | Metric | Value | | :----- | :---- | | Net Income | $20.8 million | | Adjusted Net Income | $46.8 million | | Adjusted EBITDA | $107.1 million | - Closed acquisition of the Jamaica integrated LNG and power platform in May; integration is on track and assets are exceeding operational expectations[8] - Raised Full Year 2025 Adjusted EBITDA guidance, now expected to range between $420 million and $440 million[8] - Declared a quarterly cash dividend of $0.08 per share, or $0.32 per share on an annualized basis, representing an approximately 33 percent increase from the prior quarter[8] CEO Comment CEO Steven Kobos highlighted Excelerate's robust quarter, attributing success to its business model and operational excellence, with early contributions from Jamaica operations - Excelerate delivered another robust quarter, demonstrating the strength of our business model and our focus on operational excellence, with results reflecting terminal services and early Jamaica operations contributions[3] - The Jamaica transaction represents a strategic inflection point, expanding Excelerate's role in the LNG value chain and creating a more diversified platform for growth[4] About Excelerate Energy Excelerate Energy, Inc. is a U.S.-based LNG company providing integrated services across the LNG-to-power value chain, offering flexible regasification, infrastructure, supply, and power generation - Excelerate Energy, Inc. is a U.S.-based LNG company located in The Woodlands, Texas[17] - Excelerate is changing how the world accesses cleaner energy by providing integrated services along the LNG-to-power value chain, aiming for rapid-to-market and reliable LNG solutions[17] - The Company offers a full range of flexible regasification services from floating LNG terminals to infrastructure development, LNG supply, and power generation[17] Second Quarter 2025 Financial Performance Excelerate Energy's Q2 2025 financial performance shows $204.6 million in revenues and $107.1 million in Adjusted EBITDA, with detailed analysis of income and EBITDA drivers Key Financial Results Summary Excelerate Energy reported Q2 2025 revenues of $204.6 million, operating income of $43.4 million, net income of $20.8 million, and Adjusted EBITDA of $107.1 million For the three months ended | Metric (in millions, except per share amounts) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :------------ | | Revenues | $204.6 | $315.1 | $183.3 | | Operating Income | $43.4 | $65.7 | $49.9 | | Net Income | $20.8 | $52.1 | $33.3 | | Adjusted Net Income | $46.8 | $55.6 | $33.3 | | Adjusted EBITDA | $107.1 | $100.4 | $89.0 | | Earnings Per Share (diluted) | $0.15 | $0.46 | $0.26 | | Adjusted Earnings Per Share (diluted) | $0.34 | $0.49 | $0.26 | Detailed Financial Performance Analysis Net income decreased due to Jamaica acquisition costs and higher interest, while Adjusted EBITDA increased from Jamaica's contribution, partially offset by Atlantic Basin margin and vessel costs - Net income for Q2 2025 decreased sequentially due to transition and transaction costs from the Jamaica acquisition, higher interest expense, expected seasonality in Atlantic Basin margin, and timing of vessel operating costs, partially offset by Jamaica EBITDA[6] - Adjusted EBITDA for Q2 2025 increased sequentially primarily due to the addition of Jamaica EBITDA, partially offset by lower Atlantic Basin margin and timing of vessel operating costs[6] - Net income for Q2 2025 decreased year-over-year due to Jamaica acquisition transition and transaction costs and increased interest expense, partially offset by Jamaica EBITDA; Adjusted net income and Adjusted EBITDA increased year-over-year due to Jamaica EBITDA[7] Operational and Strategic Developments Excelerate completed the Jamaica acquisition, purchased an LNG carrier, and partnered with Petrobras for a reliquefaction unit, enhancing its operational capabilities and asset base Key Commercial Updates Excelerate completed the Jamaica acquisition, purchased an LNG carrier, and signed an agreement with Petrobras for a reliquefaction unit, expanding its asset base and operational efficiency Jamaica Acquisition and Integration Excelerate completed the acquisition of an integrated LNG and power platform in Jamaica, including terminals and a power plant, and is optimizing these assets for EBITDA growth - In May 2025, Excelerate completed its acquisition of an integrated LNG and power platform in Jamaica, including the Montego Bay and Old Harbour LNG terminals, the Clarendon combined heat and power plant, and small-scale LNG storage and regasification sites[9] - The Company has begun optimizing these assets to drive near-term EBITDA growth through improved performance and expanded commercial activity, also deepening its presence in Jamaica and the broader Caribbean[9] LNG Carrier Purchase Excelerate finalized the purchase of the LNG carrier Excelerate Shenandoah for an Atlantic Basin supply deal, also marking its first FSRU conversion candidate - In July 2025, Excelerate finalized an agreement to purchase an LNG carrier, renamed the Excelerate Shenandoah, to service a previously announced mid-term Atlantic Basin supply deal[10] - The LNG carrier also represents Excelerate's first owned asset selected as an FSRU conversion candidate[10] Reliquefaction Unit Agreement with Petrobras Excelerate signed an agreement with Petrobras to install a reliquefaction unit on the Experience FSRU in Brazil, aiming to eliminate boil-off losses and reduce Scope 1 emissions - In July 2025, Excelerate signed a definitive agreement with Petrobras to install a reliquefaction unit on the floating regasification terminal Experience, located in Guanabara Bay, Brazil[11] - Once installed, this technology will help eliminate all excess cargo losses due to boil off and lower Excelerate's Scope 1 emissions, while upgrading the performance and life expectancy of the floating LNG terminal[11] Liquidity and Capital Resources As of June 30, 2025, Excelerate maintained strong liquidity with $426.0 million in cash and a fully undrawn $500 million revolving credit facility Liquidity Position (as of June 30, 2025) | Metric | Amount (in millions) | | :----- | :------------------- | | Unrestricted Cash and Cash Equivalents | $426.0 | | Undrawn Revolving Credit Facility Capacity | $500.0 | Quarterly Cash Dividend Update Excelerate's Board approved a 33% increase in the quarterly cash dividend to $0.08 per share, targeting low double-digit annual growth from 2026-2028 Quarterly Cash Dividend | Metric | Value | | :----- | :---- | | Q2 2025 Dividend per share | $0.08 | | Annualized Dividend per share | $0.32 | | Increase from prior quarter | ~33% | | Payable Date | September 4, 2025 | - With even greater confidence in its forward cash flow outlook following the Jamaica acquisition, Excelerate is now targeting a low double-digit annual dividend growth rate commencing in 2026 and continuing through 2028[13] Financial Outlook Excelerate revised its full-year 2025 guidance, raising Adjusted EBITDA expectations to $420-$440 million and adjusting capital expenditures due to the Jamaica acquisition and LNG carrier purchase Revised 2025 Financial Outlook Excelerate revised its full-year 2025 guidance, raising Adjusted EBITDA expectations to $420-$440 million and adjusting capital expenditures due to the Jamaica acquisition and LNG carrier purchase Adjusted EBITDA Guidance Excelerate raised its full-year 2025 Adjusted EBITDA guidance to $420-$440 million, incorporating the anticipated contribution from the Jamaica acquisition - Excelerate revised its full year 2025 guidance range, raising its full year 2025 Adjusted EBITDA guidance to include the anticipated contribution from the Jamaica acquisition from May 14, 2025 through December 31, 2025[14] Revised Full Year 2025 Adjusted EBITDA Guidance | Metric | Range (in millions) | | :----- | :------------------ | | Adjusted EBITDA | $420 - $440 | Capital Expenditure Guidance Revised 2025 capital expenditure guidance projects maintenance capex at $65-$75 million and committed growth capital at $95-$105 million, primarily due to the LNG carrier purchase Revised 2025 Capital Expenditure Guidance | Metric | Range (in millions) | | :----- | :------------------ | | Maintenance Capex | $65 - $75 | | Committed Growth Capital | $95 - $105 | - The increase to Committed Growth Capital is primarily driven by the purchase of the LNG carrier, the Excelerate Shenandoah, in the third quarter[15] Supplemental Information This section provides details on the investor conference call, definitions of non-GAAP financial measures, forward-looking statements, and company contacts Investor Conference Call and Webcast Excelerate management will host a conference call and webcast for investors and analysts on Monday, August 11, 2025, at 8:30 a.m. Eastern Time - 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 Monday, August 11, 2025[16] - 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[16](index=16&type=chunk) Use of Non-GAAP Financial Measures Excelerate Energy uses non-GAAP measures like Adjusted Gross Margin, Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS to provide additional insights into operational performance Overview of Non-GAAP Measures Excelerate reports GAAP financial results but supplements them with non-GAAP measures to provide additional useful information for evaluating performance and valuation - The Company reports financial results in accordance with accounting principles generally accepted in the United States ("GAAP"), with non-GAAP measures designed to supplement, not substitute, GAAP information[18] - Management believes that the non-GAAP financial measures provide investors with additional useful information in evaluating the Company's performance and valuation[19] Definition of Adjusted Gross Margin Adjusted Gross Margin is defined as revenues less cost of LNG, gas, and power, and operating expenses, excluding depreciation and amortization, to measure operational financial performance - The Company uses Adjusted Gross Margin, a non-GAAP financial measure, defined as revenues less cost of LNG, gas and power and operating expenses, excluding depreciation and amortization, to measure its operational financial performance[20] Definition of Adjusted Net Income Adjusted Net Income is defined as net income plus tax-effected transition and transaction expenses, providing insight into profitability excluding non-recurring charges from the Jamaica acquisition - The Company uses Adjusted Net Income, a non-GAAP financial measure, defined as net income plus tax-effected transition and transaction expenses[21] - Management believes Adjusted Net Income is useful because it provides insight into profitability excluding the impact of non-recurring charges related to the Jamaica acquisition[21] Definition of Adjusted EBITDA Adjusted EBITDA is defined as net income before interest, taxes, depreciation, amortization, accretion, non-cash long-term incentive compensation, and non-recurring expenses, offering insight into ongoing operating performance - The Company defines 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[22] - Adjusted EBITDA should not be considered 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, as it has limitations regarding cost of capital, tax structure, and historic costs of depreciable assets[23] Definition of Adjusted Earnings Per Share Adjusted EPS is defined as diluted EPS plus the per-share impact of tax-effected transition and transaction expenses, providing insight into per-share profitability excluding non-recurring charges - The Company uses Adjusted Earnings Per Share ("EPS"), a non-GAAP financial measure, defined as diluted EPS plus the per share impact of its tax-effected transition and transaction expenses[24] - Management believes Adjusted EPS is useful because it provides insight on per share profitability excluding the impact of non-recurring charges related to the Jamaica acquisition[24] Forward-Looking Statements This section contains forward-looking statements regarding future operations, financial conditions, and strategies, subject to substantial risks and uncertainties, including integration risks and market competition - This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, about Excelerate and its industry that involve substantial risks and uncertainties[25] - Readers should not rely on forward-looking statements as predictions of future events, as they are based primarily on current expectations and projections about future events and trends that may affect the business, financial condition, and operating results[26] - The outcome of these forward-looking statements is subject to risks, uncertainties, and other factors described in Excelerate's Annual Report on Form 10‐K for the year ended December 31, 2024, and other SEC filings, including the ability to successfully complete and realize benefits of the Jamaica acquisition, manage integration risks, and address unplanned issues or market competition[26] Contacts This section provides contact information for investor relations, handled by Craig Hicks, and media inquiries, managed by Stephen Pettibone and Frances Jeter - Investors: Craig Hicks, Excelerate Energy, Craig.Hicks@excelerateenergy.com[32] - Media: Stephen Pettibone / Frances Jeter, FGS Global, Excelerate@fgsglobal.com or media@excelerateenergy.com[32] Unaudited Financial Statements This section presents Excelerate's unaudited consolidated statements of income, balance sheets, and cash flows for Q2 2025, reflecting the impact of the Jamaica acquisition Consolidated Statements of Income The unaudited consolidated statements of income show total revenues of $204.6 million for Q2 2025, with operating income at $43.4 million and net income at $20.8 million Consolidated Statements of Income (Selected Data, in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Total revenues | $204,556 | $315,090 | $183,333 | | Operating income | $43,386 | $65,716 | $49,881 | | Net income | $20,765 | $52,123 | $33,277 | | Net income attributable to shareholders | $4,729 | $11,387 | $6,672 | | Diluted EPS | $0.15 | $0.46 | $0.26 | Consolidated Balance Sheets As of June 30, 2025, total assets increased significantly to $4.01 billion, and total liabilities to $1.86 billion, primarily due to the Jamaica acquisition Consolidated Balance Sheets (Selected Data, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Total current assets | $609,339 | $754,279 | | Total assets | $4,010,080 | $2,883,215 | | Total current liabilities | $233,975 | $216,104 | | Total liabilities | $1,860,677 | $994,714 | | Total equity | $2,149,403 | $1,888,501 | - Total assets increased from $2.88 billion at December 31, 2024, to $4.01 billion at June 30, 2025, primarily driven by the Jamaica acquisition, which introduced intangible assets and goodwill[36] Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash from operations was $241.9 million, while investing activities used $1.13 billion, largely offset by $773.0 million from financing activities Consolidated Statements of Cash Flows (Selected Data, in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $241,949 | $155,040 | | Net cash used in investing activities | $(1,125,499) | $(38,268) | | Net cash provided by (used in) financing activities | $773,048 | $(63,082) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(110,414) | $53,684 | - Net cash used in investing activities significantly increased to $(1.13) billion for the six months ended June 30, 2025, primarily due to $1.05 billion net cash paid for acquisition[38] Non-GAAP Reconciliations This section provides reconciliations for Excelerate's non-GAAP financial measures, including Adjusted Gross Margin, Adjusted Net Income, Adjusted EBITDA, and Adjusted Diluted EPS, to their most directly comparable GAAP measures Adjusted Gross Margin Reconciliation The reconciliation shows Adjusted Gross Margin increased to $118.1 million in Q2 2025, up from $112.4 million in Q1 2025 and $105.6 million in Q2 2024 Adjusted Gross Margin Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Gross Margin | $92,588 | $90,750 | $75,181 | | Depreciation and amortization expense | $25,518 | $21,643 | $30,400 | | Adjusted Gross Margin | $118,106 | $112,393 | $105,581 | Adjusted Net Income Reconciliation Adjusted Net Income for Q2 2025 was $46.8 million, reconciled from GAAP Net Income of $20.8 million by adding back tax-effected transition and transaction expenses Adjusted Net Income Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Net income | $20,765 | $52,123 | $33,277 | | Add back: Transition and transaction expenses | $27,659 | $3,682 | $0 | | Tax impact on adjustments | $(1,615) | $(174) | $0 | | Adjusted Net Income | $46,809 | $55,631 | $33,277 | Adjusted EBITDA Reconciliation Adjusted EBITDA for Q2 2025 was $107.1 million, an increase from prior quarters, reconciled by adding back various non-cash and non-recurring expenses to GAAP Net Income Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Net income | $20,765 | $52,123 | $33,277 | | Interest expense | $23,932 | $14,316 | $15,476 | | Provision for income taxes | $5,574 | $6,027 | $7,427 | | Depreciation and amortization expense | $25,518 | $21,643 | $30,400 | | Accretion expense | $483 | $477 | $463 | | Long-term incentive compensation expense | $3,206 | $2,152 | $1,920 | | Transition and transaction expenses | $27,659 | $3,682 | $0 | | Adjusted EBITDA | $107,137 | $100,420 | $88,963 | Adjusted Diluted EPS Reconciliation Adjusted Diluted EPS for Q2 2025 was $0.34, derived from GAAP Diluted EPS of $0.15 by adjusting for tax-effected transition and transaction expenses Adjusted Diluted EPS Reconciliation | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Earnings Per Share (diluted) | $0.15 | $0.46 | $0.26 | | Add back: Transition and transaction expenses | $0.24 | $0.03 | $0 | | Tax impact on adjustments | $(0.05) | $0 | $0 | | Adjusted Earnings Per Share (diluted) | $0.34 | $0.49 | $0.26 | 2025E Adjusted EBITDA Outlook Reconciliation The 2025 full-year Adjusted EBITDA outlook is reconciled to estimated income before income taxes, projecting a range of $420 million to $440 million 2025E Adjusted EBITDA Outlook Reconciliation (in millions) | Metric | Low Case | High Case | | :----- | :------- | :-------- | | Income before income taxes | $167 | $197 | | Interest expense | $95 | $90 | | Depreciation and amortization expense | $110 | $105 | | Accretion expense | $2 | $2 | | Long-term incentive compensation expense | $10 | $15 | | Transition and transaction expenses | $36 | $31 | | Adjusted EBITDA | $420 | $440 |