Excelerate Energy(US:EE)2023-03-28 16:00Financial Performance - Excelerate closed its IPO on April 18, 2022, offering 18,400,000 shares at $24.00 per share, generating gross proceeds of $441.6 million before expenses[18]. - The company has secured long-term, take-or-pay contracts that generate consistent revenue and cash flow, minimizing exposure to commodity price volatility[45]. - As of December 31, 2022, the weighted average remaining term of contracts is 6.3 years, indicating a stable revenue stream from FSRU services[42]. - The company aims to maintain a disciplined investment philosophy to support sustainable and profitable growth, focusing on high-return growth opportunities[49]. Operations and Fleet - As of December 31, 2022, Excelerate operates a fleet of ten FSRUs, having completed over 2,500 STS transfers and delivered more than 6,000 BCF of natural gas[22]. - The company operates one of the largest FSRU fleets for regasification, with over 2,500 STS transfers of LNG and the development or operation of 16 LNG import terminals, establishing itself as a market leader[45]. - The FSRUs have maximum send-out capacities ranging from 600 MMscf/d to 1,200 MMscf/d, allowing for flexible and efficient natural gas delivery[28]. - As of December 31, 2022, nine of the FSRUs are contracted under long-term time charter contracts, providing natural gas on demand[41]. Market Position and Strategy - Excelerate is the largest provider of regasified LNG in Argentina and Bangladesh, and one of the largest in Brazil and Pakistan, with operations in 11 countries[21]. - The company has plans to expand its business to include LNG-to-power projects, enhancing its service offerings[23]. - The company plans to pursue strategic acquisitions to enhance growth and diversify its product portfolio in response to increasing global demand for electricity generation and cleaner energy solutions[48]. - The company aims to optimize its LNG portfolio and fleet flexibility to meet customer needs and support the transition to a lower-carbon future[26]. Environmental and Regulatory Compliance - The company is subject to various environmental regulations, including limits on sulphur content in fuel oil and protocols for mitigating potential harm to human health and the environment[61]. - The IMO GHG Strategy aims to reduce GHG emissions from international shipping by at least 50% by 2050 compared to 2008 levels, with amendments to MARPOL Annex VI effective from November 1, 2022[63]. - The company is responsible for obtaining gas marketing licenses as it expands its natural gas sales line of business to new markets[60]. Human Capital and Diversity - The company has a global headcount of 890 employees, consisting of 190 full-time onshore employees and 700 seafarers, emphasizing the importance of human capital[51]. - The company has established a DEI Council to promote diversity, equity, and inclusion within its workforce, enhancing its operational and financial success[54]. Financial Risks and Management - The company is exposed to commodity price risk primarily through LNG purchases, with no commodity derivative instruments held as of December 31, 2022 or 2021[402]. - The company has entered into long-term interest rate swap agreements to hedge a portion of its exposure to interest rate changes associated with external bank loans[400]. - The company recorded foreign currency losses of $(7.2) million for the year ended December 31, 2022, while gains were $0.1 million in 2021 and $(1.3) million in 2020[403]. - As of December 31, 2022, the fair value of the company's interest rate swaps was $2.3 million, compared to $(4.4) million as of December 31, 2021[401]. Seasonal and Operational Challenges - Seasonal weather can affect the demand for natural gas and LNG sales, prompting the company to manage operations to meet energy needs during winter months in both hemispheres[50]. - The company utilizes Bureau Veritas for vessel classification and compliance with flag state laws through periodic inspections[59]. - The company operates under collective bargaining agreements for seafarers, ensuring compliance with the Maritime Labour Convention 2006[65]. - The company has no material properties other than its vessels and terminal assets, with corporate headquarters located in The Woodlands, Texas[66].