Excelerate Energy(US:EE)2023-08-09 16:00Financial Performance - Total revenues for Q2 2023 reached $432.4 million, a 6.5% increase from $406.1 million in Q2 2022[16] - Net income for Q2 2023 was $29.6 million, compared to a net loss of $4.0 million in Q2 2022, marking a significant turnaround[16] - Operating income for the first half of 2023 was $103.2 million, up 31.6% from $78.4 million in the same period of 2022[16] - Gas sales in Q2 2023 amounted to $306.9 million, a 16.5% increase from $263.5 million in Q2 2022[16] - The company reported a net income attributable to shareholders of $6.0 million in Q2 2023, compared to a loss of $2.0 million in Q2 2022[16] - Comprehensive income for Q2 2023 was $30.6 million, compared to a loss of $3.3 million in Q2 2022[18] - For the six months ended June 30, 2023, Excelerate Energy reported a net income of $30.739 million, compared to a net income of $23.895 million for the same period in 2022, representing a year-over-year increase of approximately 28.5%[20] - Net income for the six months ended June 30, 2023, was $60,295,000, a significant increase from $8,854,000 in the same period of 2022, representing a growth of approximately 580%[24] Expenses and Liabilities - The company experienced a 5.5% increase in operating expenses for the first half of 2023, totaling $540.2 million compared to $511.5 million in the same period of 2022[16] - Interest expense for Q2 2023 was $13.5 million, up from $7.8 million in Q2 2022, reflecting increased financing costs[16] - The company’s depreciation and amortization expenses increased to $55,965,000 in the first half of 2023 from $48,039,000 in 2022, marking a rise of approximately 16.5%[24] - Total long-term debt increased to $420,310,000 as of June 30, 2023, from $193,396,000 as of December 31, 2022[50] - The total long-term debt outstanding as of June 30, 2023, was $458.834 million, with future principal payments scheduled as follows: $11.077 million for the remainder of 2023, $22.693 million for 2024, and $275.081 million for 2027[63] Equity and Dividends - The total equity of Excelerate Energy as of June 30, 2023, was $1.7547 billion, an increase from $1.6966 billion at the beginning of the year[20] - The company declared Class A dividends of $0.025 per share, totaling $663,000 for the second quarter of 2023[20] - The Company declared total dividends of $667,000 for Class A Common Stock for the quarter ended June 30, 2023, with a dividend of $0.025 per share[75] Cash Flow and Investments - Cash flows from operating activities provided $24,479,000 in the first half of 2023, compared to a cash outflow of $(9,499,000) in the same period of 2022[24] - Total cash used in investing activities was $(288,687,000) for the six months ended June 30, 2023, compared to $(42,030,000) in 2022, indicating a substantial increase in capital expenditures[24] - The company reported a net cash provided by financing activities of $210,463,000 in the first half of 2023, down from $366,266,000 in the same period of 2022[24] Assets and Receivables - As of June 30, 2023, accounts receivable, net totaled $145,608,000, up from $82,289,000 at the end of 2022, reflecting a 77% increase[39] - Trade receivables as of June 30, 2023, were $140,929,000, significantly higher than $74,980,000 at the end of 2022, indicating an increase of about 87.7%[39] - As of June 30, 2023, receivables from contracts with customers were $118.0 million, up from $14.9 million at the end of 2022, indicating improved cash flow management[96] Risk Factors - The company continues to face risks related to international conflicts and market volatility, which may impact future performance[14] - The company is subject to credit risk concentrations, with Customer A contributing 49% of total revenues for the six months ended June 30, 2023, down from 78% in 2022[128] - The Company is exposed to market risks including changes in interest rates, LNG commodity prices, and foreign currency exchange rates, and may use derivative instruments to manage these risks[228] Derivative Instruments and Hedging - 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[229] - The Company utilized an immaterial amount of financial derivatives to hedge currency exposure during the six months ended June 30, 2023[232] - The Company did not hold any commodity derivative instruments as of June 30, 2023 or 2022, indicating minimal hedging activity for commodity price risk[231] Contracts and Agreements - The company executed a 20-year LNG sales and purchase agreement with Venture Global LNG, committing to purchase 0.7 million tonnes of LNG per annum, with an estimated average annual commitment of approximately $250 million[131][132] - The fixed transaction price allocated to remaining performance obligations under long-term contracts was $868.7 million, with expected revenue recognition of $61.7 million in the remainder of 2023[99] Stock-Based Compensation - Stock-based compensation expense for the six months ended June 30, 2023, was $1.4 million, up from $270,000 in the same period of 2022, indicating increased employee incentives[102] - As of June 30, 2023, the company had $3.2 million in unrecognized compensation costs related to stock options, expected to be recognized over 3.8 years[103] - The company granted 84,699 performance units with a weighted average fair value of $28.16, reflecting a focus on aligning employee performance with shareholder returns[108]