Excelerate Energy(EE) - 2023 Q4 - Annual Results

Financial and Operational Highlights Excelerate Energy reported strong 2023 financial results, with full-year Net Income of $126.8 million and Adjusted EBITDA of $346.8 million, driven by core regasification and strategic LNG agreements - CEO Steven Kobos highlighted the strong 2023 financial results, attributing them to the consistent earnings from the core regasification business and solid performance of contracts in Brazil[3] - For 2024, the company is focused on executing its growth strategy and returning capital to shareholders via a new $50 million share repurchase program, while maintaining flexibility for growth opportunities[4] Key Financial Metrics (Q4 & Full Year 2023) | (in millions) | For the three months ended Dec 31, 2023 | For the full year ended Dec 31, 2023 | For the full year ended Dec 31, 2022 | | :--- | :--- | :--- | :--- | | Revenues | $240.1 | $1,159.0 | $2,473.0 | | Operating Income | $39.9 | $210.6 | $186.7 | | Net Income | $20.0 | $126.8 | $80.0 | | Adjusted EBITDA | $71.4 | $346.8 | $296.4 | | Earnings Per Share (diluted) | $0.14 | $1.11 | $0.51 | - Key strategic actions include: Securing a 15-year LNG supply contract with QatarEnergy for 0.85 to 1.0 MTPA to support the Petrobangla SPA; Authorizing a $50 million Class A common stock repurchase program through February 2026; Declaring a quarterly dividend of $0.025 per share[8] 2024 Financial Guidance Excelerate projects 2024 full-year Adjusted EBITDA between $315 million and $335 million, with committed growth capital expenditures of $70-$80 million and maintenance capital expenditures of $50-$60 million 2024 Full Year Guidance | Metric | Expected Range (in millions) | | :--- | :--- | | Adjusted EBITDA | $315 - $335 | | Committed Growth Capex | $70 - $80 | | Maintenance Capex | $50 - $60 | Fourth Quarter and Full Year 2023 Financial Results Analysis Full-year 2023 Net Income and Adjusted EBITDA increased due to new charters and higher rates, while Q4 2023 saw a sequential decline primarily from drydocking expenses and absence of spot LNG sales - The increase in full-year 2023 Net Income and Adjusted EBITDA was primarily due to new charters in Finland and Germany, higher rates in Brazil, Argentina, and the UAE, and higher direct margin on gas sales[7] - Net Income and Adjusted EBITDA decreased sequentially in Q4 2023 compared to Q3 2023 mainly because of drydocking expenses for the FSRU Excellence, non-recurring spot LNG sales in Q3, and planned vessel repairs[10] Key Commercial Updates Excelerate secured long-term LNG supply with a 15-year SPA with QatarEnergy for up to 1.0 MTPA, supporting a corresponding 15-year SPA with Petrobangla, and plans significant growth capital deployment through 2026 - Signed a 15-year LNG SPA with QatarEnergy to purchase 0.85 to 1.0 MTPA of LNG on a delivered ex-ship basis, starting January 2026. This is expected to supply the Petrobangla contract[11] - Finalized a long-term LNG SPA with Petrobangla (Bangladesh) to sell 0.85 to 1.0 MTPA of LNG for 15 years, also beginning in January 2026, with deliveries through Excelerate's two existing FSRUs in the country[12] - For 2024, committed growth capex is expected to be $70-$80 million, with plans to deploy significant additional growth capital through 2026 for organic and inorganic opportunities[13] Liquidity, Capital Resources, and Shareholder Returns As of December 31, 2023, Excelerate maintained strong liquidity with $555.9 million in cash and no outstanding borrowings, actively returning capital through dividends and a new $50 million share repurchase program - As of December 31, 2023, the company had $555.9 million in cash and cash equivalents and no outstanding borrowings under its $350 million revolving credit facility. It paid down $68.3 million of debt in Q4[14] - The Board of Directors declared a quarterly cash dividend of $0.025 per share of Class A common stock, payable on March 28, 2024[15] - A new share repurchase program was authorized, allowing the company to repurchase up to $50 million of its outstanding Class A common stock through February 2026[16] Consolidated Financial Statements This section provides detailed consolidated financial statements, including Statements of Income, Balance Sheets, and Cash Flows, offering a comprehensive view of the company's financial performance and position for 2023 and 2022 Consolidated Statements of Income Full-year 2023 total revenues decreased to $1.16 billion from $2.47 billion in 2022 due to lower gas sales, yet operating income increased to $210.6 million and net income grew to $126.8 million, indicating improved core profitability Full Year Consolidated Statements of Income (Selected Items) | (In thousands) | For the full year ended Dec 31, 2023 | For the full year ended Dec 31, 2022 | | :--- | :--- | :--- | | Total revenues | $1,158,963 | $2,472,973 | | FSRU and terminal services | $506,810 | $445,157 | | Gas sales | $652,153 | $2,027,816 | | Total operating expenses | $948,358 | $2,286,288 | | Operating income | $210,605 | $186,685 | | Net income | $126,844 | $79,996 | | Net income per common share – diluted | $1.11 | $0.51 | Consolidated Balance Sheets As of December 31, 2023, total assets remained stable at $2.86 billion, while total liabilities decreased to $1.05 billion and total equity increased to $1.81 billion, reflecting a stronger balance sheet Consolidated Balance Sheet Highlights | (In thousands) | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total current assets | $699,612 | $823,535 | | Cash and cash equivalents | $555,853 | $516,659 | | Total assets | $2,860,379 | $2,866,822 | | Total current liabilities | $203,756 | $391,509 | | Total liabilities | $1,051,025 | $1,170,125 | | Total equity | $1,809,354 | $1,696,697 | | Total liabilities and equity | $2,860,379 | $2,866,822 | Consolidated Statements of Cash Flows Full-year 2023 net cash from operating activities was $231.9 million, with $308.6 million used in investing activities and $111.4 million provided by financing, resulting in a year-end cash balance of $572.5 million Full Year Consolidated Statements of Cash Flows | (In thousands) | For the year ended Dec 31, 2023 | For the year ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $231,885 | $225,090 | | Net cash used in investing activities | $(308,634) | $(119,267) | | Net cash provided by financing activities | $111,357 | $341,184 | | Net increase in cash, cash equivalents and restricted cash | $34,487 | $447,007 | | Cash, cash equivalents and restricted cash at end of period | $572,458 | $537,971 | Non-GAAP Financial Measures and Reconciliation The company uses non-GAAP measures like Adjusted Gross Margin and Adjusted EBITDA to clarify core operational performance, with full-year 2023 Adjusted EBITDA increasing to $346.8 million and 2024 guidance set at $315-$335 million - The company uses non-GAAP measures to supplement GAAP results. Key measures include: Adjusted Gross Margin: Revenues less direct cost of sales and operating expenses, excluding D&A; Adjusted EBITDA: Net income adjusted for interest, taxes, D&A, accretion, and other non-recurring items; Adjusted Net Income: Net income adjusted for non-recurring charges[21][22][23] Reconciliation of Net Income to Adjusted EBITDA (Full Year) | (In thousands) | For the full year ended Dec 31, 2023 | For the full year ended Dec 31, 2022 | | :--- | :--- | :--- | | Net income | $126,844 | $79,996 | | Interest expense | $66,995 | $59,539 | | Provision for income taxes | $33,247 | $28,326 | | Depreciation and amortization expense | $114,323 | $97,313 | | Accretion expense | $1,774 | $1,494 | | Other adjustments | $3,639 | $29,690 | | Adjusted EBITDA | $346,822 | $296,358 | 2024E Adjusted EBITDA Outlook Reconciliation | (In millions) | 2024E Low Case | 2024E High Case | | :--- | :--- | :--- | | Income before income taxes | $146 | $184 | | Interest expense | $65 | $55 | | Depreciation and amortization expense | $96 | $86 | | Long-term incentive compensation expense | $6 | $9 | | Accretion expense | $2 | $1 | | Adjusted EBITDA | $315 | $335 |