Group 1: TransMedics Group - TransMedics Group reported Q1 2025 sales of over $143 million, exceeding analyst expectations by approximately 16% [2] - The company achieved adjusted earnings per share (EPS) of $0.70, more than double the expected amount [3] - TransMedics increased its full-year revenue guidance by $34 million, now forecasting $575 million, which implies a growth of 30% compared to 2024 [4] Group 2: Everus - Everus reported Q1 sales of nearly $827 million, beating forecasts by over $150 million, resulting in a sales beat of over 22% [6] - The company's non-adjusted EPS rose by 31% to $0.72, contrary to analyst expectations of a decline [6] - Everus's order backlog increased by 41% to $3.1 billion, providing a solid revenue floor for future growth [8] Group 3: Excelerate Energy - Excelerate Energy's Q1 sales reached $315 million, surpassing estimates by over 51% [11] - Revenues grew by over 57%, significantly higher than the expected growth of just 4% [11] - The company is positioned to benefit from rising global demand for LNG, with Jefferies initiating coverage with a $39 price target [11]

Group 1: Energy Sector - Vietnam's Minister of Industry and Trade, Nguyen Hong Dien, encourages Excelerate Energy to participate in infrastructure construction and the LNG market in Vietnam, highlighting the urgent need for stable LNG supply due to the construction of 14 gas-fired power plants in the coming years [1][2] - Excelerate Energy's Vice President, Peter Haas, proposed three specific cooperation directions: investment and development of LNG infrastructure, ensuring stable LNG supply, and forming joint ventures with Vietnamese partners to expand the market and establish Vietnam as a regional LNG distribution center [1][2] Group 2: Aerospace and Telecommunications - Nguyen praised Lockheed Martin for its long-term cooperation with Vietnam's telecommunications sector and emphasized plans to launch a new generation satellite by the end of 2026, seeking to expand collaboration in aerospace, digital infrastructure, and national telecommunications capabilities [2] - SpaceX plans to invest approximately $1.5 billion in Vietnam to develop telecommunications infrastructure through its Starlink satellite internet service, particularly in remote and border areas, with an initial phase of establishing 10 to 15 ground stations [2] Group 3: Technology and Supply Chain - Nguyen suggested that SpaceX expand cooperation in information technology, clean energy, and high-tech talent training [3] - Google is recognized for considering Vietnam as a core part of its global supply chain restructuring, with suggestions for enhanced collaboration to strengthen Vietnam's supply chain capabilities [3] - The ongoing comprehensive strategic partnership between Vietnam and the U.S. is seen as beneficial for American companies investing in Vietnam, promoting balanced and sustainable trade relations [3]

Industry Overview - The U.S. Energy Department reported a lower-than-expected increase in natural gas supplies, with stockpiles rising by 110 billion cubic feet (Bcf) for the week ended May 9, compared to analysts' expectations of 111 Bcf [2] - Total natural gas stocks reached 2,255 Bcf, which is 375 Bcf (14.3%) below the 2024 level but 57 Bcf (2.6%) higher than the five-year average [3] - Natural gas futures fell about 12% during the week, ending at $3.343/MMBtu, the lowest in two weeks, due to mild weather leading to subdued demand [4] Company Focus - **Expand Energy (EXE)**: The largest natural gas producer in the U.S. after the Chesapeake-Southwestern merger, with significant assets in the Haynesville and Marcellus basins. The Zacks Consensus Estimate for its 2025 earnings per share indicates a 458.2% year-over-year surge, with an 18.7% increase in estimates over the past 60 days [7][8] - **Coterra Energy (CTRA)**: An independent upstream operator with a focus on natural gas, owning approximately 183,000 net acres in the Marcellus Shale. The expected earnings per share growth rate for Coterra is 20.3% over three to five years, compared to the industry's 17.8% [9][10] - **Excelerate Energy (EE)**: Specializes in LNG infrastructure and services, representing 20% of the global Floating Storage Regasification Units (FSRUs) fleet. The Zacks Consensus Estimate for its 2025 earnings per share indicates a 10.2% year-over-year growth [11][12]

Core Viewpoint - New Fortress Energy's stock experienced a significant decline of 62.7% following the release of disappointing Q1 2025 financial results, which revealed a substantial loss that exceeded Wall Street's expectations [1][2]. Financial Performance - The company reported a Q1 2025 loss of $0.73 per share, contrasting sharply with a net profit of $0.26 per share in the same quarter last year, indicating a severe downturn in financial performance [2]. Asset Management - New Fortress Energy sold its Jamaican LNG import terminal in Montego Bay and other assets to Excelerate Energy for approximately $1 billion, a move aimed at addressing its dire financial situation and high debt levels [3]. - The company plans to allocate around $325 million of the proceeds from the sale to reduce existing debt, highlighting its focus on improving its financial stability [3]. Credit and Market Position - The company's credit rating is below investment grade, which restricts its ability to secure long-term contracts for LNG assets in Latin America, forcing it to rely on short-term agreements that negatively impact profit margins [5]. - The current market conditions and the company's financial issues suggest a lack of compelling reasons for a turnaround in the near future, making it an unattractive investment [5].

Financial Performance - Total revenues for the three months ended March 31, 2025, increased to $315,090,000, up 57.4% from $200,113,000 in the same period of 2024[16] - Net income attributable to shareholders for Q1 2025 was $11,387,000, representing an 80.5% increase compared to $6,324,000 in Q1 2024[16] - Operating income for the three months ended March 31, 2025, was $65,716,000, compared to $45,159,000 in Q1 2024, reflecting a growth of 45.5%[16] - Comprehensive income attributable to shareholders for Q1 2025 was $10,975,000, compared to $6,871,000 in Q1 2024, reflecting a 60.9% increase[18] - For the three months ended March 31, 2025, net income was $52.123 million, a 85.1% increase compared to $28.140 million in the same period of 2024[22] - The diluted earnings per share for the three months ended March 31, 2025, was $0.46, compared to $0.24 for the same period in 2024[73] Cash and Liquidity - Cash and cash equivalents as of March 31, 2025, were $619,469,000, an increase of 15.2% from $537,522,000 at the end of 2024[15] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $637.605 million, up from $596.652 million at the end of Q1 2024[22] - Net cash provided by operating activities for Q1 2025 was $154.809 million, significantly higher than $64.661 million in Q1 2024[22] - The Company had $350.0 million of undrawn capacity available under the EE Revolver[59] Assets and Liabilities - Total current assets as of March 31, 2025, were $779,819,000, up from $754,279,000 at the end of 2024, indicating a growth of 3.4%[15] - The company’s total assets increased to $2,917,443,000 as of March 31, 2025, from $2,883,215,000 at the end of 2024, a growth of 1.2%[15] - The total long-term debt, net as of March 31, 2025, was $275.638 million, a decrease from $286.760 million as of December 31, 2024, reflecting a reduction of about 3.9%[48] - The current portion of long-term debt remained stable at $46,993,000 as of March 31, 2025, compared to $46,793,000 at the end of 2024[15] Revenue Sources - The company reported a significant increase in gas sales, reaching $166,725,000 in Q1 2025, compared to $43,119,000 in Q1 2024, marking a growth of 286.5%[16] - Revenue from leases was $132.78 million, slightly up from $132.15 million year-over-year, with operating lease income contributing $115.93 million[82] - Gas sales revenue surged to $166.73 million, compared to $43.12 million in the prior year, reflecting a significant increase in demand[81] Strategic Initiatives - Excelerate Energy is in the process of acquiring a business in Jamaica for an initial purchase price of $1.055 billion, expected to close in Q2 2025[25][26] - The company plans to utilize cash reserves for the pending acquisition and ongoing operational needs, reflecting a strategic focus on growth and expansion[25][26] - The company signed a 15-year LNG sale and purchase agreement with Petrobangla, expected to deliver 0.85 million tonnes per annum starting in 2026, increasing to 1.0 MTPA from 2028[91] Stock and Equity - The Company repurchased 2,473,787 shares of its Class A Common Stock at a weighted average price of $20.41 per share during the year ended December 31, 2024, totaling approximately $50.0 million[72] - A cash dividend of $0.06 per share of Class A Common Stock was declared for the quarter ended March 31, 2025, payable on June 5, 2025[123] - The company completed an equity offering of 6,956,522 shares at a public offering price of $26.50 per share, resulting in net proceeds of approximately $201.9 million after expenses[120] Expenses and Costs - The company reported depreciation and amortization expenses of $21.643 million for Q1 2025, slightly down from $22.910 million in Q1 2024[22] - The Company reported a depreciation expense of $20.8 million for the three months ended March 31, 2025, compared to $22.0 million for the same period in 2024, indicating a decrease of approximately 5.5%[45] - The company reported total lease costs of $4.25 million for Q1 2025, down from $4.64 million in Q1 2024[80] Market Risks - The company is exposed to market risks including interest rates, natural gas and LNG prices, and foreign currency exchange rates, and may utilize derivative instruments to manage these risks[205] - The company has no financial commodity derivative instruments as of March 31, 2025, to mitigate commodity price risk associated with LNG purchases[208] Taxation - The provision for income taxes for the three months ended March 31, 2025, was $6.0 million, down from $6.9 million in 2024, with an effective tax rate of 10.4% compared to 19.7%[106]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted EBITDA of $100 million, an increase of $9 million or approximately 10% compared to the previous quarter [19] - Adjusted net income for the first quarter was $56 million, a sequential increase of $10 million or up 20% compared to Q4 2024 [19] - Total debt, including finance leases, was $677 million, with cash and cash equivalents of $619 million as of March 31 [20] Business Line Data and Key Metrics Changes - The strong financial results were primarily driven by the core regasification infrastructure business, supported by a high-quality take-or-pay customer contract portfolio, which represents over 90% of the estimated full-year adjusted EBITDA [10][19] - Operational reliability remained above 99.9%, exceeding all primary safety targets [11][12] Market Data and Key Metrics Changes - The company is expanding its LNG terminal presence in key natural gas markets globally, with ongoing discussions regarding the deployment of the new FSRU under construction [6][13] - The acquisition of the integrated LNG infrastructure and power platform in Jamaica is expected to enhance long-term contract revenue and margins while diversifying geographic exposure [15][16] Company Strategy and Development Direction - The company is focused on optimizing and expanding its fleet asset strategy, with the construction of Hull 3407 on track for delivery in mid-2026 [13] - The acquisition in Jamaica is a significant step in the execution of the downstream growth strategy, expected to be immediately accretive to EPS and enhance operating cash flow [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and the opportunities ahead, emphasizing the resilience of the business model amid macroeconomic uncertainties [18][75] - The company is seeing increased interest in LNG imports from countries looking to balance trade deficits, indicating a favorable environment for growth [70][71] Other Important Information - The company completed an equity offering of 8 million shares at $26.5 per share, raising $212 million, and closed an $800 million offering of senior unsecured notes [22] - The adjusted EBITDA guidance for 2025 has been increased to a range of $345 million to $365 million, excluding any incremental EBITDA from the Jamaica acquisition [23] Q&A Session Summary Question: What are the remaining steps to close the Jamaica transaction? - Management indicated that they are well into the closing process, with routine deliverables and consents expected to be completed without major impediments [29] Question: What are the growth opportunities for the Jamaica assets? - Management highlighted lower hanging opportunities for growth and incremental gas and LNG sales post-acquisition, leveraging Jamaica's geographical location as a hub [30][32] Question: Update on Hull 3407 and market dynamics? - Management noted serious discussions regarding Hull 3407, emphasizing its best-in-class features and the interest from various counterparties [34][35] Question: How does U.S. international diplomacy impact growth opportunities? - Management stated that the company is largely tariff-proof and sees increasing demand for LNG imports from countries needing to rebalance trade deficits [68][70] Question: Updates on LNG vessel conversion plans? - Management confirmed ongoing discussions and engineering advancements for LNG vessel conversions, with plans to acquire an asset this year [80][81]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted EBITDA of $100 million, an increase of $9 million or approximately 10% compared to the previous quarter [17] - Adjusted net income for the first quarter was $56 million, up $10 million or 20% sequentially from Q4 2024 [17] - Total debt, including finance leases, stood at $677 million, with cash and cash equivalents of $619 million as of March 31, 2025 [18] Business Line Data and Key Metrics Changes - The core regasification infrastructure business drove the strong financial results, with over 90% of estimated full-year adjusted EBITDA supported by a high-quality take-or-pay customer contract portfolio [8][17] - Operational reliability exceeded 99.9% during the quarter, reflecting the company's commitment to operational excellence [9] Market Data and Key Metrics Changes - The company is expanding its LNG terminal presence in key natural gas markets globally, with a focus on enhancing energy security and supporting a lower carbon future [5][6] - The acquisition of the integrated LNG infrastructure and power platform in Jamaica is expected to enhance long-term contract revenue and margins while diversifying geographic exposure [12][13] Company Strategy and Development Direction - The company is pursuing strategic growth catalysts, including the acquisition of the Jamaica LNG platform, which is expected to be immediately accretive to EPS and enhance operating cash flow [14][15] - The construction of a new FSRU, Hull 3407, is on track for delivery in mid-2026, with ongoing discussions regarding its deployment [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's robust business model, which is not significantly impacted by tariffs, and highlighted the strong demand for LNG imports in various markets [71][66] - The company raised its adjusted EBITDA guidance for 2025 to a range of $345 million to $365 million, excluding contributions from the Jamaica acquisition [21] Other Important Information - The company completed an equity offering of 8 million shares at $26.5 per share, raising $212 million, and closed an $800 million offering of senior unsecured notes [20] - Fitch Ratings and S&P Global Ratings assigned inaugural credit ratings of BB and BB+, respectively, reflecting the company's strong financial health [19] Q&A Session Summary Question: What are the remaining steps to close the Jamaica transaction? - Management indicated that they are well into the closing process, with routine deliverables and consents expected to be completed without major impediments [27] Question: What are the growth opportunities in Jamaica? - Management highlighted lower hanging fruit opportunities and incremental drivers for growth, emphasizing the strategic fit of the Jamaica assets [28][30] Question: Update on Hull 3407 and market dynamics? - Management confirmed serious discussions regarding Hull 3407, with intense interest from potential counterparties [32][33] Question: Impact of international gas prices on demand? - Management noted that lower LNG prices have increased interest from developing countries, leading to potential fast-track projects [93][94] Question: Updates on LNG vessel conversion plans? - Management confirmed ongoing discussions and engineering advancements for LNG vessel conversions, with plans to acquire an asset this year [75][76] Question: Update on Vietnam MOU? - Management stated ongoing discussions with PetroVietnam and a focus on enhancing the relationship, with positive momentum observed [84] Question: Maintenance and operations impact on EBITDA? - Management indicated that some overachievement in Q1 was due to timing of costs, with expectations of catch-up in subsequent quarters [87]

Group 1: Earnings Performance - Excelerate Energy reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and up from $0.24 per share a year ago [1] - The earnings surprise for the quarter was 25.64%, with the company previously expected to post earnings of $0.32 per share but actually producing $0.40 per share [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $315.09 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 53.54%, compared to year-ago revenues of $200.11 million [3] - Excelerate Energy has topped consensus revenue estimates two times over the last four quarters [3] Group 3: Stock Performance and Outlook - Excelerate Energy shares have declined approximately 15.3% since the beginning of the year, while the S&P 500 has declined by 4.7% [4] - The company's earnings outlook is mixed, with current consensus EPS estimate for the coming quarter at $0.30 on revenues of $248.17 million, and $1.38 on revenues of $915.22 million for the current fiscal year [8] - The Zacks Industry Rank for Alternative Energy - Other is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [9]

Financial Performance - Excelerate Energy reported Adjusted EBITDA of $100.4 million in 1Q 2025, a 10% sequential increase from 4Q 2024[17, 28] - Adjusted Net Income for 1Q 2025 was $55.6 million, representing a 21% sequential increase from the previous quarter[17, 28] - Adjusted Earnings Per Share (diluted) for 1Q 2025 reached $0.49, a 23% sequential increase[17] - The company achieved a high operational reliability of 99.9% in 1Q 2025[17] Growth Strategy & Jamaica Acquisition - Excelerate Energy is focused on optimizing its core business to maximize shareholder value[19] - The company is growing its fleet through selective acquisitions and new vessel construction[21] - Excelerate Energy acquired an integrated LNG and power platform in Jamaica for just over $1 billion, expected to be immediately accretive to earnings per share[22, 34] - The Jamaica business includes a Clarendon CHP Plant, storage & distribution assets, and provides approximately 30 TBtu of annual LNG supply[23] Capital Structure & Outlook - Excelerate Energy completed an equity offering of 8 million shares at $26.50 per share, raising $212 million in gross proceeds[34] - The company closed an $800 million offering of 8% senior unsecured notes due in 2030[35] - The company revised its full year 2025 Adjusted EBITDA guidance to a range of $345 million - $365 million, exclusive of the pending Jamaica acquisition[38]

Company Overview - Excelerate Energy (EE) is expected to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.39, reflecting a +62.5% change [3][12] - Revenues are anticipated to reach $205.21 million, marking a 2.6% increase from the previous year [3] Earnings Expectations - The earnings report is scheduled for release on May 7, 2025, and could influence stock movement based on whether actual results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised down by 11.81% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +9.85% for Excelerate Energy, suggesting a likelihood of beating the consensus EPS estimate [11][10] - The company currently holds a Zacks Rank of 3, indicating a hold position, which combined with the positive Earnings ESP suggests a potential earnings beat [11] Historical Performance - In the last reported quarter, Excelerate Energy exceeded the expected EPS of $0.32 by delivering $0.40, resulting in a +25% surprise [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times [13] Industry Comparison - Constellation Energy Corporation (CEG), another player in the alternative energy sector, is expected to report an EPS of $2.14 for the same quarter, reflecting a +17.6% year-over-year change, with revenues projected at $4.46 billion, down 27.7% from the previous year [17] - CEG's consensus EPS estimate has been revised up by 1.6% in the last 30 days, and it also has a positive Earnings ESP of 2.18%, indicating a likely earnings beat [18]