Core Insights - Chevron Corporation has resumed operations at the Leviathan natural gas field off Israel's Mediterranean coast after a temporary suspension due to the Iran-Israel conflict, highlighting its ability to navigate complex geopolitical environments [1][10] - The Leviathan field is crucial for regional energy supply, providing nearly 15-20% of Egypt's energy demand, and its operations are essential for maintaining energy exports to Egypt and other neighboring countries [4][10] Group 1: Operational Resumption - Chevron shut down operations at the Leviathan gas field on June 13 due to an emergency directive from Israel's Energy Ministry amid escalating tensions with Iran [2] - The temporary halt resulted in an estimated revenue loss of $12 million, but Chevron acted swiftly to minimize disruptions and align with government directives [4] Group 2: Regional Energy Impact - The Leviathan field is one of the largest deepwater natural gas fields globally, with approximately 85 trillion cubic feet of hydrocarbon discoveries and a 40% increase in natural gas reserves over the past decade [5] - Currently producing 12 billion cubic meters (bcm) of gas annually, Leviathan plans to expand output to 14 bcm by 2026 to meet increasing regional energy needs [6][10] Group 3: Infrastructure and Future Prospects - Egypt relies on liquefied natural gas imports for regasification, with plans to activate additional floating storage and regasification units (FSRUs) to enhance its gas supply infrastructure [7][8] - Chevron's commitment to supporting energy growth in the region includes enhancing Egypt's LNG regasification capabilities, contributing to regional energy security [8]

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]

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]

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]

Financial Data and Key Metrics Changes - For the full-year 2024, Excelerate Energy delivered record adjusted EBITDA of $348 million, exceeding the high end of guidance [10] - Net income for 2024 was $153 million, reflecting a 21% increase year-over-year [10][29] - Total debt, including finance leases, was $696 million, with cash and cash equivalents of $538 million, resulting in net debt of $158 million [30][31] Business Line Data and Key Metrics Changes - The earnings growth was attributed to successful recontracting of FSRUs at elevated market rates and optimization of the core regasification business [11] - The company recorded a reliability of 99.9% across its fleet for the full year, marking the highest reliability in its history [13] Market Data and Key Metrics Changes - The supply/demand balance for FSRUs is expected to remain tight due to ongoing geoeconomic uncertainties, particularly in Europe [19][62] - The company delivered 272 cargoes of LNG in 2024, averaging about 2.5 billion cubic feet of natural gas per day [16] Company Strategy and Development Direction - Excelerate Energy aims to expand its fleet and invest in core regasification while pursuing strategic initiatives for value creation [18][24] - The company is focused on broadening its market presence through investments in LNG import terminals and complementary downstream infrastructure [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the core business and the ability to capture LNG supply optimization opportunities for 2025 [35] - The anticipated tightness in the supply/demand balance for FSRUs is expected to drive demand for LNG imports, particularly in Europe [62] Other Important Information - The company announced a quarterly cash dividend of $0.06 per share, consistent with previous dividends [33] - A $50 million share repurchase program was fully utilized, with plans to consider new authorizations in the future [32][80] Q&A Session Summary Question: Insights on 2025 adjusted EBITDA guidance - Management indicated that the guidance does not include other growth opportunities outside of the FSRU fleet [44] Question: Details on the LNG carrier acquisition - Management is assessing multiple vessels for acquisition, focusing on near-term needs for cargo optimization [47] Question: Financial outlook for 2025 maintenance CapEx - All maintenance CapEx for 2025 is expected to be capitalized, with specific amounts guided [52] Question: Updates on Vietnam and Alaska projects - Management remains optimistic about opportunities in both regions, with ongoing discussions [73][70] Question: Stock repurchase plans - Management is pleased with the previous repurchase program and is considering future options for returning value to shareholders [80] Question: LNG optimization during Q4 - Two LNG optimization deals contributed positively to the fourth-quarter results, with expectations for continued optimization in 2025 [84]