Excelerate Energy (EE) FY 2025 Conference September 02, 2025 03:35 PM ET Company ParticipantsSteven Kobos - President, CEO & DirectorConference Call ParticipantsTheresa Chen - Senior Analyst - Midstream & Refining Equity ResearchTheresa ChenGood afternoon, everyone. My name is Theresa Chen, and I am the Midstream and Refining Analyst here at Barclays. It is my pleasure to introduce our next company, Accelerate Energy. From Accelerate, we have Stephen Kobos, CEO. Stephen, please.Steven KobosThanks, Theresa. ...

Financial Data and Key Metrics Changes - The company reported a strong financial condition with $400 million in cash and an undrawn $500 million revolver, indicating readiness for growth initiatives [6] - The company expects the Caribbean platform to generate an incremental EBITDA of $80 million to $110 million over the next five years, with planned capital expenditures of $200 million to $400 million [16] Business Line Data and Key Metrics Changes - The recent acquisition of an integrated LNG and power platform in Jamaica, valued at over $1 billion, has positioned the company as an integrated downstream LNG performer [8] - The company has added two LNG import terminals, a power plant, and 12 small-scale regasification facilities, enhancing its operational capabilities [9] Market Data and Key Metrics Changes - The Caribbean market is heavily reliant on diesel and heavy fuel oil, with over 90% of power generation coming from these sources, presenting a significant opportunity for fuel switching to LNG [23] - The company is focused on optimizing gas throughput in Jamaica and expanding its infrastructure to meet the growing demand for cleaner energy [13][24] Company Strategy and Development Direction - The company aims to leverage its recent acquisition to expand its footprint in the Caribbean while maintaining its global presence [16] - The strategy includes optimizing existing assets and exploring new opportunities for growth through both organic projects and acquisitions [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the LNG market fundamentals, highlighting the support from the U.S. government and the increasing global demand for U.S. LNG [57][59] - The company remains focused on delivering reliable energy solutions and is committed to expanding its market reach [58] Other Important Information - The company has increased its dividend by 33% and expects low double-digit increases in dividends over the next three years, reflecting strong cash conversion from its business [33][34] - The company is actively negotiating opportunities for its FSRU asset in Asia and the Middle East, indicating a proactive approach to market expansion [45] Q&A Session Summary Question: Opportunities from the acquisition in Jamaica - The acquisition is expected to serve as a springboard for further growth in the Caribbean, with plans to optimize operations and increase gas throughput [8][12] Question: Total addressable market for fuel switching - The Caribbean's reliance on liquid fuels presents a significant opportunity for the company to deliver savings and reliable energy [23][24] Question: Optimization of legacy terminal services - The company views its legacy business as a critical component of its operations, focusing on reliability and customer needs [26][28] Question: Capital allocation strategy - The primary focus remains on growth, with a commitment to returning capital to shareholders through dividends and share buybacks [32][34] Question: FSRU conversion candidates - The company is advancing on the engineering and design for converting its assets, with a timeline for potential completion by late 2027 [38][46] Question: Sustainability and cost savings efforts - The company is integrating modular relicofaction kits to enhance sustainability and improve operational efficiency [47][50]

Financial Data and Key Metrics Changes - The company reported a strong financial condition with $400 million in cash and an undrawn $500 million revolver, indicating readiness to execute growth strategies [4] - The company expects the new Caribbean platform to generate an incremental EBITDA of $80 million to $110 million over the next five years, with planned capital expenditures of $200 million to $400 million [10][11] Business Line Data and Key Metrics Changes - The acquisition of an integrated LNG and power platform in Jamaica has expanded the company's capabilities, adding two LNG import terminals, a power plant, and 12 small-scale regasification facilities [6][9] - The company is focused on optimizing operations in the Caribbean, having already signed deals for increased gas throughput and investing in infrastructure [8][9] Market Data and Key Metrics Changes - The Caribbean market is heavily reliant on diesel and heavy fuel oil, with over 90% of power generation coming from these sources, presenting a significant opportunity for LNG [16] - The company aims to democratize U.S. gas to markets in the Caribbean, leveraging its proximity to U.S. LNG resources [16] Company Strategy and Development Direction - The company is committed to growth as its first priority while also returning cash to shareholders, having recently increased its dividend by 33% [20][21] - The company is exploring both new builds and conversions for its floating storage and regasification units (FSRUs), with a focus on optimizing its existing assets [22][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the LNG market fundamentals, highlighting strong support from the U.S. government and the growing global demand for reliable U.S. energy [35][36] - The company remains focused on expanding its market presence, having opened new markets in Bangladesh, Pakistan, Argentina, Kuwait, and Finland [36][37] Other Important Information - The company has a long-term LNG portfolio that allows it to bundle sales and purchases, minimizing commodity exposure and enhancing returns [18] - The company is actively engaged in sustainability efforts, including a recent agreement with Petrobras to install a regasification unit, which signifies a commitment to reliable energy solutions [32] Q&A Session Summary Question: How have the recent acquisitions opened up opportunities for growth? - The acquisition of the integrated LNG and power platform in Jamaica is seen as a significant step, providing a springboard for further expansion in the Caribbean [6] Question: What is the total addressable market for fuel switching in the Caribbean? - The Caribbean's reliance on liquid fuels presents a substantial opportunity for LNG, as the region is over 90% dependent on diesel and heavy fuel oil [16] Question: How does the company view potential optimization of legacy terminal services? - The company considers its legacy business as best-in-class and is focused on meeting the diverse needs of its customers while ensuring reliable operations [17] Question: What is the company's capital allocation strategy? - The company prioritizes growth while also returning capital to shareholders, with plans for low double-digit increases in dividends over the next three years [20][21] Question: What are the next steps for FSRU Hull 3407? - The company is currently in negotiations for Hull 3407 in Asia and the Middle East, with confidence in the execution and timeline for the asset [30]