Excelerate Energy(US:EE)2024-08-08 18:59Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2024 was $89 million, an increase of $14 million or approximately 18% compared to the previous quarter [13] - Total debt, including finance leases, stood at $1,734 million, with cash and cash equivalents of $609 million [14] - The company raised its adjusted EBITDA guidance for 2024 to a range of $320 million to $340 million [15] Business Line Data and Key Metrics Changes - The company continues to invest in its fleet, with maintenance CapEx for the quarter at $21 million and approximately $32 million year-to-date [13] - The newbuild FSRU named 3407 is on schedule for delivery in June 2026, with engineering and fabrication work underway [5][6] Market Data and Key Metrics Changes - The planned LNG import terminal in Vietnam is expected to have a total import capacity of 1.2 million tonnes per annum, with operations anticipated to commence in 2027 [9] - The integrated LNG terminal project in South Central Alaska is targeted to start commercial operations in 2028 [10] Company Strategy and Development Direction - The company is focused on three key areas for value creation: acquiring ownership interest in LNG regasification terminals, establishing a diversified LNG portfolio, and investing in downstream natural gas infrastructure [5] - The company is integrating modular reliquefaction kits onboard its vessels to improve operational efficiency and enhance service value [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenging conditions, particularly in Cook Inlet, and emphasized the importance of reliable energy solutions [17][18] - The company remains optimistic about the demand for LNG, particularly in emerging markets like Vietnam and Alaska, despite political changes in Bangladesh [11][52] Other Important Information - The company purchased 674,000 shares for $11 million under its share repurchase program, utilizing 40% of the $50 million authorized [15] - Management highlighted the importance of maintaining a healthy balance sheet while pursuing growth opportunities [27] Q&A Session Summary Question: Concerns regarding the Alaska proposal and technical solutions - Management acknowledged the challenges posed by extreme tidal ranges in Cook Inlet but expressed confidence in developing suitable technical solutions [17][18] Question: Details on the Northern Vietnam terminal project - Management indicated that they have been exploring opportunities in Vietnam for a long time and believe the project has strong fundamentals [24][26] Question: Balancing growth and shareholder returns - Management reiterated that growth is the priority, with plans to maintain dividends and execute share repurchases opportunistically [27] Question: Vessel requirements for upcoming projects - Management noted that they are evaluating different vessel types based on project needs and are committed to growing their fleet [30][31] Question: Timing and execution risks for new builds versus conversions - Management explained that new builds typically take 3 to 3.5 years, while conversions may be quicker but come with execution risks [66]