Excelerate Energy(EE)2024-11-09 16:45Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 was $92 million, an increase of $3 million or approximately 4% compared to the previous quarter, primarily driven by lower operating costs and higher gas sales margins [26][7] - Total debt, including finance leases, was $716 million, with cash and cash equivalents of $608 million at the end of Q3 2024 [28] - The company raised and narrowed its adjusted EBITDA guidance for 2024 to a range of $335 million to $345 million, driven by higher margins and lower vessel operating costs [32] Business Line Data and Key Metrics Changes - The core regasification business continues to deliver consistent results, underpinned by a contract portfolio with about $4 billion in future revenue and a weighted remaining term of seven years [7] - Maintenance CapEx for Q3 2024 was $4 million, with year-to-date spending of approximately $35 million, primarily for upgrades to the Excelsior vessel [26] Market Data and Key Metrics Changes - Excelerate's two FSRUs deliver approximately 34% of Bangladesh's natural gas supply, highlighting the company's significant market presence [25] - A new 15-year LNG supply agreement with Petrobangla is expected to generate approximately $15 million to $18 million of EBITDA annually starting in 2026 [15] Company Strategy and Development Direction - The company aims to be the global leader in FSRUs and downstream LNG infrastructure, focusing on optimizing its core regasification business and expanding its fleet [6][11] - Excelerate is pursuing opportunities in Vietnam, a rapidly growing market for LNG, through a strategic partnership with PetroVietnam Technical Services Corporation [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable earnings and execute a disciplined capital allocation plan [10][56] - The company is well-positioned to support Bangladesh's energy needs and is committed to future energy projects in the region [24][25] Other Important Information - The company announced a quarterly cash dividend increase to $0.06 per share, reflecting the strength of its balance sheet and cash generation capabilities [31] - A two-year $50 million share repurchase program is underway, with approximately $28 million utilized year-to-date [30] Q&A Session Summary Question: Clarification on the new supply agreement - The new supply agreement is expected to have a locked-in margin, and while the length is described as midterm, it is considered a multiyear deal [35][36] Question: Growth opportunities outside of FSRUs - The company is open to investing in additional assets and infrastructure for onshore regasification to meet pressing global LNG needs [40] Question: Maintenance CapEx guidance decrease - The decrease in maintenance CapEx guidance is due to lower-than-expected spending on vessel upgrades, with expectations for an increase in 2025 due to two dry docks [41][44] Question: LNG carrier conversion timeline - The conversion of an LNG carrier to an FSRU is expected to take about a year, depending on specifications and engineering requirements [50] Question: New build FSRU delivery and EBITDA generation - The new build FSRU is expected to generate EBITDA shortly after delivery in June 2026, with potential for higher per vessel generation compared to the current fleet [53][54]