Excelerate Energy, Inc. discusses growth strategy and capital allocation in Q4 2023 earnings conference call

Excelerate Energy, Inc. recently conducted its Q4 2023 earnings conference call, which was attended by notable participants including Craig Hicks, Steven Kobos, Dana Armstrong, and Oliver Simpson. During the call, the company outlined its strategy for growth and capital allocation. Key highlights include plans to invest in their core business portfolio, capitalize on immediate growth catalysts, and maximize value for shareholders. With a strong focus on their FSRU and Terminals business, Excelerate Energy, Inc. highlighted positive cash flows and earnings contributions. Looking ahead, the company aims to expand its fleet through acquisitions and new vessel construction. In addition, the company expressed their belief that their market valuation does not accurately reflect their earning potential, prompting a $50 million share repurchase program. To further drive growth, Excelerate Energy, Inc. plans to acquire equity ownership in LNG regasification terminals, execute long-term sale and purchase agreements, and invest in natural gas infrastructure downstream. The company has already secured long-term SPAs with counter parties, establishing a solid foundation to support their growth strategy.

Participants

Craig Hicks (VP, IR)

Craig Hicks serves as the Vice President of Investor Relations at Excelerate Energy, Inc. As a key member of the executive team, Hicks is responsible for overseeing the company’s communication and engagement with investors and analysts. With his expertise in investor relations, Hicks plays a crucial role in ensuring transparency and providing accurate information about the company’s performance and strategic initiatives.

Steven Kobos (President and CEO)

Steven Kobos holds the esteemed positions of President and CEO at Excelerate Energy, Inc. With his vast experience and visionary leadership, Kobos spearheads the company’s overall direction and operational excellence. He is committed to driving growth and creating value for shareholders through strategic decision-making and innovative approaches. Under Kobos’ guidance, Excelerate Energy, Inc. continues to excel in the energy industry.

Dana Armstrong (EVP and CFO)

Dana Armstrong is the Executive Vice President and Chief Financial Officer at Excelerate Energy, Inc. With her strong financial expertise and strategic acumen, Armstrong plays a crucial role in shaping the company’s financial strategy and capital allocation. She leads the finance team in effectively managing resources and ensuring the company’s financial health. Armstrong’s contributions are pivotal in maximizing shareholder value and supporting Excelerate Energy, Inc.’s growth objectives.

Oliver Simpson (EVP and CCO)

Oliver Simpson holds the position of Executive Vice President and Chief Commercial Officer at Excelerate Energy, Inc. With his extensive knowledge of the energy market, Simpson is responsible for driving commercial success and identifying opportunities for growth. He oversees the company’s commercial strategy, partnerships, and customer relationships. Simpson’s expertise is instrumental in executing on Excelerate Energy, Inc.’s growth initiatives and maximizing value for shareholders.

Investing in Core Business Portfolio

Excelerate Energy, Inc. recognizes the importance of investing in its core business portfolio to drive sustainable growth. By focusing on its foundation, the company maintains a strong foothold in the industry and positions itself for long-term success. Through strategic investments, Excelerate Energy, Inc. aims to enhance operational efficiency, expand its market presence, and capture emerging opportunities. This approach allows the company to leverage its expertise and experience to generate consistent returns for shareholders.

Executing on Near-Term Growth Catalysts

Excelerate Energy, Inc. is actively executing on several near-term growth catalysts to further enhance its position in the market. These catalysts include acquiring equity ownership in LNG regasification terminals, executing long-term sale and purchase agreements, and investing in natural gas infrastructure downstream. By pursuing these opportunities, Excelerate Energy, Inc. not only diversifies its revenue streams but also strengthens its competitive advantage. The company’s commitment to executing on these growth catalysts demonstrates its proactive approach to capturing market opportunities and driving long-term value creation.

Maximizing Value for Shareholders

One of Excelerate Energy, Inc.’s primary goals is to maximize value for its shareholders. The company believes that its market valuation does not accurately reflect its earnings power. To address this, Excelerate Energy, Inc. has implemented a $50 million share repurchase program. This program allows the company to repurchase its own shares, which can have a positive impact on the market value of its remaining shares. By reducing the number of outstanding shares, Excelerate Energy, Inc. aims to enhance shareholder value and provide a return on investment that aligns with its strong financial performance.

Positive Cash Flows and Earnings

Excelerate Energy, Inc.’s FSRU and Terminals business play a significant role in generating positive cash flows and contributing to the company’s overall earnings. FSRUs, or Floating Storage Regasification Units, enable the efficient importation, storage, and regasification of liquefied natural gas (LNG). By leveraging its expertise in operating FSRUs, Excelerate Energy, Inc. has established a strong cash flow-generating business that contributes to its financial success. The company’s terminals business further strengthens its earnings profile by providing essential infrastructure for the efficient transfer, storage, and distribution of LNG.

Fleet Expansion

To support its growth objectives and capitalize on market opportunities, Excelerate Energy, Inc. is committed to fleet expansion. The company plans to achieve this through a combination of strategic acquisitions and new vessel construction. Acquiring existing vessels allows Excelerate Energy, Inc. to quickly expand its fleet and leverage established assets. Simultaneously, investing in the construction of new vessels enables the company to meet the evolving demands of the market and leverage state-of-the-art technology. By expanding its fleet, Excelerate Energy, Inc. enhances its capacity to serve customers, capture new business opportunities, and generate long-term value.

Share Repurchase Program

Excelerate Energy, Inc. recognizes that its market valuation does not reflect its earnings power and the underlying value of the company. In response, the company has implemented a $50 million share repurchase program. This program underscores Excelerate Energy, Inc.’s commitment to maximizing value for shareholders by repurchasing its own shares. Through this strategic allocation of resources, Excelerate Energy, Inc. aims to enhance the market value of its remaining shares and provide a return on investment that better aligns with its strong financial performance. The implementation of the share repurchase program reflects the company’s confidence in its future prospects.

Near-Term Growth Catalysts

Excelerate Energy, Inc. has identified several near-term growth catalysts that are key to its strategy for expansion. One such catalyst is acquiring equity ownership in LNG regasification terminals. By increasing its ownership stake, Excelerate Energy, Inc. can bolster its presence in this critical infrastructure and solidify its position in the LNG market. Additionally, the company is executing long-term sale and purchase agreements to secure a stable revenue stream and build lasting customer relationships. Lastly, Excelerate Energy, Inc. is investing in natural gas infrastructure downstream to capitalize on the growing demand for cleaner energy sources. These near-term growth catalysts position the company for sustainable growth and enhance its ability to deliver value to shareholders.

Long-Term SPAs

Excelerate Energy, Inc. has secured long-term Sale and Purchase Agreements (SPAs) with counter parties to support its growth strategy. These agreements provide a foundation for stable revenue generation and allow Excelerate Energy, Inc. to establish long-term business relationships with key partners. By securing SPAs, the company ensures a predictable revenue stream and mitigates the impact of market volatility. These long-term SPAs are integral to Excelerate Energy, Inc.’s growth strategy and demonstrate its commitment to delivering sustainable value to shareholders.

In conclusion, Excelerate Energy, Inc. is dedicated to maximizing value for shareholders through strategic investments in its core business portfolio and the execution of near-term growth catalysts. With positive cash flows and earnings generated by its FSRU and Terminals business, Excelerate Energy, Inc. is well-positioned to capitalize on market opportunities. The company’s fleet expansion through acquisitions and new vessel construction further strengthens its competitive advantage. Moreover, the implementation of a share repurchase program reflects Excelerate Energy, Inc.’s commitment to enhancing shareholder value. By executing on near-term growth catalysts, securing long-term SPAs, and investing in natural gas infrastructure downstream, Excelerate Energy, Inc. sets the stage for sustained growth and the creation of long-term value for its shareholders.