Excelerate Energy, Inc. Q4 FY2024 earnings call

• 2024 was an exceptional year with record adjusted EBITDA and net income growth.
• Fleet reliability was 99.9% in 2024, the highest in Excelerate's technical management history.
• Celebrated completion of 3,000th LNG ship-to-ship cargo transfer.
• New build FSRU Hull 3407 construction on track, with keel laying in Q1 2025 and launch in Q2.
• Plans to buy an LNG carrier for gas supply and potential FSRU conversion.
• Strategic investments in LNG import terminals and downstream infrastructure to broaden market presence.

For the full-year 2024, Excelerate Energy delivered record adjusted EBITDA of $348 million, which was above the high end of their guidance range. Net income was $153 million, up 21% year-over-year. The company's core business, centered around FSRUs and related LNG infrastructure, contributed to these financial results. The robust take-or-pay business model and optimization of the regasification business were key drivers.

• 2025 adjusted EBITDA expected to range between $340 million to $360 million.
• Maintenance CapEx for 2025 estimated at $60 million to $70 million, including drydocks for FSRUs.
• Committed growth capital for 2025 expected to be between $65 million to $75 million, including payments for new build Hull 3407.
• Keel laying payment of $33 million for Hull 3407 in Q1 2025, with subsequent payments tied to milestones.

• Geoeconomic and geopolitical uncertainties could impact the supply-demand balance for FSRUs.
• Operational risks related to fleet performance and execution of capital projects, though the company is focused on mitigating these.

Q: Noah Katz asks about what's implied in the 2025 adjusted EBITDA guide and if near-term growth opportunities outside FSRUs are baked into the guide.

A: Dana Armstrong responds that other growth opportunities aren't built into the guidance yet, but they are pursuing them.

Q: Chris Robertson asks about maintenance CapEx expensed vs capitalized and the final payment for the new build Hull 3407.

A: Dana Armstrong says maintenance CapEx is all capitalized, and the final payment for Hull 3407 is roughly $200 million.

Q: Zack Van Everen asks about macro outlook and projects in Vietnam/Alaska.

A: Steven Kobos discusses European developments and energy security needs, while Oliver Simpson talks about Alaska and Vietnam projects being pursued.

Q: Michael Scialla asks about stock repurchases and gas sales optimization.

A: Steven Kobos mentions satisfaction with the repurchase program, and Dana Armstrong discusses gas sales optimization including Atlantic Basin deals.

Q: Theresa Chen asks about commercial discussions for new build and conversions.

A: Steven Kobos talks about strong demand and the company's focus on downstream value chain, while Oliver Simpson mentions tools to address market needs.

Q: Bobby Brooks asks about fleet throughput and LNG carrier conversion approach.

A: David Liner discusses fleet throughput range, and Oliver Simpson talks about LNG carrier acquisition for optimization and conversion tailoring.

Q: Craig Shere asks about conversion candidate costs and project opportunities.

A: Steven Kobos talks about conversion cost considerations and ongoing project pursuits without specific timelines.