Excelerate Energy, Inc. Q2 FY2025 earnings call

• Value proposition: Leading critical energy infrastructure in LNG value chain, long-term take-or-pay contracts for predictable earnings, long growth runway, macro tailwinds, and attractive financial profile. • Jamaica acquisition: Closed in May, integration proceeding as planned, assets exceeding operational expectations, strengthening U.S. LNG supply portfolio, expecting near-term EBITDA growth by optimizing platform and scaling in Caribbean. • Terminal Services: FSRU Excelsior arrived in Germany, commenced regasification; acquired LNG carrier for Jamaica and regional support; signed deal with Petrobras for reliquefaction unit; progress on newbuild FSRU Hull 3407.

In the second quarter, adjusted EBITDA was $107 million. Year-over-year, adjusted EBITDA grew by $18 million due to the addition of Jamaica EBITDA and strength of legacy business. Terminal Services had milestones like FSRU Excelsior arriving in Germany, commencing regasification, acquisition of LNG carrier renamed Excelerate Shenandoah, deal with Petrobras for reliquefaction unit on FSRU Experience, and progress on newbuild FSRU Hull 3407. Jamaica acquisition brought Montego Bay and Old Harbour LNG terminals, etc., with assets contributing meaningfully to earnings.

• Adjusted EBITDA guidance for 2025 ranges between $420 million and $440 million. • Maintenance CapEx expected to range between $65 million and $75 million. • Committed growth capital expected to range between $95 million and $105 million, an increase of $30 million from prior guidance. • Announced increase in quarterly dividend, targeting low double-digit annual dividend growth rate from 2026 through 2028.

Q: Could you give a better sense of priorities for Jamaica projects timing-wise and nature, and contribution next year?

A: Oliver Simpson said there are near-term opportunities like optimizing existing assets to get EBITDA without significant CapEx (e.g., new customers) and longer-term projects requiring more CapEx. Details on next year's contribution not specific but early momentum with incremental sales.

Q: Have you been able to quantify the addressable untapped market for gas in the Caribbean?

A: Oliver Simpson said majority of Caribbean islands burn liquid fuels for power generation, market has healthy margins, and Excelerate sees opportunity with assets in Jamaica.

Q: Remind us timeline for FSRU conversion project and cost savings vs new build?

A: David Liner said conversion engineering underway, can compress timeline with existing equipment; conversions have savings as they are less bespoke and not as high capacity as new builds.

Q: Expectations on incremental CapEx related to smaller receiving terminals in hub-and-spoke model?

A: Oliver Simpson said range covers multiple assets, early days of assessment, flexible to meet customer needs.

Q: Color on specific milestones for Jamaica platform operationally and financially?

A: Steven Kobos said continuing to be transparent, already making incremental sales, optimizing assets with small investments, and will update on larger contractual milestones.

Q: Incremental supply needed for Jamaica growth and agreements?

A: Oliver Simpson said Venture Global volume works well, room for growth, and proximity to U.S. LNG will help access incremental supply as demand grows.

Q: Change in thinking on financing 3407 and purchase of Shenandoah?

A: Dana Armstrong said still evaluating, healthy balance sheet with cash and revolver capacity; David Liner said Shenandoah is in great condition, no compromise on quality.

Q: Cost savings and upside from purchase of Shenandoah for midterm Atlantic Basin deal?

A: Dana Armstrong said buying vessel is cheaper than charter, will enhance returns.

Q: Breakout of EBITDA growth from Jamaica between synergies on existing assets and new build/CapEx in other Caribbean islands?

A: Oliver Simpson said some EBITDA from optimizing existing assets with minimal CapEx, others requiring further CapEx for projects, split exists but no specific numbers.

Q: Hub-and-spoke model in Caribbean and developments in Europe/Asia?

A: Oliver Simpson said looking to expand asset base for delivered solutions; Steven Kobos said Europe is important with Excelsior in Germany, excited about Vietnam with large gas-to-power generation potential.