Excelerate Energy, Inc. Q3 FY2025 earnings call

• Acknowledged the impact of Hurricane Melissa on Jamaica, with teams relocating assets offshore ahead of the storm, infrastructure holding, and operations resuming quickly. - Third quarter saw record EBITDA, highlighting the durability and diversification of the business model. - Global LNG market entering a new phase of accelerated growth, and Excelerate is positioned to solve regas infrastructure challenges with scalable solutions. - Executed a terminal contract in Iraq, offering an integrated solution including FSRU, fixed terminal assets, LNG supply, and operational support, with a 5-year regasification services and LNG supply agreement. - Jamaica's assets had exceptional reliability in the third quarter, with integration progressing well and opportunities for growth in the Caribbean.

Excelerate delivered record quarterly EBITDA of $129 million in the third quarter. Adjusted net income for the third quarter was $57 million, a sequential increase of $10 million or 22% compared to the second quarter. Approximately 90% of future contracted cash flows are under take-or-pay agreements, with a portfolio of weighted average investment-grade counterparties and minimal commodity exposure, ensuring predictable cash flows through market cycles. In Jamaica, the reliability of assets exceeded 99.8% across the platform.

• Increased adjusted EBITDA guidance for 2025 to a range of $435 million to $450 million, incorporating minimal impact from Hurricane Melissa. - Fourth quarter 2025 does not include EBITDA related to Atlantic Basin as the next delivery is in Q1 2026. - Maintenance CapEx expected to range between $65 million and $75 million in 2025. - Committed growth CapEx expected to range between $95 million and $105 million in 2025. - Iraq project expected to have an EBITDA build multiple between 4.5x and 5x. - Petrobangla QatarEnergy LNG supply deal to contribute $15 million of incremental EBITDA in 2026 - 2027 and step up to $18 million in 2028 and thereafter. - Jamaica assets expected to add $80 million to $110 million of incremental EBITDA over the next 5 years.

• Impact of weather events like Hurricane Melissa, but comprehensive insurance coverage and take-or-pay business model limit financial impacts.

Q: Just curious on the split between vessel and supply margin on the Iraq project.

A: Steven Kobos said they aren't going to break it down at this point and should look at the integration, with the project having an EBITDA build multiple between 4.5x and 5x.

Q: Could you remind us how you see the timeline and capital cost to convert the Shenandoah vessel?

A: Steven Kobos mentioned they're thinking about ~$200 million all-in on the conversion, with the lower end of the range, and will give themselves plenty of time to execute.

Q: Just wondering if you guys could walk through what you're thinking on remaining spend on the new building asset currently under construction? And then how you're thinking about when work will commence at the jetty in Iraq A: Dana Armstrong said there's $200 million left to pay on the newbuild at delivery, and Oliver Simpson said work on the Iraq jetty will ramp up from now through summer 2026.

Q: Just with the growth CapEx guide unchanged for this year, is it then right to assume the majority of the spending for the jetty in Iraq is then going to be coming in the first half of '26?

A: Steven Kobos said it's a safe bet that most of the spending for the Iraq jetty will come in the first half of 2026.

Q: Is it right to think that all of your other assets have similar insurance coverage that would insulate you from natural disasters like this?

A: Steven Kobos said most of the insurance programs on floating assets are similar, and the uptime achieved around the globe is not an accident.

Q: Could you remind us, the contracts you have across the globe right now, there's none coming up, none expiring over the next couple of years or when's kind of the next one coming up where you could maybe move an asset to a different location?

A: Steven Kobos talked about assets like Evergreen's Express and Expedient, and Excelsior in Germany, and ongoing efforts to optimize assets.

Q: You've talked in the past about scaling the Jamaica model across the Caribbean. It sounds like now you're saying you want to do that across your global footprint. Has anything changed there to have you make that comment at this point?

A: Steven Kobos said Excelerate is a global company and wants to be an integrated energy company around the world, not just in the Caribbean.

Q: Your gas sales are hard to predict. You haven't really guided on them in the past. You had a lot in the third quarter. Can you talk more about those?

A: Dana Armstrong said there were a couple of things going on, including Atlantic Basin supply delivered in the third quarter, good performance in Jamaica, and 2 cargoes delivered into the APAC region.

Q: Congrats on the Iraq deal and the strong quarterly results. Could you speak a little bit about the repeatability of integrated deals like this? And do you see integrated opportunities for the conversion candidate?

A: Steven Kobos said they absolutely see repeatability, as they're executing on integration before the LNG wave comes, and the TAM is increasing with more affordable LNG driving opportunities around the world.

Q: I was wondering if you could speak a little bit more about the dry docking this quarter. What drove the lower cost there? And is that kind of performance sustainable going forward?

A: Steven Kobos said it would be unfair to put too much on the COO, but they delivered a great dry docking, with logistical factors and lessons learned, but it's too early to say if the performance is sustainable going forward