Excelerate Energy 2Q24 Results
Very good results from Excelerate Energy and a new increase in Guidance. Plus the announcement of a deal in Vietnam and another that seems close in Alaska.
Financial results: Adjusted EBITDA of $89MM and Net Income of $33MM (an increase of $14MM compared to 1Q24 due to the impact of their dry dock in the previous quarter).
They are increasing the Guidance to $320-$340MM in Adjusted EBITDA. Growth Capex $70-80MM (most of which is allocated to the new FSRU for June 2026) and Maintenance Capex $50-60MM, totaling about $130MM in Capex.
Buybacks: In one year they have repurchased more than 1MM shares (in fact, just in 2Q24 they bought 674K shares at an average price of $16.27). They speak of opportunistic buybacks, so we think that the $30MM remaining from their $50MM buyback authorization will be used if there is a moment when the stock price returns to $16-$17, and not as actively at $19-$20, which seems to make perfect sense to us.
If we compare the results with the same quarter last year, there is a tremendous drop in Revenues but practically the same EBITDA (actually a bit higher this year). This is simply because before they had a ship in Brazil selling gas and not on a charter contract, so they recorded the gas sale but the COGS were also very high because they had to pay for the gas (they are not producers).
Let’s take a detailed look at the progress over these three months and update the thesis, our calculations, and target price.