Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Excelerate Energy Delivers Strong Second Quarter 2023 Results By: Excelerate Energy, Inc. via Business Wire August 09, 2023 at 17:00 PM EDT Excelerate Energy, Inc. (NYSE: EE) (the “Company” or “Excelerate”) today reported its financial results for the second quarter ended June 30, 2023. RECENT HIGHLIGHTS Reported Net Income of $29.6 million for the second quarter Reported Adjusted EBITDA of $88.6 million for the second quarter Secured contracts to sell four spot LNG cargos into Bangladesh in 2023, two delivered in the second quarter Commenced seasonal regasification services at the Bahia Blanca GasPort in Argentina in May 2023 Declared a quarterly dividend of $0.025 per share, payable on September 7, 2023 CEO COMMENT “The strong financial results we delivered in the second quarter of 2023 are a testament to the steady performance of our core regasification business and the demand for FSRUs around the world. With global markets continuing to emphasize the need for energy security, the value of our services has never been greater,” said President and Chief Executive Officer, Steven Kobos. “I am proud of the great work the Excelerate team is doing every day to provide essential regasification services and develop integrated LNG solutions for customers across our global footprint. “We remain committed to building a company that is known for generating predictable earnings and cash flows while providing opportunistic upside from LNG and gas sales. We are confident this balanced approach is the right strategy to drive growth and maximize value for our shareholders.” SECOND QUARTER 2023 FINANCIAL RESULTS For the three months ended June 30, March 31, June 30, (in millions, except per share amounts) 2023 2023 2022 Revenues $ 432.4 $ 211.1 $ 622.9 Operating Income $ 53.7 $ 49.6 $ 39.3 Net Income (Loss) $ 29.6 $ 30.7 $ (4.0 ) Adjusted Net Income (1) $ 29.6 $ 32.7 $ 20.4 Adjusted EBITDA (1) $ 88.6 $ 79.9 $ 66.5 Earnings (Loss) Per Share (diluted) $ 0.23 $ 0.26 $ (0.08 ) (1) See the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure in the section titled "Non-GAAP Reconciliation" below. Net Income and Adjusted EBITDA for the second quarter of 2023 increased over the prior year second quarter primarily due to higher rates on charters in Finland and Argentina, a contract extension at a higher rate in the UAE, and lower operating lease expense resulting from the acquisition of the FSRU Sequoia. The increase in Net Income was also driven by the early extinguishment of the FSRU Excellence finance lease liability as part of the vessel acquisition in 2022. Adjusted EBITDA increased sequentially primarily due to a full quarter of operations for the FSRU Excelsior following the completion of its scheduled drydock in the first quarter, lower operating lease expense for the Sequoia, and two spot LNG cargo sales into Bangladesh. KEY COMMERCIAL UPDATES Bangladesh In the second quarter of 2023, Excelerate delivered two spot LNG cargos into Bangladesh. Year-to-date, Excelerate has secured four Bangladesh spot LNG cargo tenders, equating to approximately 250,000 tons of LNG. The third and fourth cargos are expected to be delivered in the third quarter of 2023. Argentina In May 2023, the FSRU Excelsior commenced seasonal regasification services at the Bahia Blanca GasPort terminal in Argentina. The Excelsior is expected to provide regasification services for the duration of the Argentine winter season. The FSRU Excelsior will return to the Germany charter in the third quarter of 2023. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2023, Excelerate had $462 million in cash and cash equivalents, $80.9 million of letters of credit issued and no outstanding borrowings under its $350 million revolving credit facility. On August 3, 2023, Excelerate’s Board of Directors approved a quarterly dividend equal to $0.025 per share of Class A common stock, which will be paid on September 7, 2023, to shareholders of record as of the close of business on August 23, 2023. 2023 FINANCIAL OUTLOOK Excelerate is narrowing its full year 2023 guidance range. The Company now expects Adjusted EBITDA to range between $325 million and $335 million for the full year 2023. Maintenance capex for 2023 is expected to range between $20 million and $30 million. Actual results may differ materially from the Company’s outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below. INVESTOR CONFERENCE CALL AND WEBCAST The Excelerate management team will host a conference call for investors and analysts at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Thursday, August 10, 2023. Investors are invited to access a live webcast of the conference call via the Investor Relations page on the Company’s website at www.excelerateenergy.com. An archived replay of the call and a copy of the presentation will be on the website following the call. ABOUT EXCELERATE ENERGY Excelerate Energy, Inc. is a U.S.-based LNG company located in The Woodlands, Texas. Excelerate is changing the way the world accesses cleaner forms of energy by providing integrated services along the LNG value chain with an objective of delivering rapid-to-market and reliable LNG solutions to customers. The Company offers a full range of flexible regasification services from FSRUs to infrastructure development to LNG supply. Excelerate has offices in Abu Dhabi, Antwerp, Boston, Buenos Aires, Chattogram, Dhaka, Doha, Dubai, Helsinki, Manila, Rio de Janeiro, Singapore, and Washington, DC. For more information, please visit www.excelerateenergy.com. USE OF NON-GAAP FINANCIAL MEASURES The Company reports financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). Included in this press release are certain financial measures that are not calculated in accordance with GAAP. They are designed to supplement, and not substitute, Excelerate’s financial information presented in accordance with U.S. GAAP. The non-GAAP measures as defined by Excelerate may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude non-recurring items, should not be construed as an inference that Excelerate’s future results, cash flows or leverage will be unaffected by other nonrecurring items. Management believes that the following non-GAAP financial measures provide investors with additional useful information in evaluating the Company's performance and valuation. See the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure, including those measures presented as part of the Company’s 2023 Financial Outlook, in the section titled “Non-GAAP Reconciliation” below. Adjusted Gross Margin We use Adjusted Gross Margin, a non-GAAP financial measure, which we define as revenues less direct cost of sales and operating expenses, excluding depreciation and amortization, to measure our operational financial performance. Management believes Adjusted Gross Margin is useful because it provides insight on profitability and true operating performance excluding the implications of the historical cost basis of our assets. Our computation of Adjusted Gross Margin may not be comparable to other similarly titled measures of other companies, and you are cautioned not to place undue reliance on this information. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure included as a supplemental disclosure because we believe it is a useful indicator of our operating performance. We define Adjusted EBITDA as net income before interest expense, income taxes, depreciation and amortization, accretion, non-cash long-term incentive compensation expense and items such as charges and non-recurring expenses that management does not consider as part of assessing ongoing operating performance. In the first quarter of 2023, we revised the definition of Adjusted EBITDA to adjust for the impact of non-cash accretion expense, which results in a metric that is consistent with how management will review performance going forward. Management believes accretion expense does not directly reflect our ongoing operating performance. Adjusted Net Income The Company uses Adjusted Net Income, a non-GAAP financial measure, which it defines as net income plus the early extinguishment of lease liability related to the acquisition of the Excellence vessel, the non-cash write-off of deferred financing costs related to our prior credit agreement, and restructuring, transition and transaction expenses. Management believes Adjusted Net Income is useful because it provides insight on profitability excluding the impact of non-recurring charges related to our IPO. The Company adjusts net income for the items listed above to arrive at Adjusted EBITDA and Adjusted Net Income because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA and Adjusted Net Income should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company's operating performance or liquidity. These measures have limitations as certain excluded items are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. The Company's presentation of Adjusted EBITDA and Adjusted Net Income should not be construed as an inference that its results will be unaffected by unusual or non-recurring items. The Company's computations of Adjusted EBITDA and Adjusted Net Income may not be comparable to other similarly titled measures of other companies. For the foregoing reasons, each of Adjusted EBITDA and Adjusted Net Income has significant limitations which affect its use as an indicator of its profitability and valuation, and you are cautioned not to place undue reliance on this information. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Excelerate Energy, Inc. (“Excelerate,” and together with its subsidiaries “we,” “us,” “our” or the “Company”) and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding our future results of operations or financial condition, business strategy and plans, expansion plans and strategy, economic conditions, both generally and in particular in the regions in which we operate or plan to operate, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described under “Risk Factors” in Excelerate’s Annual Report on Form 10‐K for the year ended December 31, 2022, our other filings with the Securities and Exchange Commission (the “SEC”), and those identified in this press release, including, but not limited to, the following: customers’ contract termination rights or failure to perform their contractual obligations; risks and technical complexities inherent in operating the Company’s floating storage and regasification units (“FSRUs”) and other infrastructure assets; unforeseen delays, cancellations, expenses or other complications in developing the Company’s projects; regasification terminal or other facility failures; the Company’s need for substantial capital expenditures to maintain or replace FSRUs, terminals or other associated assets; reliance on third parties, including engineering, procurement and construction contractors; officer and crew shortages; the Company’s ability to maintain customer and supplier relationships and to source new suppliers; the Company’s ability to connect with third-party infrastructure; the Company’s ability to purchase or receive delivery of sufficient quantities of liquified natural gas (“LNG”) to satisfy contractual obligations and exposure to commodity price risk; changes in the demand for and price of LNG; the competitive market for LNG regasification services and fluctuations in hire rates for FSRUs; community and political group resistance to existing and new LNG and natural gas infrastructure due to concerns about the environment, safety and terrorism; access to financing sources on favorable terms; the Company’s debt level and finance lease liabilities that could limit its flexibility to obtain additional financing or refinance existing debt; catastrophic events, political tensions, conflicts and wars (such as the ongoing Russia-Ukraine war), health crises and pandemics; volatility of the global financial markets and uncertain economic conditions, including the impact of increased inflation and related governmental monetary policies; our ability to pay dividends on our Class A common stock; and the other risks, uncertainties and other factors identified in the Company’s filings with the SEC. All forward-looking statements are based on assumptions or judgments about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Excelerate. The occurrence of any such factors, events or circumstances would significantly alter the results set forth in these statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. For example, the current global economic uncertainty and geopolitical climate, including the Russia-Ukraine war, may give rise to risks that are currently unknown or amplify the risks associated with many of the foregoing events or factors. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. Excelerate Energy, Inc. Consolidated Statements of Income (Unaudited) For the three months ended June 30, March 31, June 30, 2023 2023 2022 (In thousands, except share and per share amounts) Revenues FSRU and terminal services $ 125,462 $ 118,577 $ 110,072 Gas sales 306,910 92,479 512,857 Total revenues 432,372 211,056 622,929 Operating expenses Cost of revenue and vessel operating expenses 48,664 58,792 58,673 Direct cost of gas sales 277,693 55,185 485,023 Depreciation and amortization 30,772 25,193 24,296 Selling, general and administrative expenses 21,563 22,317 13,064 Restructuring, transition and transaction expenses — — 2,582 Total operating expenses 378,692 161,487 583,638 Operating income 53,680 49,569 39,291 Other income (expense) Interest expense (13,479 ) (11,955 ) (7,800 ) Interest expense – related party (3,593 ) (3,592 ) (5,493 ) Earnings from equity method investment 392 416 732 Early extinguishment of lease liability on vessel acquisition — — (21,834 ) Other income (expense), net 2,268 3,904 (1,086 ) Income before income taxes 39,268 38,342 3,810 Provision for income taxes (9,712 ) (7,603 ) (7,800 ) Net income (loss) 29,556 30,739 (3,990 ) Less net income (loss) attributable to non-controlling interest 23,588 23,895 (831 ) Less net loss attributable to non-controlling interest – ENE Onshore — — (181 ) Less pre-IPO net loss attributable to EELP — — (947 ) Net income (loss) attributable to shareholders $ 5,968 $ 6,844 $ (2,031 ) Net income (loss) per common share – basic $ 0.23 $ 0.26 $ (0.08 ) Net income (loss) per common share – diluted $ 0.23 $ 0.26 $ (0.08 ) Weighted average shares outstanding – basic 26,254,167 26,254,167 26,254,167 Weighted average shares outstanding – diluted 26,266,312 26,269,862 26,254,167 Excelerate Energy, Inc. Consolidated Balance Sheets June 30, 2023 December 31, 2022 (Unaudited) ASSETS (In thousands) Current assets Cash and cash equivalents $ 462,001 $ 516,659 Current portion of restricted cash 2,638 2,614 Accounts receivable, net 145,608 82,289 Inventories 28,072 173,603 Current portion of net investments in sales-type leases 13,980 13,344 Other current assets 36,629 35,026 Total current assets 688,928 823,535 Restricted cash 19,482 18,698 Property and equipment, net 1,685,705 1,455,683 Operating lease right-of-use assets 10,252 78,611 Net investments in sales-type leases 392,007 399,564 Investment in equity method investee 25,096 24,522 Deferred tax assets, net 37,741 39,867 Other assets 40,681 26,342 Total assets $ 2,899,892 $ 2,866,822 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 46,991 $ 96,824 Accrued liabilities and other liabilities 59,710 66,888 Current portion of deferred revenue 21,972 144,807 Current portion of long-term debt 29,507 20,913 Current portion of long-term debt – related party 8,003 7,661 Current portion of operating lease liabilities 5,982 33,612 Current portion of finance lease liabilities 21,408 20,804 Total current liabilities 193,573 391,509 Derivative liabilities 598 — Long-term debt, net 420,310 193,396 Long-term debt, net – related party 176,345 180,772 Operating lease liabilities 5,316 48,373 Finance lease liabilities 200,276 210,354 TRA liability 72,951 72,951 Asset retirement obligations 40,800 39,823 Long-term deferred revenue 35,007 32,947 Total liabilities $ 1,145,176 $ 1,170,125 Commitments and contingencies Class A Common Stock ($0.001 par value, 300,000,000 shares authorized, 26,254,167 shares issued and outstanding as of June 30, 2023 and December 31, 2022) $ 26 $ 26 Class B Common Stock ($0.001 par value, 150,000,000 shares authorized and 82,021,389 shares issued and outstanding as of June 30, 2023 and December 31, 2022) 82 82 Additional paid-in capital 465,067 464,721 Retained earnings 23,489 12,009 Accumulated other comprehensive income 1,257 515 Non-controlling interest 1,264,795 1,219,344 Total equity $ 1,754,716 $ 1,696,697 Total liabilities and equity $ 2,899,892 $ 2,866,822 Excelerate Energy, Inc. Consolidated Statements of Cash Flows (Unaudited) For the six months ended June 30, 2023 June 30, 2022 Cash flows from operating activities (In thousands) Net income 60,295 $ 8,854 Adjustments to reconcile net income to net cash from operating activities Depreciation and amortization 55,965 48,039 Amortization of operating lease right-of-use assets 9,674 15,447 ARO accretion expense 877 738 Amortization of debt issuance costs 3,983 620 Deferred income taxes 1,980 (5,552 ) Share of net earnings in equity method investee (808 ) (1,510 ) Distributions from equity method investee — 2,700 Long-term incentive compensation expense 1,431 270 Early extinguishment of lease liability on vessel acquisition — 21,834 Non-cash restructuring expense — 1,574 (Gain)/loss on non-cash items 1,747 — Changes in operating assets and liabilities: Accounts receivable (67,420 ) 76,399 Inventories 144,529 40,028 Other current assets and other assets (13,889 ) (2,302 ) Accounts payable and accrued liabilities (50,251 ) (211,287 ) Derivative liabilities 193 1,295 Current portion of deferred revenue (122,835 ) (1,669 ) Net investments in sales-type leases 6,921 5,790 Operating lease assets and liabilities (9,973 ) (14,040 ) Other long-term liabilities 2,060 3,273 Net cash provided by (used in) operating activities $ 24,479 $ (9,499 ) Cash flows from investing activities Purchases of property and equipment (292,788 ) (42,030 ) Sales of property and equipment 4,101 — Net cash used in investing activities $ (288,687 ) $ (42,030 ) Cash flows from financing activities Proceeds from issuance of common stock, net — 412,183 Proceeds from long-term debt – related party — 649,400 Repayments of long-term debt – related party (4,085 ) (648,126 ) Repayments of long-term debt (10,925 ) (9,561 ) Proceeds from revolving credit facility — 140,000 Repayments of revolving credit facility — (140,000 ) Proceeds from Term Loan Facility 250,000 — Payment of debt issuance costs (7,018 ) (5,512 ) Collections of related party note receivables — 6,600 Settlement of finance lease liability – related party — (25,000 ) Principal payments under finance lease liabilities (10,752 ) (10,806 ) Principal payments under finance lease liabilities – related party — (2,912 ) Dividends paid (1,313 ) — Distributions (6,101 ) — Minority owner contribution – Albania Power Project 657 — Net cash provided by financing activities $ 210,463 $ 366,266 Effect of exchange rate on cash, cash equivalents, and restricted cash (105 ) — Net increase (decrease) in cash, cash equivalents and restricted cash (53,850 ) 314,737 Cash, cash equivalents and restricted cash Beginning of period $ 537,971 $ 90,964 End of period $ 484,121 $ 405,701 Excelerate Energy, Inc. Non-GAAP Reconciliation (Unaudited) The following table presents a reconciliation of adjusted gross margin to the GAAP financial measures of gross margin for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) FSRU and terminal services revenues $ 125,462 $ 118,577 $ 110,072 Gas sales revenues 306,910 92,479 512,857 Cost of revenue and vessel operating expenses (48,664 ) (58,792 ) (58,673 ) Direct cost of gas sales (277,693 ) (55,185 ) (485,023 ) Depreciation and amortization expense (30,772 ) (25,193 ) (24,296 ) Gross Margin $ 75,243 $ 71,886 $ 54,937 Depreciation and amortization expense 30,772 25,193 24,296 Adjusted Gross Margin $ 106,015 $ 97,079 $ 79,233 The following table presents a reconciliation of Adjusted EBITDA to the GAAP financial measures of net income for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) Net income (loss) $ 29,556 $ 30,739 $ (3,990 ) Interest expense 17,072 15,547 13,293 Provision for income taxes 9,712 7,603 7,800 Depreciation and amortization expense 30,772 25,193 24,296 Accretion expense 441 436 371 Long-term incentive compensation expense 1,074 357 270 Early extinguishment of lease liability on vessel acquisition — — 21,834 Restructuring, transition and transaction expenses — — 2,582 Adjusted EBITDA $ 88,627 $ 79,875 $ 66,456 The following table presents a reconciliation of Adjusted Net Income to the GAAP financial measures of net income for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) Net income $ 29,556 $ 30,739 $ (3,990 ) Add back (deduct): Restructuring, transition and transaction expenses — — 2,582 Early extinguishment of lease liability on vessel acquisition — — 21,834 Non-cash debt issuance costs — 1,990 — Adjusted net income $ 29,556 $ 32,729 $ 20,426 2023E 2023E (In millions) Low Case High Case Income before income taxes $ 134 $ 154 Interest expense 70 65 Depreciation and amortization expense 116 111 Long-term incentive compensation expense 3 4 Accretion expense 2 1 Adjusted EBITDA 325 335 Note: We have not reconciled the Adjusted EBITDA outlook to net income, the most comparable measure, because it is not possible to estimate, without unreasonable effort, our income taxes with the level of required precision. Accordingly, we have reconciled these non-GAAP measures to our estimated income before taxes. View source version on businesswire.com: https://www.businesswire.com/news/home/20230809621395/en/Contacts Investors Craig Hicks Excelerate Energy Craig.Hicks@excelerateenergy.com Media Stephen Pettibone / Frances Jeter FGS Global Excelerate@fgsglobal.com or media@excelerateenergy.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Excelerate Energy Delivers Strong Second Quarter 2023 Results By: Excelerate Energy, Inc. via Business Wire August 09, 2023 at 17:00 PM EDT Excelerate Energy, Inc. (NYSE: EE) (the “Company” or “Excelerate”) today reported its financial results for the second quarter ended June 30, 2023. RECENT HIGHLIGHTS Reported Net Income of $29.6 million for the second quarter Reported Adjusted EBITDA of $88.6 million for the second quarter Secured contracts to sell four spot LNG cargos into Bangladesh in 2023, two delivered in the second quarter Commenced seasonal regasification services at the Bahia Blanca GasPort in Argentina in May 2023 Declared a quarterly dividend of $0.025 per share, payable on September 7, 2023 CEO COMMENT “The strong financial results we delivered in the second quarter of 2023 are a testament to the steady performance of our core regasification business and the demand for FSRUs around the world. With global markets continuing to emphasize the need for energy security, the value of our services has never been greater,” said President and Chief Executive Officer, Steven Kobos. “I am proud of the great work the Excelerate team is doing every day to provide essential regasification services and develop integrated LNG solutions for customers across our global footprint. “We remain committed to building a company that is known for generating predictable earnings and cash flows while providing opportunistic upside from LNG and gas sales. We are confident this balanced approach is the right strategy to drive growth and maximize value for our shareholders.” SECOND QUARTER 2023 FINANCIAL RESULTS For the three months ended June 30, March 31, June 30, (in millions, except per share amounts) 2023 2023 2022 Revenues $ 432.4 $ 211.1 $ 622.9 Operating Income $ 53.7 $ 49.6 $ 39.3 Net Income (Loss) $ 29.6 $ 30.7 $ (4.0 ) Adjusted Net Income (1) $ 29.6 $ 32.7 $ 20.4 Adjusted EBITDA (1) $ 88.6 $ 79.9 $ 66.5 Earnings (Loss) Per Share (diluted) $ 0.23 $ 0.26 $ (0.08 ) (1) See the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure in the section titled "Non-GAAP Reconciliation" below. Net Income and Adjusted EBITDA for the second quarter of 2023 increased over the prior year second quarter primarily due to higher rates on charters in Finland and Argentina, a contract extension at a higher rate in the UAE, and lower operating lease expense resulting from the acquisition of the FSRU Sequoia. The increase in Net Income was also driven by the early extinguishment of the FSRU Excellence finance lease liability as part of the vessel acquisition in 2022. Adjusted EBITDA increased sequentially primarily due to a full quarter of operations for the FSRU Excelsior following the completion of its scheduled drydock in the first quarter, lower operating lease expense for the Sequoia, and two spot LNG cargo sales into Bangladesh. KEY COMMERCIAL UPDATES Bangladesh In the second quarter of 2023, Excelerate delivered two spot LNG cargos into Bangladesh. Year-to-date, Excelerate has secured four Bangladesh spot LNG cargo tenders, equating to approximately 250,000 tons of LNG. The third and fourth cargos are expected to be delivered in the third quarter of 2023. Argentina In May 2023, the FSRU Excelsior commenced seasonal regasification services at the Bahia Blanca GasPort terminal in Argentina. The Excelsior is expected to provide regasification services for the duration of the Argentine winter season. The FSRU Excelsior will return to the Germany charter in the third quarter of 2023. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2023, Excelerate had $462 million in cash and cash equivalents, $80.9 million of letters of credit issued and no outstanding borrowings under its $350 million revolving credit facility. On August 3, 2023, Excelerate’s Board of Directors approved a quarterly dividend equal to $0.025 per share of Class A common stock, which will be paid on September 7, 2023, to shareholders of record as of the close of business on August 23, 2023. 2023 FINANCIAL OUTLOOK Excelerate is narrowing its full year 2023 guidance range. The Company now expects Adjusted EBITDA to range between $325 million and $335 million for the full year 2023. Maintenance capex for 2023 is expected to range between $20 million and $30 million. Actual results may differ materially from the Company’s outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below. INVESTOR CONFERENCE CALL AND WEBCAST The Excelerate management team will host a conference call for investors and analysts at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Thursday, August 10, 2023. Investors are invited to access a live webcast of the conference call via the Investor Relations page on the Company’s website at www.excelerateenergy.com. An archived replay of the call and a copy of the presentation will be on the website following the call. ABOUT EXCELERATE ENERGY Excelerate Energy, Inc. is a U.S.-based LNG company located in The Woodlands, Texas. Excelerate is changing the way the world accesses cleaner forms of energy by providing integrated services along the LNG value chain with an objective of delivering rapid-to-market and reliable LNG solutions to customers. The Company offers a full range of flexible regasification services from FSRUs to infrastructure development to LNG supply. Excelerate has offices in Abu Dhabi, Antwerp, Boston, Buenos Aires, Chattogram, Dhaka, Doha, Dubai, Helsinki, Manila, Rio de Janeiro, Singapore, and Washington, DC. For more information, please visit www.excelerateenergy.com. USE OF NON-GAAP FINANCIAL MEASURES The Company reports financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). Included in this press release are certain financial measures that are not calculated in accordance with GAAP. They are designed to supplement, and not substitute, Excelerate’s financial information presented in accordance with U.S. GAAP. The non-GAAP measures as defined by Excelerate may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude non-recurring items, should not be construed as an inference that Excelerate’s future results, cash flows or leverage will be unaffected by other nonrecurring items. Management believes that the following non-GAAP financial measures provide investors with additional useful information in evaluating the Company's performance and valuation. See the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure, including those measures presented as part of the Company’s 2023 Financial Outlook, in the section titled “Non-GAAP Reconciliation” below. Adjusted Gross Margin We use Adjusted Gross Margin, a non-GAAP financial measure, which we define as revenues less direct cost of sales and operating expenses, excluding depreciation and amortization, to measure our operational financial performance. Management believes Adjusted Gross Margin is useful because it provides insight on profitability and true operating performance excluding the implications of the historical cost basis of our assets. Our computation of Adjusted Gross Margin may not be comparable to other similarly titled measures of other companies, and you are cautioned not to place undue reliance on this information. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure included as a supplemental disclosure because we believe it is a useful indicator of our operating performance. We define Adjusted EBITDA as net income before interest expense, income taxes, depreciation and amortization, accretion, non-cash long-term incentive compensation expense and items such as charges and non-recurring expenses that management does not consider as part of assessing ongoing operating performance. In the first quarter of 2023, we revised the definition of Adjusted EBITDA to adjust for the impact of non-cash accretion expense, which results in a metric that is consistent with how management will review performance going forward. Management believes accretion expense does not directly reflect our ongoing operating performance. Adjusted Net Income The Company uses Adjusted Net Income, a non-GAAP financial measure, which it defines as net income plus the early extinguishment of lease liability related to the acquisition of the Excellence vessel, the non-cash write-off of deferred financing costs related to our prior credit agreement, and restructuring, transition and transaction expenses. Management believes Adjusted Net Income is useful because it provides insight on profitability excluding the impact of non-recurring charges related to our IPO. The Company adjusts net income for the items listed above to arrive at Adjusted EBITDA and Adjusted Net Income because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA and Adjusted Net Income should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company's operating performance or liquidity. These measures have limitations as certain excluded items are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. The Company's presentation of Adjusted EBITDA and Adjusted Net Income should not be construed as an inference that its results will be unaffected by unusual or non-recurring items. The Company's computations of Adjusted EBITDA and Adjusted Net Income may not be comparable to other similarly titled measures of other companies. For the foregoing reasons, each of Adjusted EBITDA and Adjusted Net Income has significant limitations which affect its use as an indicator of its profitability and valuation, and you are cautioned not to place undue reliance on this information. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Excelerate Energy, Inc. (“Excelerate,” and together with its subsidiaries “we,” “us,” “our” or the “Company”) and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding our future results of operations or financial condition, business strategy and plans, expansion plans and strategy, economic conditions, both generally and in particular in the regions in which we operate or plan to operate, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described under “Risk Factors” in Excelerate’s Annual Report on Form 10‐K for the year ended December 31, 2022, our other filings with the Securities and Exchange Commission (the “SEC”), and those identified in this press release, including, but not limited to, the following: customers’ contract termination rights or failure to perform their contractual obligations; risks and technical complexities inherent in operating the Company’s floating storage and regasification units (“FSRUs”) and other infrastructure assets; unforeseen delays, cancellations, expenses or other complications in developing the Company’s projects; regasification terminal or other facility failures; the Company’s need for substantial capital expenditures to maintain or replace FSRUs, terminals or other associated assets; reliance on third parties, including engineering, procurement and construction contractors; officer and crew shortages; the Company’s ability to maintain customer and supplier relationships and to source new suppliers; the Company’s ability to connect with third-party infrastructure; the Company’s ability to purchase or receive delivery of sufficient quantities of liquified natural gas (“LNG”) to satisfy contractual obligations and exposure to commodity price risk; changes in the demand for and price of LNG; the competitive market for LNG regasification services and fluctuations in hire rates for FSRUs; community and political group resistance to existing and new LNG and natural gas infrastructure due to concerns about the environment, safety and terrorism; access to financing sources on favorable terms; the Company’s debt level and finance lease liabilities that could limit its flexibility to obtain additional financing or refinance existing debt; catastrophic events, political tensions, conflicts and wars (such as the ongoing Russia-Ukraine war), health crises and pandemics; volatility of the global financial markets and uncertain economic conditions, including the impact of increased inflation and related governmental monetary policies; our ability to pay dividends on our Class A common stock; and the other risks, uncertainties and other factors identified in the Company’s filings with the SEC. All forward-looking statements are based on assumptions or judgments about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Excelerate. The occurrence of any such factors, events or circumstances would significantly alter the results set forth in these statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. For example, the current global economic uncertainty and geopolitical climate, including the Russia-Ukraine war, may give rise to risks that are currently unknown or amplify the risks associated with many of the foregoing events or factors. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. Excelerate Energy, Inc. Consolidated Statements of Income (Unaudited) For the three months ended June 30, March 31, June 30, 2023 2023 2022 (In thousands, except share and per share amounts) Revenues FSRU and terminal services $ 125,462 $ 118,577 $ 110,072 Gas sales 306,910 92,479 512,857 Total revenues 432,372 211,056 622,929 Operating expenses Cost of revenue and vessel operating expenses 48,664 58,792 58,673 Direct cost of gas sales 277,693 55,185 485,023 Depreciation and amortization 30,772 25,193 24,296 Selling, general and administrative expenses 21,563 22,317 13,064 Restructuring, transition and transaction expenses — — 2,582 Total operating expenses 378,692 161,487 583,638 Operating income 53,680 49,569 39,291 Other income (expense) Interest expense (13,479 ) (11,955 ) (7,800 ) Interest expense – related party (3,593 ) (3,592 ) (5,493 ) Earnings from equity method investment 392 416 732 Early extinguishment of lease liability on vessel acquisition — — (21,834 ) Other income (expense), net 2,268 3,904 (1,086 ) Income before income taxes 39,268 38,342 3,810 Provision for income taxes (9,712 ) (7,603 ) (7,800 ) Net income (loss) 29,556 30,739 (3,990 ) Less net income (loss) attributable to non-controlling interest 23,588 23,895 (831 ) Less net loss attributable to non-controlling interest – ENE Onshore — — (181 ) Less pre-IPO net loss attributable to EELP — — (947 ) Net income (loss) attributable to shareholders $ 5,968 $ 6,844 $ (2,031 ) Net income (loss) per common share – basic $ 0.23 $ 0.26 $ (0.08 ) Net income (loss) per common share – diluted $ 0.23 $ 0.26 $ (0.08 ) Weighted average shares outstanding – basic 26,254,167 26,254,167 26,254,167 Weighted average shares outstanding – diluted 26,266,312 26,269,862 26,254,167 Excelerate Energy, Inc. Consolidated Balance Sheets June 30, 2023 December 31, 2022 (Unaudited) ASSETS (In thousands) Current assets Cash and cash equivalents $ 462,001 $ 516,659 Current portion of restricted cash 2,638 2,614 Accounts receivable, net 145,608 82,289 Inventories 28,072 173,603 Current portion of net investments in sales-type leases 13,980 13,344 Other current assets 36,629 35,026 Total current assets 688,928 823,535 Restricted cash 19,482 18,698 Property and equipment, net 1,685,705 1,455,683 Operating lease right-of-use assets 10,252 78,611 Net investments in sales-type leases 392,007 399,564 Investment in equity method investee 25,096 24,522 Deferred tax assets, net 37,741 39,867 Other assets 40,681 26,342 Total assets $ 2,899,892 $ 2,866,822 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 46,991 $ 96,824 Accrued liabilities and other liabilities 59,710 66,888 Current portion of deferred revenue 21,972 144,807 Current portion of long-term debt 29,507 20,913 Current portion of long-term debt – related party 8,003 7,661 Current portion of operating lease liabilities 5,982 33,612 Current portion of finance lease liabilities 21,408 20,804 Total current liabilities 193,573 391,509 Derivative liabilities 598 — Long-term debt, net 420,310 193,396 Long-term debt, net – related party 176,345 180,772 Operating lease liabilities 5,316 48,373 Finance lease liabilities 200,276 210,354 TRA liability 72,951 72,951 Asset retirement obligations 40,800 39,823 Long-term deferred revenue 35,007 32,947 Total liabilities $ 1,145,176 $ 1,170,125 Commitments and contingencies Class A Common Stock ($0.001 par value, 300,000,000 shares authorized, 26,254,167 shares issued and outstanding as of June 30, 2023 and December 31, 2022) $ 26 $ 26 Class B Common Stock ($0.001 par value, 150,000,000 shares authorized and 82,021,389 shares issued and outstanding as of June 30, 2023 and December 31, 2022) 82 82 Additional paid-in capital 465,067 464,721 Retained earnings 23,489 12,009 Accumulated other comprehensive income 1,257 515 Non-controlling interest 1,264,795 1,219,344 Total equity $ 1,754,716 $ 1,696,697 Total liabilities and equity $ 2,899,892 $ 2,866,822 Excelerate Energy, Inc. Consolidated Statements of Cash Flows (Unaudited) For the six months ended June 30, 2023 June 30, 2022 Cash flows from operating activities (In thousands) Net income 60,295 $ 8,854 Adjustments to reconcile net income to net cash from operating activities Depreciation and amortization 55,965 48,039 Amortization of operating lease right-of-use assets 9,674 15,447 ARO accretion expense 877 738 Amortization of debt issuance costs 3,983 620 Deferred income taxes 1,980 (5,552 ) Share of net earnings in equity method investee (808 ) (1,510 ) Distributions from equity method investee — 2,700 Long-term incentive compensation expense 1,431 270 Early extinguishment of lease liability on vessel acquisition — 21,834 Non-cash restructuring expense — 1,574 (Gain)/loss on non-cash items 1,747 — Changes in operating assets and liabilities: Accounts receivable (67,420 ) 76,399 Inventories 144,529 40,028 Other current assets and other assets (13,889 ) (2,302 ) Accounts payable and accrued liabilities (50,251 ) (211,287 ) Derivative liabilities 193 1,295 Current portion of deferred revenue (122,835 ) (1,669 ) Net investments in sales-type leases 6,921 5,790 Operating lease assets and liabilities (9,973 ) (14,040 ) Other long-term liabilities 2,060 3,273 Net cash provided by (used in) operating activities $ 24,479 $ (9,499 ) Cash flows from investing activities Purchases of property and equipment (292,788 ) (42,030 ) Sales of property and equipment 4,101 — Net cash used in investing activities $ (288,687 ) $ (42,030 ) Cash flows from financing activities Proceeds from issuance of common stock, net — 412,183 Proceeds from long-term debt – related party — 649,400 Repayments of long-term debt – related party (4,085 ) (648,126 ) Repayments of long-term debt (10,925 ) (9,561 ) Proceeds from revolving credit facility — 140,000 Repayments of revolving credit facility — (140,000 ) Proceeds from Term Loan Facility 250,000 — Payment of debt issuance costs (7,018 ) (5,512 ) Collections of related party note receivables — 6,600 Settlement of finance lease liability – related party — (25,000 ) Principal payments under finance lease liabilities (10,752 ) (10,806 ) Principal payments under finance lease liabilities – related party — (2,912 ) Dividends paid (1,313 ) — Distributions (6,101 ) — Minority owner contribution – Albania Power Project 657 — Net cash provided by financing activities $ 210,463 $ 366,266 Effect of exchange rate on cash, cash equivalents, and restricted cash (105 ) — Net increase (decrease) in cash, cash equivalents and restricted cash (53,850 ) 314,737 Cash, cash equivalents and restricted cash Beginning of period $ 537,971 $ 90,964 End of period $ 484,121 $ 405,701 Excelerate Energy, Inc. Non-GAAP Reconciliation (Unaudited) The following table presents a reconciliation of adjusted gross margin to the GAAP financial measures of gross margin for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) FSRU and terminal services revenues $ 125,462 $ 118,577 $ 110,072 Gas sales revenues 306,910 92,479 512,857 Cost of revenue and vessel operating expenses (48,664 ) (58,792 ) (58,673 ) Direct cost of gas sales (277,693 ) (55,185 ) (485,023 ) Depreciation and amortization expense (30,772 ) (25,193 ) (24,296 ) Gross Margin $ 75,243 $ 71,886 $ 54,937 Depreciation and amortization expense 30,772 25,193 24,296 Adjusted Gross Margin $ 106,015 $ 97,079 $ 79,233 The following table presents a reconciliation of Adjusted EBITDA to the GAAP financial measures of net income for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) Net income (loss) $ 29,556 $ 30,739 $ (3,990 ) Interest expense 17,072 15,547 13,293 Provision for income taxes 9,712 7,603 7,800 Depreciation and amortization expense 30,772 25,193 24,296 Accretion expense 441 436 371 Long-term incentive compensation expense 1,074 357 270 Early extinguishment of lease liability on vessel acquisition — — 21,834 Restructuring, transition and transaction expenses — — 2,582 Adjusted EBITDA $ 88,627 $ 79,875 $ 66,456 The following table presents a reconciliation of Adjusted Net Income to the GAAP financial measures of net income for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) Net income $ 29,556 $ 30,739 $ (3,990 ) Add back (deduct): Restructuring, transition and transaction expenses — — 2,582 Early extinguishment of lease liability on vessel acquisition — — 21,834 Non-cash debt issuance costs — 1,990 — Adjusted net income $ 29,556 $ 32,729 $ 20,426 2023E 2023E (In millions) Low Case High Case Income before income taxes $ 134 $ 154 Interest expense 70 65 Depreciation and amortization expense 116 111 Long-term incentive compensation expense 3 4 Accretion expense 2 1 Adjusted EBITDA 325 335 Note: We have not reconciled the Adjusted EBITDA outlook to net income, the most comparable measure, because it is not possible to estimate, without unreasonable effort, our income taxes with the level of required precision. Accordingly, we have reconciled these non-GAAP measures to our estimated income before taxes. View source version on businesswire.com: https://www.businesswire.com/news/home/20230809621395/en/Contacts Investors Craig Hicks Excelerate Energy Craig.Hicks@excelerateenergy.com Media Stephen Pettibone / Frances Jeter FGS Global Excelerate@fgsglobal.com or media@excelerateenergy.com
Excelerate Energy, Inc. (NYSE: EE) (the “Company” or “Excelerate”) today reported its financial results for the second quarter ended June 30, 2023. RECENT HIGHLIGHTS Reported Net Income of $29.6 million for the second quarter Reported Adjusted EBITDA of $88.6 million for the second quarter Secured contracts to sell four spot LNG cargos into Bangladesh in 2023, two delivered in the second quarter Commenced seasonal regasification services at the Bahia Blanca GasPort in Argentina in May 2023 Declared a quarterly dividend of $0.025 per share, payable on September 7, 2023 CEO COMMENT “The strong financial results we delivered in the second quarter of 2023 are a testament to the steady performance of our core regasification business and the demand for FSRUs around the world. With global markets continuing to emphasize the need for energy security, the value of our services has never been greater,” said President and Chief Executive Officer, Steven Kobos. “I am proud of the great work the Excelerate team is doing every day to provide essential regasification services and develop integrated LNG solutions for customers across our global footprint. “We remain committed to building a company that is known for generating predictable earnings and cash flows while providing opportunistic upside from LNG and gas sales. We are confident this balanced approach is the right strategy to drive growth and maximize value for our shareholders.” SECOND QUARTER 2023 FINANCIAL RESULTS For the three months ended June 30, March 31, June 30, (in millions, except per share amounts) 2023 2023 2022 Revenues $ 432.4 $ 211.1 $ 622.9 Operating Income $ 53.7 $ 49.6 $ 39.3 Net Income (Loss) $ 29.6 $ 30.7 $ (4.0 ) Adjusted Net Income (1) $ 29.6 $ 32.7 $ 20.4 Adjusted EBITDA (1) $ 88.6 $ 79.9 $ 66.5 Earnings (Loss) Per Share (diluted) $ 0.23 $ 0.26 $ (0.08 ) (1) See the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure in the section titled "Non-GAAP Reconciliation" below. Net Income and Adjusted EBITDA for the second quarter of 2023 increased over the prior year second quarter primarily due to higher rates on charters in Finland and Argentina, a contract extension at a higher rate in the UAE, and lower operating lease expense resulting from the acquisition of the FSRU Sequoia. The increase in Net Income was also driven by the early extinguishment of the FSRU Excellence finance lease liability as part of the vessel acquisition in 2022. Adjusted EBITDA increased sequentially primarily due to a full quarter of operations for the FSRU Excelsior following the completion of its scheduled drydock in the first quarter, lower operating lease expense for the Sequoia, and two spot LNG cargo sales into Bangladesh. KEY COMMERCIAL UPDATES Bangladesh In the second quarter of 2023, Excelerate delivered two spot LNG cargos into Bangladesh. Year-to-date, Excelerate has secured four Bangladesh spot LNG cargo tenders, equating to approximately 250,000 tons of LNG. The third and fourth cargos are expected to be delivered in the third quarter of 2023. Argentina In May 2023, the FSRU Excelsior commenced seasonal regasification services at the Bahia Blanca GasPort terminal in Argentina. The Excelsior is expected to provide regasification services for the duration of the Argentine winter season. The FSRU Excelsior will return to the Germany charter in the third quarter of 2023. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2023, Excelerate had $462 million in cash and cash equivalents, $80.9 million of letters of credit issued and no outstanding borrowings under its $350 million revolving credit facility. On August 3, 2023, Excelerate’s Board of Directors approved a quarterly dividend equal to $0.025 per share of Class A common stock, which will be paid on September 7, 2023, to shareholders of record as of the close of business on August 23, 2023. 2023 FINANCIAL OUTLOOK Excelerate is narrowing its full year 2023 guidance range. The Company now expects Adjusted EBITDA to range between $325 million and $335 million for the full year 2023. Maintenance capex for 2023 is expected to range between $20 million and $30 million. Actual results may differ materially from the Company’s outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below. INVESTOR CONFERENCE CALL AND WEBCAST The Excelerate management team will host a conference call for investors and analysts at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Thursday, August 10, 2023. Investors are invited to access a live webcast of the conference call via the Investor Relations page on the Company’s website at www.excelerateenergy.com. An archived replay of the call and a copy of the presentation will be on the website following the call. ABOUT EXCELERATE ENERGY Excelerate Energy, Inc. is a U.S.-based LNG company located in The Woodlands, Texas. Excelerate is changing the way the world accesses cleaner forms of energy by providing integrated services along the LNG value chain with an objective of delivering rapid-to-market and reliable LNG solutions to customers. The Company offers a full range of flexible regasification services from FSRUs to infrastructure development to LNG supply. Excelerate has offices in Abu Dhabi, Antwerp, Boston, Buenos Aires, Chattogram, Dhaka, Doha, Dubai, Helsinki, Manila, Rio de Janeiro, Singapore, and Washington, DC. For more information, please visit www.excelerateenergy.com. USE OF NON-GAAP FINANCIAL MEASURES The Company reports financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). Included in this press release are certain financial measures that are not calculated in accordance with GAAP. They are designed to supplement, and not substitute, Excelerate’s financial information presented in accordance with U.S. GAAP. The non-GAAP measures as defined by Excelerate may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude non-recurring items, should not be construed as an inference that Excelerate’s future results, cash flows or leverage will be unaffected by other nonrecurring items. Management believes that the following non-GAAP financial measures provide investors with additional useful information in evaluating the Company's performance and valuation. See the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure, including those measures presented as part of the Company’s 2023 Financial Outlook, in the section titled “Non-GAAP Reconciliation” below. Adjusted Gross Margin We use Adjusted Gross Margin, a non-GAAP financial measure, which we define as revenues less direct cost of sales and operating expenses, excluding depreciation and amortization, to measure our operational financial performance. Management believes Adjusted Gross Margin is useful because it provides insight on profitability and true operating performance excluding the implications of the historical cost basis of our assets. Our computation of Adjusted Gross Margin may not be comparable to other similarly titled measures of other companies, and you are cautioned not to place undue reliance on this information. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure included as a supplemental disclosure because we believe it is a useful indicator of our operating performance. We define Adjusted EBITDA as net income before interest expense, income taxes, depreciation and amortization, accretion, non-cash long-term incentive compensation expense and items such as charges and non-recurring expenses that management does not consider as part of assessing ongoing operating performance. In the first quarter of 2023, we revised the definition of Adjusted EBITDA to adjust for the impact of non-cash accretion expense, which results in a metric that is consistent with how management will review performance going forward. Management believes accretion expense does not directly reflect our ongoing operating performance. Adjusted Net Income The Company uses Adjusted Net Income, a non-GAAP financial measure, which it defines as net income plus the early extinguishment of lease liability related to the acquisition of the Excellence vessel, the non-cash write-off of deferred financing costs related to our prior credit agreement, and restructuring, transition and transaction expenses. Management believes Adjusted Net Income is useful because it provides insight on profitability excluding the impact of non-recurring charges related to our IPO. The Company adjusts net income for the items listed above to arrive at Adjusted EBITDA and Adjusted Net Income because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA and Adjusted Net Income should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company's operating performance or liquidity. These measures have limitations as certain excluded items are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. The Company's presentation of Adjusted EBITDA and Adjusted Net Income should not be construed as an inference that its results will be unaffected by unusual or non-recurring items. The Company's computations of Adjusted EBITDA and Adjusted Net Income may not be comparable to other similarly titled measures of other companies. For the foregoing reasons, each of Adjusted EBITDA and Adjusted Net Income has significant limitations which affect its use as an indicator of its profitability and valuation, and you are cautioned not to place undue reliance on this information. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Excelerate Energy, Inc. (“Excelerate,” and together with its subsidiaries “we,” “us,” “our” or the “Company”) and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding our future results of operations or financial condition, business strategy and plans, expansion plans and strategy, economic conditions, both generally and in particular in the regions in which we operate or plan to operate, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described under “Risk Factors” in Excelerate’s Annual Report on Form 10‐K for the year ended December 31, 2022, our other filings with the Securities and Exchange Commission (the “SEC”), and those identified in this press release, including, but not limited to, the following: customers’ contract termination rights or failure to perform their contractual obligations; risks and technical complexities inherent in operating the Company’s floating storage and regasification units (“FSRUs”) and other infrastructure assets; unforeseen delays, cancellations, expenses or other complications in developing the Company’s projects; regasification terminal or other facility failures; the Company’s need for substantial capital expenditures to maintain or replace FSRUs, terminals or other associated assets; reliance on third parties, including engineering, procurement and construction contractors; officer and crew shortages; the Company’s ability to maintain customer and supplier relationships and to source new suppliers; the Company’s ability to connect with third-party infrastructure; the Company’s ability to purchase or receive delivery of sufficient quantities of liquified natural gas (“LNG”) to satisfy contractual obligations and exposure to commodity price risk; changes in the demand for and price of LNG; the competitive market for LNG regasification services and fluctuations in hire rates for FSRUs; community and political group resistance to existing and new LNG and natural gas infrastructure due to concerns about the environment, safety and terrorism; access to financing sources on favorable terms; the Company’s debt level and finance lease liabilities that could limit its flexibility to obtain additional financing or refinance existing debt; catastrophic events, political tensions, conflicts and wars (such as the ongoing Russia-Ukraine war), health crises and pandemics; volatility of the global financial markets and uncertain economic conditions, including the impact of increased inflation and related governmental monetary policies; our ability to pay dividends on our Class A common stock; and the other risks, uncertainties and other factors identified in the Company’s filings with the SEC. All forward-looking statements are based on assumptions or judgments about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Excelerate. The occurrence of any such factors, events or circumstances would significantly alter the results set forth in these statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. For example, the current global economic uncertainty and geopolitical climate, including the Russia-Ukraine war, may give rise to risks that are currently unknown or amplify the risks associated with many of the foregoing events or factors. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. Excelerate Energy, Inc. Consolidated Statements of Income (Unaudited) For the three months ended June 30, March 31, June 30, 2023 2023 2022 (In thousands, except share and per share amounts) Revenues FSRU and terminal services $ 125,462 $ 118,577 $ 110,072 Gas sales 306,910 92,479 512,857 Total revenues 432,372 211,056 622,929 Operating expenses Cost of revenue and vessel operating expenses 48,664 58,792 58,673 Direct cost of gas sales 277,693 55,185 485,023 Depreciation and amortization 30,772 25,193 24,296 Selling, general and administrative expenses 21,563 22,317 13,064 Restructuring, transition and transaction expenses — — 2,582 Total operating expenses 378,692 161,487 583,638 Operating income 53,680 49,569 39,291 Other income (expense) Interest expense (13,479 ) (11,955 ) (7,800 ) Interest expense – related party (3,593 ) (3,592 ) (5,493 ) Earnings from equity method investment 392 416 732 Early extinguishment of lease liability on vessel acquisition — — (21,834 ) Other income (expense), net 2,268 3,904 (1,086 ) Income before income taxes 39,268 38,342 3,810 Provision for income taxes (9,712 ) (7,603 ) (7,800 ) Net income (loss) 29,556 30,739 (3,990 ) Less net income (loss) attributable to non-controlling interest 23,588 23,895 (831 ) Less net loss attributable to non-controlling interest – ENE Onshore — — (181 ) Less pre-IPO net loss attributable to EELP — — (947 ) Net income (loss) attributable to shareholders $ 5,968 $ 6,844 $ (2,031 ) Net income (loss) per common share – basic $ 0.23 $ 0.26 $ (0.08 ) Net income (loss) per common share – diluted $ 0.23 $ 0.26 $ (0.08 ) Weighted average shares outstanding – basic 26,254,167 26,254,167 26,254,167 Weighted average shares outstanding – diluted 26,266,312 26,269,862 26,254,167 Excelerate Energy, Inc. Consolidated Balance Sheets June 30, 2023 December 31, 2022 (Unaudited) ASSETS (In thousands) Current assets Cash and cash equivalents $ 462,001 $ 516,659 Current portion of restricted cash 2,638 2,614 Accounts receivable, net 145,608 82,289 Inventories 28,072 173,603 Current portion of net investments in sales-type leases 13,980 13,344 Other current assets 36,629 35,026 Total current assets 688,928 823,535 Restricted cash 19,482 18,698 Property and equipment, net 1,685,705 1,455,683 Operating lease right-of-use assets 10,252 78,611 Net investments in sales-type leases 392,007 399,564 Investment in equity method investee 25,096 24,522 Deferred tax assets, net 37,741 39,867 Other assets 40,681 26,342 Total assets $ 2,899,892 $ 2,866,822 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 46,991 $ 96,824 Accrued liabilities and other liabilities 59,710 66,888 Current portion of deferred revenue 21,972 144,807 Current portion of long-term debt 29,507 20,913 Current portion of long-term debt – related party 8,003 7,661 Current portion of operating lease liabilities 5,982 33,612 Current portion of finance lease liabilities 21,408 20,804 Total current liabilities 193,573 391,509 Derivative liabilities 598 — Long-term debt, net 420,310 193,396 Long-term debt, net – related party 176,345 180,772 Operating lease liabilities 5,316 48,373 Finance lease liabilities 200,276 210,354 TRA liability 72,951 72,951 Asset retirement obligations 40,800 39,823 Long-term deferred revenue 35,007 32,947 Total liabilities $ 1,145,176 $ 1,170,125 Commitments and contingencies Class A Common Stock ($0.001 par value, 300,000,000 shares authorized, 26,254,167 shares issued and outstanding as of June 30, 2023 and December 31, 2022) $ 26 $ 26 Class B Common Stock ($0.001 par value, 150,000,000 shares authorized and 82,021,389 shares issued and outstanding as of June 30, 2023 and December 31, 2022) 82 82 Additional paid-in capital 465,067 464,721 Retained earnings 23,489 12,009 Accumulated other comprehensive income 1,257 515 Non-controlling interest 1,264,795 1,219,344 Total equity $ 1,754,716 $ 1,696,697 Total liabilities and equity $ 2,899,892 $ 2,866,822 Excelerate Energy, Inc. Consolidated Statements of Cash Flows (Unaudited) For the six months ended June 30, 2023 June 30, 2022 Cash flows from operating activities (In thousands) Net income 60,295 $ 8,854 Adjustments to reconcile net income to net cash from operating activities Depreciation and amortization 55,965 48,039 Amortization of operating lease right-of-use assets 9,674 15,447 ARO accretion expense 877 738 Amortization of debt issuance costs 3,983 620 Deferred income taxes 1,980 (5,552 ) Share of net earnings in equity method investee (808 ) (1,510 ) Distributions from equity method investee — 2,700 Long-term incentive compensation expense 1,431 270 Early extinguishment of lease liability on vessel acquisition — 21,834 Non-cash restructuring expense — 1,574 (Gain)/loss on non-cash items 1,747 — Changes in operating assets and liabilities: Accounts receivable (67,420 ) 76,399 Inventories 144,529 40,028 Other current assets and other assets (13,889 ) (2,302 ) Accounts payable and accrued liabilities (50,251 ) (211,287 ) Derivative liabilities 193 1,295 Current portion of deferred revenue (122,835 ) (1,669 ) Net investments in sales-type leases 6,921 5,790 Operating lease assets and liabilities (9,973 ) (14,040 ) Other long-term liabilities 2,060 3,273 Net cash provided by (used in) operating activities $ 24,479 $ (9,499 ) Cash flows from investing activities Purchases of property and equipment (292,788 ) (42,030 ) Sales of property and equipment 4,101 — Net cash used in investing activities $ (288,687 ) $ (42,030 ) Cash flows from financing activities Proceeds from issuance of common stock, net — 412,183 Proceeds from long-term debt – related party — 649,400 Repayments of long-term debt – related party (4,085 ) (648,126 ) Repayments of long-term debt (10,925 ) (9,561 ) Proceeds from revolving credit facility — 140,000 Repayments of revolving credit facility — (140,000 ) Proceeds from Term Loan Facility 250,000 — Payment of debt issuance costs (7,018 ) (5,512 ) Collections of related party note receivables — 6,600 Settlement of finance lease liability – related party — (25,000 ) Principal payments under finance lease liabilities (10,752 ) (10,806 ) Principal payments under finance lease liabilities – related party — (2,912 ) Dividends paid (1,313 ) — Distributions (6,101 ) — Minority owner contribution – Albania Power Project 657 — Net cash provided by financing activities $ 210,463 $ 366,266 Effect of exchange rate on cash, cash equivalents, and restricted cash (105 ) — Net increase (decrease) in cash, cash equivalents and restricted cash (53,850 ) 314,737 Cash, cash equivalents and restricted cash Beginning of period $ 537,971 $ 90,964 End of period $ 484,121 $ 405,701 Excelerate Energy, Inc. Non-GAAP Reconciliation (Unaudited) The following table presents a reconciliation of adjusted gross margin to the GAAP financial measures of gross margin for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) FSRU and terminal services revenues $ 125,462 $ 118,577 $ 110,072 Gas sales revenues 306,910 92,479 512,857 Cost of revenue and vessel operating expenses (48,664 ) (58,792 ) (58,673 ) Direct cost of gas sales (277,693 ) (55,185 ) (485,023 ) Depreciation and amortization expense (30,772 ) (25,193 ) (24,296 ) Gross Margin $ 75,243 $ 71,886 $ 54,937 Depreciation and amortization expense 30,772 25,193 24,296 Adjusted Gross Margin $ 106,015 $ 97,079 $ 79,233 The following table presents a reconciliation of Adjusted EBITDA to the GAAP financial measures of net income for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) Net income (loss) $ 29,556 $ 30,739 $ (3,990 ) Interest expense 17,072 15,547 13,293 Provision for income taxes 9,712 7,603 7,800 Depreciation and amortization expense 30,772 25,193 24,296 Accretion expense 441 436 371 Long-term incentive compensation expense 1,074 357 270 Early extinguishment of lease liability on vessel acquisition — — 21,834 Restructuring, transition and transaction expenses — — 2,582 Adjusted EBITDA $ 88,627 $ 79,875 $ 66,456 The following table presents a reconciliation of Adjusted Net Income to the GAAP financial measures of net income for each of the period indicated. For the three months ended June 30, 2023 March 31, 2023 June 30, 2022 (In thousands) Net income $ 29,556 $ 30,739 $ (3,990 ) Add back (deduct): Restructuring, transition and transaction expenses — — 2,582 Early extinguishment of lease liability on vessel acquisition — — 21,834 Non-cash debt issuance costs — 1,990 — Adjusted net income $ 29,556 $ 32,729 $ 20,426 2023E 2023E (In millions) Low Case High Case Income before income taxes $ 134 $ 154 Interest expense 70 65 Depreciation and amortization expense 116 111 Long-term incentive compensation expense 3 4 Accretion expense 2 1 Adjusted EBITDA 325 335 Note: We have not reconciled the Adjusted EBITDA outlook to net income, the most comparable measure, because it is not possible to estimate, without unreasonable effort, our income taxes with the level of required precision. Accordingly, we have reconciled these non-GAAP measures to our estimated income before taxes. View source version on businesswire.com: https://www.businesswire.com/news/home/20230809621395/en/
Investors Craig Hicks Excelerate Energy Craig.Hicks@excelerateenergy.com Media Stephen Pettibone / Frances Jeter FGS Global Excelerate@fgsglobal.com or media@excelerateenergy.com
