Emma Schwartz

Emma Schwartz asked about Excelerate Energy's potential to acquire another LNG conversion candidate in 2026, questioning if anything prevents developing multiple FSRUs concurrently given the strong growth potential and lack of leverage constraints. She also inquired about the build multiples or returns for small-scale solutions and whether the company would develop these capabilities internally or consider M&A.

Answer

Steven Kobos, President and CEO, indicated that the announced FSRU conversion is not the last, emphasizing the significant market opportunity in the next five years and the company's intent to continue its growth trajectory, targeting build multiples of 5-7x. He stated that small-scale solutions, being closer to downstream, should yield higher returns and that Excelerate is open to both internal development and M&A to scale this part of the business.

Emma Schwartz asked if Excelerate Energy would pursue acquiring another LNG conversion candidate in 2026, inquiring if anything prevents developing multiple FSRUs concurrently given strong leverage. She also asked about the build multiples/returns for small-scale solutions and whether they would be developed internally or scaled via M&A.

Answer

Steven Kobos, President and CEO, stated that Excelerate Energy would not wait until the first conversion delivery in 2028 to pursue more growth, hinting at more conversions with target build multiples of 5-7x. He indicated that small-scale solutions, being closer to downstream, should yield higher returns and confirmed openness to M&A to scale this business segment.

Emma Schwartz from Jefferies asked for more detail on Vitesse's willingness to flex its balance sheet to maintain the dividend and whether any credit facility limitations exist. She also inquired about the performance of the recently acquired Lucero assets and any resulting synergies or learnings.

Answer

Chairman and CEO Robert Gerrity emphasized that the dividend is Vitesse's 'product' and the company feels very confident in its ability to pay it, stating they are not restricted by the credit facility. CFO James Henderson added that while the facility has provisions, the company maintains a significant buffer. President Brian Cree reported that the Lucero asset integration is proceeding as expected, with performance matching their underwriting models, and noted the potential to use Vitesse's non-op portfolio to enhance the value of the operated assets.

Emma Schwartz asked for clarification on California permitting, questioning why the reinstatement of the Kern County EIR wouldn't immediately increase activity. She also inquired about the timeline for alternative permits and the long-term growth potential for the Utah asset, including key signposts for investors.

Answer

CEO Fernando Araujo explained that even if the EIR were reinstated, the company's near-term focus would remain on its large inventory of high-return sidetrack projects, which currently take priority. He estimated a 2026 timeline for alternative permits. Regarding Utah, Araujo highlighted the potential to grow production from ~5,000 to 40,000 BOE/d over a decade with a multi-rig program, contingent on capital and a potential JV, pointing to the 200+ identified drilling locations as a key indicator of its significant potential.