Wade Suki

Wade Suki sought clarity on whether the announced FSRU conversion might not be the Shenandoah, implying flexibility for other vessels. He also asked about the priority and specifications for potential new builds beyond Hull 3407, and confirmed if the new build would temporarily substitute for the Exquisite FSRU in Q2.

Answer

Steven Kobos, President and CEO, clarified that while Shenandoah is a top consideration, Excelerate Energy is not hidebound and will pursue a multitude of assets (FSRUs, FSUs, small-scale) to meet diverse market needs. He expressed doubt that Hull 3407 would be the last new build, highlighting the benefits of new builds like enhanced send-out and better natural boil-off for integrated deals. Kobos confirmed that Hull 3407 would temporarily substitute for the Exquisite during its Q2 dry dock, serving customer needs and allowing for commissioning before its Iraq arrival.

Wade Suki sought clarity on the FSRU conversion plans, asking if the Shenandoah was the specific vessel or if other vessels were being considered concurrently. He also inquired about the company's priorities and considerations for potential new builds, including specifications, and asked for confirmation on the temporary use of the new build (Hull 3407) to fill in for the Exquisite during its Q2 dry dock.

Answer

Steven Kobos, President and CEO, clarified that while Shenandoah is a primary focus, Excelerate is not 'hidebound' and will pursue a multitude of assets, including FSRUs and FSUs, to meet diverse market needs. He expressed that Hull 3407 is likely not the last new build, emphasizing the benefits of controlling specifications, enhanced send-out, and superior boil-off rates for integrated deals. Kobos confirmed that Hull 3407 would temporarily substitute for the Exquisite during its Q2 2026 dry dock, serving customer needs and allowing for commissioning.

Wade Suki from Capital One Financial asked for details on the Jamaica project priorities, including timing and the nature of near-term versus long-term projects. He also inquired about the potential EBITDA contribution in 2026 and 2027, and sought specifics on other attractive markets in the Caribbean.

Answer

EVP & Chief Commercial Officer Oliver Simpson explained that near-term growth in Jamaica will focus on optimizing existing assets with minimal CapEx, such as adding new LNG or gas customers. Longer-term opportunities, requiring more significant CapEx, include new power generation and infrastructure. Simpson reiterated the 2030 EBITDA guidance of $80-$110 million but declined to provide year-by-year projections, noting early sales momentum is positive. For the broader Caribbean, he highlighted fuel switching for power generation and LNG bunkering as key growth areas.

Wade Suki followed up on whether anxiety from U.S. trade partners is accelerating opportunities for Excelerate. He also requested an update on the company's LNG vessel conversion plans and how they fit into the strategy alongside the Jamaica acquisition.

Answer

CEO Steven Kobos agreed that trade-related anxieties are creating tailwinds and highlighted how the current environment proves the resilience of Excelerate's tariff-proof, take-or-pay business model. Regarding vessel conversions, CCO Oliver Simpson confirmed it is 'very much in the plan' to acquire an asset this year, with discussions underway. COO David Liner added that the initial engineering phase is progressing well and will conclude mid-year.

Wade Suki with Capital One Securities asked about the commodity price backdrop and how it might influence activity levels and throughput across Western Midstream's basins and operator types, given that current budgets were set in a lower price environment. He also requested elaboration on Oscar Brown's earlier comments regarding expanding into CO2 solutions and developing power solutions.

Answer

Kristen Shults, CFO, explained that the Powder River Basin is the most commodity price-sensitive, with potential for natural gas throughput to improve in the latter half of the year if prices rise. In the DJ Basin, Oxy's new Bronco CAP area is a wild card. For the Delaware Basin, she noted that some producers are highly sensitive to Waha pricing, leading to curtailments, and private operators can quickly adjust capital. Oscar Brown, CEO, elaborated on CO2, stating that Western Midstream is exploring unconventional EOR opportunities, leveraging its competency in handling molecules, and is encouraged by Oxy's work. For power, he mentioned the Permian Grid's instability and growing demand, seeing it as a potential area for WES to participate if commercial models align with their return requirements, while also highlighting beneficial reuse as an active scaling initiative.

Wade Suki requested further details on Western Midstream's plans to expand into CO2-related ventures and develop power solutions.

Answer

Oscar Brown, CEO of Western Midstream Partners, explained that a new ventures group is exploring long-term opportunities like unconventional Enhanced Oil Recovery (EOR) with CO2, leveraging WES's expertise in handling molecules and its relationship with Oxy. For power, he cited the Permian Grid's instability and growing demand from data centers, seeing WES's operational competencies as applicable. He emphasized that WES would pursue these ventures only if commercial models support sustained growth and distribution, aligning with their business model, and highlighted beneficial reuse in water as an area of active scaling.

Wade Suki of Capital One Financial asked about WES's plans for the non-traditional aspects of the ARRIS business, such as mineral extraction and industrial water. He questioned whether WES intends to retain and expand these ventures or potentially divest them.

Answer

President and CEO Oscar Brown responded that these ventures are appealing and exciting long-term opportunities, particularly advanced water treatment technologies. While the core focus will remain on the traditional midstream business supporting E&P customers, he expressed enthusiasm for these new areas and believes WES can provide more resources to advance them than ARRIS could as a standalone entity.

Wade Suki asked about potential opportunities for Genesis Energy to acquire remaining interests in its offshore systems, how such acquisitions would align with long-term priorities, and the counterparties' perspectives. He also inquired about the long-term implications of recent customer M&A, specifically Harbour Energy's acquisition of LLOG, for Genesis Energy.

Answer

CEO Grant Sims declined to comment on M&A activity but expressed comfort with increasing exposure to Genesis Energy's existing position, highlighting substantial existing capacity on the 64% owned and operated Poseidon and CHOPS pipelines, which allows for significant Segment Margin increases without additional capital. Regarding customer M&A, Mr. Sims confirmed Harbour Energy's acquisition of LLOG, noting that LLOG is a critical customer with 70% of its operated production moving through Genesis pipelines. He viewed Harbour's stated intent to double LLOG's production by the end of 2028 as an 'extreme positive' for Genesis.

Wade Suki asked about potential opportunities for Genesis Energy to acquire remaining interests in its offshore systems and how such M&A would align with longer-term priorities. He also inquired about the implications of recent customer consolidation, specifically the Harbour Energy acquisition of LLOG, for Genesis Energy's operations and future growth.

Answer

CEO Grant Sims declined to comment directly on M&A but expressed comfort with increasing ownership exposure in existing positions, highlighting substantial existing capacity on the Poseidon and CHOPS pipelines for future growth without additional capital expenditure. Regarding customer consolidation, Mr. Sims viewed the Harbour Energy acquisition of LLOG as an "extreme positive," noting Harbour's public intent to double LLOG's acquired production by the end of 2028, which would benefit Genesis given its existing relationship and transportation of 70% of LLOG's operated production.

Wade Suki from Capital One Financial asked about any new commercial opportunities on the horizon, management's satisfaction with the current asset portfolio, and whether the Monument discovery is the next major development after Salamanca.

Answer

CEO Grant Sims confirmed there are no new major capital projects planned, as the focus is on executing the offshore expansions and generating free cash flow. He expressed satisfaction with the current portfolio, citing strong macro fundamentals for all business segments. Sims also clarified that after Salamanca, the next incremental volumes will come from Shenandoah Phase two and the Monument tie-back, expected to ramp up in 2026 and early 2027.

Wade Suki from Capital One asked for segment margin guidance for the offshore business, questioned if tie-in opportunities should now be viewed as growth drivers rather than just offsetting declines, and inquired about any new large-scale projects on the horizon.

Answer

CEO Grant Sims declined to provide specific segment guidance but indicated the offshore segment would account for the growth needed to meet annual guidance. He confirmed that tiebacks, while factored into guidance, have the potential for upside and could be 'net additive' beyond offsetting declines. Sims also clarified that the company is currently focused on harvesting cash flow from recently completed projects rather than pursuing new large-scale developments.

Wade Suki from Capital One asked about capital allocation priorities, specifically the treatment of preferred units in leverage calculations by banks, the potential for distribution increases, and the dynamics of the recent soda ash contracting season and end-market demand.

Answer

CEO Grant Sims explained that their banks give the preferred units 100% equity treatment in leverage calculations, and the company intends to use excess cash flow to pay down debt and opportunistically redeem the preferreds. Regarding distributions, Sims stated the Board will evaluate it at the appropriate time, suggesting a balanced 'all of the above' approach. On soda ash, he noted the contracting season went as expected in a well-supplied market, with the company opting for shorter-term contracts to capitalize on an anticipated price recovery later in 2025 and into 2026, driven by synthetic supply rationalizations.

Wade Suki of Capital One asked if the revised 2025 EBITDA outlook was primarily due to soda ash market weakness. He also sought confirmation that the 2026 view remains intact and requested more detail on the specific technical issues impacting the Offshore segment.

Answer

CEO Grant Sims confirmed the primary driver for the revised 2025 outlook is the recent 'sloppy' soda ash market, but affirmed that the long-term view for 2026 and beyond remains '100% intact' assuming market normalization. Regarding the offshore issues, Sims provided examples like a dropped casing damaging subsea equipment and a failed mechanical sleeve in a well, describing them as a series of rare, unexpected, and coincidental events beyond Genesis's control.

Wade Suki asked for the estimated cost of Phase 1 in West Texas or MISO, including the carbon capture component, and sought further details on NET Power's investment in Entropy. He also questioned the rationale for NET Power remaining a public entity given the new strategy and pivot.

Answer

CEO Danny Rice estimated the total installed CapEx for Phase 1 in West Texas to be between $375 million and $425 million. He projected NET Power's equity contribution to be around $75 million-$90 million, assuming a 50-51% equity stake and 50-70% project financing, which is manageable with current cash. He clarified that NET Power's investment in Entropy would be a 'small equity investment' to provide Entropy with resources to contribute technical expertise to the joint product roadmap. Mr. Rice affirmed the rationale for being a public company, citing unparalleled access to capital for investing in economic projects, which is more compelling with actionable near-term projects. He also positioned NET Power as a differentiated public play on the natural gas supercycle, being the only public clean, firm power company with projects coming online this decade.

Wade Suki asked for the estimated total installed CapEx for Phase 1 projects in West Texas or MISO, including the carbon capture component. He also inquired about the details of NET Power's strategic investment into Entropy and the rationale for NET Power remaining a public entity given its new strategy and pivot towards capital-heavy project development.

Answer

CEO Danny Rice stated that the rough total installed CapEx for Phase 1 facilities would be between $375 million and $425 million. He estimated NET Power's equity contribution to be around $75-$90 million, leveraging 50-70% project financing. Rice described the investment in Entropy as a "small equity investment" to provide resources for technical collaboration and ensure timely product delivery. He justified NET Power's public status by highlighting the unparalleled access to capital for investing in actionable, economic projects, differentiating NET Power as the only public clean, firm power company with projects coming online this decade, offering a compelling way to play the natural gas supercycle.

Wade Suki from Capital One Financial sought to clarify the total installed cost of SN1, asking if the $1.6B to $1.9B estimate includes the new simple cycle turbines. He also questioned how this design change alters the company's business model, including ownership interests and licensing.

Answer

COO Marc Horstman confirmed the $1.6B to $1.9B range is for the Net Power plant only, with the 200 MW of gas turbines expected to add another $300M to $400M to the total project cost. Horstman also stated the integrated approach enhances their business model by offering flexibility, as the Net Power cycle is 'truly GT agnostic,' fitting well with their standard, modular approach to meet diverse customer requirements.

Wade Suki from Capital One asked for an update on commercial activities, including customer dialogues, the Alberta opportunity, and any progress on international expansion.

Answer

CEO Daniel Rice reported that the Alberta pre-feasibility study is progressing and that discussions with big tech are ongoing, with a focus on demonstrating long-term competitive economics. He reiterated that for utility-scale plants, the company's focus remains on North America due to low-cost gas and favorable carbon pricing, while the Baker Hughes industrial program is a good avenue for international opportunities like LNG.

Wade Suki of Capital One Financial inquired about any areas of concern among Montrose's customers regarding the broader macro environment and asked for an update on the company's M&A strategy, including when acquisitions might resume.

Answer

President & CEO Vijay Manthripragada acknowledged that clients are dealing with typical geopolitical and macroeconomic volatility, but this has not altered their long-term environmental planning, resulting in a 'steady as she goes' demand for Montrose's services. Regarding M&A, he stated the current pause is intentional to demonstrate the power of the company's core organic growth engine. While the acquisition opportunity set remains robust, a restart is not imminent as the focus remains on showcasing this inherent strength.

Wade Suki of Capital One Financial Corporation inquired about any areas of concern among Montrose's customers due to macro or regulatory issues, and asked for an update on the company's M&A strategy and when acquisitions might resume.

Answer

President & CEO Vijay Manthripragada stated that while clients are navigating typical macroeconomic volatility, their long-term environmental planning cycles remain unchanged, resulting in "steady as she goes" demand for Montrose. Regarding M&A, he explained that the current pause is a deliberate strategy to showcase the strength of the company's organic growth engine. While the opportunity pipeline remains robust, a restart of acquisition activity is not imminent.

Wade Suki of Capital One Financial Corp. asked for commentary on the current environment for inorganic growth and what the company is seeing in the asset acquisition market.

Answer

Brendan Krueger, CFO of Antero Midstream, stated that the company continues to evaluate bolt-on acquisition opportunities that are synergistic with its existing asset footprint, similar to deals completed in past years. However, he noted there was nothing immediate to discuss.

Wade Suki asked for an update on further asset sales following the Jamaica deal, referencing a prior $2 billion goal. He also requested the current status of the FLNG 2 project and an update on the Nicaragua project.

Answer

CFO Christopher Guinta noted that while other assets could be sold, the real goal is to use securitization-type transactions to refinance debt at a cheaper rate. He also stated that FLNG 2 is still under construction but the focus has been on the Jamaica sale and refinancing. Executive Wesley Edens added that the Nicaragua PPA is in the final stages of restructuring to create a structure similar to CELBA, with a capacity payment and marginal gas cost.

Wade Suki sought clarification on the moving parts in the 2025 EBITDA guidance change, inquired about the third-party LNG supply book for the 2026-2027 timeframe, and asked about creative ways to participate in the upcoming Brazil auction.

Answer

CFO Christopher Guinta clarified that the change in guidance to $1 billion was simply due to the exclusion of the FEMA claim. Chairman and CEO Wesley Edens added that for the out-years, long-term gas supply is readily available. Regarding Brazil, Edens emphasized a strategy focused on maximizing terminal cash flows and pursuing partnerships to minimize CapEx, rather than building new power plants on NFE's balance sheet.

Wade Suki of Capital One asked for clarification on LNG ship logistics, particularly how to interpret vessel movements between locations like Jamaica and Puerto Rico. He also inquired about the expected cargo frequency from FLNG 1 going forward and sought an explanation for the recent uptick in SG&A expenses and the future outlook.

Answer

CEO Wesley Edens explained that the logistics from FLNG 1 to Puerto Rico will simplify into a regular shuttle route, with a cargo expected every 18-20 days at full capacity. He noted that operational flexibility from storage capacity mitigates weather-related delays. CFO Christopher Guinta addressed SG&A, clarifying that core SG&A has decreased for three consecutive quarters and the recent uptick was due to non-cash items and transaction costs. He guided for core SG&A to be around $25 million per quarter in 2025.

Wade Suki of BofA Securities inquired about Aris Water Solutions' expectations for water cuts and volumes if producers shift to maintenance mode, and asked for an update on the M&A landscape, including impacts from market volatility on bid-ask spreads.

Answer

President and CEO Amanda Brock stated that while the second half is uncertain, customers haven't signaled material changes yet. If they did, Aris could reduce CapEx by 25-30%. She noted water cuts would remain the same, with the impact being on total volume. On M&A, Founder and Executive Chairman Bill Zartler commented that the bid-ask spread has widened due to stock price changes and that few large transactions are currently happening. Brock added that Aris's strong balance sheet positions them well to capitalize on opportunities.

Wade Suki requested an update on the commercial front, specifically regarding opportunities with new customers, and asked about the state of the M&A market, including whether the bid-ask spread has narrowed.

Answer

CEO Amanda Brock confirmed a robust market for organic growth, stating they are actively working with potential new customers and anticipate signing new contracts. On M&A, both Amanda Brock and Executive William Zartler emphasized their disciplined approach, noting that while they are evaluating opportunities, the bid-ask spread has not yet narrowed enough for a target to meet their strict financial and strategic criteria.

Asked about the M&A environment, the evolution of commercial activity in Louisiana, and the demand outlook from industrial customers.

Answer

The company remains disciplined on M&A, prioritizing strong organic projects. Commercial demand in Louisiana is strengthening as the LNG pull becomes a reality for customers. Industrial customer demand is robust, with new expansions announced, particularly in ammonia, and a growing need for gas storage.