Executive Summary

Q2 delivered solid profitability with Net Income of $33.3M and Adjusted EBITDA of $89.0M; management raised FY24 Adjusted EBITDA guidance to $320–$340M (from $315–$335M) on operational strength and cost normalization post-Q1 drydock .
Revenue mix is pivoting toward stable, fixed-fee FSRU and terminal services ($151.0M) while gas sales ($32.3M) continue to normalize following Brazil’s shift to a long-term charter; EPS was $0.26 vs $0.24 in Q1 and $0.23 in Q2’23 .
Strategic progress accelerated: term sheet to co-develop the Northern Vietnam LNG Terminal (NVLT) and advanced discussions for an integrated FSRU-led solution in South Central Alaska; order placed for modular re-liquefaction kits to enhance vessel efficiency and economics .
Capital allocation remains balanced: $609M cash, full $349.9M revolver availability, continued $0.025 quarterly dividend, and opportunistic buybacks ($11M in Q2) support growth optionality and shareholder returns .

What Went Well and What Went Wrong

What Went Well
- Sequential profitability inflected: Adjusted EBITDA rose to $89.0M (from $75.4M in Q1) as Q1 drydock costs rolled off; EPS improved to $0.26 (from $0.24) .
- Guidance raised on execution strength: FY24 Adjusted EBITDA to $320–$340M; CFO reiterated sufficient liquidity to fund fleet and growth (newbuild Hull 3407 milestone in Q4) .
- Strategic milestones: NVLT term sheet in Vietnam and advanced Alaska discussions underscore the integrated LNG portfolio strategy; CEO: “we are doing what we said we would do” .
What Went Wrong
- Revenue declined YoY ($183.3M vs $432.4M) as gas sales in Brazil decreased with the FSRU Sequoia’s transition to a time charter; mix shift pressured top line but improved visibility .
- Project execution questions: analysts probed Alaska’s extreme tidal conditions and capex; management sees “suitable technical solutions,” yet acknowledged the challenge and declined to provide cost figures .
- Bangladesh political transition could slow Payra near-term; management emphasized safety, continuity of operations, and long-term market fundamentals despite caretaker government dynamics .

Financial Results

Overall P&L (USD Millions, EPS in USD)

Metric	Q2 2023	Q1 2024	Q2 2024
Revenues	$432.4	$200.1	$183.3
Operating Income	$53.7	$45.2	$49.9
Net Income	$29.6	$28.1	$33.3
Adjusted EBITDA (non-GAAP)	$88.6	$75.4	$89.0
Diluted EPS	$0.23	$0.24	$0.26

Segment Revenue Mix (USD Thousands)

Segment	Q2 2023	Q1 2024	Q2 2024
FSRU and Terminal Services Revenues	$125,462	$156,994	$150,987
Gas Sales Revenues	$306,910	$43,119	$32,346
Total Revenues	$432,372	$200,113	$183,333

Profitability KPIs (non-GAAP, USD Thousands)

KPI	Q2 2023	Q1 2024	Q2 2024
Gross Margin	$75,243	$66,711	$75,181
Adjusted Gross Margin	$106,015	$89,621	$105,581
Adjusted EBITDA	$88,627	$75,389	$88,963

Liquidity and Capital

Cash and cash equivalents: $609M; revolver undrawn with $349.9M available at 6/30/24 .
Total debt including finance leases: ~$734M at quarter-end (management commentary) .
Dividend: $0.025 per share declared for Q2, payable Sep 5, 2024 (record Aug 21, 2024) .

Notes: Adjusted Gross Margin and Adjusted EBITDA are non-GAAP; see definitions and reconciliations in the press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA (non-GAAP)	FY 2024	$315–$335M	$320–$340M	Raised
Committed Growth Capex	FY 2024	$70–$80M	$70–$80M	Maintained
Maintenance Capex	FY 2024	$50–$60M	$50–$60M	Maintained
Dividend per Share	Q2 2024	$0.025 (Q1 precedent)	$0.025 (declared Aug 1)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
FY24 outlook and earnings power	2024 Adj. EBITDA $315–$335M guided; strong 2023 Adj. EBITDA $346.8M . Reaffirmed $315–$335M in Q1; highlighted contracted fleet and BD spend .	Guidance raised to $320–$340M; sequential EBITDA lift as drydock costs abated .	Improving
Integrated LNG strategy and pipeline	Emphasis on diversified LNG portfolio; QatarEnergy SPA and Petrobangla SPA underpin supply/demand . Q1 detailed 12 prioritized projects (most $50–$400M) and integrated solutions .	NVLT term sheet (Vietnam) and advanced Alaska project; selective, integrated approach (take-or-pay underpinnings) .	Converting pipeline to proof points
Fleet investment/technology	Upgrading assets to extend life and enhance returns (reliquefaction, compressors) .	Ordered modular re-liquefaction kits; CEO expects fast payback and revenue uplift potential .	Execution starting
Capital allocation	New $50M buyback program announced in Q4; balanced with growth and dividend . Q1: $9.4M repurchased; growth remains priority .	Q2: additional $11M repurchases; maintain $0.025 dividend; ample liquidity for growth .	Consistent, opportunistic
Macro/market demand	Global South re-entering LNG market; LNG viewed as affordable bridge fuel .	Tight FSRU asset class; customers seeking integrated solutions; bullish long-term demand .	Supportive backdrop
Bangladesh/Payra	Foundational market with long-term gas need .	Operations normal amid political transition; Payra timing could slow until caretaker gov’t formalized .	Near-term governance watch

Management Commentary

“We are pleased to have delivered another quarter of strong financial and operational results... the strength of our core regasification business and the value of our robust and predictable FSRU and Terminal Services contract portfolio.” — CEO Steven Kobos (press release) .
“We delivered $89 million of adjusted EBITDA in the second quarter... we are doing what we said we would do.” — CEO Steven Kobos (call) .
“We are raising our previously communicated adjusted EBITDA guidance for 2024... now expecting $320 million to $340 million.” — CFO Dana Armstrong .
On re-liquefaction kits: “We’re not in the business of giving things away for free... it will pay for itself, many customers easy within a year.” — CEO Steven Kobos .
Bangladesh: “All of our people are safe... we continue to operate as usual.” — CEO Steven Kobos .

Q&A Highlights

Alaska project feasibility and capex: Management acknowledged Cook Inlet’s tidal challenges but expressed confidence in technical solutions; declined specific capex figures, noting typical outcomes “well below” a cited $700M third-party estimate .
Vietnam NVLT economics and rationale: First terminal in Northern Vietnam targeting industrial demand with integrated supply model; patient market entry aligns with fundamentals and long-term growth .
Capital allocation: Growth is priority (newbuild Hull 3407 milestone payment in Q4), but dividend maintained and repurchases used opportunistically ($20M through Q2 since authorization) .
Fleet growth and conversions: Mix of newbuilds and potential conversions tailored to send-out needs; only two newbuilds under construction globally; Excelerate’s Hull 3407 steel cutting in October .
Contracting and commodity risk: Aim for take-or-pay anchors; avoid commodity exposure while keeping upside where appropriate .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2024 EPS/revenue and FY24 EBITDA could not be retrieved at this time due to a temporary data access limit; as a result, a formal beat/miss versus S&P Global consensus is unavailable for this report. We will update comparison to S&P Global consensus upon access restoration.

Key Takeaways for Investors

Sequential EBITDA/EPS improvement with FY24 guidance raised underscores durable earnings power from contracted FSRU/terminal services; mix shift away from volatile gas sales is lowering revenue but improving visibility and quality .
Strategic execution is accelerating (Vietnam NVLT term sheet, Alaska in advanced talks), validating the integrated LNG strategy and creating future optionality for fleet deployment and LNG portfolio monetization .
Technology upgrades (re-liquefaction kits) can enhance vessel efficiency and economics with management expecting fast paybacks—potential incremental margin lever as deployments begin in 2026+ .
Balance sheet/liquidity are strengths ($609M cash, full revolver availability), supporting both growth capex (including Hull 3407) and shareholder returns (dividend, buybacks) .
Watch list: (1) Alaska technical/permit progress and contracting, (2) Bangladesh governance transition impact on Payra timing, (3) shipyard capacity/timing for newbuilds vs conversions, and (4) LNG market/FSRU tightness shaping pricing/returns .
Near-term catalysts: formal agreements on NVLT/Alaska, additional fleet growth announcements or conversion decisions, and visibility on integrated off-take structures that de-risk returns .

Sources: Q2’24 8-K and press release, Q2’24 earnings call transcript, Q1’24 8-K and call, FY’23 8-K; non-GAAP definitions and reconciliations included in filings - - - .

Excelerate Energy, Inc. (EE)·Q2 2024 Earnings Summary