Executive Summary

Q3 2024 delivered solid sequential growth: Revenues $193.4M, Adjusted EBITDA $92.3M (+3.7% q/q), and diluted EPS $0.35, driven by lower operating costs and higher gas sales margins .
Year-over-year, revenue and Adjusted EBITDA were lower versus Q3 2023 due to the Sequoia’s shift to a time charter, increased business development spend, and fewer gas sales opportunities, partially offset by higher interest income .
Full-year 2024 Adjusted EBITDA guidance was raised and narrowed to $335–$345M; maintenance capex reduced to $40–$50M; committed growth capital maintained at $70–$80M .
Quarterly dividend increased 140% to $0.06/share, signaling confidence in cash generation and capital allocation discipline; cash and equivalents were $608.4M, with ~$350M revolver availability at quarter-end .
Strategic catalysts: midterm LNG purchase/sale agreements (~0.65 MTPA, European index pricing), Vietnam PTSC partnership, and fleet growth milestones (Hyundai newbuild “Hull 3407” steel cutting; planned LNG carrier acquisition supporting conversion strategy) .

What Went Well and What Went Wrong

What Went Well

Sequential earnings strength: Adjusted EBITDA rose to $92.3M (+$3.3M q/q) on lower operating costs and stronger gas sales margins; diluted EPS increased to $0.35 .
Capital returns and liquidity: Dividend hiked to $0.06/share; cash $608.4M; revolver undrawn capacity $349.9M; CFO emphasized ample capacity to fund near‑term opportunities .
Operational excellence and strategic progress: CEO highlighted >99.8% reliability and 0 recordable safety incidents; midterm LNG deals (~0.65 MTPA) and Vietnam partnership broaden the portfolio and pipeline .

Selected quotes:

“Our ability to deliver consistent results and generate strong cash flow is driven by the high quality of our FSRU and terminals business.” – CEO Steven Kobos .
“We are generating sustainable earnings, and we are executing a disciplined capital allocation plan.” – CEO Steven Kobos .
“We have more than sufficient capacity to fund our near-term growth opportunities.” – CFO Dana Armstrong .

What Went Wrong

YoY decline: Revenues ($193.4M vs $275.5M) and Adjusted EBITDA ($92.3M vs $106.9M) fell YoY due to Sequoia’s transition to time charter, higher business development costs, and fewer gas sales .
Segment mix headwind: Gas sales revenue dropped materially YoY ($43.3M vs $142.3M), reducing contribution from commodity margins vs prior-year quarter .
2025 maintenance capex expected to rise (two capitalized dry docks), with anticipated off‑hire of 40–50 days per vessel; will pressure near‑term utilization when executed .

Financial Results

Metric (Units)	Q3 2023	Q2 2024	Q3 2024
Revenues ($USD Millions)	$275.5	$183.3	$193.4
Operating Income ($USD Millions)	$67.5	$49.9	$59.7
Net Income ($USD Millions)	$46.5	$33.3	$45.5
Diluted EPS ($USD)	$0.40	$0.26	$0.35
Adjusted EBITDA ($USD Millions)	$106.9	$89.0	$92.3

Segment revenue breakdown:

Segment Revenues (Units)	Q3 2023	Q2 2024	Q3 2024
FSRU and Terminal Services ($USD Thousands)	$133,177	$150,987	$150,139
Gas Sales ($USD Thousands)	$142,294	$32,346	$43,280
Total Revenues ($USD Thousands)	$275,471	$183,333	$193,419

Non-GAAP operational metrics:

Metric (Units)	Q3 2023	Q2 2024	Q3 2024
Adjusted Gross Margin ($USD Thousands)	$120,172	$105,581	$106,589
Gross Margin ($USD Thousands)	$87,011	$75,181	$83,558

Key KPIs and balance sheet:

KPI (Units)	Q3 2023	Q2 2024	Q3 2024
Cash & Equivalents ($USD Millions)	$555.9 (FY 2023 YE reference)	$609.1	$608.4
Total Debt incl. Finance Leases ($USD Millions)	—	$734 (incl. finance leases)	$716 (incl. finance leases)
Revolver Undrawn Capacity ($USD Millions)	—	$349.9	$349.9
Quarterly Dividend ($/share)	—	$0.025 (declared Aug 1)	$0.06 (declared Oct 31)
Reliability (%)	—	—	>99.8%
Safety Incidents	—	—	0 recordable
Contracted Future Revenue ($USD Billions)	—	—	~$4B; weighted remaining term ~7 years

Notes: The “—” indicates not disclosed in the referenced document for that period.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($USD Millions)	FY 2024	$320–$340	$335–$345	Raised & Narrowed
Maintenance Capex ($USD Millions)	FY 2024	$50–$60	$40–$50	Lowered
Committed Growth Capital ($USD Millions)	FY 2024	$70–$80	$70–$80	Maintained
Income Before Income Taxes ($USD Millions)	FY 2024 Outlook	$141–$179 (as of Q2)	$162–$181 (as of Q3)	Raised Low End
Quarterly Dividend ($/share)	Q3 2024	$0.025 (Q2 declaration)	$0.06 (Q3 declaration)	Raised 140%

Drivers: CFO cited higher margins across several regas projects, lower vessel operating costs, and lower-than-anticipated business development spend for the guidance increase; maintenance capex reduced on timing/actual spending; committed growth capital includes a $50M newbuild milestone paid in October .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Fleet Growth (Newbuild & Conversions)	Hull 3407 on schedule; steel cutting expected in Oct; evaluating conversions	Steel cutting achieved in Oct; keel laying Mar 2025; delivery Jun 2026; eyeing LNG carrier acquisition in 2025 to enable conversion	Progressing; execution milestones achieved
LNG Supply Portfolio	QatarEnergy SPA 0.85–1.0 MTPA (2026–2040); Petrobangla SPA support	Midterm Atlantic Basin purchase/sale deals (~0.65 MTPA) priced on European index; first purchase Q4 2024	Expanding & diversifying; index hedged
Vietnam Expansion	NVLT term sheet with ITECO (Hai Phong) Phase 0.7 MTPA by 2027	PTSC strategic partnership to study FSRU solutions; confidential negotiations ongoing	Building optionality; both onshore & FSRU tracks
Alaska Cook Inlet Project	Advanced discussions; target start 2028; technical solutions for extreme tides	Continued work with utilities; surveys underway; reiterate need by 2028	Steady momentum; urgency increasing
Efficiency Tech (Reliquefaction)	Ordered first reliq kit; 18‑month lead; potential deployment as early as 2026	Interest confirmed; in commercial discussions to install two units	Customer traction rising
Bangladesh Operations & Politics	Continued operations; caretaker gov transition; fundamentals unchanged	Contracts/SPA secured; long-term commitment; two FSRUs supply ~34% of domestic gas	Stability emphasized; supportive tone
Capital Allocation	$50M buyback authorized; opportunistic repurchases; dividend maintained	Dividend raised to $0.06; Q3 buybacks ~$7M; liquidity strong	More balanced returns

Management Commentary

“Our core regasification business provides us with the financial foundation necessary to execute our growth strategy.” – CEO Steven Kobos (press release) .
“Reliability in excess of 99.8% and 0 recordable safety incidents… These are impressive statistics considering our pool of over 700 seafarers.” – CEO Steven Kobos (call) .
“We are now expecting adjusted EBITDA to range between $335 million and $345 million… driven by higher margins across several regas projects, lower vessel operating costs and lower-than-anticipated business development spend.” – CFO Dana Armstrong .
“We now have midterm agreements… approximately 0.65 million tons of LNG… pricing based on a major European natural gas index.” – CEO/press release .
“We have more than sufficient capacity to fund our near-term growth opportunities.” – CFO Dana Armstrong .

Q&A Highlights

LNG midterm agreements: management characterized the purchase/sale as “locked‑in margin,” multi‑year, with index hedging to derisk margin volatility .
Shipping strategy: plan to purchase an LNG carrier in 2025 to both support portfolio deliveries and enable an FSRU conversion; carrier can trade spot while engineering/long‑lead items are prepared .
2025 maintenance capex: expected to rise due to two capitalized dry docks; off‑hire expected for 40–50 days per vessel; details to be shared with 2025 guidance .
Near‑term growth: looking at inorganic opportunities between now and mid‑2026; strong financial position to act when the right deal emerges .
Commercial structure: projects underpinned by anchor take‑or‑pay obligations; not seeking commodity risk; upside optionality pursued where appropriate .

Estimates Context

S&P Global consensus estimates for Q3 2024 EPS and revenue were not retrievable due to system request limits, so beats/misses versus consensus cannot be quantified here. Values unavailable via S&P Global at this time.
Given guidance raised/narrowed and dividend increase, sell-side estimates may need to adjust upward for FY 2024 EBITDA and potentially for cash return expectations; maintenance capex trajectory into 2025 (dry docks) should be reflected in forward models .

Key Takeaways for Investors

Base business resilience: sequential earnings improved on cost control and margin management; FSRU/terminal revenues remain robust even as gas sales contribution normalized YoY .
Guidance and cash returns: raised/narrowed FY EBITDA guidance and a 140% dividend increase signal confidence in cash generation and disciplined capital allocation .
Portfolio derisking: midterm LNG purchase/sale agreements priced on the same European index reduce margin volatility and support shipping/FSRU conversion strategy .
Growth pipeline visibility: tangible milestones on newbuild (Hull 3407), conversion path, and entry into Vietnam/Alaska provide multi‑year catalysts; watch 2026 delivery and 2028 Alaska timeline .
2025 maintenance cadence: two dry docks will increase maintenance capex and cause off‑hire; model temporary utilization impact and potential timing of deployments .
Bangladesh exposure: management confirmed SPA/contract security and continued operations; fundamentals support long‑term demand, but political developments warrant monitoring .
Liquidity supports optionality: $608M cash and ~$350M revolver availability provide ample flexibility for inorganic opportunities and fleet investments .

Excelerate Energy, Inc. (EE)·Q3 2024 Earnings Summary