Excelerate Energy Inc (EE) Reports Strong Q3 2023 Results and Raises Full Year EBITDA Forecast
Excelerate Energy Inc (NYSE:EE) reports a net income of $46.5 million for Q3 2023, a significant increase from the same period last year.
Adjusted EBITDA for Q3 2023 reached $106.9 million, prompting the company to raise its full-year guidance to between $340 million and $350 million.
Strategic agreements with Petrobras and Petrobangla bolster Excelerate's long-term contract portfolio and global LNG infrastructure presence.
Excelerate declares a quarterly dividend of $0.025 per share, payable on December 13, 2023.
Excelerate Energy Inc (NYSE:EE) announced its financial results for the third quarter ended September 30, 2023, on November 8, 2023, showcasing a period of strong performance and strategic growth. The company reported a net income of $46.5 million and an adjusted EBITDA of $106.9 million for the quarter, marking substantial increases from the previous year's figures. In light of these results, Excelerate has raised its full-year 2023 adjusted EBITDA guidance to a range of $340 million to $350 million.
Financial Performance Overview
The increase in net income and adjusted EBITDA for Q3 2023 is primarily attributed to higher charter rates in various countries and lower operating lease expenses due to the acquisition of the FSRU Sequoia. Sequentially, the improvements from the last quarter were driven by higher margins on gas sales contracts in Brazil, reduced vessel operating expenses, and inflation index adjustments on certain contracts.
Strategic Agreements and Dividend Declaration
Excelerate's President and CEO, Steven Kobos, highlighted the company's robust earnings and the growing demand for FSRUs globally. Kobos emphasized Excelerate's strong financial position, with over $4 billion in predictable future contracted cash flows from FSRUs and Terminal Services. The company's strategic agreements, including a 10-year charter with Petrobras for the FSRU Sequoia and a 15-year LNG sale and purchase agreement with Petrobangla, are set to strengthen Excelerate's market presence and contribute to global energy security.
Liquidity and Capital Resources
As of September 30, 2023, Excelerate reported $602.9 million in cash and cash equivalents, with no outstanding borrowings under its $350 million revolving credit facility. The company's board approved a quarterly cash dividend of $0.025 per share, reinforcing its commitment to shareholder returns.
Investor Relations and Non-GAAP Measures
Excelerate will host a conference call for investors and analysts to discuss the quarterly results and provide further insights into the company's performance and strategy. Additionally, the company uses non-GAAP financial measures such as Adjusted Gross Margin and Adjusted EBITDA to provide a clearer picture of its operational financial performance, excluding non-recurring items and the historical cost basis of assets.
Excelerate Energy Inc (NYSE:EE) continues to navigate the dynamic energy market with strategic foresight and operational excellence. The company's strong third-quarter results and positive outlook for the remainder of the year reflect its ability to capitalize on the growing demand for LNG infrastructure and services. With a solid financial position and a portfolio of long-term contracts, Excelerate is well-positioned to continue its trajectory of growth and value creation for its stakeholders.
For detailed financial tables and further information, please refer to the full earnings release and filings available on the company's website and the SEC's EDGAR database.
Explore the complete 8-K earnings release (here) from Excelerate Energy Inc for further details.
This article first appeared on GuruFocus.
