On November 6, 2024, Excelerate Energy Inc (EE, Financial) released its 8-K filing detailing the financial results for the third quarter ending September 30, 2024. Excelerate Energy Inc, a company engaged in flexible LNG solutions, provides integrated services along the LNG value chain, including regasification services and infrastructure development.
Financial Performance and Challenges
Excelerate Energy Inc reported a net income of $45.5 million for the third quarter, reflecting an increase from the previous quarter's $33.3 million but a slight decrease from the $46.5 million reported in the same quarter last year. The company's adjusted EBITDA stood at $92.3 million, up from $89.0 million in the previous quarter, yet down from $106.9 million year-over-year. This performance underscores the company's ability to manage costs effectively, despite challenges such as increased business development expenses and a transition in its FSRU Sequoia operations.
Key Financial Achievements
Excelerate Energy Inc's financial achievements are significant in the oil and gas industry, particularly in the LNG sector. The company raised and narrowed its full-year 2024 adjusted EBITDA guidance to a range of $335 million to $345 million, indicating confidence in its operational strategy. Additionally, the company declared a quarterly cash dividend of $0.06 per share, marking a 140% increase from the prior quarter, which is a testament to its robust cash flow generation.
Income Statement Highlights
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $193.4 million | $183.3 million | $275.5 million |
| Operating Income | $59.7 million | $49.9 million | $67.5 million |
| Net Income | $45.5 million | $33.3 million | $46.5 million |
| Adjusted EBITDA | $92.3 million | $89.0 million | $106.9 million |
| Earnings Per Share (diluted) | $0.35 | $0.26 | $0.40 |
Balance Sheet and Cash Flow Insights
As of September 30, 2024, Excelerate Energy Inc reported cash and cash equivalents of $608.4 million, with total assets amounting to $2.86 billion. The company maintained a strong liquidity position with $349.9 million available under its revolving credit facility. The cash flow from operating activities was $194.8 million for the nine months ended September 30, 2024, demonstrating the company's ability to generate substantial cash flow to support its operations and growth initiatives.
Strategic Developments and Outlook
Excelerate Energy Inc continues to expand its global footprint, as evidenced by its strategic partnership with PetroVietnam Technical Services Corporation to explore FSRU-based LNG solutions in Vietnam. This move aligns with the company's strategy to tap into emerging markets and enhance its LNG supply portfolio. The company also signed medium-term agreements for LNG purchases and sales in the Atlantic Basin, further solidifying its market presence.
“Excelerate delivered another quarter of solid financial and operational performance. Our ability to deliver consistent results and generate strong cash flow is driven by the high quality of our FSRU and terminals business,” said Steven Kobos, President and Chief Executive Officer of Excelerate.
Excelerate Energy Inc's performance in the third quarter of 2024 highlights its resilience and strategic focus in navigating market challenges while positioning itself for future growth. The company's financial achievements and strategic initiatives underscore its commitment to delivering value to shareholders and expanding its global LNG footprint.
Explore the complete 8-K earnings release (here) from Excelerate Energy Inc for further details.
