Excelerate Energy (EE) Q1 FY26 earnings call: guidance and Q&A

How is Excelerate approaching supply diversification given the Qatar situation, and what options are available for long-term supply?

Steven Kobos stated that Excelerate already has good geographic diversity with contracts from divergent locations. The company aims to be responsive to customer needs and continues to buy and sell on the same index, avoiding commodity risks. He emphasized that the focus is on being a 'boring infra provider that integrates molecules'.

“We're pretty boring about this. We like to buy and sell on the same index. You don't see us taking commodity risks. We're determined to be that sort of boring infra provider that integrates molecules.”

asked by Elias Jossen · answered by Steven Kobos

What are the key growth priorities for this year and next, and what new projects might be sanctioned, particularly in Jamaica and the Caribbean?

Steven Kobos highlighted the strong performance of the Jamaica platform and the continued focus on Caribbean expansion. Oliver Simpson added that CapEx requirements for the Caribbean remain intact, with increased gas sales in Jamaica and plans to add more 'spokes' to the hub, with larger opportunities announced as they materialize.

“We're already seeing increased sales of gas, new customers, increased gas sales in Jamaica, but we also want, obviously, to be expanding throughout the Caribbean, adding more spokes to that hub, and we're eager to be doing that.”

asked by Elias Jossen · answered by Steven Kobos

Has the Middle East volatility changed the strategic thinking about where to deploy the FSRU conversion asset or pursue subsequent integrated projects?

Steven Kobos affirmed that strategic priorities have not changed, viewing the conflict as a near-term supply disruption, not demand destruction. The company continues to pursue opportunities in the same markets, including South Asia and East Asia, and will announce commercial deals as they are finalized.

“No, our strategic priorities haven't changed. The markets we like before the conflict, we still like. This is a near-term supply disruption. It is not demand destruction.”

asked by Christopher Robertson · answered by Steven Kobos

Can you elaborate on the cadence of Jamaica's growth opportunities, distinguishing between low-CapEx utilization upside and larger CapEx opportunities?

Oliver Simpson confirmed the bifurcation. Near-term gains come from utilizing the existing platform with minimal CapEx, correlated with the LNG supply wave. Higher CapEx opportunities are likely towards the later end of the scale but remain confident as economical solutions for the markets.

“There's opportunities using the platform that we have today and some that we've been able to capitalize on already and continuing to look at those. I think when you think of the timing of those, it's really around, as this LNG wave comes on in the U.S., I'd expect to see a good correlation to the LNG coming on to some of these opportunities.”

asked by Craig Shere · answered by Oliver Simpson

Is it unreasonable to expect tens of millions of dollars of EBITDA run rate upside from the redeployment of Express in 2027 and the FSRU conversion into 2028?

Steven Kobos stated that it is 'not unreasonable at all' to expect such upside. He reiterated confidence in sustained growth through 2028, emphasizing the company's flexible approach to integrated projects and capacity-type business, driven by the growing need for regasification capacity.

“That's not unreasonable at all, Chris. This is Steven. I mean what I would say is, as we've told you, we're going to evaluate there are a lot of things you look to with your counterparty, and we're not going to dictate what the customer should want or want.”

asked by Craig Shere · answered by Steven Kobos

How quickly did conversations progress from the Iraq delay to signing the Jordan deal for the FSRU Acadia?

Steven Kobos explained that regional teams maintain continuous contact globally, allowing them to activate existing relationships quickly. He highlighted the virtue of having experienced regional teams and the inherent flexibility of floating assets for rapid redeployment.

“If our regional teams haven't been reaching out to everyone around the world every quarter, and just sharing ideas and talking with them, so they're aware of what the opportunities are, I'd be very disappointed. So, I suspect if you drill into it, the relationship and the contact has been going on for years. We just needed to activate that.”

asked by Robert Brooks · answered by Steven Kobos

Is there a long-term opportunity for Excelerate in Jordan, possibly for the Express FSRU after the Acadia moves on?

Steven Kobos expressed optimism, noting that countries with existing LNG access, like Jordan, tend to want more. He indicated a strong desire to be part of Jordan's energy infrastructure, respecting their progress in the LNG market.

“I would say once people get LNG once, and look, Jordan's had LNG for 10 years. They had 12 cargoes last year, 10 of those came from the U.S. I think they'll reach even more markets from there. And a lot of respect for what they've done. We would certainly love to be part of that.”

asked by Wade Suki · answered by Steven Kobos

If the Iraq project construction resumes and completes earlier, could Excelerate use the Express or other assets to start it before the Acadia finishes its Jordan contract?

Steven Kobos acknowledged the possibility, stating that the company routinely bridges assets due to their floating and redeployable nature. He confirmed the intention to serve Iraq as soon as possible but reiterated the 2027 startup guidance for Iraq.

“Man, you mentioned this very possibility last earnings cycle. And yes, I took that to heart, I have been thinking about it. I mean you have a keen insight. These are floating assets. We routinely bridge with one asset to another asset.”

asked by Zackery Van Everen · answered by Steven Kobos

What is Excelerate's view on the global LNG demand-supply mismatch towards the end of the decade, especially given the 200 million tons coming online?

Steven Kobos reiterated that 'the future of LNG is regas,' emphasizing that current events represent a supply disruption, not demand destruction. He highlighted that long-term contracted LNG remains affordable, driving the need for regasification capacity, which Excelerate is uniquely positioned to provide.

“I mean, Zack, that's why I'm telling everybody, we're telling everyone the future of LNG is regas. like this is supply disruption. This is not demand destruction.”

asked by Zackery Van Everen · answered by Steven Kobos