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    Earnings call· Jun 2026(Q2 FY26)

    Excelerate Energy Q2 FY26 earnings call EE

    Aug 6, 2026 Source

    Executive summary

    Excelerate Energy Q2 FY26 — Strong Financials and Strategic Growth Initiatives

    Excelerate Energy delivered a strong second quarter, marked by robust financial performance and significant progress on strategic growth initiatives. The company successfully deployed the Acadia FSRU and secured a long-term recharter for the Express, while advancing its Iraq LNG terminal and FSRU conversion projects. Management remains confident in its disciplined capital allocation framework, balancing accretive growth investments with increasing shareholder returns, despite geopolitical headwinds impacting project timelines.

    Highlights

    5

    • Adjusted EBITDA of $120 million, up 12% year-over-year.

    • Acadia FSRU deployed to Jordan ahead of schedule, contributing $20 million EBITDA in 2026.

    • FSRU Express recontracted for 7 years in Colombia, increasing annual EBITDA contribution by 35%.

    • Quarterly cash dividend increased by 13% to $0.09 per share.

    • Net leverage reduced to 1.9x, well below target range.

    Concerns

    3

    • Iraq project operations commencement delayed to Q2 2027 due to Middle East conflict, though project costs pulled forward to 2026.

    • FSRU Exquisite dry dock deferred to 2027, impacting maintenance capex guidance.

    • FSRU conversion capex increased from previous estimates due to vessel selection, though returns are expected to be maintained.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Adjusted EBITDA
    $490M-$515M
    high materiality
    High
    Full-year 2026 Committed Growth Capital
    $380M-$400M
    medium materiality
    High
    Full-year 2026 Maintenance Capex
    $85M-$95M
    low materiality
    High
    Annual Dividend Growth Rate
    Low double-digit annual growth rate
    medium materiality
    High
    Iraq LNG Import Terminal Operations Commencement
    Early Q2 2027
    high materiality
    Medium
    FSRU Conversion Commercial Deployment
    Early 2028
    medium materiality
    High

    Operational metrics

    17
    Net income
    $50Mroughly flat compared to Q1 FY26
    Q2 FY26
    Adjusted EBITDA
    $120Mdown slightly versus Q1 FY26, up 12% from Q2 FY25
    Q2 FY26

    Primarily due to a full quarter contribution from the Jamaica platform.

    Maintenance capex
    $14M
    Q2 FY26
    Committed growth capital
    $241M
    Q2 FY26

    Inclusive of the final payment for the Acadia, paid in April.

    Total debt (including finance leases)
    $1.2B
    as of Jun 30, 2026
    Cash and cash equivalents
    $342M
    as of Jun 30, 2026
    Revolving credit facility capacity
    $500Mfully available
    as of Jun 30, 2026
    Net debt
    $898M
    as of Jun 30, 2026
    Trailing net leverage
    1.9x
    Q2 FY26

    Well below target range.

    Quarterly cash dividend per share
    $0.0913% increase over prior quarter
    Q3 FY26

    Approved by board, consistent with low double-digit annual dividend growth rate target through 2028.

    Share repurchases
    $24M
    Q2 FY26

    Part of share repurchase program.

    Acadia EBITDA contribution
    $20M
    FY26

    From deployment to Jordan.

    Express annual EBITDA contribution increase
    35%compared to current contract
    Annual

    Result of new 7-year charter in Colombia.

    Iraq LNG terminal minimum contracted offtake
    250M
    Contract term

    Part of the integrated project agreement with Iraq's Ministry of Electricity.

    LNG carrier purchase price (Methane Patricia Camilla)
    $79M
    July 2026

    For the first FSRU conversion project.

    Methane Patricia Camilla storage capacity
    170,000
    Current

    Provides strong technical foundation for high capability FSRU.

    Unlevered after-tax returns target
    low double digits to mid-teens
    Long-term

    The more integrated the project, the higher the returns.

    Industry KPIs

    1
    MetricValueDetails
    Take or pay contract structureTake or pay

    Deals & partnerships

    4
    NEPCO (Jordan's National Electric Power Company)Nine-month charter for the Accelerate Acadia FSRU9 months

    Deployment to Jordan's existing LNG import terminal in Aqaba. Operations began in July.

    Frontera Energy Corporation (subsidiary)Long-term charter for the FSRU Express7 years (initial term), with multiple extension options

    Redeployment to a new LNG import terminal under development in Colombia's Caribbean coast. Follows completion of current charter and planned dry dock.

    Iraq's Ministry of Electricity (subsidiary)Definitive agreement to develop Iraq's first LNG import terminal5 years (regasification services), with extension options

    Integrated project including regasification services and LNG supply. Minimum contracted offtake of 250 million standard cubic feet per day. Take-or-pay contracted structure.

    Undisclosed sellerPurchase of LNG carrier Methane Patricia Camilla$79M

    To serve as the dedicated vessel for the first FSRU conversion project. Chosen for its 170,000 cubic meter storage capacity, TFDE power generation, and installed reliquefaction.

    Capital programs

    2
    Iraq LNG Import Terminalunderway
    Start: October 2025 (agreement)

    Benefit: 250M standard cubic feet per day minimum contracted offtake

    Integrated project including five-year regasification services and LNG supply. Engineering and procurement activities nearing completion. Site clearance and dredging activities continued. Materials mobilized based on construction priorities. Total estimated cost and return profile remain in line with previously communicated range.

    First FSRU Conversion ProjectunderwayIncreased from ~$200M
    Start: July 2026 (vessel acquisition)

    Benefit: High capability FSRU with 170,000 cubic meter storage, TFDE power generation, reliquefaction

    Involves the acquisition of the Methane Patricia Camilla. Regasification plant ordered, shipyard scope advancing toward definitive agreements. Capex increased due to vessel capabilities, but same level of returns expected.

    Risks & headwinds

    3
    Middle East conflict impact on Iraq project timelineNear-term to mid-term (through 2027)

    Operations commencement delayed from summer 2026 to early Q2 2027.

    Mitigation: Continued advancement of engineering and procurement, adapting execution plans, close monitoring of developments, strong relationships with local government and security forces.

    Atlantic Basin deal timing variabilityQ4 FY26 / Q1 FY27

    Potential to shift full-year EBITDA results towards high or low end of guidance range.

    Mitigation: Company is highly confident in achieving the overall guidance range regardless of timing, as it's a seasonal factor.

    Cost variability (Vessel OpEx and business development)Ongoing

    Not quantified, but noted as a factor that could create some variability.

    Mitigation: Shifting priorities or activities could cause variability, but usually not very material.

    What to watch in Q3 FY26

    4

    Iraq LNG Terminal Construction Progress

    Next quarter (Q3 FY26) and into Q4 FY26
    CurrentEngineering and procurement nearing completion; site clearance and dredging continued; materials mobilized.
    TargetSignificant movement and full-speed execution towards early Q2 2027 operations.

    Why it matters

    The Iraq project is a major integrated growth initiative, and its on-schedule execution is critical for future contracted EBITDA and overall growth outlook.

    We've had people on the ground the entire time. So we've had people in Iraq, continuously since the end of last year. We have great relationships with the local government, with US government, with security forces in the region. And that all gives us good comfort that we can restart, we restart in earnest and get online in the second quarter of next year.

    Q&A highlights

    6

    How should the Express's strong recontracting results inform expectations for the rest of the portfolio regarding pricing, contract duration, and renewal terms? What are current customer demand trends?

    Management is bullish on the asset class, expecting continued tightness in the market through the 2030s. The Express is the fifth asset recontracted on more favorable terms in the last 4.5 years, and they anticipate upward pressure on day rates. They are prioritizing integrated projects for better returns.

    “It should come as no surprise that we are bullish on the asset class. We have been bullish on the asset class. We remain bullish on the asset class. It is is going to be remain tight through the foreseeable future. I think this is the fifth assets in the existing fleet that we have recontracted on more favorable terms last four and a half years.”

    asked by Theresa Chen · answered by Unknown Speaker

    2 min read6 chapters

    Detailed Narrative

    01

    Acadia FSRU Deployment and Optimization

    The Accelerate Acadia, the company's newest floating regas terminal, was delivered in April on budget and ahead of schedule. Originally planned for Iraq, it was redeployed to Jordan in May via a nine-month charter with NEPCO, commencing operations in July. This interim deployment is expected to contribute approximately $20 million in EBITDA in 2026, showcasing the company's ability to optimize assets and respond to immediate market needs.

    02

    FSRU Express Redeployment to Colombia

    In June, Excelerate signed a long-term charter for the FSRU Express with Frontera Energy Corporation, for a new LNG import terminal in Colombia. The agreement has an initial term of seven years and is expected to increase the Express's annual EBITDA contribution by about 35% compared to its current contract. Following its current charter and dry dock, the Express is anticipated to begin service in Colombia in early 2027, adding significant long-term contracted EBITDA to the backlog.

    03

    Iraq LNG Import Terminal Progress

    The integrated Iraq LNG import terminal project, which includes a five-year regasification services agreement and LNG supply, continues to advance despite the Middle East conflict. Engineering and procurement are nearing completion, and site activities are progressing. Operations are now expected to commence in early Q2 2027, a delay from the original summer 2026 plan, but the project's total estimated cost and return profile remain consistent. The project is structured with a take-or-pay contract, aligning with the company's portfolio strategy.

    04

    FSRU Conversion Project and Vessel Acquisition

    To capitalize on future regasification opportunities, Excelerate is converting an LNG carrier into an FSRU. In July, the company acquired the Methane Patricia Camilla for approximately $79 million to serve as the dedicated vessel for this project. This vessel was chosen over the Shenandoah due to its 170,000 cubic meter storage capacity, TFDE power generation, and installed reliquefaction, which are expected to enhance performance and earnings potential. The converted FSRU is slated for commercial deployment in early 2028.

    05

    Jamaica Platform and Caribbean Expansion

    The integrated LNG and Power Platform in Jamaica, acquired over a year ago, continues to be a valuable asset, providing both current contributions and avenues for future growth. The company is optimizing the platform through additional LNG sales and expanded infrastructure services, leveraging its position to serve other Caribbean islands. This model demonstrates a scalable and repeatable approach for regional expansion, with increased commercial momentum expected to yield further updates later in the year.

    06

    Capital Allocation and Shareholder Returns

    Excelerate maintains a disciplined capital allocation framework, prioritizing accretive growth investments, returning capital to shareholders through a growing dividend, and opportunistic share repurchases. The board approved a 13% increase in the quarterly cash dividend to $0.09 per share, consistent with a low double-digit annual growth target through 2028. The company repurchased 693,000 shares for $24 million during the quarter, demonstrating commitment to shareholder value.

    AI-generated summary of the company’s earnings call. Not investment advice.