Excelerate Energy (EE) Q2 FY26 earnings call: guidance and Q&A

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

What are the assumptions embedded in the updated EBITDA guidance, and what factors could push results to the high or low end? What gives confidence in the Q2 2027 start for the Iraq terminal given the Middle East situation?

The base business is predictable. Variability in EBITDA guidance primarily depends on the timing of the Atlantic Basin deal (Q4 vs. Q1 next year) and minor cost fluctuations. Confidence in the Iraq project stems from its compelling fundamentals, continuous on-ground presence, strong relationships with local and US governments, and security forces.

“I'd say this project is coming online, the fundamentals of the project are even more compelling now than they were prior to the conflict. And we've used this time in second quarter to make sure we understood exactly what the security situation is on the ground.”

asked by Theresa Chen · answered by Dana Armstrong

How are commercial conversations progressing for the conversion candidate? What is the total conversion capex, project milestones, and rationale for buying the Methane Patricia Camilla over the Shenandoah?

The Methane Patricia Camilla was chosen for its 170,000 cubic meter storage, TFDE power generation, and reliquefaction, making it ideal for integrated deals. The company takes control in January 2027, is working on a definitive agreement with the shipyard, and has ordered regas equipment. Total conversion capex will increase from the previously communicated $200 million, but returns are expected to be maintained.

“It already has reliquifaction on it. That means it's going to have great boil off gas management. It's got 170,000 cubic meter storage area. We like that. And we also like that it already has the TFD power generation on board.”

asked by Olivia Foster · answered by Unknown Speaker

What have been the learnings from owning the Jamaica platform, and when can we expect chunkier growth opportunities to materialize this decade, including the cadence for new assets?

The Jamaica platform is fully integrated and has enabled small incremental sales, including to other Caribbean islands. The Colombia TCP for the Express is an extension of the Caribbean portfolio. There are active discussions for longer-term deals, and the company expects to provide more news later. The previously guided overall EBITDA range with capex for the Caribbean outlook still holds, without specific timing cadence.

“I think what we've seen and sort of as we look at it, I'd say there's three things I'd point out. One is the Steven's pointed out, we've been making small incremental sales on the spot, just optimizing the assets there. And in fact in this in this last quarter we made we made our first sales with with a final destination outside of outside of Jamaica.”

asked by Eli Jawson · answered by Oliver Simpson

What conversations are happening regarding LNG supply from the Middle East, specifically Qatar? How does the Express's dry dock and subsequent Columbia charter fit into the broader Middle East situation?

The Middle East conflict underscores the need for the Iraq terminal. Inter-basin LNG deliveries, particularly from Qatar to Kuwait, have continued with minimal disruption, suggesting similar potential for Iraq. The Express's deployment to Colombia is Plan A, but the company always has contingency plans (B and C) if needed, demonstrating flexibility.

“This whole conflict has underscored the need for the Iraqi terminal. Kuwait, Accelerate opened Kuwait up to LNG nearly 20 years ago. And all through this year, their cargos into the Kuwait LNG terminal from 2025 are only down 15%.”

asked by Eli Jawson · answered by Unknown Speaker

How has Middle East instability changed conversations with potential customers regarding integrated opportunities, particularly concerning storage capacity or design changes for greater inventory and security of supply?

The instability highlights the need for financial security and reliable, long-term indexed pricing. Customers are more receptive to integrated products that offer physical and economic security, as opposed to volatile spot markets. The company aims to be a 'boring' infrastructure provider, matching supply and demand on the same index.

“I do think the lesson from this is, you know, just be careful about how you source, how you contract, and we can provide whatever product a customer wants to give them the physical and the economic security.”

asked by Chris Robertson · answered by Unknown Speaker