Excelerate Holds Earnings Steady as Revenue Mix Shifts
Adjusted EBITDA reached $120.1 million as a full quarter of Jamaica operations offset seasonal effects.
Excelerate Energy (EE), a liquefied-natural-gas infrastructure company, more than doubled second-quarter net income from a year earlier as operating income climbed and prior-period acquisition costs dropped out.
The quarter marked a shift toward commodity and power sales. Revenue fell 24% sequentially, while adjusted gross margin remained nearly flat and operating income slipped just 1.3%, showing the different margin profile of the company’s businesses.
Revenue rose 61% from a year earlier to $329.3 million. Diluted earnings were $0.37 a share, unchanged from the first quarter and up from $0.15 a year earlier.
LNG, gas and power revenue more than tripled from a year earlier to $168.8 million, driven by the Jamaica contribution. Terminal-services revenue rose 7.8% to $160.5 million, providing a steadier base as seasonal effects reduced commodity revenue from the first quarter.
Adjusted EBITDA rose 12.1% from a year earlier, though it remained below the $129.3 million peak reached in the third quarter of 2023. The year-over-year earnings comparison also benefited from the absence of $27.7 million in Jamaica acquisition-related costs, partly offset by higher interest expense tied to the 2030 Notes.
Excelerate raised and narrowed its 2024 adjusted EBITDA outlook to $490 million to $515 million. The range sits $25 million to $30 million below the initial February outlook. Committed growth-capital guidance now calls for $380 million to $400 million, while maintenance-capital spending is expected at $85 million to $95 million as the FSRU Exquisite dry dock shifts into 2025.
The Iraq terminal is now scheduled to begin commercial operations early in the second quarter of 2025, after initially being targeted for 2024. A nine-month Jordan charter began operating in July, and a seven-year Colombia charter is set to redeploy the FSRU Express in the first quarter of 2025.
Excelerate increased its quarterly dividend 12.5% to $0.09 a share and spent $28.4 million repurchasing Class A shares during the first half. It also committed to acquire the Methane Patricia Camila for its first FSRU conversion project, with commercial deployment expected in early 2026.