Q4 2023 Excelerate Energy Inc Earnings Call

Hello, everyone. My name is Julie and I'll be your <unk>.

Operator: Hello, everyone. My name is Drew, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Excelerate Energy fourth quarter and full year 2023 earnings conference call. All lines have been placed on mute to prevent any background noise.

Principle.

This time I would like to welcome everyone at T V et cetera energy fourth quarter and full year 2023.

Friends cool.

Lines have been placed on me to prevent any background noise.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press the star followed by one on your telephone keypad. If you change your mind and want to withdraw your question, please press the star followed by two.

After the speaker's remarks that will be a question and answer session.

If you would like to ask a question. Please press start followed by one on your telephone keypad. If you change your mind and want to withdraw. Your question. Please press stop followed by two I will now turn the cool over to Craig Hicks Vice President Investor Relations you may begin at your conference.

Operator: I will now turn the call over to Craig Hicks, Vice President, Investor Relations. You may begin your conference. Good morning, everyone.

Good morning, everyone. Thank you for joining accelerated introduced fourth quarter and full year 2023 earnings call.

Craig Hicks: Thank you for joining Excelerate Energy's fourth quarter and full year 2023 earnings call. Participating on the call today are Steven Kobos, President and Chief Executive Officer, and Dana Armstrong, Executive Vice President and Chief Financial Officer. Also joining the call today is Oliver Simpson, Executive Vice President and Chief Commercial Officer.

Participating on the call today are Steven Cobos, President and Chief Executive Officer.

And data Armstrong Executive Vice President and Chief Financial Officer.

Also joining the call today is Oliver Simpson Executive Vice President and Chief Commercial Officer.

Our fourth quarter and full year 2023 earnings results press release and presentation were released yesterday afternoon and can be found on our website at <unk> dot accelerate energy Dot com.

Craig Hicks: Our fourth quarter and full year 2023 earnings results press release and presentation were released yesterday afternoon and can be found on our website at ir.excelerateenergy.com. I would like to remind everyone that we will be making forward-looking statements on this call that involve a number of risks and uncertainties. Our actual results may differ materially from those expressed in these forward-looking statements, and we make no obligation to update or revise.

I would like to remind everyone that we will be making forward looking statements on this call that involve a number of risks and uncertainties are actual results may differ materially from those expressed in these forward looking statements and we make no obligation to update or revise them.

Steven M. Kobos: Today's remarks will also refer to certain non-GAAP financial measures. We provide a reconciliation to the most directly comparable gap financial measures at the back of the presentation. With that, it is my pleasure to pass the call over to Steven Kobos. Thanks, Craig.

Today's remarks will also referred to certain non-GAAP financial measures.

We provide a reconciliation to the most directly comparable GAAP financial measures at the back of the presentation.

Would that it is my pleasure to pass to call over to Stephen Cobos.

Thanks, Craig Hey, and thank you all for joining us on this call. This morning, I look forward to our time together.

Steven M. Kobos: Hey, and thank you all for joining us on this call this morning. I look forward to our time together. In recent months, I've had conversations with many of you on this call -- our analysts, Arnfester, people around the world who believe in Excelerate's unique potential, as well as some folks who are just new to the Excelerate story. Let's say there's a common thread in what we've heard from those discussions.

In recent months I've had conversations with many of you on this call are analysts.

Our investors.

People around the world, who believe in accelerates unique central as.

As well as some folks who are just due to accelerate story.

Let's say, there's a common thread what we've heard.

From those discussions.

Steven M. Kobos: That is, there are some questions about our plans to deploy capital to promote growth. Steps We Intend to Take to Drive Near-Term Value Creation. And I'd say most importantly, the alignment of our capital allocation plans with our business strategy. I'd like to take our time this morning to address those questions with all of you and provide additional insight into our near-term strategy. Look, the most important thing you'll hear me say today is that in 24, Excelerate Energy is moving from strategy to action.

That is there's some questions about our plans to deploy capital to promote growth.

Steps, we intend to take to drive near term value creation.

And I'd say, most importantly, the alignment of our capital allocation plans with our business strategy.

I'd like to take our time this morning.

To dress with all of you those questions.

And provide additional insight into our near term strategy.

Look at the most important thing you'll hear me say today is that in 24 accelerate energy is moving from strategy to action.

Steven M. Kobos: Let's get started by talking about who we are as a company and how we plan to grow the business through our corporate strategy. I need to emphasize three things: the strengths of our FSRU and terminals business, which are expected near-term growth catalysts. And finally, our capital allocation strategy. Excelerate Energy is committed to providing cleaner, more affordable, and more reliable energy by delivering LNG and natural gas to hundreds of millions of people around the world. It's not an exaggeration to say that many people are out there depending upon Excelerate Energy for energy security or simply helping them maintain their quality of life. How do we do that?

Let's get started talking.

Talking about who we are as a company and how we plan to grow the business through our corporate strategy.

I need to emphasize three things.

The strength of our F S or your Internet business.

Are expected near term gross catalyst.

And finally, a capital allocation strategy.

[noise] accelerate energy is committed to providing cleaner.

More affordable and more reliable energy by delivering LNG and natural gas to hundreds of millions of people around the world.

It's not an exaggeration.

He was out there depending upon accelerate energy for energy security or simply helping them maintain their quality of life.

How do we do that.

When we do it as a leading provider of flexible LNG infrastructure and integrated solutions.

Steven M. Kobos: We do it as a leading provider of flexible LNG infrastructure and integrated solutions. We are a trusted partner for sovereign governments and major LNG producers around the world. L&G comes up in discussions on two main subjects, providing energy security in the face of disorder around the world and as a critical tool in decarbonization. And it seems like we have faced an endless series of geopolitical crises since then.

We are trusted partner for sovereign governments and major LNG producers around the world.

LNG comes up in discussions on two main subjects by.

By providing energy security in the face of disorder around the world.

And as a critical tool empty carbonization.

It's more than two years since it started the war in Ukraine.

And it seems like we have faced an endless series of geopolitical crisis. Since then.

The need for energy security in a world of increasing or persistent disorder has never been more clear.

Steven M. Kobos: The need for energy security in a world of increasing or persistent disorder has never been more clear. Excelerate's infrastructure and the essential services we provide have likewise never been more valuable. We expect this to continue for decades to come and for Excelerate to remain a critical provider of energy security and an ally for decarbonization. We're going to continue this legacy of strengthening energy security for customers across our global footprint. As we turn to 24, our focus as an organization is on optimizing our business to provide superior returns to our shareholders. This includes taking several strategic actions to drive near-term value creation. I would summarize our near-term strategy and divide it into three pillars.

Accelerates infrastructure and the essential services, we provide.

Likewise never been more valuable.

We expect this to continue for decades to come in for accelerated to remain a critical provider energy security and an ally Freaky carbonization.

We're going to continue this legacy of strengthening energy security for customers across our global footprint.

[laughter].

As we turn to 24, our focus as an organization is on optimizing our business to provide superior returns to our shareholders.

This includes taking several strategic actions to drive your term value creation.

I would summarize our near term strategy and divided into three pillars.

Steven M. Kobos: The first pillar is investing in our core business portfolio of FSRUs and terminals. These generate recurring positive cash flows, and they provide financial flexibility for Excelerate to execute its growth plan. We believe investing in our existing asset portfolio will help ensure that our core business continues to operate at high levels of reliability and contributes to earnings. The second is comprised of executing on near-term growth catalysts. These near-term growth catalysts include investments in downstream natural gas infrastructure, execution of long-term LNG sales and purchase agreements, and Evaluation of Potential Equity Investments in the LNG Import Terminals. The third pillar is maximizing value for shareholders through our capital allocation strategy.

The first pillar is investing in our core business portfolio Fsrus and terminals.

These generate recurring positive cash flows and they provide the natural flexibility for accelerated to execute our growth plans.

We believe investing in our existing asset portfolio will help ensure that our core business continues to operate at high levels of reliability and contribute to earnings.

The second is comprised of executing on your term growth catalysts.

These near term growth catalysts include investments and downstream natural gas infrastructure execution of longterm LNG sales and purchase agreements.

An evaluation of potential equity investments and the LNG import terminals.

The third pillar.

Maximizing value for shareholders through our capital allocation strategy.

We are implementing a 50 million dollar share repurchase program commencing this quarter and we will continue to return capital to shareholders through a regular quarterly dividend.

Steven M. Kobos: We're implementing a $50 million share repurchase program beginning this quarter, and we will continue to return capital to shareholders through our regular quarterly dividends. We are committed to all of you being transparent, and we'll continue to communicate our capital allocation strategy clearly and regularly in the future. I'd like to take a few minutes to highlight some of the strengths of our core business. The cornerstone of our business model is our core business for gasification, FSRU, and terminal services business. This generates consistently positive cash flow and affords us financial flexibility. As of January 1st of this year, our existing FSRU fleet is fully contracted, and it's poised to deliver $315 million to $335 million of adjusted EBITDA in 2024. Revenue from this business grew approximately 14% year over year in 23 as compared to 22.

We are committed to all of you to being transparent and will continue to communicate our capital allocation strategy clearly and regularly in the future.

I'd like to take a few minutes to highlight some of these strengths of our core business.

The cornerstone of our business model is our core Regasification F. S are you in terminal services business.

This generates consistently positive cash flow and affords us financial flexibility.

As of January 1st of this year, our existing Fsrus Sweet is fully contracted and it's poised to deliver $315 million to $335 million of adjusted EBITDA and 24.

Revenue from this business grew approximately 14% year over year in 23 as compared to 22.

<unk> contract portfolio of over 4.2 billion a future contracted cash was as a weighted average remaining term of seven years.

Steven M. Kobos: Our FSRE contract portfolio of over $4.2 billion of future contracted cash flows has a weighted average remaining term of seven years. We strengthened this portfolio in 23 by adding more than 15 years of contract length. And over the last two years, 40% of our FSRE fleet has been recontracted at higher day rates, reflective of the increased market value of the asset class. We also plan to grow our fleet through an asset growth plan that includes selective acquisitions and construction of new vessels. Our state-of-the-art, new-build FSRU with Hyundai Heavy Industries is advancing according to schedule, and we look forward to welcoming the vessel to our fleet in June 26. I'd like to touch on the safety of our operations, which includes over 700 highly skilled seafarers operating our offshore assets. They are of utmost importance to us. In 23, we achieved a company safety milestone, which I've got to highlight. We had zero injuries that resulted in lost time away from work.

We strengthen this portfolio and twenty-three by adding more than 15 years of contract wig.

And over the last two years 40 per cent of our Fsrus fleet has been recontracted at higher day rates the reflective of the increased market value of the asset class.

We also plan to grow our fleet through an asset growth plan that includes selective acquisitions and construction of new vessels.

Our state of the art you build F. S are you with tons of heavy industries is advancing according to schedule.

And we look forward to welcoming the vessel to our fleet in June of 26.

I'd like to touch on the safety of our operations, which includes over 700 highly skilled seafarers operating or offshore assets.

They are of utmost importance to us.

And 23, we achieved a company safety milestone, which has got to highlight we had zero injuries that resulted in lost time away from work.

We remain dedicated to fostering a robust safety culture, and we take pride in the steps we have taken to strengthen our core business in this area.

Steven M. Kobos: We remain dedicated to fostering a robust safety culture, and we take pride in the steps we have taken to strengthen our core business in this area. In short, we've got a great foundation business. With that said, we believe that our current market valuation does not reflect the fundamental earnings power of the company. Excelerate shares are trading at a price that is substantially below the company's value.

In short, we've got a great base business.

But that said, we believe that our current market valuation does not reflect the fundamental earnings power of the company.

Accelerates shares are trading at a price that is substantially below the company's value.

We absolutely believed that are sure should be value at a much higher level, given the fair market value of our assets.

Steven M. Kobos: We absolutely believe that our shares should be valued at a much higher level given the fair market value of our assets, somewhere in the neighborhood of 47% below the fair market appraised value of our fleet, the high quality of our long-term fixed-fee FSRE contracts, and our near-term capacity progress. Right now, we're trading below our book value of $16.71. This makes no sense.

For somewhere in the neighborhood of 47% below the fair market appraised value of our fleet.

The high quality of our long term fix P. F. S are you contracts and.

And our near term capacity for growth.

Right now we're trading below our book value of 16 71. This makes no sense.

Steven M. Kobos: This is why we believe that implementing a share repurchase program at this time is the right thing to do. The $50 million share repurchase program will commence this quarter and has been approved for a two-year term. Now let's turn to our near-term growth catalyst. As we mentioned in our third quarter call, the sustained tightness of the FSRE market is going to create further opportunities for Excelerate to connect LNG to downstream customers. And look, we are well positioned to take advantage of this market tightness to optimize our market position. We've defined a comprehensive organic and inorganic growth roadmap with three key priority areas along the value chain on which we're focusing. The first area of focus involves evaluating and acquiring equity ownership in LNG regasification kernels that are either existing or under construction.

This is why we believe that implementing a share repurchase program at this time, it's the right thing to do.

The 50 million share repurchase program will convinced this quarter and has been approved for it to your tenor.

Now, let's turn to our near term growth catalysts.

As we mentioned in our third quarter call you sustained tightness of the F. S are you market, it's gonna create further opportunities for accelerate to connect LNG downstream customers.

And look we are well positioned to take advantage of this market tightness to optimize our market position, we've defined a comprehensive organic and inorganic growth roadmap with three key priority areas, along the value chain on which we're focusing.

First area of focus involves evaluating in acquiring equity ownership in LNG regasification terminals that are either existing or under construction.

We are now in discussions with several potential partners worldwide that meet accelerates requirements put value creation as.

Steven M. Kobos: We are now in discussions with several potential partners worldwide that meet Excelerate's requirements for value creation, as well as compliance, and we are driving to close deals that have the potential to add accretive returns as early as 25% for these transactions. Our second catalyst for growth is the execution of long-term sale and purchase agreements, or SBAs. We're establishing a diversified LNG portfolio to support our long-term SBAs. These contracts provide us with take or pay economic uplift, which will enhance returns on our infrastructure. And our third area for growth is focused on strategic investment downstream of natural gas infrastructure.

As well as compliance and we were driving to close deals that have the potential to add accretive returns as early as 25 for these transactions.

Our second catalyst for growth is the execution of long-term sale and purchase agreements or spa's.

Restablishing, a diversified LNG portfolio to support our longterm sba's.

These contracts provide us with take or pay economic uplift, which will enhance returns on our infrastructure.

And our third area for growth is focused on strategic investment downstream natural gas infrastructure.

We expect these investments to allow us to secure value accretive optic contracts per a terminal positions, while enhancing the overall value of our LNG supply and infrastructure offerings.

Steven M. Kobos: We expect these investments to allow us to secure value-accretive offtake contracts for terminal positions while enhancing the overall value of our LNG supply and infrastructure offering. Beyond the Committed Growth CapEx that we've disclosed as part of our 24 guidance, we have an actionable path to deploy significant growth capital through 26 in support of our growth program. We've shared with you before that securing long-term SPAs with our counterparties is an important part of our strategy. To support this goal, we've established a diversified LNG supply portfolio, including long-term supply agreements to support our growth strategy. Over the last year, I want to highlight that we executed three notable SPAs. In February of last year, we signed a 20-year SPA to purchase 0.7 million tons per annum of LNG from Venture Global beginning in 27. This is going to meet the demand of our customers that have an appetite for Henry Hub volume. In November, we signed a 15-year SPA to deliver up to a million tons per annum of LNG to Petra, Bangla, beginning in early 2026.

Beyond the committed growth capex.

That we've disclosed as part of our 24 guidance, we have an actionable path to deploy significant growth capital through 26 and supportive our growth program.

We've shared with you before that security longterm Spa's with our Counterparties is an important part of our strategy.

To support the skull, we've established a diversified LNG supply portfolio, including longterm supply agreements to support our growth strategy.

Over the last year I want to highlight do we executed three notable spa's <unk>.

February of last year, we signed a 20 year SBA to purchase point 7 billion tons per Gram of LNG venture global.

Getting in 27.

This is going to meet the demand of our customers that have an appetite for Henry hub volumes.

In November we signed a 15, you're SBA to deliver up to a million tonnes per adamant LNG to Petra Bank lab beginning in early 26.

These volumes are going to flow through our existing fsrus in Bangladesh.

Steven M. Kobos: These volumes are going to flow through our existing FSRUs in Bangladesh. And in January of this year, we signed a 15-year S.P.A. to purchase up to one million tons of LNG per annum from Cutter Energy to be delivered on an ex-ship basis to Bangladesh beginning in early 26. I want to emphasize that the execution of the Petro-Bangla and Cutter Energy SPAs is value-accretive to Excelerate. It highlights our ability to secure critical and affordable LNG volumes for our customers. And we do this while enhancing returns on our existing infrastructure. With the Petro-Bangla and Qatar Energy SPAs now in place, we've locked in $15 to $18 million of guaranteed adjusted EBITDA uplift for 15 years, beginning in January of 2026. We cannot express enough the significance of having Cutter Energy as a strategic partner. It speaks volumes about how our peers in the industry view Excelerate, and we look forward to unlocking further demand in the markets where we operate. I'll just quickly recap what we talked about this morning.

And in January of this year, we signed a 15 year SBA to purchase up to 1 million tons of LNG per annum cutter energy to be delivered on an X ship basis and Bangladesh beginning in early 26.

I want to emphasize that the execution of the Petra Bank and cutter energy spa's value accretive to accelerate.

It highlights our ability to secure critical and affordable LNG volumes for our customers.

And we do this while enhancing returns on our existing infrastructure.

With the Petra Bhangra, and <unk> energy Spa's down place, we've walked in $15 million to $18 million guaranteed adjusted EBITDA uplift for 15 years beginning in January of 26.

We cannot express enough the significance of having cutter energy as a strategic partner.

It speaks volumes about how our peers in the industry view accelerate.

And we look forward to unlocking further demand in the markets, where we operate.

But as quickly recap what we've talked about this morning.

Steven M. Kobos: Excelerate is well positioned to deliver solid future earnings and cash flow growth. We have a healthy balance sheet, and a capital allocation strategy focused on investing and growth while returning capital to shareholders through a recently approved share repurchase program and quarterly dividend payment. With that, I'd like to turn the call over to Dana to walk through our full year and fourth quarter 23 results and our outlook for 24. Thanks, Steven, and good morning.

So right as well positioned to deliver solid future earnings and cash flow growth.

We have a healthy balance sheet.

And a capital allocation strategy focused on investing in growth.

While returning capital to shareholders through a recently approved share repurchase program and quarterly dividend payments.

With that I'd like to turn the call over to Dana to walk through our full year in fourth quarter twenty-three results and our outlook for 24.

Saint Stephen and good morning, we are pleased with accelerate stellar financial performance for 2023.

Dana A. Armstrong: We are pleased with Excelerate's stellar financial performance for 2023. For the full year 2023, our net income was $127 million, which is an increase of $47 million or up 59% as compared to the prior year. Adjusted EBITDA for 2023 was $347 million, in line with the high end of our guidance range and up $50 million versus last year, an increase of 17%.

The full year 2023, <unk> with $127 million, which is an increase at 47 million are at 59% as compared to the prior year.

I guess it <unk> for 2023 with $347 million in line with a high end about guidance rains and at $50 million versus last year, an increase of 17%.

A year over year results were primarily driven by new charges and send mine in Germany, higher rates and charges and Brazil, Argentina and the Lady.

Dana A. Armstrong: Our year-over-year results were primarily driven by new charters in Finland and Germany, higher rates on charters in Brazil, Argentina, and the UAE, higher direct margin on gas sales, and lower operating lease expense due to the acquisition of the FSRU Sequoia early last year, partially offset by dry dock expenses for the FSRU excellence in the fourth quarter. For the fourth quarter of 2023, we delivered $20 million of net income and $71 million of adjusted EBITDA. Net income and adjusted EBIT decreased sequentially from last quarter, primarily due to dry docking expense related to the FSRU excellence, bought LNG cargo cells during the third quarter that did not reoccur in the fourth quarter, and planned vessel repair and maintenance activities in the fourth quarter.

How you direct margin on gas as in lower operating lease expense due to the acquisition at the F. S are used to call yet early last year.

Partially offset by Drydock expenses for the F. S. How're you excellent in the fourth quarter.

For the fourth quarter of 2023.

Deliberate $20 million of net income and $71 million of adjusted EBITDA.

Net income and adjusted EBITDA decrease sequentially from last quarter, primarily data drydocking expense related to the F. S. How're you excellent spot.

Spot LNG cargoes sounds during the third quarter that did not reoccurring to fourth quarter.

And plan to versatile repair and maintenance activities in the fourth quarter.

As a year in 2023, a total debt, including finance leases with 768 million and we had $556 million in cash and cash equivalents on him.

Dana A. Armstrong: As of the year 2023, our total debt, including finance leases, was $768 million, and we had $556 million in cash and cash equivalents on hand, $49 million of letters of credit issued, and no outstanding borrowings under our revolvers. As part of our capital allocation strategy, we intend to use our balance sheet when appropriate to pay down debt. During the fourth quarter, the company paid down $68 million of debt, including a $55 million discretionary repayment of debt on its terminal.

$49 million of letters of credit issued and outstanding borrowings and you'll have a driver.

As part of a capital allocation strategy, we intend to use our balance sheet were inappropriate to pay down debt.

During the fourth quarter the company paid down 68, nine of that including a $55 million discretionary repayment of that on its chairman.

After this debt repayment for year in 2023, we had roughly 212 million and that that.

Dana A. Armstrong: After this debt repayment for the year in 2023, we had roughly $212 million of net debt. Also, as of year-end, we had roughly $300 million of available borrowing capacity on our revolving credit facility. With our healthy balance sheet and the liquidity provided by a revolving credit facility, we're confident in our ability to fund our growth plans and strategic objectives in the near future. Now, let's turn to our financial guidance for this year. In 2024, we expect to see continued strong performance of our existing FSRU and terminal services contracts in Europe, the Middle East, South America, and Asia-Pacific. For the full year, we expect adjusted EBITDA to range between $315 million and $335 million.

Also as an ear and we had roughly 300 million as available borrowing capacity on a revolving credit facility.

With a healthy balance sheet and the liquidity provided by revolving credit facility, we're confident in our ability to find our great plans and strategic objectives and then you can.

Now, let's turn to our financial guidance for this year.

In 2024, we expect to see continued strong performance of our existing F. S. How're, you and terminal services contacts in Europe, The Middle East South America, and Asia Pacific.

For the full year, we expect adjusted EBITDA to range between $350 million and 335 nine.

As Stephen mention the sixth fee revenues from R. S. S are used in terminals create an exceptional foundation for sustainable Gladys.

Dana A. Armstrong: As Steven mentioned, the fixed fee revenues from our FSRUs and terminals create an exceptional foundation for sustainable growth. As part of our financial plan this year, we expect to see an increase in business development expenses as compared to last year as we advance on our commercial growth opportunities that Steven referenced earlier. These business development costs, which are estimated at about $20 million, are included in our guidance range and will be reported within our selling, general, and administrative expenses in our income statement.

As part of our financial plan. This year, we expect to see an increase in business development extent as compared to last year as we advance on a commercial birth opportunities that Steven referenced earlier.

These business development cost, which are estimated about 20 million are included in our guidance range and will be reported within our selling general and administrative expenses and our income statement.

So included in our full year adjusted EBITDA guidance is the impact of a plan first quarter dry dock for the F S or your stomach 90.

Dana A. Armstrong: So included in our full year adjusted EBITDA guidance is the impact of a planned first quarter dry dock for the FSRU Summit LNG. This vessel is our second SSRU that is under a build, own, operate, transfer, or boot structure and provides services in Bangladesh. Because this FSRU is under a boot structure, the related expenses will not be classified as maintenance capex, but instead, the financial impact of the DRIDOC will be recognized or inconstated in the first quarter of 2024. This is consistent with the impact of the dry dock for the FSRU Excellence, which underwent dry dock services in the fourth quarter of 2023. These are the only two vessels in our fleet that are under a boot structure; thus, all our other vessel dry dock costs are capitalized as maintenance capital.

Disbursal is our second at <unk> that is N I build own operate transfer I bleached structure and provide services in Bangladesh.

Because it's fsrus under budget structure and related expenses will not be classified as maintenance capex, but instead the financial impact of the dry dock will be recognized her income statement in the first quarter of 2024.

This is consistent with the impact of the dry dock for the F. S are you excellent which underwent drive <unk> services in the fourth quarter of 2023.

They're the only two vessels an athlete that are under a bit structure. That's all our other <unk> costs are capitalized as maintenance capex.

Maintaining a solid presence for our <unk> will require that our teams continue to place a high priority on operational excellence and safety.

Dana A. Armstrong: Maintaining a solid presence for our F-130 fleet will require that our teams continue to place a high priority on operational excellence and safety. This year, we will increase our maintenance CapEx spend to enhance the performance of our fleet. For the full year, we expect maintenance CapEx to range between $50 and $60 million.

This year, we will increase high maintenance Capex, then to enhance the performance of our fleet.

Full year, we expect maintenance Capex the range between 50 and 60 million.

The maintenance Catholics than anticipated for 2024 will ensure our ability to operate asleep with a consistently high levels of reliability that our customers expect.

Dana A. Armstrong: The maintenance CapEx spend anticipated for 2024 will ensure our ability to operate our fleet with the consistently high levels of reliability that our customers expect. As part of our efforts to increase the transparency and disclosure around our business, we are providing additional guidance on committed growth CapEx, which is defined as capital allocated and committed to specific investments currently in execution for previously approved capital projects. For the full year, committed growth CapEx is expected to range between $70 million and $80 million.

As part of our efforts to increase the transparency and disclosure around our business. We are providing additional guidance uncommitted grad capex, which is defined as capital allocated and committed to specific investments currently in execution for previously approved capital projects for.

For the full year committed gross Capex is expected to range between 70 to 80 million.

Dana A. Armstrong: Most of this committed growth CapEx is related to milestone payments on our new build FSRU, which will be delivered in June 2026. We will continue to provide updates to our committed growth capital estimates as contracts are executed with counterparties that drive incremental capital needs for 2025. Now, let me provide an overview of our Shere repurchase program. The Board of Directors has authorized a share repurchase program under which the company may repurchase up to $50 million of outstanding Class A common stock through February 2026.

Most of this committed gross capex is related to milestone payments on a new bill that this are you which will be delivered in June 2026.

We will continue to provide update two are committed gross capital estimates as contracts are executed with counterparties that drive incremental capital needs for 2024.

Now, let me provide an overview of our share repurchase program.

The board of directors has authorized a share repurchase program under which the company may repurchase up to $50 million is outstanding class a common stock in February 2026.

Dana A. Armstrong: This share repurchase program underscores the strength of our business and our ability to enhance shareholder return, while preserving financial flexibility on our balance sheet to support our strategic growth initiatives. In closing, in 2024 and beyond, our highly contracted business model will continue to be underpinned by our long-term take-or-pay cash flows from our core FSRU and terminal services business. We remain well positioned financially to optimize our core regasification business and to execute on our focused growth strategy. We look forward to advancing our plans to create meaningful value for our shareholders. With that, we'll open up the call for Q&A. Thank you. We will now start today's Q&A session. If you would like to ask a question, please press start followed by one on your telephone keypad. If you want to withdraw your question, please press start followed by two.

The share repurchase program underscores the strength of our business and our ability to enhance shareholder return.

While preserving financial flexibility on our balance sheet to support our strategic growth initiatives.

In closing in 2024 and beyond are highly contact a business model will continue to be underpinned by a longterm take or pay cashless for my core F. S are you in terminal services business.

We remain well positioned financially to optimize our core we gasification business and.

And to execute on a focused growth strategy.

We look forward to advancing our plans to create meaningful value for our shareholders.

With that will open up the cough I Q&A.

Thank you we will not stop today's Q and a session. If you would like to ask a question. Please press stop fill up my one on your telephone keypad. If you want to withdraw your question. Please press stop <unk>.

Operator: Our first question today comes from Chris Robertson from Deutsche Bank. Your line is now open; please go ahead. Hi, good morning.

First question today comes from Chris Robertson from Deutsche Bank. Your line of my wife and please go ahead.

Hi, good morning, Thanks for taking our questions. This has been more on for Chris Robertson here. It's like your bank on capital returns can you. Please discuss why the company decided to institute your share repurchase program as opposed to just having more cash.

Christopher Robertson: Thanks for taking our question. This is Ben Moore on behalf of Chris Robertson here at Deutsche Bank. On capital returns, can you please discuss why the company decided to institute your share repurchase program as opposed to just having more cash available as dry powder to pursue growth opportunities? Will this hurt the free flow?

Available is dry powder to pursue growth opportunities will just hurt the free float.

Then thanks for joining us appreciate that.

Steven M. Kobos: Ben, thanks for joining us. I appreciate that. You touched on a couple of good points. First thing, why the Share repo now?

Touch on a couple of good points first thing why or the sheer repoed now I think I've touched on Ah remarks.

Steven M. Kobos: I think I touched on it in the remarks. It's a great investment. We think it's a great opportunity. And no, we think we're sitting in such a good position in terms of, do we have sufficient dry powder to go after the targets in front of us? We absolutely do. If we thought we were endangering that in any way, we would not have done this.

Really driven by the share price, it's a great investment we think it's a great opportunity and no. We think we're sitting in such a good physician.

<unk> do we have sufficient dry powder to go after the targets in front of US we absolutely do.

If we if we thought we were.

Endangering that in any way, we would not have done this but we think we can do both and and we think this is the most prudent way to return capital to shareholders right now because of the share price.

Steven M. Kobos: But we think we can do both and, and we think this is the most prudent way to return capital to shareholders because of the share price. Moving forward, obviously, we continue to look at and evaluate our dividend. But first and foremost in our minds is the ability to pursue growth. Yeah, I know.

Moving forward, obviously, we continue to look.

Look and evaluate our dividend.

But first and foremost in our mind is the ability to pursuit growth.

And Ah.

Steven M. Kobos: Does that answer your question? Okay. Great. Yes, it does.

Does that answer your question right. Thanks.

Yes, it does maybe as a follow up looking at the current LNG and downstream power landscape, where do you think the global market as in terms of short term versus longer term infrastructure investment opportunities contracting.

Steven M. Kobos: Maybe as a follow-up, looking at the current LNG and downstream power landscape, where do you think the global market is in terms of short-term versus longer-term infrastructure investment opportunity contracts? You know, I mean, obviously, we're quite bullish long-term on downstream opportunities. In terms of power, we are interested in our assets. I mean, it's early days for us there.

You know I mean, obviously, we're quite bullish long stream <unk>.

Longterm into downstream opportunities in terms of power. We are interested in our assets I mean, it's early days for US there I think I pointed out some of the areas that were.

Steven M. Kobos: I think I've pointed out some of the areas that we're focused on in the near-term. You know, the near-term targets are a mix of algae import terminals either existing or under development and downstream natural gas infrastructure and also vessels, of course. So, I think probably within your question is also where we think folks are going in terms of Purchasing LNG, and you can tell, we think, on that, that there is continued and increasing demand for long-term. People are moving for the affordability and predictability of long-term LNG, which matches nicely with their need for the downstream infrastructure. So we think the purchasing pattern in the global south and elsewhere shows the continued viability of this downstream asset class. Okay, great. Thanks. I'll hop out and maybe come back for additional questions if there's room.

Focused on in the near term so.

Near term target and sits mix of algae in port terminals, either existing or under developments and downstream natural gas infrastructure and also vessels of course so.

Probably within your question is also where we think folks are going in terms of.

Purchasing LNG.

You can tell we sent on that that there is continued and increasing demand for longterm.

Moving for the affordability and predictability of long-term LNG, which matches nicely with their need for the downstream infrastructure. So we think the purchasing pattern.

In the global South and elsewhere shows the continued viability of this downstream asset class.

Okay, great. Thanks all.

And maybe come back for additional questions that there's room. Thank you.

Christopher Robertson: Thank you. Our next question comes from Bobby Brooks from Northland Capital Markets. Your line is now open, please go ahead.

Mmm.

Our next question comes from Buffy breaks M. Nelson capital markets. Your line is my wife and please go ahead.

Hey, good morning, guys. Thank you for taking my question so the <unk>.

Robert Thornton Brooks: Hey, good morning, guys. Thank you for taking my question. So the Cutter Energy and Petro-Bangla deals were a great example of how you guys can uplift your EBITDA through existing. But I also understand the dynamic that you're going to procure LNG in the manner the customers want, and that's not always necessarily through long-term contracts. So my question is, of your current customer base, how many of them do you feel would be interested in similar deals to the Cutter Energy deal, or I should rather say the PetroBangla deal that you guys did? And then maybe if you could size how much demand, in terms of, you know, maybe in terms of end P.A., those customers would be looking to secure, like I would assume the amount, say, Bangladesh wants would vary from what Finland I think, just based upon those relative populations, you're absolutely right, Bobby.

Cutter energy and petrol Bangla deals were a great example of how you guys can upload uplift your EBITDA through existing assets, but I also understand the dynamic.

That you're going to procure LNG in the manner of the customers want and that's not always necessarily through longterm contracts. So my question is of your current customer base. How many of them do you feel would be interested in similar deals to the cutter energy <unk> more associated the petrol bangle deal that you guys did and then.

Maybe if you could size how much demand in terms of maybe in terms of M. M M.

PTA those customers would be looking at a secure like.

I would assume the amount say Bangladesh wants would vary from what Finland might want.

Alright.

I I I think just based upon those relative populations you are absolutely right Bobby.

Steven M. Kobos: I'll probably hand this over to my colleague, Oliver Simpson, to say first and foremost, the thing that's a great proof point about Bangladesh is that, that's just an infrastructure contract we have. And even though we only have an infrastructure in Bangladesh, it didn't stop us from being engaged with the customer, figuring out what their need was. Their need was to rapidly increase the amount of long-term priced, favorably priced LNG that they needed.

Holly him this over to my colleague over Simpson will.

Say first and foremost though.

The thing that's a great proof point about Bangladesh's.

It's just an infrastructure contract, we have and even though we only have some basic structure in Bangladesh.

Stop us from being engaged with the customer figuring out what their need was there need was to rapidly increase the amount of long-term <unk>.

Priced favourably priced LNG that they needed.

Steven M. Kobos: We made an upgrade, and enhanced the send-out capacity of our existing infrastructure, and as a consequence, we were able to secure that. So I think I would say, you know, just looking at all the markets. I'll start first with our existing market. We're always going to be engaged and see what the customer needs. In the past, we've talked about how some markets are far more variable in their needs. Some are seasonal, but we're always going to be attuned to what they need.

We made an upgrade enhanced send out capacity of our existing infrastructure in consequence, we were able to secure that.

So I think I would say you know just looking at.

All the markets I'll start first with our existing markets, we're always going to be engaged and seeing what the customer needs.

And past, we've talked about how some markets are far more variable in their needs summer seasonal, but we're always going to be a team to what what they need but also you wanted to speak to how we see the markets I'm just focused on a particular market outside if the rest of the world.

Steven M. Kobos: But, Oliver, you want to speak to how we see the markets? I just focused on a particular market outside of that, the rest of the world. Yeah, sure. Thanks. Thanks, Steven. Thanks, Bobby.

Yeah sure thing Thanks, Steven <unk>, Yes, I think first just on the.

Oliver Simpson: Yeah, I think first, just on the Qatar Energy, PetroBangla, I mean, we're extremely proud of that relationship, as Steven mentioned. I think today, Qatar, nearly 10% of its annual production is regasified through Excelerate's FSRUs globally. So I think this new relationship with them showcases our ability to deliver these incremental returns on our infrastructure but also our ability to work with these top producers. I mean, I think if you look at those volumes.

On the Katar energy Petra Bangla extreme.

Extremely proud of that relationship is Steven mentioned I think today <unk>, maybe 10% of its annual production as we guess five through et cetera, et cetera. So I use globally. So I think this this new relationship with them showcases our ability to deliver these incremental returns on our infrastructure.

Also our ability to work with these these top producers I.

I think if you look at those those volumes.

Oliver Simpson: You know, 1 million tons is about 20% of the regas capacity of an FSLU in Bangladesh. So, you know, we're talking 10, 10, 10 to 15% of Bangladesh's demand. So I think that shows. When we take that to other markets, a million tons is a very modest amount in any of the markets that we work in.

Mm.

The 1 million tons is about 20% of the we guess capacity.

And if they saw you in Bangladesh.

We've been talking 10, 10, 10% to 15% to Bang dishes demand. So I think that shows.

When we take that to other markets that get a million tonnes is very very modest amount in any of the <unk> that we work. So I think we will keep looking for opportunities.

Oliver Simpson: So I think we'll keep looking for opportunities of that size in some of the new markets. But as Steven mentioned, different markets will have different needs, and we're focused on delivering to customers what they want in terms of energy supply to meet their needs and ensure they have the right product.

Yeah, those size and some of the new markets that is Ah Steven mentioned.

Markets will have different needs and we focused on delivering to the customers what they want in terms of.

Energy supply.

To meet their needs and ensure they have the right products.

Got it thank you.

Robert Thornton Brooks: Thank you. And then, you know, so I understand that on, you know, the inorganic M&A opportunities, you know, you. You guys can't really frame that until the deal is signed, but I think it might be beneficial to talk about some key lessons learned in 2023 in pursuit of that inorganic M&A, and maybe more specifically, could you give any examples of M&A opportunities you ultimately passed on and what drove that decision to step away from them? That's it. Thank you, Bobby, for inviting us to open up a post-mortem seminar here. No.

And then so I understand that on.

And organic M&A opportunities you know <unk>.

You guys can't.

Can't really frame that until the deal aside, but I think it might be beneficial to talk about some key lessons learned in 2023 in pursuit of that and organic M&A and maybe more specifically could you give any examples of.

Mana opportunities you ultimately passed on and what what drove that decision to step away from it.

That's it thank you Bobby for inviting us to open up a postmortem seminar here.

Nope.

Steven M. Kobos: We've got, everything is dependent upon the market we're looking at, and if we, what we think about fundamental demand. We often talk about the fact that we invest in projects, we like to invest in markets, we care about the fundamental demand and need for energy in a particular market, whether it's the demand for energy security or the demand for energy. We want to know that there's a solid business case driving the demand, and then we'll look at what we expect in different markets. These are big opportunities Obviously, you're talking about CapEx. Yeah, it can sometimes vary. I would say they average two to four hundred million in terms of opportunity size.

We've got.

<unk> is dependent upon the market we're looking at.

What we think about the fundamental demand, we often talk about the fact that.

Invest in projects, we like to invest in markets, we care about the fundamental demand and need for energy in a particular market, whether it's the demand for energy security or the demand for energy we want to know that there is a solid business case driving the demand.

You know and then we'll look at what we expect we've said before we were looking for you know mid teens Unlevered. After tax returns on a lot of those sorts of projects. So we're looking at we're looking at or hurdle rates.

And.

Different markets. These are big opportunities, obviously, you're talking about capex.

Very I.

I would say average two to 400 million in terms of opportunities size.

Robert Thornton Brooks: But if you're going to pass on anything, and I'm not going to speak to that, but I think we have a track record of doing great due diligence out there in the world, evaluating the need for energy in a particular market that drives a successful project over many years, and then making sure that it's going to meet our hurdle rates, that we're comfortable with our governance, so it's a host of things. But I do think we've got a good track record and I assure you we have rigor in this process. Yeah, I would definitely agree with that, considering the solid track record that you guys have built. And then I guess just the last question would be, you know, I think Dana mentioned. You'll use the balance sheet to pay down debt when appropriate.

But if you're going to.

If you're gonna pass on anything and I'm not gonna speak to that but I think we have a.

Track record of doing great due diligence out there in the world evaluating the need for energy in a particular market drives a successful project over many years and then making sure that that it's gonna meet our hurdle rates.

That we're comfortable with our governance. So it's it's a host of things, but I do think we've got a good track record.

Sri we have rigor in this process.

Yeah, I would definitely agree with that in terms of.

The solid track record that you guys have built.

And then I guess just last question would be.

<unk> Dana mentioned.

You'll use the balance sheet to pay down debt when appropriate you know you guys made that extra 50 million 50 million payment towards that in the fourth quarter. So I was just wondering maybe what what triggers made it appropriate to pay down more debt in the fourth quarter last year.

Robert Thornton Brooks: You know, you guys made that extra, you know, $15,000 toward debt in the fourth quarter. So I was just wondering maybe what triggers made it appropriate to pay down more debt in the fourth quarter last year? Hi Bobby.

Hi, Bobby Yeah. Thanks for the question. So as we went into the fourth quarter of last year. We did you know quite a bit of analysis on a cash flow in our ongoing protection and our capex needs and so on and as we looked at where we finished a year and as you can see from our balance sheet. We finished the rosemary healthy amount of cash we felt comfortable that we had enough excess cash to <unk>.

Dana A. Armstrong: Yeah, thanks for the question. So as we went into the fourth quarter of last year, we did, you know, quite a bit of analysis on our cash flow and our ongoing projections and our CapEx needs and so on. And as we looked at where we finished the year, and as you can see from our balance sheet, we finished the year with a very healthy amount of cash. We felt comfortable that we had enough excess cash to continue to move forward with these growth programs, as well as the share reprogram, and pay down some debt. We made a decision to pay back roughly $55 million.

<unk> <unk> with the current programs as well as the <unk> program and pay down from that we made a decision to payback roughly 55 million.

Dana A. Armstrong: That's about 7%, so that'll save us roughly $4 million a year. We felt like that was a good use of cash based on where we are right now with our balance sheet. So we'll continue to evaluate it as we look at our growth needs going forward and make those decisions on a case-by-case basis. That makes sense. I really, really appreciate the call, and I'll return to the queue. Thank you guys. We've.

It's about 7% so that'll save us roughly 4 million a year and we felt like that was a good use of cash based on where we are right now with our balance sheet.

So we will continue to evaluate it as we look at <unk> and <unk>.

By my case by case basis.

Got it that makes sense I really really appreciate the color and I'll return to the queue. Thank you guys.

Yeah.

Next question today comes from Ely, Justin from J P. Morgan Your line of my wife and please go ahead.

Operator: Our next question today comes from Eli Jossen from JP Morgan. Your line is now open, please go ahead. Hey, good morning, everyone.

Hey, good morning, everyone, just hoping to circle back on that share repurchase program. So I know that you highlighted one Q24 commencement are you able to confirm if there have been any repurchases.

Elias Max Jossen: Just hoping to circle back on the share repurchase program. So, you know, I know you highlighted a 1Q24 commencement. Are you able to confirm if there have been any repurchases yet to date?

Purchases yet to date.

Dana A. Armstrong: And then kind of just how do you see the cadence of those playing out through the year? Thanks. So, thanks Eli. We actually haven't opened that yet.

And then kind of just how do you see the cadence of those planned out through the year.

Thanks.

So thanks, Bye bye and we actually have an open that we're still in a quiet period. So let me stay as we really sorry, <unk>, etc. Quiet period, we intend to start those very early next week. So we have not actually started yet as far as the cadence you know, we we fully intend to.

Dana A. Armstrong: We're still in a quiet period. Obviously, as we release earnings today, we'll exit our quiet period. We intend to start those early next week.

Dana A. Armstrong: So we have not actually started yet as far as the cadence is concerned, you know, we fully intend to, even though we announced that over a 2 year program, we expect that to be likely. Completed ahead of that two-year program, and that's because, you know, just based on where our stock is today and the fact that we're so undervalued based on the parameters that we've set with the banks, we feel very comfortable that we'll be able to get that done within the year. I got it. That's a great color.

Even though we announce that over to your program, we expect that to be likely will be.

Completed B B I am ahead of that to your program and that's because you know just based on what our soccer today and in fact, there was no undervalued based on that Kramer does that reset with the banks, we feel very comfortable that we'll be able to get that done within a year.

Got it that's that's a great color I appreciate it and then maybe just.

Elias Max Jossen: I appreciate it. And then maybe, just, if we could, you know, pivot back to some of the portfolio additions you guys have referenced in the forward-looking CapEx guide. So beyond the new build coming on in 2026, you know, what are the puts and takes for the kind of build versus buy strategy in your view? And can you just remind us how you kind of compare the economics between those two strategies?

We could put it back to some of the portfolio addition, do you guys have reference and the forward looking Capex guide so beyond the new Bill is coming on in 2026, you know what is it puts and takes for the kind of build vs buy strategy in your view and could you just remind us how you kind of compare economics between those two strategies.

Sure if I mean.

Steven M. Kobos: Sure, if I mean, the bulk of the committed CapEx, as Dana mentioned, is for the tranche on the new building with Hyundai Heavy Industries. As we mentioned on the call, we're going to continue to evaluate opportunities to expand the fleet as part of the strategy. We feel very strongly that there is market tightness in this asset class.

<unk> of the committed Capex is Dana mentioned is for <unk> on the on the new.

The building with handout heavy industries.

We mentioned on the call we're going to continue to evaluate opportunities to expand the fleet as part of the strategy. We feel very strongly that there is a market tightness and this asset class. We continued to see that we think it's one of the limiting factors and projects.

Steven M. Kobos: We continue to see that. We think it's one of the limiting factors in projects and the ability to move forward with this. We will continue to be evaluating acquisition or new building of the fleet. In terms of the question going as to organic or inorganic development of some of the opportunities we've discussed, it's just a matter of both.

And the ability to move forward with this we will continue to be evaluating acquisition or new building of of the fleet in terms of.

The question going asked to organic or inorganic development of some of the opportunities we've discussed.

It's just a boat and obviously, we want to <unk> to the inorganic opportunities Eli cause we're interested in accelerating earnings and 25 and 26 no doubt about it so that that is one of the key drivers on that plus not.

Steven M. Kobos: Obviously, we want to look at inorganic opportunities, Eli, because we're interested in accelerating earnings in 25 and 26, no doubt about that. So that is one of the key drivers of that. But not every market is the same. Some are better suited for organic development.

Not every market is the same some are better suited for organic development some are better suited for buying.

Steven M. Kobos: Some are better suited to buying something that's further along. So it's, you know, horses for courses. We're going to keep evaluating those, but we have very definite return expectations, hurdle rates that we have to meet. And whether we get there on an organic or inorganic basis, we have our expectations, which we fully tend to meet. And anything we're going to execute on is going to be accretive for the company and for our shareholders. I appreciate all that color.

Something that's further along so it's you know horses for courses, we're gonna keep evaluating those but we have very definite.

Return expectations hurdle rates that we have to meet.

Whether we get there through an organic or inorganic basis, we have our expectations, which we fully intend to meet and anything we're gonna execute on is going to be accretive for the company and for our shareholders.

Got it I appreciate all that color. Thanks again.

Elias Max Jossen: Thanks again. Our next question comes from Zach Van Everen from PPH. Your line is now open; please go ahead. Hey guys, thanks for taking my question. Just to start on the EBITDA guidance, could you touch on, you know, what would get you to the low end versus the high end with how contracted you are? Are there still some marketing opportunities baked in or gas sales in there as well? But Dana and I can both speak to that, I mean, in terms of, well, first of all, hey, good morning, Zack. Sorry, I skipped the chat.

Our next question comes from <unk> from T. P. H. Your line is my wife then please go ahead.

Hey, guys. Thanks for taking my question just to start on the Eve at a guidance could you touch on what would get you to the low N versus high end with how contracted you or is there still some marketing opportunities baked Dan or gas sales in there as well.

Alright, but dana and I can speak to that it I mean.

In terms of well first of all he good morning Zack.

Saturday morning, Skip the chest yeah. Good morning.

Zackery Lee Van Everen: Yeah, good morning. In terms of what could push it down, I think that would probably be more likely than anything, an increase in development expense, you know, as we get further traction than we might expect on some opportunities. That would be one driver, but what would you add?

In terms of what could push it down I mean, I I think that would probably be more likely than anything an increase in.

Development expense spins as we get further attraction than we might expect on some opportunities that would be one driver, but what would you have said that.

Dana A. Armstrong: So, Zack, what I will say is that we feel very confident about this range. You know, there's not a lot of upside. There's not a lot of downside.

What I will say is that we feel very confident about this range you know there's not a lot of upside there's not a lot of downside. That's the upside obviously it would be <unk> against that as you know all of our all of our 10 vessels are on contract. So we don't expect to blow out the change we expect to come in within this guidance. If we are successful in doing anything else.

Dana A. Armstrong: The upside obviously would be if we did more cargoes, but as you know, all of our 10 vessels are on contract. So, we don't expect to blow out this range. We expect to come in within this guidance. If we are successful in doing several cargo deals, like we did last year, then that could obviously drive it up. So, there's definitely that possibility.

<unk> card idea of like we did last year and that could obviously drive it up so there's definitely that possibility.

Dana A. Armstrong: As Steven said, there is a possibility that we invest more in our business development, which could potentially drive it down, but we don't expect it to go beyond the 315. So, we do feel very good about the 315 to 335 range. But to your point, with all of our vessels on long-term contracts, that does give us really good visibility into 2020, so we feel like we're going to be within this range this year.

David said, there is a possibility that we invest mine I'm thinking about like you know that could potentially to have it down but we don't expect it to go beyond that three of S. T. Four we we do feel very good about the 315 to 335 range.

To add to your point with all of our vessels on.

Longterm contracts that does give us a really good visibility into 2023, so like we're gonna be within this range this year.

Gotcha, and then maybe just one more on the international market and obviously the news here.

Zackery Lee Van Everen: And then maybe just one more on, you know, the international market and obviously the news with the DOE here in the US. When you guys look at future SPAs, you have signed some in the US and, obviously, internationally as well. Are you leaning more towards SPAs internationally as the US kind of works through its regulatory environment? Or is there really a preference there?

Here in the U S. When you guys look at future S. P. As you know you have signed some of the U S and obviously international as well are you leaning more towards Sba's internationally as the U S kind of works through its regulatory environment or is there really a preference there.

Oh.

Steven M. Kobos: Well, you know, Zack, we were the first. I'd say we're pleased with the suppliers that we have agreements with currently, that's Venture Global, that's Cutter Energy, very happy with both those deals. There's definitely interest from some parties for Henry Hubb indexed long-term deals; we like the US. At the same time, you just saw that in the past few days, Cutter Energy announced an additional 16 million tons. Coming up, that's going to take their total up to 144.

Zach we were first I'd say, we're pleased with the suppliers that we have agreements with currently that's been true global that's cutter energy very happy with both of those deals.

There's definitely interest from some parties for Henry hub indexed longterm deals we like the U S. Same time you just saw just in the past few days cutter energy announce an additional 16 million tonnes.

Coming up that's gonna take their total up to 144.

Just means.

Steven M. Kobos: This just means there is a continuing demand for increasing demand for LNG around the world. Other producers will step up if the U.S. doesn't. We're somewhat agnostic, but we hope there will be further U.S. production. We think it's in the best interest of the U.S. and a harmonious global system that people can afford this product and access it widely. You've seen some nations significantly increase their targets for natural gas in recent weeks, as part of their mix. That's usually to the disadvantage of coal.

There is a continuing demand for increasing.

Demand for LNG around the world.

Other producers will step up this the U S doesn't.

We're somewhat agnostic, we hope there will be further U S. Production, we think it's in the best interest of the U S and a harmonious global system that people can afford this product and access it widely you've seen some nations increased significantly there <unk>.

Targets for natural gas in recent weeks.

As part of their mix, that's usually to the disadvantage of coal. So we're in favor of and think it's great for the U S or any other market to increase it <unk> production.

Steven M. Kobos: So we're in favor of and think it's great for the U.S. or any other market to increase its LNG production. Gotcha. That's all I had.

Gotcha, well, that's all I had I appreciate the time makes sense.

Zackery Lee Van Everen: I appreciate the time. Thanks guys. Thank you. Just a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two.

Thank you.

Just a reminder, if you would like to ask a question. Please press star followed by one on your telephone keypad. If you change your mind. Please press star followed by T.

Operator: We now have a follow-up from Chris Robertson from Deutsche Bank. Your line is now open, please go ahead. Hi, yes, thanks for taking our follow-up. This is Ben Moore again for Chris Robertson.

We now have a follow up from Chris about that sent from Deutsche Bank. Your line is my wife's and please go ahead.

Hi, yes, thanks for taking our follow up this has been more again for Chris Robertson.

Christopher Robertson: Looking at the SBA for Cutter Energy and the sales agreement with Petro Bangla for the volumes you discussed, can you talk a bit about how these contracts are structured? Have you locked in a particular margin based on your purchase price for LNG volumes plus the cost of transport and regasification? Thanks for that. Ben, I'm going to throw that one back over to Oliver Simpson, who will answer it without going into too much detail. Thanks, Steven. Thanks, Ben. I think on that one, I mean, I think, you know, we have entered into a long-term agreement with Petro-Bangla to sell energy in Bangladesh and backfilled it with a long-term DES supply agreement from Qatar. So on that, in terms of volume, delivery location, it is pretty much the two contracts are aligned, and we have a fixed margin between the two. So I think they're fairly de-risked contracts, and that's that.

Looking at the S. P a for Qatar energy and a sales agreement with Petra Bank.

For the volumes.

<unk> can you talk a bit about how these contracts are structured hasn't been locked in a particular margin based on your purchase price of LNG volumes, plus the cost of transport and we guessed.

<unk>, thanks for that but I'm gonna throw that one back over to all of your Simpson, who will answer it without going into too much detail.

[laughter] Thanks Steven.

Thanks, Ben I think on on that one I mean, I think we have we we entered into a longterm.

Agreement with Petra Bang that too so.

And then G in Bangladesh, and and <unk> with a M.

A long term supply agreement from from Quito, So someone that in terms of volume delivery location. It is pretty much does is to two contracts or lines and we have.

Fixed margin in between the two so I think.

The zip.

Fairly davis contracts in that sense.

And that's in line with what we've said philosophically about commodities for some time is that.

Oliver Simpson: And that's in line with what we've said philosophically about commodities for some time and the fact we're looking for, for Structure Upload. wonderful. That's my one. Thank you so much. Shrimp.

We're looking for.

Restructure upload.

Wonderful that's my one thank you so much.

Thanks Ma'am.

Craig Hicks: That concludes the Q&A portion of today's call. I will now turn the session back over to Craig Hicks for final comments. I'm going to grab the mic from Craig Hicks. This is Steven Kobos.

Mmm.

That concludes the Q&A portion of today's co I will now turn the session back over to Craig Hicks the final comments.

I'm Gonna grab the <unk>. This is Stephen service. Thank.

Steven M. Kobos: Thank you again to everyone who joined us on today's call. As you heard this morning, we delivered strong full-year results in 2023. We are optimistic about our plans to maximize shareholder value. We take pride in being one of the world's premier providers of flexible LNG infrastructure and the preferred partner for countries seeking to stabilize their energy system. Before closing this earnings call, I would like to reinforce our commitment to our investors to be extremely transparent regarding our action-oriented growth strategy based on our highly rateable take-or-pay FSRE-based business, the growth catalyst we've talked about, and our capital allocation strategy. I look forward to providing you with additional progress updates in the coming months. Thank you all for your time this morning. That concludes today's Excelerate Energy fourth quarter and four-year 2023 earnings conference call. You may now disconnect your lines. This is a production of NASA's Jet Propulsion Laboratory, California Institute of Technology.

Thank you again to everyone who joined on today's call.

As you heard this morning, we delivered strong full year results in twenty-three.

We are optimistic about our plans to maximize shareholder value.

We take pride in being one of the world's premier providers flexible LNG infrastructure and the preferred partner for countries seeking to stabilize their energy systems.

Foreclosing This earnings call I would like to reinforce our commitment to our investors to be extremely transparent regarding.

Our action oriented growth strategy based on our highly rateable take or pay FRE based business <unk>.

<unk> catalysts, we've talked about.

And our capital allocation strategy.

I look forward to providing you with additional progress updates in the coming months. Thank you all for your time this morning.

That concludes today's et cetera energy at first cause that awful Yeah 2023 Adams Conference code you May now disconnect your line.

[music].