Q1 2024 Excelerate Energy Inc Earnings Call

Operator: Hello everybody, and welcome to the Excelerate Energy first quarter 2024 earnings conference call. My name is Sam, and I'll be coordinating your call today. If you would like to ask a question during the presentation, you may do so by pressing the star, followed by one on your telephone keeper. I'll now hand you over to your host, Craig Hicks, Vice President of Investor Relations at ESG. So, Craig, please go ahead.

Hello, everybody and welcome to the accelerate energy first quarter 2024 earnings conference call.

Tom: My name is Tom and I'll be coordinating your call today.

Tom: If you'd like to ask a question during the presentation you may do check by pressing star followed by one on your telephone keypad.

Tom: I will now hand, you over to your host Craig <unk>, Vice President of Investor Relations and ESG to begin the <unk>. Please go ahead.

Craig: Good morning, everyone.

Craig Hicks: Thank you for joining Excelerate Energy's first quarter 2024 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.

Craig: Thank you for joining <unk> Energy's first quarter 2024 earnings call.

Craig: Participating on the call today are Steven <unk>, President and Chief Executive Officer, and David Armstrong Executive Vice President and Chief Financial Officer.

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

Craig Hicks: Our first quarter 2024 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 four forward-looking statements, and we make no obligation to update or revise them. Today's remarks will also refer to certain non-GAAP financial measures. We've provided reconciliation to the most directly comparable GAAP financial measures at the back of the presentation. With that, it is my pleasure to pass the call over to Steven Kobos. Thanks, Craig.

Craig: Our first quarter 2024 earnings results press release and presentation were released yesterday afternoon and can be found on our website at IR to accelerate <unk> dot com.

Craig: 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 soon.

Craig: Today's remarks will also refer to certain non-GAAP financial measures. We've provided a reconciliation to the most directly comparable GAAP financial measures at the back of the presentation with that it is my pleasure to pass the call over to Steven Cocos.

Steven M. Kobos: Thanks, Craig. Good morning, everyone.

Steven M. Kobos: Thanks, Greg Good morning, everyone.

Steven M. Kobos: I'd like to start by saying we delivered strong financial results for the first quarter. Excelerate Energy's financial performance reflects the robust earnings power of our core regasification business. It also highlights our commitment to operating our FSRU fleet at the highest levels of reliability and to delivering natural gas safely to our customers.

Steven M. Kobos: I'd like to start with saying, we delivered strong financial results for the first quarter.

Steven M. Kobos: Accelerate Energy's financial performance reflects the robust earnings power of our core Regasification business.

Steven M. Kobos: It also highlights our commitment to operating our fsrus at the highest levels of reliability and to delivering natural gas safely to our customers.

Steven M. Kobos: As a global energy company, we take great pride in using our FSRU fleet to deliver integrated LNG solutions to customers who need them most. In addition to operating our core regas business, we are focused on expanding our presence in new and existing markets across our global footprint. On today's call, I'm going to share with you some additional insights into our business development strategy to help provide a better understanding of where the opportunities are and when we expect to start deploying capital. I'll then turn the call over to Dana, who will walk through our financial results for the quarter.

Steven M. Kobos: As a global energy company, we take great pride in using our Fsrus fleet to deliver integrated LNG solutions to customers.

Steven M. Kobos: Most.

Steven M. Kobos: In addition to operating our core <unk> business, we are focused on expanding our presence in new and existing markets across our global footprint.

Steven M. Kobos: On today's call.

Steven M. Kobos: To share with you some additional insights into our business development strategy to help provide a better understanding of where the opportunities are and when we expect to start deploying capital.

Steven M. Kobos: I will then hand, the call over to Dana who will walk through our financial results for the quarter.

Steven M. Kobos: Since we were last together, the Excelerate team has made great progress toward our plan to grow our company and maximize value for our shareholders. To recap our strategy, we are optimizing our core regas business and executing our comprehensive organic and inorganic growth roadmap with three key areas for value creation. First, acquiring ownership interests in LNG regasification terminals. Second, establishing a Diversified LNG Portfolio, and third, investing in downstream natural gas infrastructure

Dana: Since we were last together.

Dana: <unk> team has made great progress toward our plan to grow our company and maximize value for our shareholders.

Dana: To recap our strategy, we are optimizing our core <unk> business and are executing our comprehensive organic and inorganic growth roadmap with three key areas for value creation.

Dana: First acquiring ownership interest in LNG Regasification terminals.

Dana: Second establishing a diversified LNG portfolio.

Dana: And third.

Dana: Investing in downstream natural gas infrastructure.

Steven M. Kobos: While many companies in our industry aspire to expand their presence in markets around the world, Excelerate already has an extensive global presence. Excelerate operates approximately 20% of the global FSRU market. We have regional offices in 11 countries and an operational presence in Argentina, Bangladesh, Brazil, Finland, Germany, Pakistan, the UAE, and the United States.

Dana: While many companies in our industry aspire to expand their presence in markets around the world accelerate already has an extensive global presence.

Dana: Accelerate operates approximately 20% of the global Fsrus fleet.

Dana: We have regional offices in 11 countries and an operational presence in Argentina, Bangladesh, Brazil, Finland, Germany, Pakistan, the UAE in the United States.

Steven M. Kobos: This is a competitive advantage for our company. We are using our expansive reach to pursue growth opportunities in both new and existing markets. This means leveraging our relationships with sovereigns. It means leveraging our reputation as the world's leading provider of FSRUs. How?

Dana: Let's be clear this is a competitive advantage for our company.

Dana: Using our expansive reach to pursue growth opportunities in both new and existing markets.

Dana: This means leveraging our relationships with sovereigns.

Dana: Means leveraging our reputation as the world's leading provider of Fsrus.

Steven M. Kobos: By having meaningful and constructive conversations about new regasification infrastructure and long-term LNG supply. Furthermore, all our business development efforts are aligned with strategic areas of focus along the LNG value chain. We are optimistic that these discussions will lead to strategic investments that will enhance our long-term contract revenue and margins, create poultry demand for future vessel deployments, and capture incremental LNG and gas sales opportunities. As part of our effort to calibrate our grant strategy, we have identified and evaluated in detail a number of organic and inorganic opportunities and have prioritized the most promising ones.

Dana: By having a meaningful and constructive conversations for new re gas infrastructure and long term LNG supply.

Dana: All our business development efforts are aligned with strategic areas of focus along the LNG value chain.

Dana: We are optimistic that these discussions will lead to strategic investments that will enhance our long term contract revenue and margins create pull through demand for future vessel deployments and capture incremental LNG and gas sales opportunities.

Dana: As part of our effort to calibrate our credit strategy, we have identified and evaluated in detail a number of organic and inorganic opportunities and have prioritized the most promising ones.

Steven M. Kobos: Though we have identified opportunities across our asset footprint, the majority of the opportunities we're exploring are focused in Asia Pacific and the Americas. Our commercial teams are now in advanced discussions with several potential partners worldwide who satisfy Excelerate's requirements for value creation and for compliance. We continue to pursue opportunities to develop LNG refueling terminals. We do this with a focus on priority projects in countries with growing economies and an increasing demand for LNG.

Dana: So we have identified opportunities across our asset footprint. The majority of the opportunities. We are exploring our focused in Asia Pacific and the Americas.

Dana: Our commercial teams are now in advanced discussions with several potential partners worldwide, who satisfy accelerates requirements for value creation and for compliance.

Dana: We continue to pursue opportunities to develop LNG regas terminals.

Dana: We do this with a focus on priority projects and countries with growing economies and an increasing demand for LNG.

Steven M. Kobos: These are markets like India, markets like Vietnam, and markets like Brazil. As it relates to capital investment, 10 of the projects range between $50 and $400 million. Two of the 12 projects have CAPEX greater than this range, one of which is Pyrex.

Dana: These are markets like India markets like Vietnam markets like Brazil.

Dana: As it relates to capital investment 10 of the projects range between 50 and $400 million.

Dana: Two of the 12 projects have capex greater than this range, one of which is pirate.

Steven M. Kobos: I cannot emphasize enough that the entire Excelerate management team understands the importance of being good stewards of our shareholders' capital. We will continue to take a disciplined approach as we evaluate these investments and are committed to closing deals that meet or exceed our return hurdles. We are confident in the project portfolio that we have shared in today's presentation, and we look forward to making subsequent announcements regarding several of these opportunities in the coming weeks and months.

Dana: I cannot emphasize enough that the entire accelerate management team understands the importance of being good stewards of our shareholders' capital.

Dana: We will continue to take a disciplined approach as we evaluate these investments and are committed to closing deals that meet or exceed our return hurdles.

Dana: We are confident in the project portfolio that we have shared in todays presentation, and we look forward to making subsequent announcements regarding several of these opportunities in the coming weeks and months.

Steven M. Kobos: To recap what you've heard today, Excelerate Energy is a compelling growth story. We are investing strategically in our FSRU internal assets to enhance our earnings and to provide us with a solid foundation for substantial growth. As a leader in the LNG space, we are essential both to ensuring energy security and accelerating the energy transition. We are leveraging our share of the global FSRU fleet and our presence around the world to pursue growth opportunities in new and existing markets.

Dana: To recap what you've heard today accelerated energy has a compelling growth story.

Dana: We are investing strategically in our fsrus internal assets to enhance our earnings and to provide us with a solid foundation for substantial growth.

Dana: As a leader in the LNG space, we are essential to ensuring energy security and accelerating the energy transition.

Dana: We are leveraging our share at the global Fsrus suite, and our presence around the world to pursue growth opportunities in new and existing markets.

Steven M. Kobos: And we are in advanced talks with several counterparties for investments along the value chain, as we focus on maximizing value for our shareholders through our disciplined capital allocation strategy. With that, I'll now turn the call over to Dana. Thank you.

Dana: We are in advanced talks with several counterparties for investments along the value chain as we focus on maximizing value for our shareholders through our disciplined capital allocation strategy.

Dana: With that I'll now turn the call over to Dana.

Dana A. Armstrong: Thanks, Steven, and good morning, everyone. As stated by Steven, Excelerate delivered strong financial results for the first quarter that were in line with our expectations. We reported net income of $28 million, which is a sequential increase of $8 million, or up 40% as compared to last quarter. Adjusted EBITDA for the first quarter was $75 million, up $4 million, or up about 6% versus last quarter. The sequential increase in adjusted EBITDA over the fourth quarter of last year was mostly driven by the timing of vessel operating costs and the timing of certain SDNA expenses, including business development expenses, which were lower in the first quarter of this year as compared to the fourth quarter of last year.

Dana: Thanks, Steven and good morning, everyone.

Dana: David Thank Steven accelerated delivered strong financial results for the first quarter.

Dana: In line with our expectations.

Dana: We reported net income of $28 million.

Dana: So Anthony said.

Dana: They are at 40% as compared to last quarter.

Dana: Adjusted EBITDA for the first quarter with $75 million at 4 million are up about 6% versus last quarter.

Dana: The sequential increase in adjusted EBITDA in the fourth quarter of last year.

Dana: Driven by the timing of vessel operating costs and the timing of certain SG&A expenses, including business development expenses, which were lower in the first quarter. This year as compared to the last quarter of last year.

Dana A. Armstrong: Our first quarter 2024 financial results include the impact of our dry dock for the FSRU Summit L&T in Baycladet. Summit is one of two FSRUs in our fleet that are under a built, owned, operate, transfer, or boot structure.

Dana: Our first quarter 2020 financial results include the impact of our Drydock for the Fsrus.

Speaker Change: Thank goodness.

Speaker Change: So that is why in Q.

Dana: Assets are used in our fleet that are.

Dana: Gary.

Speaker Change: Great transparency.

Dana: <unk>.

Dana A. Armstrong: The other is the FSRU Excellence, which underwent dry dock services in the fourth quarter of last year. Because of the boot structure, the majority of the dry dock cost for the seventh and first quarter and the Excellence in the fourth quarter of last year were expensed to the income statement instead of classified as maintenance capex. The Summit and the Excellence are the only two vessels in our fleet that are required to incur dry dock costs.

Dana: There is excellent.

Dana: Excellent, which underwent dry dock services in the fourth quarter of last year.

Dana: Because of the bridge tax share and majority of the dry dock cost for the segment in the first quarter and the excellent in fourth quarter of last year were extended to the income statement instead of classified as maintenance Capex.

Dana: The Senate and excellent at only two vessels in our fleet that are required to extent China cost.

Dana A. Armstrong: For the full year 2024, the vast majority of our earnings will be driven by our FSRU and Terminal Services business since all 10 of our vessels are currently contracted. This is not profitable for a few reasons.

Dana: For the full year 2020 for the vast majority of our earnings will be driven.

Dana: Your Internet business.

Dana: Since all 10 of our vessels are currently contracted.

Dana: This is noteworthy for our fueling.

Dana A. Armstrong: First, the shift in revenue contribution from gas sales to FSRU and terminal services is driven largely by the transition from our previous gas sales agreement or GSA in Brazil to a long-term 10-year re-gas charter with Petrobras for our FSRU Sequoia. As we said before, the transition of the Sequoia from a one-year GSA to a long-term 10-year charter contract will provide enhanced visibility to both near Our core SSRU and terminal assets are underpinned by a high-quality contract portfolio that is comprised of over 4 billion long-term 60 contracts with a remaining weighted average of roughly seven years.

Dana: First the shift in revenue contribution from <unk>.

Dana: To your intermodal services.

Dana: Largely by train from Samsung.

Dana: Our previous GAAP Epicranium, our DSA breakdown take long term 10 year charter with Petrobras for Fsrus to claim.

Dana: As we said before the transition of this accordion hurting one year GSA take long term clean year charter contract with <unk>.

Dana: Providing visibility to both near term and long term cash flow Frank salary.

Dana: Our core assets are you in terminal assets are anchored by high quality contract portfolio and is comprised of over $4 billion long term.

Dana: Contract with a remaining weighted average roughly seven years.

Dana A. Armstrong: We believe these attractive financial attributes distinguish our core Redux business and are a major reason why Excelerate Energy represents a relatively low-risk investment opportunity. As of the end of the first quarter, our total debt, including finance leases, was $752 million. We had $579 million of cash and cash equivalents on hand, $40 million of letters of credit issued under our revolver, and no outstanding borrowings under our revolver, allowing for about $310 million of available revolver borrowing capacity.

Dana: We believe these attractive financial attributes distinguish our core lease business.

Dana: And are a major reason why salary guarantees representing a rocket right.

Dana: Investment opportunity.

Dana: As of the end of the first quarter, our total debt, including finance leases with 752 million.

Dana: $579 million of cash and cash equivalents.

Dana: $40 million letters of credit issued a entire revolver outstanding.

Dana: Outstanding borrowings under our revolver.

Dana: Allowing for about $310 million of sustainable with honor borrowing capacity.

Dana A. Armstrong: In the first quarter, the Excelerate Board of Directors approved a program to repurchase up to $50 million of Class A common stock. During the first quarter, Excelerate purchased 588,000 shares, or $9.4 million of our Class A common stock.

Dana: In the first quarter and accelerate part of Directx predict program to repurchase up to $50 million of class a common stock.

Dana: During the first quarter <unk> purchased 588 common shares are $9 5 million of our class a common stock.

Operator: With the free cash flow generated by our core regass business, our strong balance sheet, and the liquidity provided by our revolving credit facility, we remain confident that we will have sufficient capacity to fund our growth and strategic objectives in the near-term and beyond. Now, let's turn to an update on our financial guidance for 2020. We are reaffirming our previously communicated financial guidance for 2024. For the full year, we continue to expect adjusted EBITDA to range between $315 million and $335 million.

Dana: With the free cash flow generated by our corner Readouts does that a strong balance sheet and the liquidity provided by our revolving credit facility we remain confident.

Dana: Confident that we will have sufficient capacity to fund our growth and strategic objectives in the near term and long term.

Dana: Now, let's turn to an update on our financial guidance for 2024.

Dana: We are reaffirming our previously communicated financial guidance for 2024.

Dana: For the full year, we continue to expect adjusted EBITDA to range between $315 million and $335 million.

Operator: This range is inclusive of roughly $20 million in expected business development costs. For the full year, we continue to expect maintenance CapEx to range between $50-$60 million and committed growth CapEx to range between $70-$80 million. As a reminder, committed growth CapEx is defined as capital allocated and committed to specific infrastructure investments currently in execution for previously approved capital projects. This year, 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 on our committed growth capital estimates as definitive contracts are executed with counterparties that drive incremental capital needs for 2024. With that, we'll open up the call for Q&A.

Dana: This range is inclusive of roughly $20 million in expected business development cost.

Dana: For the full year, we continue to expect maintenance capex to range between 50 and $60 million.

Dana: Any growth Capex to range between 70, and 80 million as a reminder, committed growth capex is defined as capital allocators.

Dana: I think infrastructure.

Dana: Currently in execution or previously approved capital projects.

Dana: This year most of this committed growth capex is related to milestone payments on a new build fsrus, which will be delivered in June 2026.

Dana: We will continue to provide updates on our committed growth capital estimate as definitive contracts are executed with counterparties that drive incremental capital needs for 2024.

Speaker Change: With that we'll open up the call for Q&A.

Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad now, and if you change your mind, please press star followed by one. When preparing to ask your question, please ensure that your line is on mute. Our first question comes from Chris Robertson from Deutsche Bank. Chris, your line is now open. Please go ahead.

Speaker Change: Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad now.

Dana: Oman, Please press star followed by Chi Wen.

Dana: When preparing to ask your questions. Please <unk> your line is muted.

Dana: Our first question comes from Chris Robertson from Deutsche Bank, Chris. Your line is now open. Please go ahead.

Christopher Robertson: Hey, good morning, everybody, and congratulations on a strong quarter.

Christopher Robertson: Hey, good morning, everybody and congratulations on a strong quarter.

Steven M. Kobos: Thanks, Chris. Thanks, Chris.

Christopher Robertson: Thanks, Great. Thanks, Chris.

Dana A. Armstrong: Yeah, just going back, Dana, going back to the point that you made around the share repurchase program, just wanted to clarify, it was 588,000 shares. And could you clarify the average price per share paid?

Christopher Robertson: Yes, just going back Dana going back to the point that you made around the share repurchase program. Just wanted to clarify was 588000 shares and could you clarify the average price per share paid.

Dana A. Armstrong: Yeah, sure. So it's 588,000 shares, and it ended up being $9.4 million, so it was roughly just under $16.

Dana: Yes, sure. So it's 598000 shares and ended up being $9 $4 million so roughly that.

Dana: Vendor $16 per share.

Speaker Change: Okay. Thank you.

Christopher Robertson: Um, I guess so. Looking at the project portfolio that's been proposed here, there are several different projects, obviously. So, Steven, wondering if you could maybe just expand upon that further, maybe by rank order or some other mechanism here, just talking about what would make a project the most attractive in your eyes. I mean, there's a lot on the table here, but as you're going through the different variables, whether it's return or a risk-adjusted return or the type of project, the type of counterparty, et cetera, could you just clarify maybe how you're thinking about what the most important factors are for you?

Dana: I guess.

Dana: Looking at the <unk>.

Dana: Portfolio, that's been proposed here.

Dana: Several different projects, obviously, so Steven wondering if you could maybe just expand upon that further.

Steven M. Kobos: Maybe by rank order or some other mechanism here just talking about what would make a project. The most attractive in your eyes, I mean, theres a lot on the table here.

Steven M. Kobos: As youre going through the different variables, whether it's returning or or a risk adjusted return for the type of project and the type of counterparty et cetera could you just clarify maybe how youre thinking about what's the most important.

Dana: Factors for you.

Steven M. Kobos: Sure, thanks, Chris. We are excited to provide a little more clarity because the fact of the matter is, This is a prioritized list; we think there is an enormous TAM out there. So, you know, to look at this and say, this looks like a lot of projects, but actually, this is tearing down the opportunity set that we see substantially. Now, as I mentioned on the call, obviously, we're going to look at everything through the hurdles that we have.

Speaker Change: Sure. Thanks, Chris.

Speaker Change: We are excited to provide a little more clarity because.

Speaker Change: That's what matters.

Speaker Change: This is a prioritized list, we think it's an enormous tam out there so.

Speaker Change: To look at this and say this looks like water projects.

Speaker Change: Actually this is Terry down the opportunity set that we see substantially.

Speaker Change: Now as I mentioned on the call obviously, we're going to look at everything through our hurdles that we have we're getting quicker through the wax.

Steven M. Kobos: We're going to look at it through the whacks we have for different countries, but what we've shared for a long time is that we care about fundamentals in marketing, we care about the need for energy. So we're looking not just at the project fundamentals. Those have to be there, but we also want to know that the market itself needs the gas, has an economy that needs to fuel it, is otherwise going to shift to coal, but certainly any of these is going to meet our hurdle expectations and our country's specific WACs. We feel confident that we have prioritized the right subset of the TAM.

Speaker Change: Have for different countries.

Speaker Change: But.

Speaker Change: What we've what we've shared for a long time is that we care about fundamentals and markets.

Speaker Change: We care about.

Speaker Change: The need for the energy.

Speaker Change: So we're looking not just at the project fundamentals.

Speaker Change: Those have to be there, but we also want to note that the market itself.

Speaker Change: Needs the gas.

Steven M. Kobos: It hasnt economy that needs to fuel it.

Steven M. Kobos: Otherwise, it's going to shift to coal, but certainly any of these are going to meet our.

Speaker Change: Hurdle expectations and our country specific wax so.

Steven M. Kobos: We feel confident that we prioritize.

Steven M. Kobos: The right subset of the Tam.

Christopher Robertson: Okay, yeah, it makes sense. I'll turn it over to you. Thank you.

Speaker Change: Okay, Yes, it makes sense I'll turn it over thank you.

Operator: Our next question is from Wade Suki of Capital One. Wade, your line is now open. Please go ahead.

Speaker Change: Our next question is from weight seeking a capsule one white. Your line is now open. Please go ahead.

Wade Suki: Great, thank you so much for taking my question. Well, just to flesh out a little bit more kind of dovetailing on Chris's question on the project portfolio, any clarity you can give on these, what you call them, the 12 prioritized projects in terms of terminals, ships, new builds, maybe adjacent asset classes, things like that, would be fantastic to hear a little more detail on, to the extent you feel comfortable.

Wade Suki: Great. Thank you so much for taking my question.

Weight: Flesh that out a little bit more kind of dovetailing on Chris's question on the project portfolio any clarity you can give.

Weight: On the let's call it 12.

Wade Suki: Prioritize projects in terms of the criminal chips Newbuild will be adjacent asset classes things like that.

Wade Suki: Would be would be fantastic to hear a little more detail to the extent you feel comfortable.

Wade Suki: Okay.

Steven M. Kobos: Sure, Wade. Thanks.

Speaker Change: Sure Whit.

Speaker Change: Thanks, I'm going to turn it over to Oliver Simpson here in a second but I would just say.

Oliver Simpson: I'm going to turn it over to Oliver Simpson here in a second, but I would just say... Look, we are a global LNG company. We have a presence all over the world. Everybody knows all of this LNG needs to find a home. We are the home builder. But, Oliver, you want to get into some of the nitty-gritty on the asset classes, et cetera, we're looking at? Sure, yeah.

Speaker Change: We are a global LNG company.

Oliver Simpson: We have.

Oliver Simpson: Our presence all over the world.

Oliver Simpson: Everybody knows all of this LNG needs to find a home.

Oliver Simpson: We are at the homebuilders.

Oliver Simpson: But.

Oliver Simpson: Where do you want to get into.

Oliver Simpson: The way some of the Nitty gritty on the asset classes et cetera.

Oliver Simpson: Thanks for the question, Wade. I think what you see with the list of 12 projects there is that we have a wide range of geographical projects, covering a number of different types of projects that have different reach across the globe, across the LNG value chain. So I think we can see, you know, from the asset class, obviously, that a number of these projects will require new FSRUs. We have a growth strategy for our fleet.

Oliver Simpson: Sure.

Oliver Simpson: Thanks for the question right.

Oliver Simpson: I think I think what you see with the <unk>.

Oliver Simpson: Next in 12 projects that.

Oliver Simpson: We have a wide range of geographical projects.

Oliver Simpson: A number of different types of projects.

Oliver Simpson: Different reach across the.

Oliver Simpson: Across the LNG value chain.

Oliver Simpson: I think we see from the asset class Oxy.

Oliver Simpson: A number of these projects will require new Fsrus, we have we have a growth strategy for our fleet is a core part of our core part of our strategy and we will be looking to add whether it's new builds or combustion as appropriate for this projects, but I think also as you see some of these projects the number of these projects have.

Oliver Simpson: That's a core part of our strategy, and we'll be looking to add, whether it's new builds or conversions, as appropriate for those projects. But I think also that you see some of these projects, a number of these projects offer integrated solutions which allow us to drive the incremental returns and make gas sales and deliver additional products to our customers. So, I think. In general, we're excited about the broad range that these projects offer, and to Steven's earlier point, these are really projects in markets that we've targeted and liked. I think that hopefully that gives a little more clarity.

Oliver Simpson: While for integrated solutions, which allow us to.

Oliver Simpson: Drive incremental returns.

Oliver Simpson: Gas sales and deliver.

Oliver Simpson: Additional products to our customers.

Oliver Simpson: In general we're excited by the broad range of these projects offer.

Oliver Simpson: And to Stephen's earlier point.

Oliver Simpson: These are really projects in markets that we've targeted and alike.

Oliver Simpson: I think that.

Oliver Simpson: Hopefully that guess.

Speaker Change: No Kevin.

Oliver Simpson: Yeah.

Speaker Change: Fantastic. Thank you and I'd love to get a sense I mean, obviously you all are.

Wade Suki: Fantastic, thank you. And I'd love to get a sense of it. I mean, obviously, y'all are very active on the commercial side. Just get a sense of what the thinking is of the customer these days. We've got, you know, as you mentioned, a good amount of LOD hitting the market here in the next couple of years. You know, gas prices have come down. Just give us a sense of what the temperature is, what the concerns are, and what's on the top of mind for the customer, if you wouldn't mind. Thank you. [inaudible]

Wade Suki: Very.

Wade Suki: Active on the commercial side just to get a sense what the thinking is of the customer. These days we've got.

Wade Suki: As you mentioned.

Wade Suki: A good amount of LNG hitting the market here in the next couple of years.

Wade Suki: Gas prices have come down just give us a sense of what the temperature is one of the concerns whether what's top of mind for the customer if you wouldn't mind. Thank you.

Steven M. Kobos: Wig, Steven, I'll just jump in. I think what we're seeing all over the world, and especially within a number of these global South markets. They're back at the table. You know, the disruption of the war. The war in Ukraine was surprising to the Global South. They weren't prepared for it, and it took them away from the LNG market for a while, but we've gone through that now. And they've recognized and accepted that LNG is a key part of their strategy. You will have seen it.

Wade Suki: Okay.

Wade Suki: Steven.

Steven M. Kobos: Jump in.

Steven M. Kobos: I think what we're seeing all over the world.

Steven M. Kobos: And especially within a number of these global south markets.

Steven M. Kobos: They are back to the table.

Steven M. Kobos: The disruption of the award.

Steven M. Kobos: The war in Ukraine was.

Steven M. Kobos: It was surprising to the global South.

Steven M. Kobos: They werent prepared for it.

Steven M. Kobos: It took them away from the LNG market for a while.

Steven M. Kobos: But we've gone through that now.

Steven M. Kobos: And they've recognized and accepted that LNG is a key part of their strategy you will have seen it.

Steven M. Kobos: You will have seen it all over the place, like India's announcements on the increased share of natural gas that they intend to have in their energy mix by 2030, all kinds of ways that they're manifesting it, the reentry into the spot market, the contracting for long-term supply, and the focus on LNG projects in general. So the sentiment out there is bullish. LNG is part of the energy mix for the South. And we remain. We are a credible alternative to coal and much of the world.

Steven M. Kobos: You will have seen it all over the place.

Steven M. Kobos: India's announcements on the increased share of natural gas.

Steven M. Kobos: And tend to have in their energy mix by 2030.

Steven M. Kobos: All kinds of ways that they are manifesting yet the reentry into the spot market the contracting for long term supply and the focus on LNG.

Steven M. Kobos: Projects in general so.

Steven M. Kobos: The sentiment out there is bullish.

Steven M. Kobos: It is part of the energy mix for the South and.

Steven M. Kobos: And we remain.

Steven M. Kobos: We remain a credible alternative to coal and much of the world.

Wade Suki: Fantastic. Thank you all so much. Appreciate you taking the time to answer my questions. Have a great day.

Speaker Change: Fantastic. Thanks, so much I appreciate you taking my questions have a great day.

Operator: Our next question comes from Jeremy Tonet of J.P. Morgan. Your line is now open, Jeremy, so please go ahead.

Jeremy Tonnage: Our next question comes from Jeremy tonnage of Jpmorgan. Your line is now open Jeremy. So please go ahead.

Jeremy Bryan Tonet: Hey, this is Noah Katz on behalf of Jeremy. First, I wanted to touch on your capital allocation priorities. I know you guys authorized up to 50 million in repurchases through February 2026. So are there any thoughts on weighing repurchases versus future dividend raises and leverage reductions? Or are you thinking about any other bolt-on opportunities? Anything you can provide there would be great. Thank you.

Speaker Change: Hey, this is <unk> on for Jeremy first I wanted to touch on your capital allocation priorities. I know you guys authorized up to $50 million of repurchases through February 2026. So are there any thoughts on weighing repurchases versus future dividend raises and leverage reductions or are you thinking about any any other bolt on opportunities.

Jeremy Bryan Tonet: You can provide there would be great. Thank you.

Dana A. Armstrong: Hey, Jeremy. Thanks for the question. So we will continue to stress the importance of growth in our capital allocation strategy. I mean, as Steven just said, and Holly just said, there's a lot of focus out there with the Global South, and we expect to use our cash to generate growth on these projects. So as far as the share repo, as you know, we purchased 9 million through the end of the quarter. We have 50 million, so we have 41 million to use through February 6th.

Speaker Change: Hey, Jeremy.

Speaker Change: Thanks for the question.

Dana A. Armstrong: We will continue to stress the importance of grants and our capital allocation strategy I mean, Steven is that and kind of setting that theres a lot of folks out there with the global South and we expect T D.

Dana A. Armstrong: Use our cash to deny grants on Tommy's projects, so as far as the share repo at Etsy.

Dana A. Armstrong: <unk> now repurchased $9 million for the ended the quarter, we have $50 million that remaining 41, 98 average X 12 use that opportunity opportunistically, where it makes sense.

Dana A. Armstrong: We'll use that opportunistically where it makes sense, but our priority will remain growth. As we have excess cash on hand, we'll evaluate debt paydowns, and we'll evaluate potential dividend increases over the long term. But our priority right now is

Dana A. Armstrong: But our priority will remain growth as we have excess cash on hand will evaluate debt pay downs will evaluate potential increases it sounds like a long term.

Speaker Change: Our our priority right now is obviously Greg.

Jeremy Bryan Tonet: Does that answer your question? That's helpful. Thank you. Yeah Yeah, definitely. Thanks for that. And then, as a follow-up, can you speak to what you guys are seeing? Sorry to call you, Jeremy. Sorry about that. No worries, no worries. Can you guys speak to what you're seeing with other growth opportunities outside of FSRUs, such as investing additional assets in vessels for onshore re-gasification efforts with smaller players? Thanks.

Steven M. Kobos: That's a great point, and not because there's no one size fits all for these markets. And we've said for some time now that the home for the LNG is going to be a lot of different sized opportunities. We mentioned how much of an impact any single FSRU can have, and the proof point for that is the FSRU in Karachi delivering something like 1.25% of global LNG into that market? So they can make a difference, but at the same time, we fully expect that many of the projects out there in the world that will come online this decade and the coming years are going to be in the, you know, they're not going to be that big.

Steven M. Kobos: Street, delivering something like 1.25 per cent of global LNG tends to that market. So they can make a difference but at the same time.

Steven M. Kobos: We fully expect that many of the projects out there in the world that will come online. This decade in the coming years are gonna be in the.

Steven M. Kobos: They're not gonna be that size a lot of some of them will but some will be in the one 2 million.

Steven M. Kobos: Some of them will, but some will be in the one, two million, three million tonne range. And those are going to call for a variety of solutions. If you want to weigh into that, there's just, to my way of thinking, there's no one size fits all. So I think that's exactly the point that we're seeing. We're seeing that downstream demand.

Steven M. Kobos: 3 million ton range and those are gonna call from.

Steven M. Kobos: Variety of solutions.

Steven M. Kobos: <unk> now if you want to weigh in to that there's just to my way of thinking there's no one size fits all.

Oliver Simpson: No, I think that's exactly the point that we're seeing. We're seeing downstream demand. These markets are one gas, and therefore LNG. We have a wide range of technical solutions that we can provide, and we're happy to assess all the different solutions. We're not married simply to large-scale FSRUs, which we'll assess on each project depending on the needs of that market.

Steven M. Kobos: I think that that's exactly an appointment then.

Oliver Simpson: Seeing.

Oliver Simpson: We're seeing a downstream demands.

Oliver Simpson: And the small case that one gas and therefore G. We have a wide range of technical solutions or we can we can provide.

Oliver Simpson: And we're happy to assess all the different solutions, we're not we're not married simply to landscaping since I use will assess on each project depending on the needs of that market.

Speaker Change: Thank you guys.

Operator: And our next question comes from Bobby Brooks of Northland Capital Markets. Bobby, your line is now open. Please go ahead. Hey, good morning, guys.

Speaker Change: And our next question comes from Puppy Brooks No plan capital markets Opiela lunch now. Please go ahead.

Robert Thornton Brooks: Hey, good morning, guys. Thanks for taking the question and congrats on the solid quarter. So on slide five, you guys mentioned investing in the core business to protect and enhance long-term revenues and margins. You know, outside of maintenance CAPX, what are maybe some examples of this? And could those, are those examples, could that push, you know, margins even higher?

Robert Thornton Brooks: Hey, good morning, guys. Thanks for taking the question and congrats on the solid quarter.

Robert Thornton Brooks: On slide five you know you guys mentioned the piece on investing in the core business to protect and enhance longterm revenues and margins.

Robert Thornton Brooks: Outside of maintenance Capex, what or maybe some examples of this and and could you are there are those examples could that push you know Margaret is even higher.

Steven M. Kobos: Thanks, Bobby. Yeah, I think that would really build upon Oliver's comments. We are bullish on our asset class; we're going to continue to invest in these assets. We have a track record of upgrading these assets, and we will continue to do that. There are all sorts of upgrades that you can make, upgrades that have been valued by our customers. We are looking at an entire suite of those. This could be anything from, you know, re-liquefaction capacity modules, this could be minimum send-out compressors; there are all kinds of upgrades that you could make to them.

Speaker Change: Thanks, Bobby.

Speaker Change: Yeah, I think that would really build.

Steven M. Kobos: Build upon.

Steven M. Kobos: Paul for his comments, we are bullish on our asset class, we're going to continue to invest in these assets wafer track record that's.

Steven M. Kobos: Upgrading these assets and we will continue to do that.

Steven M. Kobos: All sorts of.

Steven M. Kobos: <unk>. So that you can fake upgrades had been valued by our customers.

Steven M. Kobos: We are looking at an entire sweep of those.

Steven M. Kobos: Can be anything from you know re liquefaction capacity modules those could be.

Steven M. Kobos: Minimum send out compressors throat for all kinds of upgrades that you could make to them.

Steven M. Kobos:

Steven M. Kobos: That's really one of the drivers and why we were able to get 17 years of contract extensions in 2023. We were looking all the time for how do you deliver the product that your customer needs and that your customer has evolved into needing.

Steven M. Kobos: That's really one of the drivers and why we were able to get 17 years of contract extensions in 2023, we were looking all the time for how do you deliver the product that your customer needs and that your customer has some fault into needing.

Robert Thornton Brooks: Got it. Thanks for that color.

Speaker Change: Got it thanks for that color and then maybe more specifically kind of surf on back on previous questions, but you.

Steven M. Kobos: And then maybe more specifically, kind of circling back on previous questions, but you know, when looking at acquiring, when looking at acquiring specifically interest in regas terminals that are either existing or developed. You know, outside of economics, and then, obviously, the key that you guys made was market dynamics. What are, outside of those two pieces, what are maybe the other key focuses when evaluating a project that's already operating or one that's underdeveloped?

Robert Thornton Brooks: You know one looking at acquiring one looking at acquiring specifically interested in.

Steven M. Kobos: Re gas terminals that are either existing or developed now outside of economics and the audit and then I'll just need to keep you guys made was market dynamics water outside of that those two pieces, what or maybe the other key focuses one evaluating on a project that's already off.

Steven M. Kobos: <unk> are one that's under development.

Steven M. Kobos: Thanks, Bobby. I mean, we find that markets that need LNG, when they get LNG, they need more LNG. So, as you say, the fundamentals of the market are going to remain the critical driver. One of the other drivers is obviously our outstanding reputation for governance that we enjoy all over the globe, which we take very seriously and which we believe is a value driver for Excelerate. So that's one aspect of what we need and require.

Speaker Change: Thanks, Bobby we find that.

Steven M. Kobos: Markets that need LNG, when they get LNG they need more LNG. So as you say the fundamentals of the market are going to remain.

Steven M. Kobos: The critical driver.

Steven M. Kobos: One of the other drivers is obviously are outstanding reputation for governance that we enjoy all over the globe.

Steven M. Kobos: Which we take very seriously and which we believe it's a value driver for accelerate said, that's one aspect of what we need and require and then obviously the third part is financial just how we think about the WAC for that for those for.

Steven M. Kobos: And then obviously, the third part is financial, just how we think about the whack for those projects, and does it allow us an entry point into a market that we want to be in? said that, and you know, the counterparty as well. I think those are the key pieces of the puzzle.

Steven M. Kobos: Those projects.

Steven M. Kobos: And does it does it allow us in <unk>.

Steven M. Kobos: Entry point into a market that we want to be M. So.

Steven M. Kobos: And.

Steven M. Kobos: You know the counterparty as well I think those are the key pieces of the puzzle.

Robert Thornton Brooks: Got it. So it's not necessarily, you're kind of looking at existing projects and projects that are under development pretty much the same way. There's no, no kind of preference for either.

Speaker Change: Got it so it's not necessarily you kind of looking at existing projects and projects that are under development pretty much the same way there's no no.

Robert Thornton Brooks: Kind of.

Robert Thornton Brooks: No preference to either.

Steven M. Kobos: No, I think it's all about what helps you get to where you want to go, and what helps you get into the markets you want to be in, and what you think is going to allow you the most upside from, as Oliver mentioned earlier, the incremental opportunities associated with certain projects.

Robert Thornton Brooks: No I think that I think it's all about what's helps you get to where you want to go.

Steven M. Kobos: What helps you get into the markets you wanted B M and <unk>.

Steven M. Kobos: What you think is going to allow you the most upside from his aubert mentioned earlier the.

Steven M. Kobos: The incremental opportunities associated with certain projects.

Robert Thornton Brooks: I got it. Thank you for that. And then just last question for me, you know. I want to say slide seven, you know, with all the prioritized projects. I think that was excellent. So, thanks for providing that detail. But my question is, and I know you kind of said, those projects range from 50 to 400 million. I think maybe that was it, but, you know, all projects are going to vary in terms of their, you know, size, but in general, how should we think about, you know, maybe the projects like C, G, H, and K, which check all the boxes in terms of, you know, how much that would cost and the associated EBITDA generation Are those sized opportunities something that you could maybe do, you know, two over the next 18 months, or would it more so be one and then take some time to digest?

Speaker Change: Got it. Thank thank you for that and then just the last question for me you know.

Robert Thornton Brooks: I want to say the slides seven you know with all the prioritize projects I think that was excellent. So thanks for providing that detail, but my question is and I know you kind of I think you said you know those projects range from 50 to 400 million I think maybe it was that but you know I know all projects are going to vary in turn.

Robert Thornton Brooks: [noise] of the <unk> size, but in general how should we think about you know maybe the projects like C. G H K, which check all the all four boxes in terms of you know how much that would cost and the associated EBITDA generation potential from them are there.

Robert Thornton Brooks: Those sized opportunity something that you could maybe do you know.

Robert Thornton Brooks: Two over the next 18 months or what it would have more so b one and then take some time to digest.

Steven M. Kobos: Bobby, we're out there doing a full court press, my friend, and we're going to vote on as many tunas as we can. I'd like to give you more color, but the reality is, we want to be as transparent as we can with our investors. We're committed to doing that, and I'm, of course, eager to share everything we can with you all. I hope this is a step in that direction. But Events on the ground are going to drive some of this, but we are going full speed on as many of our prioritized projects as we can.

Speaker Change: Bobby were out there doing a full court press my friends.

Steven M. Kobos: And we are going to vote as many <unk> as we can.

Steven M. Kobos: I'd like to give you more color, but the reality is we want to be as transparent as we can with our investors were committed to doing that and.

Steven M. Kobos: And I'm of course eager to share everything we can with you all I hope this is a step in that direction, but.

Steven M. Kobos: But events on the ground are going to drive some of this but we are we are going full speed on as many BARF prioritized projects as we can.

Oliver Simpson: Bobby, I'll also comment, and this is probably obvious, but obviously, the more integrated projects, the ones that you mentioned, those are the larger, more integrated projects. Those are going to cost more. They're going to be a little bit more complex, and then the smaller projects are going to be more in that $50 to $200 million range. And so we're very pleased that we have this wide diversity of projects. Some of these will be potential equity buy-ins that we can go to market on real quickly. Others, like Pyra, will be more complex and take a little bit more time.

Speaker Change: <unk> comment.

Oliver Simpson: Miami, obviously anymore and cried and cried.

Oliver Simpson: And that's in a large emery how can any projects that they're gonna cost aren't that good.

Oliver Simpson: And then the sniper attacks.

Oliver Simpson: Be more than that 16, 1999 range and Sandburg Bang for you is that we have this line or Saint project and I need help me occasionally equity by and that one came out and walk out quickly.

Oliver Simpson: Like pirate lumpy.

Oliver Simpson: At one time.

Robert Thornton Brooks: That's a terrific call. I really appreciate it. And I like the basketball reference there, Steve.

Bobby: That's terrific I really appreciate it and I liked the basketball reference there Steve I'll turn it back over thank you guys.

Steven M. Kobos: There's a comment about the Timber Wolves, Bobby.

Robert Thornton Brooks: I'll turn it back over. Thank you, guys. Thank you.

Robert Thornton Brooks: Okay.

Speaker Change: No comment about the timber wolves bombing.

Operator: As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad now. Our next question comes from Michael Sciola of Stevens. Michael, your line is now open. Please go ahead.

Speaker Change: As a reminder, if you would like to ask a question <unk> followed by one on your telephone keypad.

Michael Jacob Blum: Our next question comes from <unk> Stevens <unk>. Please go ahead.

Michael Jacob Blum: Good morning, everybody. Steven, you talked about the new projects you're working on. You mentioned Asia-Pacific, which you've talked about in the past, and you also mentioned the Americas. I was a little surprised that you mentioned it rather than, I think, in the past. You talked about Sub-Saharan Africa. Have there been any changes in market dynamics that are driving that?

Michael Jacob Blum: Good morning, everybody.

Michael Jacob Blum: <unk> tucked Tibet new projects, you're working on you mentioned Asia Pacific what you've talked about in the past and I just mentioned in the Americas, a little surprised.

Michael Jacob Blum: There rather than nothing in the past that.

Michael Jacob Blum: Sub-saharan Africa.

Michael Jacob Blum: Has it been any changes in market dynamics that are driving that.

Michael Jacob Blum: No.

Steven M. Kobos: Thanks, Mike. I appreciate the question. As I've said, we are a global company. We're out there.

Steven: Thanks, Mike I appreciate it the question.

Steven M. Kobos: Sometimes I speak of the Indian Ocean Basin, not riding off Sub-Saharan Africa at all. But the reality is, there are interesting points all over the global market. And since we have offices all over the world, we have insights into those opportunities. So I'm not meaning to denigrate any of those regions, but we clearly do like America as well. And you shouldn't take it as we're riding off to any particular part of the world. We're just prioritizing, in the ways we best can, what we think are the most likely near-term opportunities.

Steven M. Kobos: Cause I've said, we are a global company were out there some funds speak to Indian Ocean basin, not writing off a sub Saharan Africa at all but the reality is there are interesting points all over the global market.

Steven M. Kobos: Since we have offices all over the world, we have insights into those opportunities.

Steven M. Kobos: So I'm not meaning to denigrate any of those regions, but we are we.

Steven M. Kobos: We clearly do like America's as well.

Steven M. Kobos: And you shouldn't you shouldn't take that were.

Steven M. Kobos: Writing off any particular part of the World, We're just prioritizing.

Steven M. Kobos: And the way she burst can what we think are the most likely near term opportunities.

Michael Jacob Blum: I guess from a reverse point of view or anything that's elevated Americas recently, has anything changed there that has made that look more attractive?

Steven M. Kobos: From from a reverse point of view or anything.

Michael Jacob Blum: Anything that the elevated the America's recently anything change there that.

Michael Jacob Blum: Made that look more attractive.

Speaker Change: I don't.

Steven M. Kobos: You know, Mike, there's nothing I want to get into right now. As soon as I can provide better color, we will.

Speaker Change: You know Mark nothing I Wanna get into right now as soon as I can provide better color we will.

Michael Jacob Blum: Gotcha. And then I just wanted to ask about the long-term LNG Sale and Purchase Agreements. Do you plan to continue to tie those agreements together like you did with Qadar and Bangladesh, and if so, any thoughts on where the Placom and LNG volumes go? Or do you leave some for the spot market? That's all I have. Thanks.

Speaker Change: Gotcha, and then just wanted to ask the longterm.

Michael Jacob Blum: <unk> LNG sale and purchase agreements.

Michael Jacob Blum: Do you plan to continue to tie those agreements together like you did with.

Michael Jacob Blum: Are in Bangladesh and if so.

Michael Jacob Blum: Thoughts on board the apply to them and.

Michael Jacob Blum: <unk> LNG volumes go.

Michael Jacob Blum: D leave some.

Michael Jacob Blum: Spot market.

Speaker Change: That's all thanks.

Steven M. Kobos: Yeah, thanks, Mike. I'm going to turn to Alder on that in a second. I will say I'm very happy with the Cutter Energy deal; it's a good fit, a good solution for an important market of ours. And, frankly, we've been working with Qatar for some time. And as we've mentioned before, 10% of their existing LNG is regasified across our asset class. I'm really proud of that deal because it shows the high regard the Accelerate is held by major players around the globe. But over, let me turn to you for just a little more. Obviously, we want to support integrated deals.

Speaker Change: Yeah, Thanks, Mark I'm Gonna turn to alter and a second on it I will say.

Alder: Very happy with.

Alder: The cutter energy deal good good good solution for an important market of ours.

Alder: And frankly, we've been working with Qatar for some time and.

Alder: Mentioned before 10% of their existing LNG is recalcified across our asset class.

Alder: Really problem about that deal because it shows the high regard the pixel bring is held by major players around the globe.

Alder: The overt let me.

Alder: <unk> a little more.

Alder: We we want to support integrated deals.

Oliver Simpson: Yeah, thanks, Mike. You know, as we mentioned in the presentation we made earlier, establishing a diversified energy portfolio is a key part of our strategy. I think, you know, you see today in that prioritized project portfolio that we have a number of projects where we will need that energy supply. These U.S. Gulf volumes are, you know, some of the most, as FOB volumes, are some of the most flexible volumes that are out there.

Alder: Yeah. That's it thanks like you know I think.

Oliver Simpson: We mentioned was the presentation mentioned before establishing diversified when cable failure is a key part of our strategy. I think you know you see you've seen today and that prioritized project for your.

Oliver Simpson: We have a number of projects.

Oliver Simpson: Need that energy supply.

Oliver Simpson: <unk> you know there's something most is FOV volumes of some of those flexible volumes that are out there so they're they're natural faint to to these projects.

Oliver Simpson: So, they're a natural fit to these projects. At the same time, you know, we're seeing good interest for energy volumes. So, we will assess the different opportunities, whether in the projects or elsewhere as needed. But I think To your question, building that energy supply portfolio is very much aligned with how we see the downstream demand growth. So we'll build it in parallel with that and to match that demand.

Oliver Simpson: At the same time, you have a machine machine.

Oliver Simpson: <unk> Friday between volume. So we will we will assess the different opportunities within the project <unk> is needed that I think.

Oliver Simpson: To your question, it's building that energy supply portfolio is very much aligned with.

Oliver Simpson: How we see the downstream demand credit so we'll go in parallel with that and to match that demand.

Speaker Change: That makes sense. Thank you.

Operator: Our next question comes from Craig Shere of Tohe Brothers. Craig, your line is now open. Please go ahead.

Speaker Change: Next question comes from <unk> I'll tell the heat brothers <unk>. Please go ahead.

Craig Kenneth Shere: Morning. Thanks for taking the question. I look forward to catching up later this afternoon. The growth opportunities are obviously exciting, but you've got to walk before you run. And quite frankly, we think you're not getting credit for the speed at which you're walking today.

Craig Kenneth Shere: Good morning, Thanks for taking the questions look forward to catching up later this afternoon.

Craig Kenneth Shere: The the the growth opportunities are obviously exciting, but you've got to walk before you run and quite frankly, we we think you're not getting credit for the speed at which you're you're walking today. So I've got two simple questions about play 24 guidance and what what the business really looks like first.

Dana A. Armstrong: So I've got two simple questions about 2024 guidance and what the business really looks like. First, excluding growth-oriented development expense and smoothing out that unusually expensive dry docking cost, that I believe only occurs every few years. What would a more current, recurring, average run rate EBITDA look like? That's my first question.

Dana A. Armstrong: Excluding growth oriented development expense and smoothing out that unusually expense vessel dry docking costs that I I believe only occurs every few years.

Dana A. Armstrong: What would a more current recurring average.

Dana A. Armstrong: EBIT look like that's my first blush.

Dana A. Armstrong: Craig, I can, that's actually relatively simple, as you can see from our guidance and then that happens every five years. None of our other vessels are on a boot structure, so we will capitalize all of our dry docks for the other eight vessels.

Dana A. Armstrong: That's actually relatively simple style as you can see from my garden.

Craig Hicks: 20th at nine for 2024.

Dana A. Armstrong: <unk> previously we add that three X at that today <unk> <unk> <unk> <unk> for the stomach ad-hoc of 29 am in this corner only half.

Craig Hicks: Roughly a 2019.

Speaker Change: At the last corner, if any I'm fine.

Craig Hicks: And you are correct that happens every five years now.

Craig Hicks: That sounds are on the checks are sadly capitalize off I try not to spend the other eight that's all set you can safely assume I think I'm ran right and you can see could probably squeeze that 20 million. However, I'm in class not exclude that business development.

Dana A. Armstrong: You can safely assume, I think, a run rate. You could probably exclude that $20 million. However, I would caution you not to exclude that business development spend from a run rate viewpoint because we are a growth company. We will continue to invest in growth, and so the $20 million of business development I would see as pretty in the range of an ongoing, average run rate for a group company of our size.

Dana A. Armstrong: Brian <unk>.

Dana A. Armstrong: <unk> company real convenient.

Dana A. Armstrong: And 29 and business development.

Dana A. Armstrong: C as pretty and arrange an ongoing.

Dana A. Armstrong: Does that

Dana A. Armstrong: Average farm land K.

Dana A. Armstrong: K a R.

Dana A. Armstrong: Does that make sense.

Craig Kenneth Shere: Yeah, I mean, I guess the point I'm trying to drive home here is if you're not being paid for growth, we probably shouldn't be docking you for expenses to pay for growth. And it sounds like, you know, smoothing out the dry docking, your run rate if you weren't, you know, focused on these tremendous opportunities might be in the area of about $350. Does that sound about right? It sounds about right, maybe a little bit more.

Speaker Change: Yeah, I mean, I guess I guess the point I'm trying to drive home. Here is is if you are not being paid for growth what he probably shouldn't be docking you for expenses.

Craig Kenneth Shere: <unk>.

Craig Kenneth Shere: And it sounds like smoothing out the dry docking you run right if you work.

Craig Kenneth Shere: Focused on and the tremendous opportunities.

Craig Kenneth Shere: Might be in the area of about 350 does that sound about right.

Craig Kenneth Shere: But yeah, I mean, if you just add back to 40, you get 365. So yeah, somewhere around 350 to 370, which is the range without the groups and the dry dock. Okay, and as to the discussion about, you know, The Global South, Returning to Spot Market Purchasing, can you give an opinion about what, if any, is included in your 24 guidance for one-off upside there that you've seen in prior years? And to the degree it's not included, you know, does that represent prospective upside for this year?

Craig Kenneth Shere: Sounds about right, maybe a lot of <unk>, yeah, I mean, if you just add back the 40 again.

Craig Kenneth Shere: Yeah somewhere around 3080 370 like thing.

Speaker Change: Okay great.

Craig Kenneth Shere: Okay.

Craig Kenneth Shere: Okay and N N S as to the the discussion about you know.

Craig Kenneth Shere: Global South returning the spot market purchasing.

Craig Kenneth Shere: Can you opine about what if any is included in your 24 guidance on one off upside there that you've seen in prior years and to a degree. It's not included you know does that represent prospective upside for this year.

Craig Kenneth Shere: I mean, in terms of Craig, I want to understand the question. I think you're asking... Does our guidance contemplate much in the way of additional incremental cargo sales? Yeah, so

Craig Kenneth Shere: I mean in terms in terms of.

Speaker Change: Craig one I understand the question I think you were asking.

Speaker Change: Does our guidance contemplate much in the way of additional incremental cargo sales questions. Yeah crank that's M.

Dana A. Armstrong: Yeah, so Craig, that's, we don't expect a huge amount of cards ourselves this year. We had one in the first quarter, from a guidance perspective, but it's included in our expectations. It's not material.

Dana A. Armstrong: We don't expect a huge in a card inside since you only have one in the first corner and for my guidance per second.

Dana A. Armstrong: Alright, and things like that.

Dana A. Armstrong: Okay.

Speaker Change: [noise] Okay. In prior years, you had managed to on occasion get some low millions of dollars of margin from an unexpected kind of seasonal opportunities.

Dana A. Armstrong: Okay, in prior years, you had managed to on occasion get some low millions of dollars of margin from unexpected kinds of seasonal opportunities. Do you think that that exists today the way you're working?

Dana A. Armstrong: You don't think that that exists today the way you are working.

Dana A. Armstrong: I think, Craig, the words you used of unexpected and seasonal are probably the right way to think about it, but I'm not going to give the commercial team a hall pass, obviously, and they're going to be out there trying to do what they can, but I think we've got the right balance of that in our guidance.

Speaker Change: I think Craig the words, you used of unexpected and seasonal are probably the right way to think about it but.

Dana A. Armstrong: I'm not going to give the commercial team a hall pass obviously and they are going to be out there trying to do what they can but I think we've got the right <unk>.

Dana A. Armstrong: Right balance about in our guidance.

Speaker Change: [noise] great. Thank you.

Operator: As a final reminder, if you would like to ask a question, please press star followed by one on your telephone keypad. We next have a follow-up question from Wade Suki of Capital One. Wade, your line is now open. Please go ahead.

Dana A. Armstrong: That's a final reminder, if you would like to ask a question <unk> Sir. Thank keypad next have a follow up question from White Shaquille kept one leg your line account with and please go ahead.

Wade Suki: Hey, hey everyone, sorry for the double tap. I just heard you say something, I think it was in response to Bobby's questions on upgrades. Did I hear you correctly say reliquifaction capability? Is that right?

Wade Suki: Hey, <unk>, sorry for the double tap uhm.

Wade Suki: <unk> say something I think it was in response to biotics questions on the on upgrades.

Wade Suki: I hear you correctly say re liquefaction capability is that right.

Steven M. Kobos: Thank you. I don't want to geek out too much on how we can AMG these assets, but yes, that's one option. That's a decent-sized option you can put a skid on for efficiency.

Speaker Change: Wait thank you without I don't want to geek out too much on what we can.

Steven M. Kobos: How we can achieve these assets, but yes. That's that's one option that's a decent sized option you can put a skit on for efficiency. So I'll gonna depend upon how a particular market for customer utilize since their assets are they are they sending out <unk>.

Steven M. Kobos: It's all going to depend upon how a particular market or customer utilizes their asset. Are they sending out maximum power every day, 365? Or are there periods of time because they're balancing hydroelectricity where they're looking at other factors? Each market, each project has a very specific tweak to a base asset. And we understand that well. And we're in discussions with a number of customers about those optionalities.

Steven M. Kobos: Maximum everyday 365 cents or their periods of time, because they're balancing hydroelectric where they're looking at other factors. So.

Steven M. Kobos: Each each each market each project has a very specific tweak to the base asset.

Steven M. Kobos: We understand that well and we are in discussions with the number of customers about those optionalities.

Speaker Change: Okay, great Yeah, trying to understand how a customer might be using that.

Wade Suki: Okay, great. Yeah, trying to understand how a customer might be using that capability or, you know, maybe this would be a new type of, or maybe a different type of application for one of your best customers.

Wade Suki: Capability or you know maybe this would be a new type of.

Speaker Change: Or maybe a different type of application for one of your vessels.

Steven M. Kobos: I think in general it would be someone with intense seasonal demand where they're just going to sit there for part of the year and make a more robust use in other parts of the year. Anyway, we do have a good technical team. We know how these assets operate. We have a long track record at this point, and obviously, we consider all the best ways to upgrade them. And as I mentioned before, upgrades are just how you keep a happy customer, how you seek to increase return on base contracted assets, and how you increase contract length. So it's an important part of the shop.

Speaker Change: Yeah, I think I think in general would be someone with an intense seasonal demand where they're just gonna sit there for part of the year and can make a more robust use in other parts of the year.

Steven M. Kobos: Uhm.

Steven M. Kobos: Anyway, we we do have a good technical team we know how these assets operate we have a long track record at this point.

Steven M. Kobos: And obviously, we consider all the best ways to upgrade them and as I mentioned before upgrades or just how you keep a happy customer how you C.

Steven M. Kobos: <unk> to increase return on base contracted assets and how you how you increase contract wigs. So it's it's an important part of the shop.

Steven M. Kobos: Further optimizing the asset I guess it would be another way to think about it it along those lines I guess beyond upgrades.

Wade Suki: Further optimizing the asset would be another way to think about it. And along those lines, I guess, beyond upgrades, looking at the existing portfolio, existing set of assets, are there other sort of smallish one-off things you can be doing that can further optimize the existing portfolio?

Wade Suki: Looking at the existing portfolio existing set of assets other other sort of smallish one off thing he can be doing that further optimize the existing portfolio.

Steven M. Kobos: Yes, I'm not going to pull the curtain back entirely, Wade, but yes, we're going to keep it.

Speaker Change: Yeah, So I'm not gonna pull the curtain back entirely way, but yes.

Steven M. Kobos: Yes, we're going to keep.

Wade Suki: We can't, can't blame me for trying here, right? No, no, no, no. But, but I assure you, we, the best way of thinking about this, we value the asset class, the asset class has a long useful life, and we will do what is necessary to ensure we are deriving value from those assets for their entire useful life.

Speaker Change: We can't can't blame me for trying here right [laughter] no no no, but but I assure you we we.

Wade Suki: The best way of thinking about this we value of the asset class. The asset class has a long useful life and we will do what is necessary to ensure we are deriving value from this assets for their entire useful life.

Wade Suki: Great. Thanks again. I appreciate it.

Speaker Change: Great. Thanks, Thanks, again I appreciate it.

Steven M. Kobos: And there are no further questions. I'd like to hand the call back over to Steven Kobos for any closing remarks.

Speaker Change: And then my final question, so I'd like to have a call back by visa Steven covers for any pleasure imams.

Steven M. Kobos: Excelerate Energy is a compelling grid story. I just want to leave you all with the thought that we are essential to ensuring energy security and accelerating the energy transition. Thank you all for joining us this morning.

Steven M. Kobos: So are you a energy is a compelling growth story just wanted to leave you all with the thought that we are essential to ensuring energy security.

Steven M. Kobos: And accelerating the energy transition. Thank you all for joining us this morning.

Operator: This concludes today's conference call. Thank you everyone for joining. You may now disconnect.

Speaker Change: This concludes today's conference cool. Thank you everyone for joining you may now disconnect.

Operator: [music] [noise].