Q2 2024 Excelerate Energy Inc Earnings Call

Operator: 2024 Earnings Call. Participating on the call today are Steven Kobos, Chief Executive Officer, and Dana Armstrong, Chief Financial Officer. Also joining the call today are Oliver Simpson, Chief Commercial Officer, and David Liner, Chief Operating Officer.

Participating on the call today are Steven Cobos, Chief Executive Officer, and Dana Armstrong Chief Financial Officer.

Operator: Also joining the call today are Oliver Simpson, Chief Commercial Officer, and David Leiner, Chief Operating Officer. Our actual results may differ materially from those expressed in these forward-looking statements, and we make no obligation to update or revise. Today's remarks will also refer to certain non-GAAP financial measures. It is my pleasure to pass the call over to Steven Kobos.

Speaker Change: Also joining the call today are Oliver Simpson, Chief commercial officer, and David liner Chief operating officer.

Operator: Our second 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. Actual results may materially differ from those expressed in these forwarding states, and we make no obligation to update or revise. Today's remarks will also refer to certain non-gap financial measures. We have provided a reconciliation to the most directly comparable gap financial measures at the back of the presentation. With that said, it is my pleasure to pass the call over to Steven Kobos.

Speaker Change: second quarter two thousand and twenty four earnings results press release and presentation will released yesterday afternoon and can be found on our website at ir that accelerate energy com

Speaker Change: 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 them.

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.

Well, that is my pleasure to pass the call over to Steven Kobos.

Steven Kobos: Thank you, Craig, and to all of you on the call this morning. Today, I will share with you a story of strength.

Steven Kobos: Thank you, Craig, and to all of you on the call, good morning.

Steven Kobos: Today I will share with you a story of strength.

Steven Kobos: Strong Financial Results, a robust FSRU and terminals contract portfolio, and investing in downstream natural gas infrastructure. Our new build FSRU Hull 3407 remains on schedule for delivery in June 2026. We are confident that we will place Hull 3407 with one of the projects in our pipeline. These will improve the overall efficiency of our operations, and we are prioritizing them for integration into our fleet. It also helps prevent the loss of LNG carbon volume. Fully integrated solutions. Today.

Steven Kobos: Strong Financial Results [inaudible] Strong Operational Performance, strong execution of our strategy. On the financial side, we delivered $89 million at the Chester Iveda in the second quarter. A robust FSRU and terminals contract portfolio, and our ability to meet our customer commitments create the foundation for a compelling financial performance. In operations, I want to take a moment and salute Excelerate's global team. They focus every day on providing critical services to our customers and operating at the highest levels of safety. I'm extremely proud of this team, and when it comes to execution,

Steven Kobos: strong financial results

Speaker Change: strong operational performance

Steven Kobos: and strong execution of our strategy.

Speaker Change: on the financial side we delivered eighty-nine million that adjusted the ebitda in the second quarter

Steven Kobos: Our robust FSRU and Terminals contract portfolio and our ability to meet our customer commitments create the foundation for a compelling financial performance.

Speaker Change: In operations, I want to take a moment and salute Excelerate's global team.

Speaker Change: They focus every day on providing critical services to our customers and operating at the highest levels of safety. I'm extremely proud of this team.

Steven Kobos: We are doing what we said we would do. The Excelerate team continues to make great progress towards our plan to grow our company and maximize value for our shareholders. Now, I'll provide a recap of our business strategy and an overview of the progress we are making. Then, I'll turn the call over to Dana for more on our financial results. Let me recap our strategy. We are operating and optimizing our core regasification business, we are executing our comprehensive growth roadmap, and we are focused on three key areas for value creation. First, requiring ownership interest in LNG regasification terminals. Second,

Speaker Change: And when it comes to execution.

Speaker Change: We are doing what we said we would do.

Speaker Change: The Excelerate team continues to make great progress towards our plan to grow our company and maximize value for our shareholders.

Speaker Change: Now I'll provide a recap of our business strategy and an overview of the progress we are making.

Speaker Change: Then I'll turn the call over to Dana for more on our financial results.

Speaker Change: let me recap our strategy we are operating and optimizing our core gasification business

Speaker Change: We are executing our Comprehensive Growth Roadmap.

Speaker Change: And we are focused on three key areas for value creation.

Speaker Change: First.

Dana Armstrong: requiring ownership interest in lng redgasification terminals

Steven Kobos: Establishing a Diversified LNG Portfolio and Investing in Downstream Natural Gas Infrastructure We are advancing our plans to expand our fleet. Our new build FSRU Hull 3407 remains on schedule for delivery in June 2026; engineering and fabrication work on 3407 are underway, the next major milestone in construction. Set for Octane, we are confident that we will place hole 3407 with one of the projects in our pipeline. Several of these projects would be an ideal fit for 34S, as an operator of one of the largest FSRU fleets in the world. We've remained bullish on the asset class.

Dana Armstrong: Second, establishing a diversified LNG portfolio.

Dana Armstrong: Third, investing in downstream natural gas infrastructure.

Speaker Change: We are advancing our plans to expand our fleet.

Speaker Change: our mebuild fsare u hote three four seven remains unschedulued for delivery and june two thousand and twenty-six

Speaker Change: Engineering and fabrication work on 3407 are underway.

Speaker Change: and the next major milestone in construction, steel cutting.

Speaker Change: is set for ocptember

Speaker Change: We are confident that we will place Hole 3407 with one of the projects in our pipeline.

Speaker Change: Several of these projects would be an ideal fit for 34i7.

Speaker Change: as an operator of one of the largest fssru fleets in the world we remain bullish on the asset class

Steven Kobos: Part of our strategy in investing in our fleet is to meet our customers' needs for efficiency, reliability, and sustainability. We've got a great example of this with our plan to integrate modular re-liquefaction kits on board our vessels. These will improve the overall efficiency of our operations. I am pleased to report we have placed an order for a relay kit and are prioritizing it for integration into our fleet. The purpose of the reliquefaction kit is to recover excess boil-off gas by reliquefying and storing LNG in the cargo.

Speaker Change: Part of our strategy in investing in our fleet is to meet our customers' needs for efficiency,

Speaker Change: reliability and sustainability

Speaker Change: We've got a great example of this with our plan to integrate modular reliquefaction kits on board our vessels.

Speaker Change: these will improve the overall efficiency of our operations

Speaker Change: pleas to report we have placed in the order for a relate kits and our priyorizzing it for integration into our fleet

Speaker Change: The purpose of the reliquefaction kit is to recover excess boil-off gas by reliquefying and storing LNG in the cargo tanks.

Steven Kobos: It also helps prevent the loss of LNG cargo volume. This means that the energy value of our cargo can be productively used by our customers and not go to waste. This technology will enhance the value of the services we provide our customers, and create opportunities for increased revenue generation. It's going to support the development of the regas projects in our pipeline. Nobody left or is left.

Speaker Change: It also helps prevent the loss of LNG cargo volume. This means that the energy value of our cargo can be productively used by our customer and not wasted. This technology will enhance the value of the services we provide our customers.

Speaker Change: It will create opportunities for increased revenue generation.

Speaker Change: and it's going to support development of the redgas projects in our plipeline

Steven Kobos: Last quarter, we shared with you a prioritized list of growth opportunities. These projects span the downstream LNG value chain and range from terminal ownership to Fully Integrated Solutions. Today

Speaker Change: do remember that last quarter we shared with you a prioritizeded listists of breadth opportunities

Speaker Change: These projects span the downstream LNG value chain and range from terminal ownership to fully integrated solutions.

Steven Kobos: We want to share two tangible proof points of our progress. The first one is a strategic investment we are making to enter the Vietnamese energy market, and Sharon has signed a term sheet with Ateca Joint Stock Company, a Vietnamese-based private development company. Soon, we're going to develop a greenfield LNG import terminal in Haiphong, Vietnam. The Northern Vietnam LNG Terminal, or NVLT, is anticipated to be the first LNG terminal in the region. Vietnam, as you know, is expected to have one of the fastest growing economies in Southeast Asia. Hanoi, for example.

Speaker Change: Today, we want to share two tangible proof points of our progress.

Speaker Change: The first one is a strategic investment we are making to enter the Vietnamese energy market.

Speaker Change: In June , Excelerate signed a term sheet with the Teco Joint Stock Company.

Speaker Change: a Vietnamese-based private development company.

Speaker Change: With whom we're going to develop a greenfield LNG import terminal in Haiphong, Vietnam.

Steven Kobos: The Northern Vietnam LNG Terminal, or NVLT, is anticipated to be the first LNG terminal in the region, and this offers an enticing entry point into the country for Excelerate. Phase one of NBLT will have a capacity of 0.7 million tons per annum. The region will need to import LNG to meet its anticipated local natural gas needs from 2028 onward, and Excelerate would be the FSRU-based terminal.

Speaker Change: The Northern Vietnam LNG Terminal, or NVLT, is anticipated to be the first LNG terminal in the region.

Speaker Change: Vietnam, as you know, is expected to have one of the fastest growing economies in Southeast Asia.

Steven Kobos: Capital City is located in the north, and this offers an enticing entry point into the country for Excelerate because of its rapid industrial growth and domestic production declines. These industrial complexes in the north provide a foundational base of customers with a ready need for LNG, which will play a pivotal role in their energy net. The planned LG import terminal will have a total import capacity of 1.2 million tons per annum constructed in two phases.

Speaker Change: And Hanoi, the capital city, is located in the north, and this offers an enticing entry point into the country for Excelerate due to its rapid industrial growth.

Speaker Change: As domestic production declines, these industrial complexes in the north provide a foundational base of customers with a ready need for LNG, which will play a pivotal role in their energy mix.

Speaker Change: the planned lg portternal will have a total import capacity one point two million tons peranum constructed in two phases

Steven Kobos: Phase 1 at NBLT will have a capacity of 0.7 million tons per annum, and we expect operations to commence in 2027. The second proof point of our value creation strategy is an integrated solution that is going to allow for the delivery of natural gas supply into South Central Alaska. For over 50 years, the south central region of Alaska has relied on cook and natural gas for most local heating systems and electricity generation.

Speaker Change: Phase 1 of NVLT will have a capacity of 0.7 million tons per annum, and we expect operations to commence in 2027.

Speaker Change: the second point of our value accreation strategy is an integrated solution that iss going to allow through the delivery of natural gas supply can see south central alaska

Speaker Change: For over 50 years, the south-central region of Alaska has relied on Cook Inlet natural gas for most local heating systems and electricity generation.

Steven Kobos: With domestic gas reserves in the Cook Inlet area declining, the region will need to import LNG to meet its anticipated local natural gas needs from 2028 onward. Excelerate is in advanced discussions with local utilities in south-central Alaska for the development of an integrated LNG terminal in the lower Cook Inlet region. Whitman and the FSRI-based terminal will source LNG supply as required, and sell gas to local utilities and other optakers. The start of commercial operations is targeted for 2028.

Speaker Change: but with domestic gas reserves in the cook inletft area declining the region will need to import lng to meet its anticipated local natural gas needs for two thousand and twenty-eight onwards

Accelerate: Accelerate is in advanced discussions with local utilities in south central Alaska for the development of an integrated LNG terminal in the lower Cook Inlet region.

Speaker Change: Excelerate would end the FSRE-based terminal.

Speaker Change: source LNG supply as required, and sell gas to local utilities and other offtakers.

Speaker Change: the start of commercial operations is targeted for two thousand and twenty eight

Steven Kobos: We talk often with many of you on this call about our efforts in LNG markets all over the world. Before I turn the call over to Dana... As many of you have seen, on Monday, the Prime Minister resigned. The safety of our team members is and remains our top priority. Continuity of our operations is of utmost importance for the country.

Steven Kobos: We talk often with many of you on this call about our efforts in LNG markets all over the world. I can assure you that, as an American company, it feels great to bring the critical services we provide to customers here in the United States.

Speaker Change: We talk often with many of you on this call about our efforts in LNG markets all over the world.

Speaker Change: I can assure you that as an American company, it feels great to bring the critical services we provide to customers here in the United States.

Steven Kobos: Once again, this comes to our strategy. We're doing what we said we would do. We look forward to sharing even more information about the NVLT project, Quick In-Live Project, and other projects in our pipeline with you in the future.

Speaker Change: Let me sum this up.

Speaker Change: once again when it comes to our strategy we are doing what we said we would do

Speaker Change: We look forward to sharing even more information about the NVLT project, the Cook Inlet project, and other projects in our pipeline with you in the future.

Steven Kobos: Before I turn the call over to Dana.... I want to address the current situation in Bangladesh. As many of you have seen, on Monday, the Prime Minister resigned. A caretaker government is currently being formed.

Dana Armstrong: before i turn the call over to dana i want to address the current situation in bangladesh

Dana Armstrong: As many of you have seen, on Monday the Prime Minister resigns and a caretaker government is currently being formed.

Steven Kobos: During this time, the safety of our team members is and remains our top priority. All of our people are safe, and the continuity of our operations is of utmost importance for the country as a long-term partner of Bangladesh. We continue to operate as usual, as an American company that provides essential energy services to the people of Bangladesh. We are confident we will continue to play a vital role in helping to meet the energy needs of the country. With that, I'll now hand the call over to Dana for a deep dive into our numbers for the quarter.

Dana Armstrong: During this time, the safety of our team members is and remains our top priority.

Dana Armstrong: all of our people are sake

Dana Armstrong: the continuity of our operations is utmost importance for the country

Speaker Change: And as a long-term partner of Bangladesh, we continue to operate as usual.

Speaker Change: As an American company that provides essential energy services to the people of Bangladesh,

Speaker Change: we are confident we will continue to play a vital role in helping to meet the energy needs of the country

Dana Armstrong: with that i'll thou hand the call over to dana for a deep dive into our numbers for the quarter

Dana Armstrong: Thank you, Steven. And good morning, everyone.

Dana Armstrong: Thank you, Steven. And good morning, everyone. As Steven said, we are pleased with our second quarter financial results.

Dana Armstrong: As Steven said, we are pleased with our second quarter financial results. Adjusted EBITDA for the second quarter was $89 million, up $14 million, or up about 18% versus last quarter. A sequential increase in adjusted EBITDA was driven by the impact of the FSRU Summit Dry Dock, which occurred and was extended in the first quarter of 2024. As a reminder, because the FSRU Summit is under a build, own, operate, transfer, or boot structure, the majority of the dried out costs were expensed last quarter through the income statement instead of being recorded as maintenance capex to the balance sheet. We continue to invest in our fleet to ensure that we consistently operate at the highest levels of reliability. Doing so is essential to maintaining a best-in-class fleet of vests.

Dana Armstrong: Adjusted EBITDA for the second quarter was $89 million, up $14 million, or up about 18% versus last quarter.

Speaker Change: The sequential increase in adjusted EBITDA was driven by the impact of the FSRU Summit Dry Dock, which occurred and was expensed in the first quarter of 2024.

Dana Armstrong: As a reminder, because the FSRU Summit is under a build, own, operate, transfer, or boot structure, the majority of the dried out costs were expensed last quarter through the income statement instead of being recorded as maintenance capex to the balance sheet.

Speaker Change: We continue to invest in our fleet to ensure that we consistently operate at the highest levels of reliability. Doing so is central to maintaining a best-in-class fleet of vessels.

Steven Kobos: Doing so is central to maintaining a best-in-class fleet of vessels. Now, let's turn to an update on our financial guidance for 2020. For the full year, we continue to expect maintenance CapEx to range between $50 and $60 million and committed growth capital to range between $70 and $80 million. As a reminder, committed growth capital is defined as capital allocated and committed to specific investments for previously approved capital projects.

Dana Armstrong: Our maintenance CapEx spend for the quarter was $21 million, and year-to-date through the second quarter, we spent roughly $32 million on maintenance CapEx. As of the end of the second quarter, our total debt, including finance leases, was $734 million. We had $609 million of cash and cash equivalents on hand, and roughly all of the $350 million of capacity under our revolver was available for borrowings as of quarter end. With the free cash flows generated by our core regasification business, our stellar balance sheet, and the liquidity provided by our revolving credit facility, we remain confident that we have more than sufficient capacity to fund our near-term growth and strategic objectives.

Speaker Change: Our maintenance CapEx spend for the quarter was $21 million, and year-to-date through the second quarter, we spent roughly $32 million on maintenance CapEx.

Speaker Change: As of the end of the second quarter, our total debt, including finance leases, was $734 million. We had $609 million of cash and cash equivalents on hand, and roughly all of the $350 million of capacity under our revolver was available for borrowings as of quarter end.

Speaker Change: with the free cash flow is generated by our core wegaslocation business our stellar balance sheet and the liquidity provided by our revolving credit facility we remain confident that we have more than sufficient capacity to fund our near-term growth and strategic objectives

Dana Armstrong: As an update on our share repurchase program, during the second quarter, Excelerate purchased 674,000 shares, or $11 million of our Class A common stock at a weighted average price of $16.27 per share. Through the second quarter, we've utilized 40% of the $50 million share repurchase program that was authorized in early 2024. We will continue to take an opportunistic approach to the Share We Purchase program throughout the remainder of the previously authorized two-year tenor, which runs through February 2026.

Speaker Change: As an update on our share repurchase program, during the second quarter, Excelerate purchased 674,000 shares, or $11 million, of our Class A common stock at a weighted average price of $16.27 per share.

Speaker Change: Through the second quarter, we've utilized 40% of the $50 million share repurchase program that was authorized in early 2024.

Speaker Change: we will continue to take an opportunistic approach to the share repurchase program throughout the remainder of the previously authorized two -year tenner which runs through february two thousand and twenty six now let's turn to update on our financial guidance for two thousand and twenty-four

Dana Armstrong: Now let's turn to an update on our financial guidance for 2020. We are raising our previously communicated adjusted EBITDA guidance for 2024. For the full year, we are now expecting adjusted EBITDA to range between $320 million and $340 million. For the full year, we continue to expect maintenance CapEx to range between $50 and $60 million and committed growth capital to range between $70 and $80 million. The majority of our committed growth capital range is related to capital spend on our new-build FSRU, Hull 3407, including a 15% milestone payment due to the shipyard in the fourth quarter of this year.

Speaker Change: we are raising our previously communicated adjusted ebitda guidance for two thousand and twenty-four for the full year we are now expecting adjusted avbitda to range between three hundredengine twenty million and three hundred and forty million

Speaker Change: for the full year we continue to expect maintenance capex to range between fifty and sixty million and committed growth capital to range between seventy and eighty million

Speaker Change: The majority of our committed growth capital range is related to capital spend on our new-build FSRU, Hull 3407, including a 15% milestone payment due to the shipyard in the fourth quarter of this year.

Dana Armstrong: As a reminder, committed growth capital is defined as capital allocated and committed to specific investments for previously approved capital projects. For the projects that we talked about today, plus the others in our pipeline, once we've signed definitive agreements, we'll layer in the incremental estimated capital spend into our committed growth capital estimates at that time. With that, we'll open up the call to Q&A.

Speaker Change: as a reminder committed growth capital is defined as capital allocated and committed to specific investments were previously approved capital projects

Speaker Change: For the projects that we talked about today, plus the others in our pipeline, once we've signed definitive agreements, we'll layer in the incremental estimated capital spend into our committed growth capital estimates at that time.

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

Operator: Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad now, and if you'd like to remove yourself from that queue, please press star followed by two. Our last question comes from Chris Robertson of Deutsche Bank. Chris, your line is now open.

Speaker Change: Thank you. If you'd like to ask a question, please press star followed by 1 on your telephone keypad now, and if you'd like to remove yourself from that queue, please press star followed by 2.

Operator: Our last question comes from Chris Robertson of Deutsche Bank. Chris, your line is now open.

Speaker Change: Last question comes from Chris Robertson of Deutsche Bank. Chris, your line is now open.

Chris Robertson: Thank you, operator. And good morning, Steven and Dana. Thanks for taking the time to answer my questions today. Morning, you know, will assuage their fear around that issue.

Chris Robertson: thank you operatating and good morning stephen and dana thanks for taking the time to answer my questions today

Chris Robertson: This is related to the Alaska proposal. I know one of the concerns that the utilities up there have had is the kind of extreme tidal ranges that happen in Cook Inlet and the operating environment there as it relates to an FSRU. In these discussions, have you guys discussed that particular problem and kind of proposed a technical solution that would sway their fear around that issue? [inaudible]

Speaker Change: why

Chris Robertson: This is related to the Alaska proposal. I know one of the concerns that the utilities up there have had is the

Chris Robertson: kind of be extreme title ranges that happened in the cookingin lit and the operating environment there as there relates to an fthts are you in these discussions have you guys discussed that particular problem and kind of proposed a technical solution that would

Speaker Change: But, you know, it sways their fear around that issue.

Steven Kobos: You know, I'll lead off there, Chris, and then hand it over. Also joining Dana and me in the room today are Oliver Simpson, our Chief Commercial Officer, and David Liner, our Chief Operations Officer, so I'll take a crack and then hand it off to David.

Steven Kobos: But, no, we're well aware of conditions in Cook Inlet. And, let's face it, we have embraced tough conditions all over the world. Most of our fleet was designed for the North Atlantic.

Steven Kobos: And let's face it, we have embraced tough conditions all over the world. For example, most of our fleet was designed for the North Atlantic.

Steven Kobos: We deal with cyclones in the Bay of Bengal. We have been in all kinds of extreme weather. We're well aware of the tidal conditions of Cook Inlet.

Steven Kobos: And we believe that there are suitable technical solutions for that to provide the sort of reliability that is essential to any of these projects. Energy needs to be reliable, but David's team ultimately will be involved with that. So, Dave, do you want to add some insight?

Speaker Change: Dave do you want to add some inside yes, it's certainly an issue that is on our radar screen and it's going to be a challenge for the project no doubt.

David Liner: Yeah, it's certainly an issue that's on our radar screen, and it's going to be a challenge for the project, no doubt. There are existing facilities in the area that are similar to what's proposed for this project. So, you know, we feel fairly confident we're going to be able to develop a technical solution. As Steven says, we do this all over the world in similar challenging environments. This one's just a little bit different, but again, you know, it's a technical problem.

Speaker Change: There are existing facilities in the area that are similar to what is proposed for this project.

Dave: So we feel fairly confident we're going to be able to develop a technical solution.

Speaker Change: As Stephen says we do this all over.

Speaker Change: Sure.

Stephen: Similar challenging environments. This one is just a little bit different but again.

Speaker Change: The technical problem.

David Liner: We have the engineering capabilities. We have a really strong engineering team that can develop a solution that's appropriate for the conditions that are there at the site. So, yeah, we're fully aware of it and confident we can work through it.

Speaker Change: The engineering capabilities, we have.

Stephen: A really strong engineering team that can develop a solution thats appropriate for the conditions that are there at the site. So yes, we're fully aware of it and confident we can we can work through it.

Chris Robertson: Okay, yeah, I appreciate the confident tone there. I guess turning to other parts of that project, would this be part of a, I guess, conversion of the existing Kenai LNG export facility, or is this imagined as a new location?

Chris Robertson: Okay, yeah, I appreciate the confidence telling there. I guess turning to other parts of that project, would this be part of a, I guess, conversion of the existing Kenai LNG export facility, or is this imagined as a new location? It's a new location.

Speaker Change: Okay I appreciate that the confident tone there.

Speaker Change: Turning to other parts of that project would this be part of a I guess conversion of the existing Kenai LNG export facility or is this imagined as a new location.

Speaker Change: Okay.

Steven Kobos: You know, I'll hand this to Oliver Simpson for a little more color, but the answer to that one is pretty clear, I think.

Speaker Change: I'll hand, this over Simpson for a little more color, but the answer to that one is pretty crystal why sorry.

Speaker Change: Yeah.

Dana Armstrong: Yeah, thanks. Thanks, Steven. Thanks, Chris. I think we're

Oliver Simpson: Yeah, thanks. Thanks, Steven. Thanks, Chris. I think we're You know, we're focused on delivering a solution to the customers in the region. I mean, I think you just heard from David.

Speaker Change: Yes.

Simpson: Thanks, Thanks, Steven Thanks, Chris I think we are.

Oliver Simpson: You know, we have some ideas on the technical solutions. We'll, we'll continue to work with our partners there. And, you know, there's a number of options for the technical solution. I think for us, ultimately, it's, it's a project that has great fundamentals. There is, you know, we see the demand for gas in the Cook Inlet region, and that's what we're focused on. We'll work on the best technical solution over the course of the project.

Speaker Change: Yeah.

Speaker Change: Delivering a solution to to the customers in the region.

Speaker Change: You just heard from David.

Speaker Change: We have some ideas on the technical solutions.

Speaker Change: We will continue to work with our partners there.

Speaker Change: And there's a number of options to the technical solution.

Speaker Change: For us ultimately, it's that's appropriate.

Speaker Change: <unk> fundamentals there is a.

Speaker Change: We see the demand.

Speaker Change: For gas and the cooking in that region.

Speaker Change: And Thats what were focused on work on the best technical solution.

Speaker Change: Over the course of the project.

Chris Robertson: Okay, great. I guess my last question related to this is this. The utilities group up there had put out a study with a kind of cost estimate around $700 million for an FSRU solution. Is that a fair starting point for some type of CapEx assumption, or do you guys have any guidance as it relates to what you think the project might cost?

Speaker Change: Okay, Great I guess last question related to this.

Speaker Change: And then the utilities group up there and put out a study with a kind of a cost estimate.

Speaker Change: Around $700 million floor and Fsrus solution is that is that a fair.

Speaker Change: Starting point for some type of Capex assumption or do you guys have any guidance as it relates to what you think the project might cost.

Steven Kobos: I don't think we're gonna I mean, we're not in a position to make a comment on the cost, but typically, we come in well below that.

Steven Kobos: I don't think we're gonna, I mean, we're not in a position to make a comment on the cost, but typically, we come in well below that. As you guys know, I'm looking at our... and other facilities.

Speaker Change: I don't think we're going to we're not in a position that I could comment on the cost, but typically we come in well below that.

Speaker Change: As you guys have no frame looking at arc.

Speaker Change: Their facilities.

Chris Robertson: Yes. All right. Great. I'll turn it over to you. Thank you.

Speaker Change: Yes, alright, great I'll turn it over thank you.

Chris Robertson: Thanks, Chris.

Operator: Thank you very much. Our next question comes from Theresa Chen of Barclays. Theresa, your line is now open.

Speaker Change: Thank you very much. Our next question comes from Theresa Chen of Barclays to reset your line is now open.

Teresa: Morning, thank you for taking my questions. On the Northern Vietnam Onshore Terminal project, can you just give us a little bit more color on the genesis of this project? How long you've been in discussions with this? What got it across the finishing line?

Theresa Chen: Good morning. Thank you for taking my questions. On the Northern Vietnam Entrepreneurial Project, can you just put a little bit more color on the genesis of this project? How long have you been in discussions related to this? What got it across the finishing line and potential economics to think about, and other potential projects like this in emerging markets that you're assessing right now?

Theresa Chen: Good morning, Thank you for taking my questions.

Speaker Change: The northern Vietnam onshore terminal project and can you just talk a little bit more color on the Genesis of this project how long you've been in discussions related to this what got it across the finish line.

Teresa: Any potential economics to think about and other potential projects like this in emerging markets that you're assessing right now?

Chris Robertson: Any potential economics to think about and other potential projects like this in emerging markets that you are assessing right now.

Steven Kobos: I'm going to hand this to Oliver, Teresa. It's good to hear from you, by the way. I'm going to hand it to Oliver.

Oliver Simpson: I'm going to hand this to Oliver, Theresa. It's good to hear from you, by the way. I'm going to hand it to Oliver.

al: I'm going to hand, this to all virtually so it's good to hear from me by the way.

Speaker Change: I hand it over.

Speaker Change: Want to say, though in general, we're giving you guys a peek <expletive>.

Speaker Change: Current types of projects Youre using different types of assets, we've told everybody, we love Fsrus, but we're not web.

Speaker Change: Web to them, if that's not the right solution for a particular project.

Steven Kobos: I think what I want to say, though, in general, you know, we're giving you guys a glimpse at different types of projects, you know, using different types of assets. We've told everybody we love FSRUs, but we're not wedded to them if that's not the right solution for a particular project. In terms of Vietnam in general... Man, we've been looking at Vietnam forever, you know, and over time, I think, I don't know, there have been, when you look at all the gas to power the south and everything else, I think at one time or another, there have probably been more than 50 projects proposed, but we've been patient, and been a little counterintuitive to what we think will cross the post first in time in terms of Why don't you take a run at it? Yeah, thanks.

Speaker Change: In terms of Vietnam in general.

Speaker Change: We've been looking at Vietnam Forever.

Speaker Change: And over time, I think I don't know there've been when you look at all the gas to power to the south.

Speaker Change: Everything else is kind of one time or another probably been more than 50 projects proposed but we've been patient we've.

Speaker Change: We've been a little counterintuitive.

Speaker Change: Counterintuitive to what we think will cross the post first in time in terms of.

Speaker Change: Demand in the walk.

Speaker Change: So over Youre closer to.

Speaker Change: Closer to Vietnam, why don't you take a while.

Oliver Simpson: Yeah, thanks, and thanks, Theresa. Yeah, I think, look, as Steven said, we've been looking at Vietnam for a while. There have been a number of projects, and, you know, stabbing back the prospect for LNG in Vietnam, we're extremely bullish on it. I think when we saw this project, the fundamentals, as Steven said in his remarks, the fundamentals and laws are to be the first LNG terminal up there. This is based on industrial demand, on demand that's there today.

Speaker Change: Yes. Thanks.

Teresa: Thanks Teresa.

Speaker Change: I think lukas.

Speaker Change: As Stephen said, we've been looking at Vietnam for Awhile, Theres been a number of projects and stuff.

Speaker Change: Stepping back the the prospect for LNG in Vietnam, we're extremely bullish on and I think when we saw this this project the fundamentals.

Speaker Change: As Stephen said in his remarks.

Stephen: The fundamentals in the north as it would be the first LNG terminal up there. This is this is based on an industrial demands on demand today.

Speaker Change: <unk>.

Speaker Change: It's not the LNG to power projects, which we believe in but we think have slightly longer timeline potentially so we looked at it.

Speaker Change: Number of projects, but we felt that this one has the right attributes for us.

Speaker Change: And importantly, too.

Speaker Change: Your broader question as we think of projects.

Speaker Change: This is an integrated project, where et cetera brings its international expertise, we can bring our LNG supply portfolio and deliver gas and LNG solutions to these customers.

Speaker Change: What we're doing in Vietnam, that's what we said we're going to do but that's also what we're looking to do in other projects around the world. So I think this is a good a good poster child is the type of projects that we're looking at.

Theresa Chen: Thank you both for that nuanced answer. Maybe turning to capital allocation, just with the visible growth ahead of you, while still executing the share purchase plan. What is your updated view at this point on balancing growth endeavors, returning cash to shareholders while still optimizing liquidity of the stock and maintaining a healthy balance sheet? Thank you.

Speaker Change: Thank you both for that nuanced answer.

Speaker Change: Maybe turning to capital allocation just with the visible growth ahead of you while still executing the share repurchase plan. What is your updated view at this point on balancing growth endeavors, returning cash to shareholders, while still optimizing liquidity of the stock and maintaining a healthy balance.

Speaker Change: And sheet.

Dana Armstrong: Hey Theresa, this is Dana. So I'll just reiterate what we said before. Obviously, growth is our priority. We have several projects. We talked about these projects in the last quarterly call. We just highlighted a couple of other projects and gave more specifics. We'll continue to maintain our best-in-class fleet, so CapEx on growth projects and CapEx for our existing fleet, as well as, you know, the new additions. Obviously, we have all 3407 coming out in 2026.

Steven Kobos: I think what I want to say, though, in general, you know, we're giving you guys a glimpse at different types of projects, you know, using different types of assets. We've told everybody we love FSRUs, but we're not wedded to them if that's not the right solution for a particular project.

Speaker Change: Hey, Terry this is Dana.

Terry: So I'll just reiterate what we said before obviously growth is our priority. We have several projects. We've talked about these projects in the last quarter call. You just highlighted a couple of other projects and more specifics and we'll continue to maintain our best in class fleet. So capex on growth projects and Capex for our existing fleet as well as you know Anthony.

Speaker Change: And obviously, we have plenty for us.

Speaker Change: <unk> 2020, thanks, that's our priority.

Dana Armstrong: That's our priority, and we will continue to maintain our dividend. We will look at potentially increasing that dividend when the time is right. You know, right now, our focus is on growth. As far as the share repurchase is concerned, we're very pleased with where we are. We've executed $20 million of the $50 million. That program runs until February 2026, and we'll continue to use it opportunistically when it makes sense for us, based on the share price and other factors.

Speaker Change: Continued to maintain our dividend and we will look at potentially increasing that dividend when the time its Brian right.

Brian: Right now our focus is on growth as far as the share repurchase we're very pleased with where we are there we've executed $20 million of the $50 million that program runs until February 2026, and we will continue to use that opportunistically when when when it makes sense for us based on the share price and other factors.

Speaker Change: Thank you very much.

Speaker Change: Thank you.

Operator: Thank you. Our next question comes from Wade Suki of Capital One. Wade, your line is now open. Good morning.

Speaker Change: Thank you.

Speaker Change: Next question comes from Wayne <unk> of capital one wage your line is now open.

Oliver Simpson: Yeah, thanks, and thanks, Teresa. Yeah, I think, look, as Steven said, we've been looking at Vietnam for a while. There have been a number of projects, and, you know, stabbing back, the prospect for LNG in Vietnam is one that we're extremely bullish on. I think when we saw this project, the fundamentals, and

Wade Suki: Good morning, and thank you for taking my questions. Would you mind giving us a sense, I think you sort of answered that already, but what kind of vessel requirements might be required for maybe Alaska or some of the other projects that are further up in the queue, to whatever extent you feel comfortable discussing that?

Wayne: Good morning, and thank you for taking my questions.

Dana Armstrong: Hey Teresa, this is Dana.

Wayne: Would you mind, giving us a sense I think you've sort of answered it already but what kind of vessel requirements might be required for maybe Alaska or are some of the.

Wade: Good morning, and thank you for taking my questions. Would you mind giving us a sense, I think you sort of answered that already, but what kind of vessel requirements might be required for maybe Alaska or some of the other projects that are further up in the queue, to whatever extent you feel comfortable discussing that?

Speaker Change: Maybe projects that are further up in the queue.

Speaker Change: Hum.

Speaker Change: Whatever extent you feel comfortable.

Speaker Change: Discussing that.

Speaker Change: Yes. Thanks.

Steven Kobos: This way, you know, from the chart we shared last time. Last time, we showed some RFSRU projects. Some are new building type projects. Some are going to have lower send-out, and will likely be a conversion.

Speaker Change: From the from our.

Speaker Change: Chart, we shared last time, we showed some reference or your projects. Some are new building type projects. Some are going to have lower send out will likely be a conversion.

Steven Kobos: And kind of TBD on the specifics here, but we do recognize that not all of these projects require enormous send-outs, so we'll tailor the vessel for those circumstances. But we do intend to grow our fleet; that is part of this pipeline, and we will grow it in the right way. And I guess I can tell you, Wade, we continue to evaluate, excuse me, different ways to grow that fleet. I mean, it's a bit of an obsession right now.

Speaker Change: And kind of TBD on the specific here, but we do recognize that.

Speaker Change: But not all of these projects.

Speaker Change: Require.

Speaker Change: Enormous send outs. So we will tailor the vessel for those circumstances, but we do intend to grow our fleet that is part of this pipeline and we will grow it in the right way alright.

Speaker Change: Alright, Yes, I can't tell you we continue to evaluate.

Speaker Change: Excuse me different ways to grow that fleet I mean, it's a bit of an obsession right now.

Steven Kobos: I understand. Thank you. This is industry-wide. Do you know how many FSRs are under construction today? And I guess if you ordered one today, when do you think delivery might be?

Speaker Change: Understand thank you.

Speaker Change: Industry wide do you know how many fsrus are under construction today and I guess, if you ordered one today when do you think delivery might be.

Steven Kobos: Now, Wade, there are two new buildings, I guess, under construction. Actually, ours is in fabrication and will have steel cutting in October. In October, if you ask me, there'll be one Hat Steel Cutting. So maybe that's how I'll answer that. In terms of when you can get one, Wade, I know that, but I don't want to tell the world. So, it's been a while, it's been a while, but we're happy with how we can grow this fleet.

Dana Armstrong: Now, Wade, there are two new buildings, I guess, under construction. Actually, ours is in fabrication and will have steel cutting in October. In October, if you ask me, there'll be one. I know that, but I don't want to tell the world.

Speaker Change: There are two new buildings I guess under construction actually.

Speaker Change: In fabrication and how steel cutting in October in October if you ask me there'll be one.

Speaker Change: Steel cutting.

Speaker Change: That's how I answer that.

Speaker Change: Terms of.

Speaker Change: When you can get one.

Speaker Change: I know that but I don't want to tell the world.

Speaker Change: So it's good so.

Speaker Change: So far.

Speaker Change: While but but we're happy with how we can grow this fleet.

Wade Suki: One last one, if I could. I'd love to just hear, just from a commercial sense, what the tenor is like, maybe more recently with the customers, and maybe how that's changed here in the last few months, given all that's going on in the world.

Speaker Change: Awesome. Thank you I appreciate that one last one if I could.

Speaker Change: I'd love to just hear.

Speaker Change: Just from a commercial sense, what the tenor is like maybe more recently with the customers and maybe how that's changed here in the last few months given given all that's going on in the world.

Speaker Change: So the sooner way do you mean.

Steven Kobos: So the tenor, Wade, you're not talking about our average remaining life of contracts, right?

Speaker Change: I mean, you're not talking to our average remaining life of contracts right, but what's your question go to.

Wade Suki: Really thinking about new projects, and I know, following Ukraine and Russia and the gas price spike, we had a little bit of a pause. I'm just kind of curious to what extent sentiment or psychology might have shifted here in the last few months, given gas prices, things like that, and Global LNG Prices, Geopolitics, all those other things that we're doing on the customer side.

Dana Armstrong: You know, really thinking about new projects. And I know, following Ukraine and Russia and the gas price spike, we had a little bit of a pause. I'm just kind of curious to what extent sentiment or psychology might have shifted here in the last few months, given gas prices, things like that.

Speaker Change: You're really thinking about.

Speaker Change: New projects and I know.

Speaker Change: Following Ukraine, and Russia, and the gas price Spike we had a little bit of a pause I'm just kind of curious if if the if the sentiment or psychology to what to what extent that might have.

Speaker Change: Shifting here in the last few months given gas prices things like that.

Speaker Change: Our global LNG prices geopolitical so all of those other yes.

Chris Robertson: Thank you, operator, and good morning, Steven and Dana. Thanks for taking the time to answer my questions today.

Speaker Change: On the customer.

Speaker Change: Well.

Speaker Change: I'm going to hand, this to Oliver I'm going to make a couple of just big statements.

Steven Kobos: I'm going to hand this to Oliver. I'm going to make a couple of just big statements that, our gospel for us, and that is that the world understands that LNG is a critical fuel; the global south sees LNG as affordable and as a critical fuel. The whole world sees it as affordable, as a suitable bridging fuel. And as your first question to us made clear, there remains a tight, Within the asset class to regasify LNG beyond the terminals that are out there right now, FSRUs are a type of asset class.

Oliver Simpson: Our gospel for us and that is the world understands the LNG is a critical fuel the global South seas, LNG as affordable as a critical fuel.

Oliver Simpson: The whole world sees it as affordable as a suitable bridging fuel.

Oliver Simpson: And as your first question to us made clear.

Speaker Change: There remains a tight.

Oliver Simpson: Within the asset class to regasify LNG beyond the terminals that are out there right now, FSRUs are a type of asset class. I'll leave it at that. But, Oliver, you're closer to the customer.

Oliver Simpson: Within the asset class to re gasify LNG beyond the terminals that are out there right now.

Oliver Simpson: Fsrus are a type of asset class so.

Oliver Simpson: <unk>.

Oliver Simpson: I'll leave it at that but offered.

Oliver Simpson: Closer to the customer.

Oliver Simpson: Yeah, no, no, I think that's, that's exactly right. And I think, you know, what we've seen is, you know, the customers are on the back of the war in Ukraine. The customers are now coming back. There's LNG; there's a strong pipeline of LNG coming online in the coming years. So you're seeing LNG as an affordable fuel again. And we're seeing that customers are coming to us, and they're wanting that integrated solution with the LNG and what we can provide.

Speaker Change: I think that's.

Speaker Change: That's exactly right.

Speaker Change: I think what we've seen is the.

Speaker Change: The customers on the back of the room in Ukraine, and the customers are not coming back as LNG.

Speaker Change: There is a strong.

Speaker Change: Pipeline of LNG coming online in the coming years, so youre seeing LNG as an affordable.

Speaker Change: As an affordable fuel again.

Speaker Change: And we're seeing that the customers are coming to us and the one thing that integrated solution with the LNG and what we can provide so I think yes.

Oliver Simpson: So I think, you know, we feel strongly that we have a great product to offer our customers. We're seeing demand for it. And I think, you know, in... We're picking markets that have the fundamentals. So these are markets that need the LNG, need the gas for a long time. So yeah, we're selective on where we're going. But we see that long-term need.

Speaker Change: We feel strongly we have a we have a great product to offer our customers.

Speaker Change: Seeing we're seeing demand for it.

Speaker Change: And I think.

Speaker Change: <unk>.

Speaker Change: We're picking markets has the fundamentals. So these are markets that need the LNG meet the gas for a long time so.

Speaker Change: We're selective on where we're going but we see.

Speaker Change: We see that long term need.

Speaker Change: Yes.

Wade Suki: Fantastic. Thank you so much. I appreciate it. Y'all have a great day.

Speaker Change: Fantastic. Thank you so much I appreciate you all have a great day.

Speaker Change: Thank you.

Operator: Thank you so much. Our next question comes from Michael Scialla of Steven. Michael, your line is now open.

Mike <unk>: Thank you so much. Our next question comes from Mike <unk> of Stephens Mike.

Operator: Michael, your line is now open.

Speaker Change: Mike Your line is now open.

Speaker Change: Yeah.

Michael Scialla: Thanks. Good morning, everybody.

Mike: Thanks, Good morning, everybody.

Michael: I was trying to characterize the two projects that you announced here. You said last quarter that 10 of the 12 were kind of in that $50 million to $400 million range. Some were...two, I guess, Pyra being one of them, were...

Michael Scialla: I was trying to characterize the two projects that you announced here. You said last quarter that 10 of the 12 were kind of in that $50 million to $400 million range. Some were, two, I guess Pyra being one of them, were... Longer term and above that range, is it fair to characterize these two as kind of toward the higher end of that range and longer term, just trying to get a sense of how they fit into the pipeline?

Speaker Change: Just trying to.

Mike <unk>: Characterize the two projects that you announced here.

Speaker Change: You said last quarter that 10 of the 12 were kind of in that 50 million to $400 million range.

Speaker Change: Somewhere.

Speaker Change: Two I guess with pirate being one of them was.

Speaker Change: Longer term and.

Speaker Change: Above that range is it fair to characterize these two is kind of towards the higher end of that range and longer term just trying to get a sense of how they fit into the pipeline.

Speaker Change: Pipeline.

Speaker Change: Okay.

Steven Kobos: Yeah, I'll take that one. Thanks, Mike.

Speaker Change: Yes, I'll take that one thanks, thanks, Mike.

Speaker Change: Yeah, I think that they are in a sudden in that range.

Steven Kobos: Yeah, I think that they're certainly in that range. I think, you know, obviously, each project has its own fundamentals. But as we said, in the case of Vietnam, we're extremely bullish on the need for LNG in that country. And the project is, it's an integrated project, you know, providing gas to customers downstream. So that is, you know, we expect to be there for many years. I think Alaska is similar to different fundamentals, but also there's a need, there's a need for LNG in the region. And again, we're looking at this, you know; we're looking at this from an integrated point of view. So it's

Speaker Change: Obviously.

Speaker Change: Each project has its own fundamentals, but as we said in the case of in the case of Vietnam. We're extremely bullish on the need for LNG in that country and the project is it's an integrated project.

Speaker Change: Providing providing guests to customers' downstream so that as you know.

Speaker Change: We expect to be that since so many years.

Speaker Change: Alaska.

Speaker Change: It's similar to different fundamentals, but also there is a need there is a need for LNG.

Speaker Change: In the region and again, we're looking at this we're looking at from an integrated point of view so it's.

Speaker Change: View on this.

Michael Scialla: Okay, thanks. And I guess looking at the remaining projects in the pipeline, what would cause you to, I guess, unveil those? Is it getting a term sheet like you have in Vietnam, or..., something else that would be required before you could talk about them?

Speaker Change: Okay, Thanks and I.

Speaker Change: I guess looking at the remaining projects in the pipeline what would.

Speaker Change: Cause you to.

Speaker Change: I guess unveiled those is it getting a term sheet like you have in Vietnam or.

Michael: Something else that would be required before you could talk about them is

Speaker Change: Something else that would.

Speaker Change: Be required before you could talk about.

Steven Kobos: Yeah, Mike, this is Steven. We wanted, we want to be as transparent with you guys as possible, you know, short of inviting you guys to travel around the world and sit at conference room tables with us or, you know, walk around the site. So we want to be as transparent as we can. But we think it's important, as we said last time, we'll come to you guys when we've got tangible proof points. We want as much transparency as we can. We want to show you as much consistency as possible. These just happen to be unfolding.

Steven Kobos: Yeah, Mike, this is Steven. We wanted, we want to be as transparent with you guys as possible, you know, short of inviting you guys to travel around the world and sit at conference room tables with us or, you know, walk around the site. So we want to be as transparent as we can. But we think it's important, as we said last time, we'll come to you guys when we've got tangible proof points. We want as much transparency as we can. We want to show you as much consistency as possible, but these just happen to be unfolding. You know, it's all a horse race, and these horses happen to be ahead at this point in time.

Mike <unk>: Yes, Mike.

Speaker Change: Steven.

Mike <unk>: We wanted we wanted to be as transparent with you guys as possible short of it.

Speaker Change: <unk> you guys to travel around the world and so the conference room tables with us or.

Speaker Change: A walk around the site. So we wanted to be as transparent as we can but we think it's important as we said last time, we will come to you guys. When we've got tangible proof points, we want as much transparency as we can.

Speaker Change: We want to show you as much consistency as possible. These.

Speaker Change: Just happened to be unfolding.

Steven Kobos: It's all a horse race, and these horses happen to be ahead at this point in time, and we wanted to... We also thought they were good at showing the whole range of opportunities that we're looking at geographically. We had hinted last time that we were looking at the Americas. That might've been too faint of a breadcrumb, so we wanted to make clear that we are looking all over the globe, and that includes the U.S. of A. when it's appropriate. So we just thought they were interesting proof points, and we were promoting them coming into the quarter in a way that felt like it was comfortable to talk about them, and we'll try to continue that.

Speaker Change: All of a horse race and these horses have can be ahead.

Speaker Change: At this point in time, and we wanted to we also thought they were good and showing the whole range of opportunities that we're looking at geographically we had hinted last time that we're looking at the Americas.

Steven Kobos: And we wanted to... We also thought they were good at showing the whole range of opportunities that we're looking at geographically. You know, we had hinted last time that we were looking at the Americas. That might've been too faint of a breadcrumb, so we wanted to make clear that, you know, we are looking all over the globe, and that includes the U.S. of A. when it's appropriate. So we just thought they were interesting proof points, and we were advancing them coming into the quarter in a way that felt like it was comfortable to talk about them. And we'll try to continue that.

Speaker Change: Been too faint the bread crumbs. So we wanted to make clear that we are.

Speaker Change: We are looking all over the globe and that includes you SFA when it's appropriate. So we just thought they were interesting proof points and we were advancing them come.

Speaker Change: Coming into the quarter in a way that felt like it was comfortable to talk about them and we will try to continue that.

Speaker Change: Sounds good thank you.

Operator: Thank you very much. As a reminder, if you'd like to ask a question, please press star followed by one on your telephone keypad and stick yourself out of that question queue; it's star followed by two. Our next question comes from Bobby Brooks of Northland Capital Markets. Bobby, your line is now open.

Speaker Change: Thank you very much as a reminder, if you'd like to ask a question. Please press star one on your telephone keypad I think all of that question key star followed by two.

Speaker Change: Our next question comes from Tobey Brooks of Northern capital markets will be your line is now open.

Bobby Brooks: Hey, good morning, guys. Thank you for taking my question. I just want to start off with the re-liquification technology that you guys are integrating into your current FSRUs. It's a really interesting way to uplift revenue generation on your current footprint. So what I was curious to hear about is, first, how quickly that technology can be added to your current FSRU footprint, and then, secondly, once that is added, how quickly can you see a financial benefit.

Bobby: Hey, good morning, guys. Thank you for taking my question. I just want to start off with the re-liquification technology that you guys are integrating into your current FSRUs. It's a really interesting way to uplift revenue generation on your current footprint. So what I was curious to hear about is, first, how quickly that technology can be added to your current FSRU footprint, and then, secondly, once that is added, how quickly can you see a financial benefit.

Tobey Brooks: Hey, good morning, guys. Thank you for taking my question I just wanted to start off with the re.

Tobey Brooks: Classification technologies that you guys are integrating to your current Fsrus I was really interesting really interesting way to uplift revenue generation on your current footprint. So what I was curious to hear about is first how quickly can that technology be added to your comp.

Speaker Change: Fsrus footprint and then secondly, one side of that and how quickly can you see a financial benefit is that something where you need to go back to the customer and renegotiate the contract or is that complements that.

Bobby: Is that something where you need to go back to the customer and renegotiate the contract, or is that something that's already baked into those new contracts? And maybe if you could just give a sense of how incremental the financial benefit would be, that would be appreciated.

Bobby Brooks: Is that something where you need to go back to the customer and renegotiate the contract, or is that something that's already baked into those new contracts? And maybe if you could just give a sense of how incremental the financial benefit would be, that would be appreciated.

Speaker Change: Although thats already baked into those new contracts and maybe if you can just give us some clues.

Speaker Change: How incremental.

Speaker Change: The actual benefit would be I appreciate it.

Bobby: Hi, Bobby.

Steven Kobos: Good to hear from you. Listen, I'll take the last point.

Bobby: Here from you listen.

Bobby: I'll take the last point in general Yeah, we're going to have some communication with the customer it's a great benefit, but we're not in the business of giving things away for free so.

Steven Kobos: In general, yeah, we're going to have some communication with customers. It's a great benefit, but we're not in the business of giving things away for free. So it's a nice piece of kit.

Steven Kobos: So, Michael Blum, Michael, I'll leave it at that. But Oliver, you're closer to the customer.

Bobby: The nice piece of kit, we think a customer it will pay for itself toward customer many customers usually within a year. So we think the value it.

David Liner: We think a customer, it'll pay for itself for a customer, many customers, easily within a year. So we think they'll value it, and we think they're going to fly off the shelf. David can talk about timing on that. We're excited, man. This is going to lower emissions from our fleet. Of course, we're excited about it.

Bobby: And we think theyre going to fly off the shelf.

Speaker Change: David can talk about timing on it.

David: We're excited man this is going to lower emissions of our fleet of course, we're excited about it.

David: Yes, just to build on that.

David Liner: Yeah, to build on that, in terms of timeline, the lead time for this equipment is about 18 months. And we want to buy this equipment, or we have already bought this equipment, so that it will be ready and available to deploy as soon as our customers decide they want to use it. And as Steven says, we know that there's strong demand for it. And by buying it now, that enables us to save our customers from having to make a decision two years in advance about whether they want this technology.

David: In terms of timeline. So the lead time for this equipment is about 18 months and we want to buy this equipment or we have bought this equipment now so that it will be ready and available to deploy as soon as our customers.

David: They want to employ it in as Steven said, we know that there is strong demand for it.

Bobby: Okay.

Steven: By buying it now that enables us to save our customers from having to make a decision two years in advance that they want this technology.

David Liner: So we're cutting the implementation time down from, you know, a couple years down to a few months to be able to deploy this from the time a customer says, yes, we're ready to go. So, yeah, roughly 18 months from now, you know, as early as 2026, we could be able to deploy the technology on an existing vessel or something coming into the fleet as well.

Speaker Change: We're cutting the implementation time down from.

Speaker Change: Couple of years down to a series of months to be able to deploy this from the time a customer says yes, we are.

Speaker Change: Ready to go so yes.

Speaker Change: Yes, roughly 18 months from now.

Speaker Change: As early as 2026, we can be able to deploy deploy the technology to an existing vessel or something coming into the fleet as well.

Bobby Brooks: Got it. And have you, so you said that you've already bought these items. Have you bought enough for all 10 or, you know, 11 FSRUs, because that's what you guys would jump to in 2026, or have you only bought half of them, or any color on that? Welcome to the

Speaker Change: Got it have you. So you said that you've already bought these lead.

Speaker Change: Items have you bought.

Speaker Change: Have you bought enough for all 10 or 11, Fsrus because thats. What you guys are gen. Two in 2026 are you only bought it for half or any color on that.

Steven Kobos: We've... I mean we... Bobby, we've placed our orders. We've done our engineering, we've done our design work, we've done the work to ensure that it's plug and play across the different classes of vessels within our fleet. But, you know, we've placed our initial orders. We expect as we get further customer traction, we will continue this. We're not aware of any other FSRU that has one of these kits on it out there in the world, and David's team does obsess about our fleet being best in class. And we're determined to keep it that way. And you can look over time for us to put it across the fleet. I don't want to get into sausage making.

Speaker Change: Yes.

David Leiner: Bobby, we've placed our initial orders. We've done our engineering, we've done our design work, we've done the work to ensure that it's plug and play across the different classes of vessels within our fleet. But, you know, we've placed our initial orders. We expect as we get further customer traction, we will continue this. We're not aware of any other FSRU that has one of these kits on it out there in the world. And, you know, David's team does obsess about our fleet being best in class, so we put it across the fleet.

Bob: Bob do we place we've done our engineering, we've done our design work we've done the work to ensure that it's plug and play across the different classes of vessels within our fleet.

Speaker Change: But.

David Leiner: We've placed we placed our initial orders we expect as we get further customer traction.

Speaker Change: We will continue this we're not aware of any other fsrus that house one of these kits drawn it out there in the world.

David: David's team does obsess about our fleet being best in class and we are determined to keep its best in class and you can look over time.

Speaker Change: For us to put it across the fleet there are.

Speaker Change: I don't want to get into the sausage, making there are two or three vessels that are used in a way that maybe it's not as.

Steven Kobos: There are two or three vessels that are used in a way that maybe it's not as useful as it is for the way that most of our customers use their vessels. So, you know, it's kind of, It shouldn't be surprising how people use these assets very much, but I'd say, over the long run, I'd look to put them on, I don't know, six or seven of the fleet, probably.

David Leiner: As useful as it is for the way that most of our customers use their vessels.

Speaker Change: It's kind of.

Speaker Change: It shouldn't be surprising how people use these assets vary but I'd say.

David Leiner: Over the long run.

Speaker Change: To put it on and I don't know six or seven of the fleet properly.

Praneeth: Got it. And then so the opportunities for Excelerate are vast going forward just with these growth opportunities and new projects. And you know, you guys have roughly 960 million dry powder.

Bobby Brooks: Got it. And then so the opportunities for Excelerate are vast going forward just with these growth opportunities and new projects. And you know, you guys have roughly 960 million dry powder. I'll add that to your guys are producing 50 to 60 million in quarterly free cash flow, and then finally layer in your expertise and history in importing LNG. So you are clearly well positioned to capitalize on the vast opportunities set in front of you.

Speaker Change: So the opportunity set for accelerated vast.

Speaker Change: Going forward, just with these growth opportunities and new projects.

Speaker Change: You guys have roughly 969 dry powder.

Speaker Change: Hey.

Speaker Change: You guys are producing $50 million to $60 million quarterly free cash flow and then finally later in your expertise and history and importing LNG. So you clearly are well positioned to capitalize on those on that last one on the das opportunity set trying to what I'm trying to get a sense of.

Bobby Brooks: What I'm trying to get a sense of is, what are the constricting factors for you going forward? Do you see the 960 million of that dry powder as the limit in terms of what you'd be comfortable putting towards growth, or maybe something else? It just really seems like the sky's the limit here for you guys.

Speaker Change: What are you constructing factors for you going forward do you see the $960 million.

Speaker Change: Dry powder.

Speaker Change: The limit in terms of what you'd be comfortable putting towards growth or maybe something else. It just really seems like the sky's the limit here for you guys.

Steven Kobos: First of all, Bobby, I'd like for you to write a copy for Craig, because that's true. I do feel, no, I feel like, in all seriousness, there is an enormous TAM out here. It is enormous. We don't need all of it. We don't want all of it. We're kind of picky.

Speaker Change: First of all Bobby I'd like for you to write copy for Craig.

Because.

Speaker Change: That's true I do I do feel I feel like all seriousness. There is an enormous tam out here. It is enormous we don't need all of it we don't want all of it.

Speaker Change: Kind of picky.

Steven Kobos: We do think there are a lot of markets with the great fundamentals that we're looking for. And I think what you've seen from our proof points today, just a reminder, you know, we are carefully looking all over the world for the right market, the right chance to advance our business model, not just chasing some project somewhere whose execution doesn't make sense. So I do think over time we are incredibly well positioned with the tools, including our dry powder, that we have to bring to bear. So I think the TAM is so big that we're going to be able to kill it while still being, still being so worked. [inaudible]

Speaker Change: We do think there are a lot of markets with great fundamentals that were looking for and I think what you've seen from our.

Speaker Change: From our proof points today just reminder.

Speaker Change: We are carefully looking all over the world for the right market the right chance to advance our business model not just chasing some projects.

Speaker Change: Whose dispatch doesn't make sense.

Praneeth: So I do think overtime, we are incredibly well positioned.

Speaker Change: With the tools, including our dry powder that we have to bring to bear.

Speaker Change: I think the Tam is so big that we're going to we're going to be able to kill it while still being.

Speaker Change: Still being selective.

Praneeth: Yeah.

Bobby: Got it.

Praneeth: Yeah.

Bobby Brooks: Got it. So, and then maybe last one for me, just kind of a clarifying point, it seems like just reading through how you guys talked about the VNLT, the Vietnam LNG import terminal that you guys did talk about, is that, are you guys going to be selling gas to actual industrial factories in the market, or would you be selling it to utilities? I just kind of wanted to get some clarity on that, like who would be the customers taking the gas?

Speaker Change: So and then just maybe last one for me just kind of a clarifying point.

Speaker Change: It seems like just reading through how you guys talked about the.

Speaker Change: The MLP.

Praneeth: No.

Speaker Change: LNG import terminals that you guys just talked about.

Speaker Change: Is that are you guys going to be so would you be selling gas to actual those those industrial factories in the market or would you or would you be selling it to utilities I just kind of wanted to get some clarity on that like who would be the customers off taking the gas.

Oliver Simpson: Yeah, I'll take that one, Bobby. I think, you know, we don't want to get into too many details on the commercials here, but essentially, we, you know, the idea, as I mentioned, is an integrated terminal where we will be providing the LNG to that terminal, and the terminal company that we're in, that we're a partner in, will be selling gas and or LNG out of the terminal to local customers and local Over time, we'll see exactly how far downstream we are, but we do see that there is demand for the product from the terminal. You know, I'll sort of leave it at that. Got it, yeah.

Praneeth: Yeah.

Praneeth: I'll take that one Bob.

Speaker Change: I think.

Speaker Change: We don't want to get into.

Speaker Change: Too much details on the commercials here, but essentially we.

Speaker Change: As I mentioned, it's an integrated.

Speaker Change: Integrated terminal, where we will be providing the LNG to that total.

Speaker Change: And the terminal terminal company that we're in.

Speaker Change: We're partnering will be selling gas into LNG out of the terminal two.

Speaker Change: Local customers local local industries.

Speaker Change: Over time, we will see exactly how far downstream, we are but we see we do see that there is there is demand for the product from from the terminal and I think.

Speaker Change: Sort of leave it at that.

Bobby Brooks: Got it. Yeah, so a healthy, healthy amount of demand, not through utilities, but probably more so those industrial players there. Thank you very much, guys. And congratulations on another, you know, fantastic quarter.

Bobby: Got it yes, so healthy healthy amount of demand.

Speaker Change: Utilities was probably more.

Speaker Change: Industrial players there.

Speaker Change: You very much guys and congrats congratulations on another.

Speaker Change: Fantastic quarter.

Praneeth: Thanks.

Operator: Our next question comes from Puneet Satish from Wells Fargo. Your line is now open.

Speaker Change: Our next question comes from <unk> Satish from Wells Fargo. Your line is now open.

Puneet Satish: Great, thanks. Good morning.

Bobby: Great. Thanks, good morning.

Speaker Change: Entire did the political changes in the region and potential.

Speaker Change: Potential prime ministerial candidates did that have any bearing on support for this project and then just broadly where does <unk> stack now versus some of the other opportunities you are looking at here with Vietnam, Alaska and all those other projects in the in the backlog.

Puneet Satish: On PYRA, do the political changes in the region and potential prime ministerial candidates have any bearing on support for this project? And then, just broadly, where does PYRA stack now versus some of the other opportunities you're looking at here with Vietnam, Alaska, and all those other projects in the backlog?

Steven Kobos: Thanks, Puneet. I'll take that one. It's Steven.

Speaker Change: Thanks, <unk> I'll take that one Steven.

Steven Kobos: Thanks, Praneeth. I'll take that one. It's Steven.

Steven Kobos: I would say, what I'll tell you about Pyra, what I'll tell you about the market is that nothing really changes about the need for natural gas in Bangladesh. The supply-demand balances, the decline curve, and their historic onshore production. All those fundamentals are there, so the need remains. But at this point, we're less than a week into a change in government, and we don't have the caretaker government's lineup filled out yet. So clearly, any time you're dealing with a counterparty who's a state or an energy company like PetroBangla.

Steven Kobos: I would say what I'll tell you about pirate will tell you about the market is nothing really changes about the need for natural gas in Bangladesh.

Steven Kobos: Yeah.

Steven Kobos: All those fundamentals are there: the supply-demand balances, the decline curve, and their historic onshore production. So the need remains, but at this point, we're less than a week into a change in government. We don't have the caretaker government's lineup filled out yet. So clearly, anytime you're dealing with a counterparty who's a state, and why we have a robust overall pipeline, one of 12 projects in our pipeline. That's why we are trying to give you all more color, more detail, more proof points, just so you guys have better visibility into what's really going on here in our conference rooms day to day. So, yeah, I think it is.

Speaker Change: Supply demand balances to decline curves in their historic onshore production.

Steven Kobos: All those fundamentals are there.

Steven Kobos: So the need remains but at this point, we're less than a week into a change in government. We don't have the caretaker governments lineup filled out yet. So clearly when you are anytime you are dealing with a counterparty who is a state.

Speaker Change: Energy company like Petro Bancorp.

Steven Kobos: They're going to need a remit from a government to proceed with it. We will continue doing some of, and that'll take a little while; we will continue with some of the efforts that we're ongoing this year. You know, some of the MedOcean, we've got a MedOcean buoy out there, we're doing all kinds of things to assess what the needs are. We're going to keep doing that because we need to, because this will ebb and flow on that pipeline. Everything doesn't proceed at a uniform pace. That's why you want and why we have a robust overall pipeline. But let's not forget: I was one of 12.

Steven Kobos: They're going to need to remit from a government too.

Speaker Change: To proceed with it we will continue doing some of it and they'll take a little while.

Speaker Change: We will continue with some of the efforts that were.

Steven Kobos: Ongoing this year.

Steven Kobos: Some of the Meadows, Sean we've got a met ocean buoy out there, we're doing all kinds of things to assess.

Speaker Change: What the needs are we're going to keep doing that because we need to because this will.

Steven Kobos: But thanks will ebb and flow on that pipeline.

Speaker Change: Everything doesn't proceed at a uniform pace, that's why you want.

Steven Kobos: And why we have a robust overall pipeline.

Steven Kobos: That's why we came to you all last quarter, one of 12 projects in our pipeline. That's why we are trying to give you all more color, more detail, more proof points, just so you guys have better visibility into what's really going on here in our conference rooms day to day. So, yeah, I think it's obvious that there would be some slowdown because we don't even have a government yet. The fundamentals are still there. I think there's a great opportunity in-country for an American energy company to keep providing ever more energy for the people of Bangladesh, so I like our prospects long-term.

Steven Kobos: But let's not forget harvest one of 12, that's why we came to you all last quarter.

Steven Kobos: One of 12 projects in our pipe. That's why we are trying to give you all more color more details more proof points. Just so you guys have better visibility into what's really going on here at our conference rooms day to day.

Steven Kobos: So yeah I think it's.

Steven Kobos: Obvious that there would be some slowdown because we don't even have a government yet fundamentals are still there I think there's a great opportunity and country for an American energy company to keep providing ever more energy for the people of Bangladesh. So I like our prospects long term.

Puneet Satish: Okay, now that makes sense. And then I guess maybe how are you weighing at this point, organic investments versus M&A? Clearly, you've got a robust pipeline here of organic growth opportunities. So how are you kind of thinking about the balance between the two? And do you think there's more of a bias now on organic investments over M&A? Just curious about your thoughts. Hello.

Speaker Change: Okay, no that makes sense.

Speaker Change: And then I guess, maybe how are you weighing at this point.

Speaker Change: Organic investments versus M&A.

Speaker Change: Clearly you've got a robust pipeline here of organic growth opportunities. So how are you kind of thinking about the balance between the two and do you think there's more of a bias now on organic investments over M&A just curious for your thoughts.

Operator: Hello.

Steven Kobos: Bernice, I don't want to make light of it, but we like the deals that we'll make, you know, and we like fundamentals, and we don't really care how they get served up, you know. We know what we like to do, we know we're a critical part of the energy transition, we know LNG is affordable, we know LNG needs to find a home, we know most of the world and most of the big players are focused on liquefaction and building their supply portfolios.

Speaker Change: I don't want to make light of it but we like the deals that will make it.

Operator: And we like the fundamentals and we don't really care, how they get served up.

Operator: We know what we'd like to do we know we are a critical part of the energy transition. We know LNG is affordable we know LNG needs to find a home we know most of the world and most of the big players are focused on re liquid liquefaction and building their supply portfolios.

Steven Kobos: We are the ones opening markets and finding a way to take that LNG and get it where it needs to go. We know that's what the need is. How, what tool you use to bring us to the table and fit into that value chain, we're going to be agnostic to that.

Operator: We are the ones opening markets and finding a way to take that LNG and get it where it needs to go so.

Steven Kobos: We know that's what the need is; what tool you use to bring us to the table and fit into that value chain, we're going to be agnostic to that.

Operator: We know that's what the need is how what tool you use to bring us to the table and fit into that value chain.

Steven Kobos: We're going to be agnostic to.

Steven Kobos: Okay.

Speaker Change: Got it thank you.

Steven Kobos: Yeah.

Steven Kobos: Yeah.

Operator: Our next question comes from Zach Van Everen of TPH. Zach, your line is now open. Hey, good morning, guys.

Operator: Our next question comes from Zach Van Everen of TPH. Zach, your line is now open.

Speaker Change: Our next question comes from Zach fan ever end of T. P. H is that Caroline is not always in.

Zack Van Everen: Hey, good morning guys. Thanks for taking my question. Going back to Alaska, you know, it notes that you guys are in advanced discussions. I guess what's the timeline in your guys' eyes when you put pen to paper there? You know, what are you looking at as far as getting over that hurdle for that project?

Speaker Change: Hey, good morning, guys. Thanks for taking my question just going back to Alaska.

Speaker Change: It notes you guys are in advanced discussions I guess, what's the timeline in your guys' size, where you put pen to paper there what are you looking at as far as getting over that hurdle for that project.

Operator: Yeah.

Operator: Yeah.

Steven Kobos: Yeah, I'll pass that to Oliver and Zack because, you know, I'm impatient. I always want it to be yesterday, but I'll let the folks actually facing the customer speak to that.

Speaker Change: Yeah I'll.

Oliver Simpson: I'll pass that to Oliver Zach because you know I'm impatient I always want yesterday, but I'll, let the folks actually facing the customer speak to that.

Oliver Simpson: Yeah, I think the timeline, you know, we announced a project with a start-up time of 28. We think that that's achievable for the project. So obviously, I think, you know, you can back out of there that rough idea of what sort of timeline we'd be looking to get into definitive contracts. It's obviously, there's a process we've got to go through in the region. I don't think we're going to speak to a specific timeline here, but we'll keep working with our partners, and we're confident we can move this along fairly quickly. Yeah, fairly quick.

Speaker Change: Yeah, I think look at the.

Operator: The timeline, we announced a project with the timeline startup of startup was 28, we think that's achievable for the project.

Operator: So obviously I think you can back out of that.

Speaker Change: Sort of a rough idea of what sort of timeline, we'd be looking to get into definitive contracts.

Speaker Change: <unk> is a process we go through in the region.

Speaker Change: I don't think were going to speak to specific timeline here.

Operator: We will keep working with our partners and.

Operator: And we're confident we can move this along.

Steven Kobos: Yes, very quickly. The decline curve for Cook Inlet domestic production is a real thing moving at a real pace, right? And that's going to drive the need for the timing, for papering this, the approvals, everything else, because there is going to be a need for this bridge. It's going to have to happen.

Speaker Change: We have a fairly quickly.

Operator: The decline curve for the Cook and with domestic production is a real thing moving up it's a real case, though right and thats going to drive the need on the timing.

Operator: We're papering the approvals everything else because there is going to be a need for for this bridge.

Speaker Change: It's gonna have to happen.

Zack Van Everen: Gotcha. No, that makes sense. I appreciate that. And then between the two projects, I know on the Cook Inlet project, you note that some of it will have, or the gas sales will have take or pay style obligations for Vietnam and Alaska. Do a majority of these terminals plan to be take or pay, or will you open up some marketing or commodity exposure with these?

Speaker Change: Gotcha, no that makes sense I appreciate that and then.

Speaker Change: Between the two projects I know on the Cook Inlet project you note that some of that will have or the gas sales will have take or pay style obligations for Vietnam and Alaska is a majority of these terminals plan to be take or pay or where you open up some marketing or commodity exposure with them.

Zach Van Everen: For Vietnam and Alaska, is a majority of these terminals planned to be take or pay, or will you open up some marketing or commodity exposure with these?

Zach Van Everen: Yes.

Zach Van Everen: Yes.

Oliver Simpson: I think what we're looking for in these types of projects is to get the right level of anchor customers that support the project. We're always interested in trying to see upside opportunities, but I don't think we'll be taking, or we're not looking to take commodity risks in these markets. So they're going to be underpinned by the customers that allow us to take FID. And then we'll be looking, different markets will have different growth prospects, but we'll be looking to take those opportunities on the growth side.

Speaker Change: I think the.

Speaker Change: What we're looking at them on these types of projects is to get the right level of anchor customers.

Speaker Change: The project and we are always interested in trying to see upside upside opportunities, but I don't think it will be too we're not looking to take commodity risks in these markets. So they're gonna be underpinned by the customers that allow us to take a Friday and then we'll be looking different markets, we'll have different growth prospects.

Speaker Change: We will be looking to two.

Speaker Change: I think there is opportunities on the gross side.

Zach Van Everen: Yeah.

Zack Van Everen: Perfect. Thank you guys so much.

Speaker Change: Perfect. Thank you guys so much.

Operator: As a reminder, if you would like to ask a question, please press star followed by 1 on your telephone keypad, and to remove yourself from that line of questioning, it's star followed by 2. Our next question comes from Craig Shere of Two Brothers. Craig Jolines-Knight

Operator: As a reminder, if you would like to ask a question, please press star followed by 1 on your telephone keypad, and to remove yourself from that line of questioning, it's star followed by 2. Our next question comes from Craig Shere of Two Brothers.

Speaker Change: As a reminder, if you would like to ask a question. Please press star followed by one I guess, what I'm, saying keypad introduce yourself in that line of questioning and stuff on it by two.

Speaker Change: Our next question comes from Craig share of Tuberous, Greg Your line is nice too.

Operator: Yeah.

Craig Shere: Good morning. Congratulations on a good quarter.

Craig Shere: Good morning. Congratulations on a good quarter.

Craig Shere: Good morning, congratulations on the good quarter.

Craig Shere:

Craig Shere: I want to dig a little deeper into Wade's FSRU capacity question. Maybe you could speak to availability of shipyard slots, the timing differences between new build and conversion, and how you think about conversion, because you've talked about it for maybe a couple of years or more, but up till now, you've only done new build. I am, and then um, on top of that, FSRU capacity is critical. Obviously, that's not the only thing you do, but that's critical. But what are your thoughts about the need for more long-term LNG supply beyond your

Craig Shere: I want to dig a little deeper on the way its fsrus capacity question.

Speaker Change: Maybe you could speak to availability of shipyard slots.

Speaker Change: Timing differences between Newbuild and conversion.

Craig Shere: How do you think about conversion because it talks about for maybe a couple of years or more but up till now you've only done newbuild.

Speaker Change: And then.

Craig Shere: <unk>.

Craig Shere: On top of that <unk> capacity is critical obviously, but that's not the only thing you do but that's critical but what are your thoughts about the need for more long term LNG supply beyond your eventual global contract.

Steven Kobos: Craig, you put the most questions into one question than anybody I know, man. I mean, come on.

Speaker Change: Greg you put the most questions and please one question and anybody I know man.

Craig Shere: [laughter].

Steven Kobos: I will take some of your six questions and then I'll pass them around. We've I mean, we've talked for, you don't know how long we've talked about Vietnam; we talk and look for opportunities for a very long time. We've talked about conversions for years; we will pull the trigger on that depending upon the project. We are bullish on the asset class of FSR use. And by the way, we love being able to geek out and design bespoke new buildings that we know what we need. Okay. We think we think 3407 is going to be the best in class because our set of floats.

Speaker Change: I will take some of your six questions as adult pass it around.

Speaker Change: First around the table.

Craig Shere: <unk>.

Speaker Change: We've I mean, we've talked you don't know how long we've talked about Vietnam, we talk and look for opportunities for a very long time, we've talked about conversions for years, we will pull the trigger on that depending upon the project. We are bullish on the asset class of Fsrus and by the way we love being.

Steven Kobos: We've, I mean, we've talked, you don't know how long we've talked about Vietnam. We talk and look for opportunities for a very long time.

Steven Kobos: We have talked about conversions for years. We will pull the trigger on that depending upon the project. We are bullish on the asset class of FSRUs. And, by the way, we love them. Conversions are a significant project, and it's got its own execution risks just like every other major project, conversion candidate versus a new building. I mean, as soon as we can give you visibility on that, we will, because it's a key element of transparency. What I tried to do, I think that was your fifth or sixth question, Craig, so I'm going to toss five and six over.

Speaker Change: We're able to geek out design the spoke new buildings that we know what we need okay.

Speaker Change: We think we think 34 seven is going to be the best in class asset a float.

Steven Kobos: We want more of those, too. Conversions are a significant project, and it's got its own execution risks, just like every other major project, but the reality is, there will be some that are suitable for it. I can't tell you what the sequencing will be on when we move to access, the conversion candidate versus a new building. I mean, as soon as we can give you visibility on that, we will because it's a key element of transparency.

Speaker Change: We want more of those two.

Steven Kobos: Conversions are that's a significant project and.

Steven Kobos: And it's it's.

Steven Kobos: Got its own execution risks just like every other major project.

Speaker Change: But the reality is there will be some that are suitable for it cant tell you what the sequencing will be on when we move to access.

Speaker Change: Our conversion candidate versus a new building I mean as soon as we can give you visibility to that we will because it's a key element of transparency what I tried to.

Steven Kobos: What I tried to tell you guys is just not faltering on our view of this, our view of the TAM, our view of being able to get LNG into these countries, our view on how valuable this asset class is. Our view on how sticky that infrastructure will remain in Europe, by the way; we're pretty consistent on everything we say around that. And from that, you can no doubt divine our intentions, Craig. But you also have some questions about my portfolio. I'm going to. I think that was your fifth or sixth question, Craig, so I'm going to toss five and six over.

Speaker Change: How are you guys is just not faltering on our view on this our view on the Tam our view on being able to get LNG into these countries our view on how valuable this asset classes R.

Speaker Change: Our view on how sticky that infrastructure will remain in Europe by the way.

Speaker Change: We're pretty consistent on everything we say all round out and from that you can no doubt.

Steven Kobos: John.

Steven Kobos: Intentions, Craig, but you also have some questions about the portfolio I'm going to I.

Steven Kobos: I think that was your fifth or six question, Craig I'm going to toss <unk> six server.

Craig Shere: All right. Yeah, thanks, Steven. Thanks, Craig.

Oliver Simpson: All right. Yeah, thanks, Steven. Thanks, Craig.

Steven Kobos: Alright, Thanks, Stephen Thanks, Craig I think.

Speaker Change: I think that's sort of the proof points, we gave today for candidates and an enviable.

Oliver Simpson: Yeah, I think, you know, I think the sort of proof points you gave today, the inlets and NVLT, are great, great opportunities for us to expand the LNG portfolio. We've talked about the LNG portfolio. You know, I think we had some great successes last year with our inaugural sort of long-term deals there.

Steven Kobos: Yeah, I think, you know, I think the sort of the proof points we gave today at Inlet and NVLT are, you know, great, great opportunities for us to expand the LNG portfolio. We've talked about the LNG portfolio. You know, I think we had some great successes last year with our inaugural sort of long-term deals there. We're now, you know, we've got volumes where we're able to bring solutions to our customers now with the LNG when we go into these markets, and we're going to grow that portfolio as the projects come online.

Steven Kobos: Yeah, great great opportunities for us to expand the LNG portfolio.

Steven Kobos: We've talked about the LNG portfolio, Yes, I think we had some.

Steven Kobos: Great successes last year.

Steven Kobos: With an overall sort of long term deals there.

Oliver Simpson: We are now, you know, we've got volumes; we're able to bring solutions to our customers now with LNG when we go into these markets. And we're going to grow that portfolio as the projects come online. So it's a balancing act between growing supply as long as demand is there. You know, as I mentioned earlier, we see that there's a lot of LNG coming online. We've got some great relationships and great partnerships out there. So I think what we're doing, opening these markets, we're going to have plenty of opportunities to grow that portfolio. Great

Steven Kobos: Now.

Steven Kobos: We've got volumes, we were able to bring solutions to our customers now with the LNG. When we go into these markets and we're going to grow that portfolio as the projects as the projects come on line. So it's a balancing act between growing the supply as the demand is there.

Steven Kobos: So it's a balancing act between growing the supply as the demand is there. You know, as I mentioned earlier, we see there's a lot of LNG coming online. We've got some great relationships, great partnerships out there. So I think what we're doing, opening these markets, we're going to have plenty of opportunities to grow that portfolio.

Steven Kobos: As I mentioned earlier, we see there's a lot of LNG coming coming online.

Steven Kobos: We've got some great relationships great partnerships out there. So I think what we're doing in these markets, we're going to have plenty of opportunities to grow that portfolio.

Craig Shere: Great. Just to clarify the timing difference between new build and conversion as we think about backing into project specific timelines.

Speaker Change: Right just to clarify on the timing difference between Newbuild and conversion as we think about backing into project specific timelines.

David Liner: Yeah, I can certainly take that one, Craig. David Liner here.

Steven Kobos: Okay.

Speaker Change: I can certainly take that that one Craig David Binder here.

Steven Kobos: There is a difference in execution time, a newbuild on the order of three three and a half years, some can be a little bit shorter than that.

David Liner: You know, there is a difference in execution time. A new build is on the order of three, three and a half years. Some can be a little bit shorter than that.

David Liner: Conversion times are generally less than that, but there is the execution risk that goes with a conversion, as Steven mentioned before. And that's always something that we, you know, we're always managing those two. You know, when we're looking at a prospective project, you have to understand that execution timeline and the capacity of the vessel that you want to employ before you want to pull the trigger on a conversion or a new build.

Steven Kobos: Conversion times are generally less than that but there is the execution risk that goes with a conversion is as Stephen mentioned before.

Steven Kobos: And that's always something that we.

Steven Kobos: We're always <unk>.

Steven Kobos: Managing those those two.

Steven Kobos: When we're looking at a prospective project you have to understand that that execution timeline and the capacity of the vessel that you want to employ before you want to pull the trigger on a conversion or Newbuild of course, a newbuild is generally going to be a much higher capacity vessel than a conversion theyre going to be more appropriate for our.

David Liner: Of course, a new build is generally going to be a much higher capacity vessel than a conversion. They're going to be more appropriate for a smaller send-out type project. So, you know, it just depends on which project your conversion would be. Yeah, a conversion would be more appropriate for a smaller center.

Steven Kobos: Smaller <unk> type project, so it just depends on which.

Speaker Change: Which project you're your conversion would be yes.

David Liner: Yeah, conversion would be more appropriate for a smaller send-out. For a smaller send-out, yes.

Speaker Change: Conversion would be more appropriate for smaller or smaller say about yes.

Steven Kobos: I hope that helps great alright, thank you.

Steven Kobos: Okay.

Steven Kobos: We currently have no further questions, so I would like to hand it back to Steven Kobos for closing remarks.

Steven Kobos: We currently have no further questions. So I would like to hand back to Steven Cutler for closing remarks.

Steven Kobos: Yeah.

Steven Kobos: Listen I really appreciate the conversation that we have today with Dana on offer and David and me.

Steven Kobos: Listen, I really appreciate the conversation that we had today with Dana and Oliver and David and me, and it's always a pleasure to be with you guys. The questions we got about our strategy in Vietnam, what we're doing in Alaska, and our overall value creation strategy. We will continue to be transparent with you guys. We will continue to do what we say we will do. With that, thanks very much for your time.

Steven Kobos: So it was a pleasure to get with you guys. The questions questions. We got about our strategy in Vietnam, what we're doing in Alaska, and our overall value creation strategy.

Steven Kobos: We will continue to be transparent with you guys. We will continue to do what we say we will do.

Steven Kobos: With that thanks very much for your time.

Operator: This concludes today's call. Thank you to everyone for joining. You may have disconnected.

Operator: This concludes today's call. Thank you to everyone for joining. You may have disconnected.

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

Operator: [music].

Oliver Simpson: It's not the LNG to power projects that we believe in, but we think they have a slightly longer time and potential. So, you know, we love the number of projects, but we follow this one because it has the right attributes for us. And importantly, you know, for your board questions, think of projects like this is an integrated project where Excelery brings its international expertise. We can bring our LNG supply portfolio and deliver gas and LNG solutions to these customers.

Steven Kobos: I'm not sure. I'm not sure. I'm not sure.

Oliver Simpson: That's what we're doing here in Vietnam. That's what we said we were going to do. That's also what we're looking to do in other projects around the world. So, I think this is a good poster child for the type of projects that we're looking at.