Q4 2024 Excelerate Energy Inc Earnings Call

I'd like to ask a question once the presentation has finished please press star followed by one on your telephone keypad.

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Craig: I'll now hand, it over to your host Craig <unk>, Vice President Investor Relations and strategy. Please go ahead.

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Good morning, everyone.

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Craig: Welcome to accelerate Energy's fourth quarter and full year 2024 earnings call.

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

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Speaker Change: Hello, and welcome to the accelerate energy fourth quarter and full year 2020 full earnings conference call. My name is Alex somebody comes actually Nicole today.

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

Speaker Change: If you'd like to ask a question once the presentation has finished please press star one on your telephone keypad.

Speaker Change: Our fourth quarter and full year 2024 earnings results press release and presentation were released yesterday afternoon and can be found on our website at IR dot accelerate energy Dot com.

Craig: And I had it up to your host Craig <unk>, Vice President Investor Relations and strategy. Please go ahead.

Craig: Good morning, everyone welcome to accelerate Energy's fourth quarter and full year 2024 earnings call.

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.

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

Speaker Change: Our actual results may differ materially from those expressed in these forward looking statements and we make no obligation to update or revise them.

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

Speaker Change: Today's remarks will also refer to certain non-GAAP financial measures. We've provided a reconciliation to the most directly comparable GAAP financial measures at the back of the presentation.

David liner Chief operating officer.

Speaker Change: Our fourth quarter and full year 2024 earnings results press release and presentation were released yesterday afternoon and can be found on our website at IR dot accelerate energy Dot com.

With that it is my pleasure to pass the call over to Steven Cobos.

Steven Cobos: Thank you Greg.

Steven Cobos: Good morning, everyone and thank you for joining us today.

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.

Steven Cobos: Let me start by reiterating who we are as a company.

Steven Cobos: Accelerated energy enhances energy security by delivering critical LNG and natural gas to countries around the world.

Speaker Change: Our actual results may differ materially from those expressed in these forward looking statements and we make no obligation to update or revise them.

Steven Cobos: We are a global leader in Fsrus and downstream LNG infrastructure.

Speaker Change: Today's remarks will also refer to certain non-GAAP financial measures. We've provided a reconciliation to the most directly comparable GAAP financial measures at the back of the presentation.

Steven Cobos: Yeah.

Steven Cobos: So what distinguishes us.

Steven Cobos: It is our ability to generate sustainable earnings.

Speaker Change: With that it is my pleasure to pass the call over to Steven Cobos.

Steven Cobos: Our strong balance sheet.

Steven Cobos: And our disciplined approach to capital allocation.

Steven Cobos: Thank you Craig.

Steven Cobos: Good morning, everyone and thank you for joining us today.

Steven Cobos: Bottom line.

Steven Cobos: We believe that accelerate energy to say fantastic investment opportunity.

Steven Cobos: Let me start by reiterating who we are as a company.

Steven Cobos: So energy enhances energy security by delivering critical LNG and natural gas to countries around the world.

Steven Cobos: On today's call.

Steven Cobos: We'll share with you some notable highlights from 2024.

Steven Cobos: And provide an update on our growth strategy.

Steven Cobos: We are a global leader in Fsrus and downstream LNG infrastructure.

Steven Cobos: I will then hand, the call over to Dana who will walk through our strong 2024 financial results.

Steven Cobos: Yeah.

Dana Armstrong: Guidance for 2025.

Steven Cobos: So what distinguishes us.

Steven Cobos: It is our ability to generate sustainable earnings.

Speaker Change: I'm proud to share that 2024 was an exceptional year for accelerate.

Steven Cobos: Our strong balance sheet.

Steven Cobos: And our disciplined approach to capital allocation.

Speaker Change: It was a year marked by financial success and significant operational achievements.

Steven Cobos: Bottom line.

Steven Cobos: We believe that accelerate energy, it's a fantastic investment opportunity.

Speaker Change: For the full year 2024 accelerate synergy delivered record adjusted EBITDA of $348 million.

Steven Cobos: On today's call.

Steven Cobos: We'll share with you some notable highlights from 2024.

Speaker Change: Above the high end of our guidance range.

Steven Cobos: Can you provide an update on our growth strategy.

Speaker Change: We also delivered net income of $153 million, which was up 21% year over year.

Steven Cobos: I'll, then hand, the call over to Dana who will walk through our strong 2024 financial results.

This accomplishment reflects the robust nature of our take or pay business model.

Steven Cobos: Guidance for 2025.

Steven Cobos: I'm proud to share the 'twenty 'twenty four was an exceptional year for accelerate.

Speaker Change: Our ongoing commitment to maximizing value for our shareholders.

Steven Cobos: It was a year marked by financial success and significant operational achievements.

Speaker Change: The earnings growth, we have seen in recent years since our IPO can be largely attributed to the successful re contracting of fsrus in our sweetie Peck elevated market rates.

Steven Cobos: For the full year 2024 accelerate synergies delivered record adjusted EBITDA of 348 million.

Speaker Change: Also our ability to optimize around our core regasification business.

Steven Cobos: Above the high end of our guidance range.

Steven Cobos: We also delivered net income of 153 million, which was up 21% year over year.

Speaker Change: We've been able to strengthen our financial position, while maintaining minimal commodity exposure.

Steven Cobos: This accomplishment reflects the robust nature of our take or pay business model.

Speaker Change: This strategic approach has been instrumental in enhancing the strength.

Speaker Change: Of our earnings.

Steven Cobos: Our ongoing commitment to maximizing value for our shareholders.

Speaker Change: The predictability of our earnings is directly correlated to the strategic nature of our assets.

Steven Cobos: The earnings growth, we have seen in recent years since our IPO can be largely attributed to the successful re contracting of fsrus in our sweetie Peck elevated market rates.

Speaker Change: This is the route for continuous cash collections on all of our major contracts since our first Regasification contract began in 2008.

Steven Cobos: Also our ability to optimize around our core regasification business.

Speaker Change: On the operations front.

Speaker Change: Our teams continue to make operational excellence a top priority.

Steven Cobos: We've been able to strengthen our financial position, while maintaining minimal commodity exposure.

Speaker Change: For the full year, we recorded reliability of 99.9% across our fleet.

Steven Cobos: This strategic approach has been instrumental in enhancing the strength.

Speaker Change: This is the highest reliability in the history of accelerate technical management.

Steven Cobos: Our earnings.

Steven Cobos: The predictability of our earnings is directly correlated to the Geo strategic Patriot for our assets.

Speaker Change: It is an outstanding achievement by the accelerate teams.

Speaker Change: We also exceeded all of our primary safety targets reaffirming our dedication to safe sustainable operations.

Steven Cobos: This is the well for continuous cash collections on all of our major contracts since our first regasification contract began in 2008.

And then December 2024, we celebrated a major milestone when we completed our 3000.

Steven Cobos: On the operations front.

Steven Cobos: Our teams continue to make operational excellence a top priority.

Speaker Change: LNG ship to ship cargo transfer.

Steven Cobos: For the full year, we recorded reliability of 99.9% across our fleet.

Speaker Change: Since the start of STS operations from 2007.

Speaker Change: Let me just put that number in context, when you consider that.

Steven Cobos: This is the highest reliability in the history of accelerate technical management.

Speaker Change: But the average LNG cargo holds about $3 3 billion cubic feet of natural gas.

Steven Cobos: It is an outstanding achievement by the accelerated seams.

Steven Cobos: We also exceeded all of our primary safety targets reaffirming our dedication to safe sustainable operations.

Speaker Change: We're talking well north of 9000.

Speaker Change: 1 billion cubic feet of natural gas.

Speaker Change: And listen it's not a one off number.

Speaker Change: Last year, we delivered 272 cargoes of LNG to our customers.

Steven Cobos: And then December 2024, we celebrated a major milestone when we completed our three thousands.

That means we re gasify it on average about two 5 billion cubic feet of natural gas every single day.

Steven Cobos: LNG ship to ship cargo transfer.

Steven Cobos: Since the start of STS operations from 2007.

Speaker Change: These impressive achievements are a testament to our unwavering commitment to safety.

Steven Cobos: Let me just put that number in context, when you consider that.

Steven Cobos: But the average LNG cargo holds about $3 3 billion cubic feet of natural gas.

Speaker Change: Reliability and innovation and the LNG industry.

Steven Cobos: We're talking well north of 9000 billion.

Speaker Change: I wanted to thank.

Speaker Change: The global accelerate team.

Steven Cobos: Billion cubic feet of natural gas.

Speaker Change: Including our pool of about 700, seafarers, who serve on our vessels.

Steven Cobos: And listen it's not a one off number.

Steven Cobos: Last year, we delivered 272 cargoes of LNG to our customers.

Speaker Change: For their hard work and dedication.

Speaker Change: Every quarter I.

Steven Cobos: That means we re gasify it on average about two 5 billion cubic feet of natural gas every single day.

Speaker Change: Revisit our growth strategy in there.

Speaker Change: There is a compelling reason why.

Speaker Change: Yeah.

Speaker Change: It serves as our North star.

Speaker Change: It's the cornerstone of every decision we make as a company.

Steven Cobos: These impressive achievements are a testament to our unwavering commitment to safety.

Speaker Change: We remain focused on investing in our core regasification business, while pursuing strategic initiatives that drive value creation.

Reliability and innovation and the LNG industry.

Speaker Change: I wanted to thank.

Steven Cobos: The global accelerate team.

Speaker Change: Expanding our suite is an important part of our growth strategy.

Steven Cobos: Including our pool of about 700, seafarers, who served on our vessels.

Speaker Change: Fsrus are critical assets that are a cheap form of insurance for countries as they look to enhance.

Steven Cobos: For their hard work and dedication.

Steven Cobos: Every quarter.

Steven Cobos: Revisit our growth strategy.

Speaker Change: Third energy security.

Steven Cobos: There is a compelling reason why.

Speaker Change: As they seek to fill seasonal natural gas storage.

Steven Cobos: Serves as our North Star.

Speaker Change: As they balance their energy mix.

Steven Cobos: It's the cornerstone of every decision we make as a company.

Speaker Change: Given the current economic uncertainty in Europe, and other markets around the world the supply demand balance for the asset class is expected to remain tight in the foreseeable future.

Steven Cobos: We remain focused on investing in our core regasification business, while pursuing strategic initiatives that drive value creation.

Steven Cobos: Expanding our suite is an important part of our growth strategy.

Speaker Change: The construction of our best in class Newbuild <unk> remains on track with expected delivery in 2026.

Speaker Change: Fsrus are critical assets that are a cheap form of insurance for countries as they would.

Speaker Change: Wholesale reported a seven which is being built by Hyundai heavy industries in South Korea will be capable of delivering 1 billion cubic feet per day of natural gas.

Steven Cobos: And hats.

Steven Cobos: Third energy security.

Steven Cobos: As they seek to fill seasonal natural gas storage.

Steven Cobos: As they balance their energy mix.

Speaker Change: That means hope 34, seven is a high spec fsrus and its best in class performance and efficiency makes it a standout candidate for any re gasification opportunity.

Steven Cobos: Given the current economic uncertainty in Europe, and other markets around the world the supply demand balance for the asset class is expected to remain tight in the foreseeable future.

Speaker Change: We are engaged in ongoing discussions with potential customers regarding the vessels deployment.

Steven Cobos: The construction of our best in class Newbuild, that's what's sort of your remains on track with expected deliveries to some 2026.

Speaker Change: Next month, we will achieve kulig a significant milestone for the project.

Speaker Change: This part of the process is the first step in placing that foundation for the vessel and dry dock.

Steven Cobos: Wholesale reported a seven which is being built by Hyundai heavy industries in South Korea will be capable of delivering 1 billion cubic feet per day of natural gas.

Speaker Change: Following this the next milestone will occur in June when we launch where float the vessel for the first time ahead of her upcoming C and gas trials.

Steven Cobos: That means 34, 7% as a high spec fsrus and its best in class performance and efficiency makes it a standout candidate for any re gasification opportunity.

Speaker Change: Last quarter, we discussed our plans to buy an LNG carrier, which will support our gas supply business in the short term.

Steven Cobos: We are engaged in ongoing discussions with potential customers regarding the vessels deployment.

Speaker Change: And which will be a candidate for a first ever sort of your conversion.

Speaker Change: Since we were last together our technical team has inspected a number of LNG carriers as part of this effort.

Steven Cobos: Next month, we will achieve kulig a significant milestone for the project.

Steven Cobos: This part of the process is the first step in placing that foundation for the vessel and dry dock.

Speaker Change: We are optimistic about our prospects and continue to engage in negotiations to acquire an LNG carrier in 2025.

Steven Cobos: Following this the next milestone will occur in June when we launch.

Steven Cobos: The vessel for the first time ahead of her upcoming C and gas trials.

Speaker Change: Fsrus conversions are an attractive option for many customers due to the lowered capital commitment required to convert the assets.

Steven Cobos: Last quarter, we discussed our plans to buy an LNG carrier, which will support our gas supply business in the short term.

Speaker Change: They also have shorter timelines for construction and delivery when compared to new builds.

Steven Cobos: And which will be a candidate for a first half of sort of your conversion.

Speaker Change: Going forward, we see a balance of new builds and conversions as key to addressing diverse market needs.

Steven Cobos: Since we were last together our technical team has inspected a number of LNG carriers as part of this suffered.

Speaker Change: The flexibility provided by both options allows us to be strategic in our approach to treat expansion.

Steven Cobos: We are optimistic about our prospects and we continue to engage in negotiations to acquire an LNG carrier in 2025.

Speaker Change: And our overall growth.

Speaker Change: Yeah.

Speaker Change: Fsrus are a core part of our business model, our strategic vision extends beyond being a pure play toughest sort of your company.

Steven Cobos: Fsrus conversions are an attractive option for many customers due to the lower capital commitment required to convert the assets.

Speaker Change: We aim to broaden our market presence through strategic investments in LNG import terminals and complementary downstream infrastructure.

Steven Cobos: They also have shorter timelines for construction and delivery when compared to new builds.

Steven Cobos: Going forward, we see a balance of new builds and conversions as key to addressing a diverse market needs.

Speaker Change: Owning.

Speaker Change: Operating and having access to LNG import infrastructure provides us with greater visibility to future vessel deployments.

Steven Cobos: The flexibility provided by both options allows us to be strategic in our approach to treat expansion.

This unlocks incremental opportunities for LNG and gas sales.

Steven Cobos: And our overall growth.

Speaker Change: We continue to evaluate a range of strategic investments that have the potential to help drive earnings growth.

Steven Cobos: Yeah.

Fsrus are a core part of our business model, our strategic vision extends beyond being a pure play toughest sort of your company.

Speaker Change: In the near to mid term, while supporting our efforts to scale our business.

Steven Cobos: We aim to broaden our market presence through strategic investments in LNG import terminals and complementary downstream infrastructure.

Speaker Change: We look forward to sharing updates as soon as they become available.

Speaker Change: I'm excited about where accelerate is positioned today.

Steven Cobos: Tuning.

Speaker Change: Our core business provides us with a foundation for financial strength.

Steven Cobos: Operating and having access to LNG import infrastructure.

Speaker Change: And we have a significant amount of capital available for deployment.

Steven Cobos: It's us with greater visibility to future vessel deployments.

Speaker Change: Most importantly, we remain focused on investing only in projects that align with our strategic vision.

Steven Cobos: Unlocks incremental opportunities for LNG and gas sales.

Steven Cobos: We continue to evaluate a range of strategic investments that have the potential to help drive earnings growth.

Speaker Change: And deliver real value for you our shareholders.

Speaker Change: 2025 is going to be a critical year for us and we're looking forward to the opportunities that lie ahead.

Steven Cobos: In the near to midterm.

Steven Cobos: Supporting our efforts to scale our business.

Steven Cobos: We look forward to sharing updates as soon as they become available.

Speaker Change: With that I'll now turn the call over to Dana who will walk through our outstanding 2024 financial results and our guidance for 2025.

Steven Cobos: I'm excited about where it accelerates is positioned today.

Steven Cobos: Our core business provides us with a foundation for financial strength.

Dana Armstrong: Thanks, Steven and good morning, we are pleased with our exceptionally strong financial results for 2024.

Steven Cobos: And we have a significant amount of capital available for deployment.

We delivered record adjusted EBITDA of $348 million, which was above the high end of our guidance range.

Steven Cobos: Most importantly, we remain focused on investing only in projects that align with our strategic vision.

Steven Cobos: And deliver real value for you our shareholders.

Dana Armstrong: Thanks, David for the full year, our net income was 153 million, which is an increase of 26 million or up 21% as compared to the prior year.

Steven Cobos: 2025 is going to be a critical year for us and we're looking forward to the opportunities that lie ahead.

Dana Armstrong: Net income and adjusted EBITDA for the full year increased slightly over last year, primarily due to various charter rate increases any full year of earnings on the Fsrus Excelsior.

Steven Cobos: With that I'll now turn the call over to Dana who will walk through our outstanding 2024 financial results and our guidance for 2025.

Dana Armstrong: Thanks, Steven and good morning, we are pleased with our exceptionally strong financial results for 2024.

Dana Armstrong: These increases were partially offset by the transition of the athletes are used to Korea from gas sales in Brazil to a 10 year time Charter Party agreement effective in early 2024.

Dana Armstrong: We delivered record adjusted EBITDA of 348 million, which was above the high end of our guidance range.

Dana Armstrong: In addition, net income increased due to lower depreciation expense driven by an update to our useful life assumption in the fourth quarter of 2023.

Speaker Change: As Stephen stated for the full year. Our net income was 153 million, which is an increase of $26 million or at 21% as compared to the prior year.

Dana Armstrong: For the fourth quarter of last year, we delivered $46 million and net income of $92 million of adjusted EBITDA, which were essentially flat to the third quarter.

Speaker Change: Net income and adjusted EBITDA for the full year increased slightly over last year, primarily due to various charter rate increases any full year of earnings on the Fsrus Excelsior.

Dana Armstrong: As of year end 2020 for a total debt, including finance leases were $696 million.

Speaker Change: These increases were partially offset by the transition of the Fsrus are clear from gas sales in Brazil.

Dana Armstrong: And we had $538 million of cash and cash equivalents on hand, with 158 million of net debt.

Speaker Change: 10 year time Charter party agreement effective in early 2024.

Dana Armstrong: Under our revolving credit facility, we had 23 million of letters of credit issued and no outstanding borrowings.

Speaker Change: In addition, net income increased due to lower depreciation expense driven by an update to our useful life assumption in the fourth quarter of 2023.

Dana Armstrong: As of December 31st we have roughly $327 million of available capacity on our revolver.

Speaker Change: For the fourth quarter of last year, we delivered $46 million net income of $92 million of adjusted EBITDA, which were essentially flat to the third quarter.

Dana Armstrong: Our healthy balance sheet, along with the liquidity from our $350 million revolving credit facility.

Dana Armstrong: It provides us with significant flexibility to drive near term growth opportunities, while also pursuing longer term initiatives that align with our strategic goals.

Speaker Change: As of year end 2020 for a total debt, including finance leases were $696 million.

Speaker Change: We had 538 million of cash and cash equivalents on hand, with 158 million of net debt.

Dana Armstrong: Our capital allocation strategy remains focused on investing in growth opportunities, including fleet additions to support our strategic plans, while returning value to our shareholders through our quarterly dividend.

Speaker Change: Under our revolving credit facility, we had $23 million of letters of credit issued and no outstanding borrowings.

Dana Armstrong: As a reminder, we announced a $50 million share repurchase program last year.

Speaker Change: As of December 31st we had roughly 327 million and was named remote capacity on our revolver.

Dana Armstrong: During the fourth quarter, we purchased roughly 848000 shares or just over $20 million of our class a common stock at a weighted average price of $26.50 per share.

Speaker Change: Our healthy balance sheet, along with the liquidity from our $350 million revolving credit facility.

Speaker Change: It provides us with significant flexibility to drive near term growth opportunities, while also pursuing longer term initiatives that align with our strategic calls.

Dana Armstrong: As at the end of the fourth quarter, we have utilized all of the $50 million that was previously authorized for this program.

Speaker Change: Yeah.

Speaker Change: Our capital allocation strategy remains focused on investing in growth opportunities, including fleet additions to support our strategic plans, while returning value to our shareholders through our quarterly dividend.

Dana Armstrong: For the full year, we purchased approximately $2 5 million shares at a weighted average price of $20.41 per share.

Dana Armstrong: On February 20th our board of Directors approved a quarterly cash dividend equal to <unk> <unk> per share.

Speaker Change: As a reminder, we announced the $50 million share repurchase program last year.

<unk> 24 per share on an annualized basis and class a common stock.

Speaker Change: During the fourth quarter, we purchased roughly 848000 shares or just over $20 million of our class a common stock at a weighted average price of $26.50 per share.

Dana Armstrong: The dividend is payable on March 27, 2025 to class a common shareholders of record as of the close of business on March 12 2025.

Dana Armstrong: This quarter's dividend is consistent with the dividend, we announced last quarter.

Speaker Change: As at the end of the fourth quarter, we have utilized all of the $50 million that was previously authorized for this program.

Dana Armstrong: Now, let's turn to our financial guidance for the year.

Speaker Change: For the full year, we purchased approximately $2 5 million shares at a weighted average price of $20.41 per share.

Dana Armstrong: For the full year 2025, we expect adjusted EBITDA to range between 340 million to $360 million.

Speaker Change: On February 20th our board of Directors approved a quarterly cash dividend equal to six cents per share.

Dana Armstrong: This range reflects the underlying strength of our core business and our ability to capture LNG supply optimization opportunities.

Speaker Change: Our 24 cents per share on an annualized basis and class a common stock.

Dana Armstrong: We're confident with this range for 2025.

Speaker Change: The dividend is payable on March 27, 2025 to class a common shareholders of record as of the close of business on March 12 2025.

Dana Armstrong: We expect maintenance Capex spend for 2025 to range between 60 million to $70 million.

Dana Armstrong: A portion of our maintenance Capex is associated with planned dry dock for Fsrus exemplar and <unk> four in the second half of this year.

Speaker Change: This quarter's dividend is consistent with the dividend, we announced last quarter.

Speaker Change: Now, let's turn to our financial guidance for the year.

Dana Armstrong: The exemplar Drydock is expected to occur in the third quarter, while the explorer Drydock is expected to occur in the fourth quarter of this year.

Speaker Change: For the full year 2025, we expect adjusted EBITDA to range between 340 million to $360 million.

Dana Armstrong: The anticipated off hire time for these dry docks is estimated to range between 40 to 50 days per vessel.

Speaker Change: This range reflects the underlying strength of our core business and our ability to capture LNG supply optimization opportunities.

Dana Armstrong: Save a transit time.

Dana Armstrong: Our impact is built into our 2020 guidance range.

Speaker Change: We are confident with this range for 2025.

Dana Armstrong: Maintenance Capex range also increase additional spend for various vessel upgrades across the fleet.

Speaker Change: We expect maintenance Capex spend for 2025 to range between $60 million to $70 million.

Speaker Change: <unk> of our maintenance Capex is associated with planned dry dock for Fsrus exemplar and explore in the second half of this year.

Dana Armstrong: We are also providing guidance on committed growth capital, which is defined as capital allocated and committed to a specific investment for previously approved capital projects.

Speaker Change: The exemplar Drydock is expected to occur in the third quarter, while the explorer Drydock is expected to occur in the fourth quarter of this year.

Dana Armstrong: For 2025 committed growth capital is expected to range between 65 million to 75 million.

Speaker Change: The anticipated off hire time for these dry docks is estimated to range between 40 to 50 days per vessel inclusive of transit time and.

Dana Armstrong: Included in this range are the next two milestone payments for a Newbuild Paul 34 seven.

Speaker Change: Our impact is built into our 2025 guidance range.

Dana Armstrong: The killing milestone payment of 33 million will occur in the first quarter.

Speaker Change: Our maintenance Capex range also includes additional spend for various vessel upgrades across the fleet.

Dana Armstrong: And the next milestone payment of $17 million will become payable following the launch of the vessel in the second quarter.

Speaker Change: Yeah.

The final payment for the knee that is expected to be made on delivery of the vessel in mid 2026.

Speaker Change: We are also providing guidance on committed growth capital, which is defined as capital allocated and committed to a specific investment for previously approved capital projects.

Dana Armstrong: The committed capital guidance range also includes capital that is earmarked for the re liquefaction kit that we have on order with one seller along with other miscellaneous items.

Speaker Change: For 2025 committed growth capital is expected to range between 65 million to $75 million.

Dana Armstrong: At this time the capital associated with our expected.

Speaker Change: Included in this range are the next two milestone payments for a new build or 34 seven.

Dana Armstrong: LNG carrier purchase is not included in our committed capital guidance.

Speaker Change: The killing milestone payment of 33 million will occur in the first quarter.

Dana Armstrong: We will include it in our future guidance updates once we have selected a vessel and signed an agreement with the vessel owner.

Speaker Change: And the next milestone payment of 17 million will become payable following the launch of the vessel in the second quarter.

Dana Armstrong: In closing accelerate energy remained strong financially we're confident about the opportunities that lie ahead and remain steadfast in our commitment to delivering exceptional value to our shareholders with that we'll open up the call for Q&A.

Speaker Change: The final payment for the knee that is expected to be made on delivery of the vessel in mid 2026.

Speaker Change: The committed capital guidance range also includes capital that is earmarked for the re liquefaction kit that we have on order with <unk> along with other miscellaneous items.

Dana Armstrong: As a reminder, if you'd like to ask a question. Please press star followed by one on the telephone keypad.

Speaker Change: At this time the capital associated with our expected <unk>.

Flynn: Thank you for your question Mr. Flynn.

Dana Armstrong: Yeah.

Speaker Change: Andy carrier purchase is not included in our committed capital guidance.

Speaker Change: Our first question for today comes from Jeremy <unk> of J P. Morgan.

Speaker Change: Your line is now open. Please go ahead.

Speaker Change: We will include them in future guidance updates once we have selected a vessel and signed an agreement with the vessel owner.

Speaker Change: Hey, this is Noah cats on for Jeremy Thanks for the question.

Speaker Change: In closing accelerate energy remained strong financially we're confident about the opportunities that lie ahead and remain steadfast in our commitment to delivering exceptional value to our shareholders with that we'll open up the call for Q&A.

Speaker Change: First I wanted to touch on what is implied in the 2025 adjusted EBITDA Guide.

Speaker Change: It looks like you spoke to the strength of the Fsrus fleet and capturing LNG supply optimization opportunities, but looking at other growth opportunities outside of Fsrus are you guys still focused on investing in additional assets for onshore re gas efforts for near term 2025 earnings uplift and are any of these potential near term growth opportunities.

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

Speaker Change: Maybe for your question Matt.

Speaker Change: Ached into the guide thanks.

Speaker Change: Our first question for today comes from Jeremy <unk> of J P. Morgan.

Dana Armstrong: Hey, Dana Thanks for the question so.

Speaker Change: Please go ahead.

Speaker Change: As he said, it's the base business its assets or your fleet LNG supply optimization is what makes up our EBITDA other growth opportunities as of right. Now we have not built that into our guidance. We're obviously still proceeding with its growth opportunities, but those are not in our guidance as far as the basketball thinking about asked about other readouts asset that also is not in our guidance and our Capex guide.

Noah Cats: Hey, this is Noah cats on for Jeremy Thanks for the question.

Speaker Change: First I wanted to touch on what is implied in the 2025 adjusted EBITDA Guide it looks like you spoke to the strength of the Fsrus fleet and capturing LNG supply optimization opportunities, but looking at other growth opportunities outside of Fsrus are you guys still focused on investing in additional assets for onshore re gas efforts for near term 2020.

Speaker Change: That we are pursuing that we're talking to several vessel on Earth and we fully expect to be able to update that capex guidance. Once we have a commitment there.

Speaker Change: <unk> earnings uplift and are any of these potential near term growth opportunities baked into the guide. Thanks.

Speaker Change: It sounds good thanks for that and then as a follow up can you provide any further details on the LNG carrier you got you guys are looking to acquire this year.

Dana Armstrong: Hey, Noah it's Dana Thanks for the question so.

Noah Cats: As you said, it's the base business its assets or your fleet LNG supply optimization is what makes up our EBITDA other growth opportunities as of right. Now we have not built that into our guidance. We're obviously still proceeding with those growth opportunities, but those are not in our guidance as far as the basketball thinking about asked about other readouts assets that also is not in our guidance and our capex.

Speaker Change: That'd be a candidate for the Fsrus conversion does how do the economics work there and what potential markets are you guys interested in.

Speaker Change: Yes. Thanks.

Speaker Change: All of the hip.

Speaker Change: We've as Dana mentioned, we've talked to multiple.

Noah Cats: <unk> that we are pursuing that we're talking to several vessel on Earth and we fully expect to be able to update that Catholics guidance. Once we have a commitment there.

Speaker Change: We've looked at multiple vessels or less and where we're assessing different options that would fit with our near term needs for some of the.

Speaker Change: Some of the cargo optimization, we have as well as working for that.

Speaker Change: It sounds good thanks for that.

Speaker Change: The ultimate goal of converting this.

Speaker Change: Then as a follow up can you provide any further details on the LNG carrier you got you guys are looking to acquire this year that would be a candidate for the fsrus conversion because how did the economics work there and what potential markets are you guys interested in.

Speaker Change: Fsrus projects so.

Speaker Change: Right now we're looking at let's say at a range of assets and we've expected a number of them and we would.

Speaker Change: Looking to proceed with some of those discussions and hope to be in position to do something over the course of the year.

Speaker Change: Sure.

Speaker Change: Yeah. Thanks.

Speaker Change: All of the hip.

Speaker Change: All right I'll leave it there thank you.

Speaker Change: We've been had mentioned we've talked to multiple.

Speaker Change: Thank you. Our next question comes from Chris Robertson of Deutsche Bank.

Speaker Change: We've looked at multiple vessels or less and where we're assessing different options that would fit with our near term needs for some of the two.

Speaker Change: Right now open. Please go ahead.

Chris Robertson: Thank you operator, and thank you team for taking my questions. Dana. This is a question for you just regarding the financial outlook for 2025.

Speaker Change: The cargo optimization, we have as well as working for the ultimate goal of converting this.

Speaker Change: Fsrus projects so.

Chris Robertson: How much of the maintenance capex is going to be expense versus capitalized.

Speaker Change: Right now we're looking at Oh look we had a range of assets and we've expected a number of them and we were looking.

Dana Armstrong: Hey, Chris that $60 million to $70 million. That's all capitalized. So we did have some drydocks last year that were expense those are the two in Bangladesh. That's done going forward. The other eight vessels, it's all capital essentially our capital so that $60 million to $70 million that we guided to you with all capital.

Speaker Change: Looking to proceed with some of those discussions and hope to be in position to do something over the course of the year.

Speaker Change: All right I'll leave it there thank you.

Speaker Change: Thank you.

Chris Robertson: Next question comes from Chris Robertson of Deutsche Bank.

Dana Armstrong: Okay, Great and then with regards to the final payment you mentioned in mid 2026 for the Newbuild can you remind us of what that final payment amount will be.

Speaker Change: Your line is now open. Please go ahead.

Speaker Change: Thank you operator, and thank you team for taking my question. Dana. This is a question for you just regarding the financial outlook for 2025.

Speaker Change: Yeah, it's roughly $200 million.

Dana Armstrong: Okay.

Speaker Change: How much of the maintenance capex is going to be expense versus capitalized.

Speaker Change: I guess strategically looking at some of the landscape of opportunities out. There are you guys looking at the Dominican Republic at all maybe what's going on there.

Chris Robertson: Hey, Chris that $60 million to $70 million, that's all capitalized so we.

Chris Robertson: We did have some drydocks last year that were expense those are the two in Bangladesh. That's done going forward. The other eight vessels, it's all capital essentially our capital so that $60 million to $70 million that we guided to was all capital.

Steven Cobos: Hi, Chris This is Steven.

Speaker Change: Good luck your specificity.

Steven Cobos: I don't think we want to get into.

Steven Cobos: Particular markets, we're looking at I mean.

Chris Robertson: Okay, Great and then with regards to the final payment you mentioned in mid 2026 for the Newbuild can you remind us of what that final payment amount will be.

Steven Cobos: We do.

So there is certainly a lot in the western hemisphere. That's interesting we've never been shy about saying that one of our focus areas is the Americas one of our focus areas will remain the Americas, but I didn't think it would be appropriate for us to tip, our hat to a particular geography.

Chris Robertson: Yeah, it's roughly $200 million.

Chris Robertson: Okay.

Speaker Change: I guess strategically looking at some of the landscape of opportunities out. There are you guys looking at the Dominican Republic at all.

Speaker Change: No problem I understand thank you for taking my questions I will turn it over.

Chris Robertson: Maybe what's going on there.

Steven Cobos: Hi, Chris This is Steven.

Speaker Change: Thank you next.

Chris Robertson: After specificity.

Speaker Change: The next question comes from tobacco, but never run of T. P. H. Your line is now open. Please go ahead.

Chris Robertson: I don't think we'd want to get into.

Chris Robertson: Particular markets that we're looking at I mean.

Speaker Change: Yeah.

Speaker Change: Thanks for taking my question, maybe just to start on your guys use global macro outlook.

We do.

Chris Robertson: Theres certainly a lot in the western Hemisphere, that's interesting we've never been shy about saying that one of our food considering as the Americas one of our focus areas will remain the Americas, but I don't think it would be appropriate for us to tip, our hat to a particular geography.

Speaker Change: Obviously with feedstocks in Russia, and Ukraine, and everything going on internationally you guys seen a change in demand for you guys its services.

Speaker Change: In a lower price environment internationally, I think you guys might do potentially better based on demand from other countries, but just wanted to kind of high level update on the macro side there.

No problem I understand well. Thank you for taking my questions and I'll turn it over.

Speaker Change: Yeah.

Chris Robertson: Thank you next.

Speaker Change: Sure. Thanks, Zach this is Steven.

Speaker Change: Our next question comes from backup but never run of T. P. H. Your line is now open. Please go ahead.

Speaker Change: And obviously a lot going on.

Speaker Change: But I think it would be appropriate for me to speak on peace negotiations with Russia, but I can't speak to macro because we do follow it.

Chris Robertson: Yeah.

Speaker Change: Thanks for taking my question, maybe just to start on your guys use global macro outlook.

Speaker Change: Obviously with feedstocks in Russia, and Ukraine, and everything going on internationally you guys seen a change in demand for your guys or services.

Speaker Change: Certainly we followed the German elections of this past Sunday.

Speaker Change: Which gives you some good insight for Europe.

Speaker Change: As expected there.

Speaker Change: In a lower price environment internationally, I think you guys might do potentially better based on demand from other countries, but just wanted to kind of high level update on the macro side there.

Speaker Change: Chancellor will soon be chance were merch Christian Democrats came in on top and we expect them to form a coalition government.

Speaker Change: Yeah.

Speaker Change: We worked for the.

Steven Cobos: Sure. Thanks, Zach this is Steven.

Speaker Change: Supply demand balance on the asset class as you say to remain tight because we believe the geo economic and geopolitical.

Speaker Change: And obviously a lot going on.

Speaker Change: But I think it would be appropriate for me to speak on peace negotiations with Russia, but I can't speak to macro because we do follow it.

Speaker Change: <unk> at the moment to require that and I'll just offer a couple of proof points may be to that.

Speaker Change: Certainly we followed the German elections, so this past Sunday.

Speaker Change: First you can just listen to the campaign.

Speaker Change: Which gives you some good insight for Europe.

Speaker Change: As expected there.

Speaker Change: Speeches in Germany in March was quite clear that he wants to add.

Speaker Change: Chance, where it will soon be chance were merits Christian Democrats came in on top and we expect them to form a coalition government.

Speaker Change: The gas fired power plants.

Speaker Change: We know right off the bat, the Germany, and others understand they need to significantly increase the amount of gas that they are receiving.

Speaker Change: We worked for the.

Speaker Change: Supply demand balance on the asset class as you say to remain tight because we believe the geo economic and geopolitical.

Speaker Change: And the third economy requires it and they needed as the balance or for renewables and I needed for energy security. So we think thats.

Speaker Change: Balanced at the moment.

Speaker Change: Important.

Speaker Change: Two required that and I just offered.

Speaker Change: One thing I would note is that.

Speaker Change: Yeah.

Speaker Change: Couple of proof points may be to that.

Speaker Change: The fsrus.

LNG imports infrastructure.

Speaker Change: First.

Speaker Change: And just listened to the campaign.

Speaker Change: Hard to overstate, just how cheap that insurance is.

Speaker Change: Speeches in Germany, <unk> was quite clear that he wants to add 50 gas fired power plants.

Speaker Change: And what I've mentioned, there is I saw a couple of weeks ago gas grid, Finland posted on their website.

Speaker Change: So we know right off the bat, the Germany, and others understand they need to significantly increase the amount of gas that they are receiving.

Speaker Change: We've known this but back in January 24, when the Baltic connector pipeline was down gas grid said.

Speaker Change: And the third economy requires it and they needed balance are for renewables and they needed for energy security. So we think thats important.

Speaker Change: A wind with cold snap.

Speaker Change: They calculated that had they not had our fsrus connected to their gas system, which was the only real source of Nat gas at that time.

Speaker Change: Important.

Speaker Change: One thing I would note is that.

Speaker Change: Yeah.

Speaker Change: The fsrus.

Speaker Change: Thank you. Thank you.

Speaker Change: LNG imports.

Speaker Change: The economy would have suffered between $1 5 billion and 3 billion euros in a single week.

Speaker Change: Infrastructure.

Speaker Change: Hard to overstate, just how cheap that insurance is.

Speaker Change: So that just gives you some idea of how cheap <unk>.

Speaker Change: And what I've mentioned, there is I saw a couple of weeks ago gas grid, Finland posted on their website.

Speaker Change: <unk> is for Europe.

Speaker Change: And we look for them to maintain.

Speaker Change: We've known this for back in January 24, when the Baltic connector pipeline was down gas grid said in a wind with cold snap.

Speaker Change: Cheap insurance.

Speaker Change: We look to them to increase the amount of gas they take.

Speaker Change: We are somewhat unique as you alluded to in that.

Speaker Change: They calculated that had they not had our fsrus connected to their gas system, which was the only real source of Nat gas at that time.

Speaker Change: Our focus is on providing better ability to flex the LNG. So we do think having.

Speaker Change: Brought that to bear and online as quickly as they did no one's going to run away from it. So that's just the short take on.

Speaker Change: I think.

Speaker Change: The economy would have suffered between $1 5 billion and 3 billion euros in a single week.

Speaker Change: On developments in Europe.

Speaker Change: So that just gives you some idea of how cheap <unk>.

Speaker Change: That makes sense I appreciate that and then maybe one more any updates around Vietnam in Alaska projects I know in Q3, you guys kind of gave a little bit of an update anything that touch on there.

Speaker Change: <unk> is for Europe.

Speaker Change: We look for them to maintain.

Speaker Change: This cheap insurance.

Speaker Change: We look to them to increase the amount of gas they take.

Speaker Change: Yes.

Speaker Change: We are somewhat unique as you alluded to in that.

Speaker Change: In fact, this is Stephen I'll lead off and then I'll hand, it over to Oliver.

Speaker Change: Our focus is on providing better ability to flex the LNG. So we do think having.

Speaker Change: To get into.

Speaker Change: Say about Alaska.

Speaker Change: We appreciate the tail winds from.

Speaker Change: Brought that to bear and online as quickly as they did no one's going to run away from it. So that's just the short take.

Speaker Change: The Trump administration on American LNG.

Speaker Change: It is fantastic that's good for February.

Speaker Change: On developments in Europe.

Speaker Change: American LNG company out there in the world.

Speaker Change: That makes sense I appreciate that and then maybe one more any updates around Vietnam in Alaska projects I know in Q3, you guys kind of gave a little bit of an update anything to touch on there.

Speaker Change: Grateful for that support.

Speaker Change: I will say that there's also an emphasis from this administration on.

Speaker Change: Supporting.

Speaker Change: Export projects in Alaska, as well that seems to be the focus at the moment.

Speaker Change: Yes.

Speaker Change: In fact, this is Stephen I'll lead off and then I'll hand, it over to Oliver.

Speaker Change: We do believe that there's still a near term need.

Speaker Change: To get into I mean, what I'd say about Alaska.

Speaker Change: To get gas into Alaska.

Speaker Change: We appreciate the tail winds from them.

Speaker Change: While those exports.

Speaker Change: Ambitions are being constructed it's going to take some time.

Speaker Change: The Trump administration on American LNG I mean.

Speaker Change: We think we have a good solution and we're happy to engage further.

Speaker Change: It is fantastic that's good for February.

Speaker Change: As that develops but right now certainly the focus the rhetoric is on the export side.

Speaker Change: American LNG company out there in the world.

Speaker Change: Grateful for that support.

Speaker Change: I will say that there's also an emphasis in this administration on.

Speaker Change: Quantify that too much but.

I hand over to Oliver for further thoughts on Vietnam or Alaska.

Speaker Change: Supporting.

Speaker Change: Export projects in Alaska, as well that seems to be the focus at the moment.

Oliver Simpson: Thanks, Steven and thanks, Jack Yeah, So Alaska, I mean, I really just echoing what Stephen said, there's obviously, there's a focus now on the export project I mean, we always.

Speaker Change: We do believe that there is still a near term need.

Speaker Change: To get gas into Alaska.

Oliver Simpson: We're always cognizant of that possibility and I think our focus was on a near term important solution.

Speaker Change: While those exports.

Speaker Change: Ambitions are being constructed it's going to take some time.

Oliver Simpson: From stemming from some of the near term gas demand they have in the Cook inlet.

Speaker Change: We think we have a good solution and we're happy to engage further.

Speaker Change: As that develops but right now certainly the.

Oliver Simpson: We think that might still be that we were.

Speaker Change: The focus the rhetoric is on the export side.

Oliver Simpson: We are ready with a solution and we will see how those discussions are both looking at Vietnam I think.

Speaker Change: I want to fight that too much but.

Oliver Simpson: I hand over to Oliver for.

Oliver Simpson: There was a couple of opportunities we mentioned last year, we're continuing to work on those behind the scenes.

Oliver Simpson: Further thoughts on Vietnam or Alaska.

Oliver Simpson: Thanks, Steven and thanks, Jack Yeah, So Alaska, I mean, I really just echoing what Stephen said, there's obviously, there's a focus now on the export project.

Oliver Simpson: The fundamentals of the country.

Oliver Simpson: Positive very bullish on I think there's good good momentum in country for continued.

Oliver Simpson: We always.

Oliver Simpson: Continued LNG LNG imports and obviously I think with this new administration here.

Oliver Simpson: We're always cognizant of that possibility and I think our focus was on a near term import solution.

Oliver Simpson: Supports that supports that.

Oliver Simpson: From stemming from some of the near term gas demand they have in the Cook inlet.

Oliver Simpson: I think it is.

Oliver Simpson: Broader comment I'd make two of course crossover projects is we're extremely confident between between the newbuild between our conversion strategy between our long term volumes.

Oliver Simpson: We think that might still be that where we.

Oliver Simpson: We are ready with a solution and we'll see how those discussions are both looking at Vietnam.

Oliver Simpson: We've got some great tools in our toolkit.

Oliver Simpson: Some of these projects that we see coming on the horizon. So we're pretty excited about the broad set of opportunities, we see outlet and we look forward to coming back to you guys with more updates when we cannibalize.

Oliver Simpson: I think.

Oliver Simpson: There was a couple of opportunities we mentioned last year, we're continuing to work on those behind the scenes the fundamentals of the country.

Oliver Simpson: Very positive very bullish on I think there's good good momentum in country for <unk>.

Speaker Change: Awesome I appreciate it thanks, everyone.

Oliver Simpson: Continued LNG LNG imports and obviously I think with this new administration here.

Oliver Simpson: Thank you.

Speaker Change: Next question comes from Michael <unk> of Stephens. Your line is now open. Please go ahead.

Oliver Simpson: Supports that supports that.

Oliver Simpson: I think it is.

Speaker Change: Broader comment I'd make two across Crestwood projects is we're extremely confident between between the newbuild between our conversion strategy between our long term volumes.

Speaker Change: Good morning, everybody.

Speaker Change: Wanted to ask on the stock.

Speaker Change: Stock repurchases, a little surprised that you are.

Speaker Change: <unk> used up the.

Got some great tools in our toolkit.

Speaker Change: Previous authorization in the fourth quarter.

Some of these projects that we see coming on the horizon. So we're pretty excited about the broad set of opportunities, we see outlet and we look forward to coming back to you guys with more updates when we cannibalize.

Speaker Change: Any plans to put a new authorization in place.

Speaker Change: Uh huh.

Speaker Change: The stock now kind of.

Speaker Change: It was is pretty near where you were purchasing.

Speaker Change: Awesome I appreciate it thanks, everyone.

Speaker Change: Purchasing for the.

Fourth quarter.

Speaker Change: Thank you.

Speaker Change: Question comes from Michael <unk> of Stephens. Your line is now open. Please go ahead.

Speaker Change: Hey, Marc it's Steven.

Speaker Change: Start off with that I mean, we're very pleased with the program as David pointed out the average purchase price cross that with somewhere in the $20 and change range. So we think it was pretty effective.

Speaker Change: Good morning, everybody.

Speaker Change: Wanted to ask on the.

Speaker Change: Stock repurchases, a little surprised that you are.

Speaker Change: <unk> used up the <unk>.

Speaker Change: Obviously, we think we are not getting an appropriate multiples still we don't feel like this is an appropriate valuation for this company.

Speaker Change: Previous authorization in the fourth quarter.

Speaker Change: Any plans to put a new authorization in place Uh huh.

Speaker Change: But that being said.

Speaker Change: The stock now kind of.

Speaker Change: We will do but we always have.

Speaker Change: It was is pretty near where you were purchasing.

Speaker Change: Quite a bit of liquidity, we are looking at its best.

Speaker Change: Purchasing for the.

Speaker Change: Fourth quarter.

Speaker Change: Best ways to deploy the.

Speaker Change: Capital allocation, our focus remains on growth.

Speaker Change: Hey, Marc it's Steven.

Speaker Change: Start off with that I mean, we're very pleased with the program as David pointed out I think the average purchase price cross that with somewhere in the 20 dollar and change range. So we think it was pretty effective.

Speaker Change: <unk> gross.

Speaker Change: Obviously as we have good visibility.

Speaker Change: See some future cash flows last year and some successes the board did authorize the increase that we came to you with in November.

Speaker Change: Obviously.

Speaker Change: And I would just say we will continue to look at all the tools, we have to return value to shareholders. So it will be.

Speaker Change: We are not getting an appropriate multiples still we don't feel like this is an appropriate valuation for this company.

Speaker Change: But that being said.

Speaker Change: Our growth opportunities and other levers as most appropriate to us down the road.

Speaker Change: We will do what we always have we have.

Speaker Change: Quite a bit of.

Speaker Change: Quiddity, we are looking at its best.

Speaker Change: Best ways to deploy the.

Speaker Change: Okay.

Speaker Change: And it's also a little surprised on the gas sales for the fourth quarter were higher than anticipated.

Speaker Change: Capital allocation, our focus remains on growth.

Speaker Change: Funding growth.

Speaker Change: As you look forward I guess, but anything you can say.

Speaker Change: Obviously as we have good visibility.

Speaker Change: About your optimization during the fourth quarter and.

Speaker Change: See some future cash flows.

Speaker Change: Last year and some successes the board did authorized the increase that we came to you with in November.

Speaker Change:

Speaker Change: How that might look for 2025.

Speaker Change: And I would just say.

Speaker Change: Yeah. So first first fourth quarter, we had two.

Speaker Change: We will continue to look at all the tools, we have to return value to shareholders. So that will be.

Speaker Change: R&D optimization deals that would close in the fourth quarter and said we were pleased with the margins on that as you can see it's in that gas sales number for 2025, we do have an assumption in there. We obviously don't really segment information, but I will say that for 2025 over 90% of that is the core base business and then the bulk of.

Speaker Change: Our growth opportunities and other levers as most appropriate to us down the road.

Speaker Change: Okay.

Speaker Change: It's also a little surprised on the gas sales for the fourth quarter were higher than anticipated.

Speaker Change: <unk> seen the guarantee optimization, which includes Dave granting painful garden also just to add for the fourth quarter, we had tea with into the optimization tools that we also pulled forward some of the Atlantic basin dealing with like the corner and we could have a cargo in the fourth quarter. The other half in first quarter. This year.

Speaker Change: As you look forward I guess, but anything you can say.

Speaker Change: About your optimization during the fourth quarter and.

Speaker Change:

Speaker Change: How that might look for 2025.

Speaker Change: Yeah, so for the fourth quarter, we had two.

Speaker Change: They continue without it.

Speaker Change: R&D optimization deals that would close in the fourth quarter and said we were pleased with the margins on that as you can see it's in that gas sales number for 2025, we do have an assumption in there. We obviously don't really segment information, but I will say that for 2025 over 90% of that is the core base business and then the bulk of.

Speaker Change: Into 2025.

Speaker Change: I appreciate that thank you.

Speaker Change: Sure.

Speaker Change: Thank you. Our next question comes from Theresa Chen of Barclays. Your line is now open. Please go ahead.

Speaker Change: Thank you.

Speaker Change: The rapid and it seem guarantee optimization, which includes tape running painful garden also just to add for the fourth quarter, we had tea with the optimization tools that we also pulled forward some of the Atlantic Basin.

Theresa Chen: Stephen I wanted to follow up on your comment about the anticipated tightness in the supply and demand balance on quite a bit from here so with that in mind as well as the compelling economics of having this electrical option for free cash the point you made about cheap insurance.

Speaker Change: For the quarter, we did have a cargo into fourth quarter. The other half of the first quarter of this year and then well obviously continue without it.

Theresa Chen: And would you be able to provide more color on your commercial discussions as you look to contract and the new build that falloff, a potential conversion and what do you and all of our thank you know are the key hurdles at this point what do you think it will take to move things forward.

Speaker Change: Into 2025.

Speaker Change: I appreciate that thank you.

Speaker Change: Sure.

Speaker Change: Yeah.

Speaker Change: Thank you. Our next question comes from Theresa Chen of Barclays. Your line is now open. Please go ahead.

Theresa Chen: Thanks Teresa.

Theresa Chen: No.

Theresa Chen: Thank you.

Theresa Chen: Can't get into the specific discussions we are having.

Theresa Chen: Stephen I wanted to follow up on your comment about the anticipated tightness in the supply and demand balance quite necessary from here, so with that in mind as well as the compelling economics of having this flexible option for freak out the point you made about cheap insurance.

Theresa Chen: I will say there are a lot of people.

Theresa Chen: We are for different reasons, depending upon where they are in the world.

Theresa Chen: One access in one access quickly.

Theresa Chen: I will remind everybody that what distinguishes accelerate from <unk>.

Theresa Chen: Would you be able to provide more color on your commercial discussions as you look to contract the newbuild, thus far for potential conversion and what do you think are the key hurdles at this point what do you think it will take to move things forward.

Theresa Chen: Other LNG players is that we are focused on the downstream part.

Theresa Chen: Part of the value chain.

Theresa Chen: Uh huh.

Theresa Chen: <unk>.

Theresa Chen: There may be some softening anticipated and the actual commodity price we are more.

Theresa Chen: Thanks Teresa.

Theresa Chen: No.

Theresa Chen: Can't get into the specifics.

Theresa Chen: We can difference to what we are seeing with.

Theresa Chen: <unk>, we are having.

Theresa Chen: Let's just use the summer as an example, we took one cost in Europe and now.

Theresa Chen: I will say there are a lot of people.

Theresa Chen: We are for different reasons, depending upon where they are in the world.

Theresa Chen: Now most of the swaps are occupied for the summer in an effort to refuel storage in Europe, which means that LNG is going to be a little tighter for the global South this coming summer.

Theresa Chen: One access in one access quickly.

Theresa Chen: I will remind everybody that what distinguishes accelerate from.

Other LNG players is that we are focused on the downstream.

Theresa Chen: Coming summer just because.

Theresa Chen: The value chain.

Theresa Chen: It got cold in Europe.

Theresa Chen: Uh huh.

Theresa Chen: So it's just another reminder to the house.

Theresa Chen: <unk>.

There may be some softening.

Theresa Chen: They're doing exactly what they have been doing that is contracting for the more long term supply that's good for all the liquefaction players.

Theresa Chen: Located in the actual commodity price we are.

Theresa Chen: Firstly in difference to what we are seeing.

Theresa Chen: Use the summer for just an example.

Theresa Chen: They are moving towards.

Providing the infrastructure thats going to allow them to have that affordable long term supply. So I think the behavior and the European markets is reminding people that they need to focus on.

Theresa Chen: We took one cost in Europe.

Theresa Chen: And now no.

Theresa Chen: Most of the slots are occupied for the summer in an effort to refuel storage in Europe, which means that LNG is going to be a little tighter for the global South this coming summer this coming summer just because.

Theresa Chen: Excuse me long term projects long term contracts.

Theresa Chen: We're finding that refunding that should drive.

Theresa Chen: It got cold in Europe.

Theresa Chen: <unk> been discussion.

Theresa Chen: So it's just another reminder to the house.

Theresa Chen: LNG is an affordable for yourselves and.

Theresa Chen: And there's nothing like a few reminders.

Theresa Chen: They're doing exactly what they have been doing that is contracting for the more long term supply that's good for all the liquefaction players.

Theresa Chen: That's a.

Theresa Chen: They shouldn't dispute as an optimization plan. So that's that's helping there are different markets obviously.

Theresa Chen: They are moving towards.

Theresa Chen: If you care about throughput procure about throughput you want as much throughput as possible.

Theresa Chen: Providing the infrastructure, that's going to allow them to have that affordable long term supply. So I think the behavior in the European markets is reminding people that they need to focus on.

Theresa Chen: If you don't care about throughput you care about efficiency, because you care about how much you're boiling off every day, if you're not sending it into your system. So.

Theresa Chen: Excuse me long term projects long term contracts.

Theresa Chen: So we mentioned.

Theresa Chen: We're finding that we're funding that should drive.

Speaker Change: Obviously, both of us to request you build.

Theresa Chen: Both those boxes.

Theresa Chen: In 2000 and discussion.

Theresa Chen: Have some of the best efficiency.

Theresa Chen: LNG is an affordable for yourselves and.

Theresa Chen: In the world and kind of some of the highest throughput and the world gets good.

Theresa Chen: And there's nothing like a few reminders.

Theresa Chen: That's a.

Theresa Chen: There will be some other niche.

Theresa Chen: They shouldn't dispute as an optimization plan so that's that.

Theresa Chen: For fees that we're talking to that need for them.

Theresa Chen: What's helping there are different markets obviously.

Theresa Chen: Forward to send out.

Theresa Chen: And those will require a different mix of top side.

Theresa Chen: If you care about throughput procure about throughput you want as much throughput as possible.

Theresa Chen: Conversion attributes to match the smaller sundar.

Theresa Chen: If you don't care about throughput you care about efficiency, because you care about how much you're boiling off every day, if you're not sending it into your system.

Theresa Chen: Minimum sundar compression too soon boil off for sure maybe rework.

Theresa Chen: So we mentioned.

Oliver Simpson: But the point being I think Oliver mentioned that we feel like we have all the tools that we need at this point too to get in front of everyone. We gave to round the world.

Theresa Chen: Obviously, both of US to request you do six both those boxes.

Theresa Chen: It has some of the best efficiency.

Theresa Chen: In the World and it has some of the highest throughput in the world that's good.

Theresa Chen: And we think we're well positioned for that.

Theresa Chen: There will be some other niche geographies that we're talking to that needs for them.

Theresa Chen: Thank you.

Theresa Chen: Yeah.

Theresa Chen: Forward to sit down.

Theresa Chen: And those will require a different mix of top side.

Speaker Change: As a reminder, if you'd like to ask a question Thats star one on the telephone keypad.

Speaker Change: Our next question comes from Bob <unk> of Northland Capital markets. Your line is now open. Please go ahead.

Theresa Chen: Conversion attributes to match the smaller sundar.

Theresa Chen: Maybe minimum sundar compression too soon boil.

Speaker Change: Hey, good morning, guys. Thank you for taking my question a lot of my questions already got asked but I just so for the Newbuild you guys. You mentioned that you can deliver one bcf a day through that and I just wanted to get a sense of like how that is comparative to your current fleet, maybe if you could just help us remind.

Theresa Chen: Boil off for sure maybe rework.

Oliver Simpson: But the point being I think Oliver mentioned that we feel like we have all the tools that we need at this point too to get in front of everyone. We gave to round the world and we think we're well positioned for that.

Speaker Change: US like what what's the range of throughput capacity on your current fleet.

Oliver Simpson: Thank you.

Oliver Simpson: Yeah.

Speaker Change: As a reminder, if you'd like to ask a question Thats star one on the telephone keypad.

Speaker Change: Hey, Bobby David here.

Speaker Change: Sure Good question.

Speaker Change: Our next question comes from Bob <unk> of Northland Capital markets. Your line is now open. Please go ahead.

Speaker Change: And our fleet, we've got a range of re gas capacity as they are generally from 500 up to one bcf so.

Speaker Change: Hey, good morning, guys. Thank you for taking my question a lot of my questions already got asked but I just so for the Newbuild you guys. You mentioned that you can deliver one bcf a day through that and I just wanted to get a sense of like how that is comparative to your current fleet. Maybe if you could just help us remind us.

Speaker Change: Our fleet is a highly capable a conversion would likely be at the bottom end of that range and yet new builds as Stephen said are usually higher capacity and can do somewhere.

Speaker Change: Europe ECS, but.

Speaker Change: More specifically 500 to two Bcf.

Speaker Change: What what's the range of throughput capacity on your current fleet.

Speaker Change: Okay got it and then on the LNG your intentions.

Speaker Change: <unk> biology carrier for conversion.

Bobby David: Hey, Bobby David here sure.

Speaker Change: I was just curious on is it how you guys are approaching it are you trying to line up.

Speaker Change: Sure Good question.

Speaker Change: In our fleet, we've got a range of re gas capacity as they are generally from 500 to up to one bcf. So.

Speaker Change: Our carrier that would fit our specific customers needs or is it more so taking approaches.

Steven Cobos: Our fleet is a highly capable a conversion would likely be at the bottom end of that range and yet new built as Stephen said are usually higher capacity and can do somewhere.

Speaker Change: <unk>.

Speaker Change: Build it and they will come is it trying to as I was just trying to match demand with what with that or are you more so just looking at what's the best deal out there that we can go out and market.

Speaker Change: Near a bcf, but more.

Speaker Change: More specifically 500 to two Bcf.

Speaker Change: Hey, Bobby this is sort of a I'll take this one but.

Speaker Change: Okay got it and then on the LNG your intentions.

Speaker Change: We mentioned I think in the previous call that with with our Atlantic supply deal, we had a need for for an LNG carrier for that so I think we have.

Speaker Change: Biology carrier for conversion.

Speaker Change: I was just curious on is it.

Speaker Change: How you guys are approaching it are you trying to line up.

Speaker Change: We have a base need for an LNG carrier for for some of our optimization.

Speaker Change: Our carrier that would fit our specific customers needs or is it more so taking approaches.

Speaker Change: Opportunities. So that's the first sort of that's.

Speaker Change: Firstly, we have for it.

Speaker Change: <unk> built it and they will come.

Speaker Change: From from there the idea is that with that asset we would be able to look at doing some some engineering look at potentially ordering long lead items to reduce the time to market I think that that's in general is something that we see at a time to market is critical for our customers and our projects. So how do you see having.

Speaker Change: Is it trying to as I was just trying to match demand with what with that or are you more so just looking at what's the best deal out there that we can go out and end market.

Bobby David: Hey, Bobby this is sort of a I'll take this one but.

Bobby David: We mentioned I think in the previous call that with with our Atlantic supply deal, we had a need for for an LNG carrier for that so I think we have.

Speaker Change: Hey conversion candidate within the fleets will allow us to reduce that allow us to and then and then tailor the solution to what the customer needs, but we're not looking to specific cause the two specific customers needs. We will bring the asset and then and then assess what makes what makes sense for us based on what we see outlet.

We have a base need for an LNG carrier for for some of our optimization.

Bobby David: Opportunities. So that's the first sort of that's.

Bobby David: Firstly, we have for it.

Bobby David: From from there the idea is that with that asset we would be able to look at doing some some engineering look at potentially ordering long lead items to reduce the time to market I think that's in general is something that we see the time to market is critical for our.

Speaker Change: That's terrific color I appreciate that and then just last one for me the 99, 9% fleet reliability was a record.

Speaker Change: Was just curious on what the previous record was I'm guessing it was still a 99 point something.

Speaker Change: Yes.

Bobby David: Customers in our projects so having having.

Speaker Change: Yes, great question.

Speaker Change: I'm not sure we're going to be able to hit 99 nine every single.

Bobby David: A conversion candidate within the fleets will allow us to reduce that allow us to and then tailor the solution to what the customer needs, but we're not looking to specific cause the two specific customers needs. We will bring the asset and then and then assess what makes what makes sense for us based on what we see out of it.

Speaker Change: Every single year and so it was a remarkable achievement, but generally we do achieve reliability in excess of 99%.

Speaker Change: I appreciate the question because a whole lot of really hard work goes into those kind of numbers I mean, it's a tremendous effort from the ops team from the engineering team.

Bobby David: That's terrific color I appreciate that and then just last one for me the 99, 9% fleet reliability was a record.

Speaker Change: Everybody to make sure we've got all the equipment available spares.

Speaker Change: When something costs up in the middle of the night and you can get back online in a matter of minutes or a few hours that means the world to our customers who depend on us. So it takes a lot of work to two to achieve that kind of performance and we hope to.

Bobby David: Was just curious on what the previous record was I'm guessing it was still a 99 point something.

Bobby David: Yes.

Bobby David: Yes, great question.

Speaker Change: I'm not sure we're going to be able to hit 99 nine every single.

Speaker Change: Every single year, it's a it was a remarkable achievement, but generally we do achieve reliability in excess of 99%.

Speaker Change: Continue that performance going forward.

Speaker Change: No doubt, it's a powerful thing when everybody is rowing in the same direction and it definitely seems like that is the case for you guys. So congrats on the great results this year and I'll turn it back to the queue.

Speaker Change: I appreciate the question because a whole lot of really hard work goes into those kind of numbers I mean, it's a tremendous effort from the ops team from the engineering team.

Speaker Change: Thank you.

Speaker Change: Everybody to make sure we've got all the equipment available spares.

Speaker Change: Thank you our.

Speaker Change: The next question comes from Craig Shere of Tuohy your.

Speaker Change: When something Pops up in the middle of the night and you can get back online in a matter of minutes or a few hours that means the world to our customers who depend on us. So it takes a lot of work to do.

Speaker Change: Your line is now open. Please go ahead.

Speaker Change: Good morning, Thanks for taking the questions.

Speaker Change: Couple more on the conversion candidates.

Speaker Change: To achieve that kind of performance and we hope to.

Speaker Change: First fair to assume that.

Speaker Change: Continue that performance going forward.

Speaker Change: LNG carrier acquisition for that would be a modest cost I mean tens of millions of dollars not 100, plus and what's your confidence on shipyard access for conversion.

Speaker Change: No doubt, it's a powerful thing when everybody rowing in the same direction and it definitely seems like that is the case for you guys. So congrats on the great results this year and I'll turn it back to the queue.

Yeah.

Speaker Change: Thank you.

Speaker Change: Hey, Craig this is Steven.

Speaker Change: Thank you our next.

Craig Shere: I would say just like so many people we don't like to take any options off the table.

Speaker Change: The next question comes from Craig Shaw of <unk> your.

Speaker Change: Your line is now open. Please go ahead.

Craig Shere: Yes, we're looking at numbers seem candidates.

Craig Shaw: Good morning, Thanks for taking the questions.

Craig Shere: Yes.

Craig Shaw: Couple more on the conversion candidates.

Craig Shere: Uh huh.

Speaker Change: DFT to we're looking at all kinds of propulsion all kinds of containment.

Craig Shaw: First fair to assume that.

Craig Shere: You can view that.

Craig Shaw: LNG carrier acquisition for that would be a modest cost tens of millions of dollars not 100, plus and what's your confidence on shipyard access for conversion.

Speaker Change: Few of the cost benefit of that.

Craig Shere: As we look at utility.

Speaker Change: LNG C.

Craig Shere: Versus derisking.

Speaker Change: Some of the power Gen execution on conversion et cetera, but I mean, the first thing I would tell you as I have high confidence in David can our engineering team to come up with good options on that.

Craig Shaw: [noise].

Steven Cobos: Hey, Craig this is Steven.

Speaker Change: I would say just like so many people we don't like to take any options off the table.

Craig Shere: We're not taking anything off the table.

Speaker Change: Yes, we're looking at numbers seem candidates.

Speaker Change: It would be prudent at this.

Speaker Change: At this stage boosters.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: DFT to we're looking at all kinds of propulsion all kinds of containment.

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: The capacity of the shipyards, we were comfortable that we will be able to execute what we need to.

Speaker Change: You can view that.

Speaker Change: The cost benefit of that.

Speaker Change: Absolutely.

Speaker Change: We look at utility.

Speaker Change: Yeah.

Speaker Change: <unk> LNG seed.

Speaker Change: Versus derisking.

Speaker Change: Sounds good and Ah.

Bobby David: Some of the power Gen execution on conversion et cetera, but I mean, the first thing I would tell you as I have high confidence in David and our engineering team to come up with good options on that.

Speaker Change: This quarter, it's already been alluded to there's been some questions about Vietnam in Alaska.

Speaker Change: This quarter was it sounds like it's been a little more vague.

Speaker Change: We're not going to take anything off the table.

Speaker Change: Versus the prior three quarters with more perspective.

Bobby David: It'd be prudent at this.

Bobby David: At this stage boosters.

Speaker Change: Specific growth project opportunities.

Bobby David: Okay.

Bobby David: Yeah.

Speaker Change: In the deck.

Bobby David: Okay.

Bobby David: Capacity of the shipyards, we were comfortable that we will be able to execute what we need to.

Speaker Change: Understand that discussions are ongoing it's kind of a fluid environment.

Speaker Change: Don't want to front run opportunities.

Bobby David: Absolutely.

Speaker Change: But the you've had a lot.

Bobby David: Yeah.

Bobby David: Sounds good.

Speaker Change: Of simmering opportunities for a couple of years now in building.

Bobby David: And.

Bobby David: No.

Speaker Change: This quarter, it's already been alluded to there's been some questions about Vietnam in Alaska.

Speaker Change:

Speaker Change: Would it be unreasonable for someone to thing.

Speaker Change: At least one maybe two chunky opportunities could cross the finish line before year end.

Speaker Change: This quarter was it sounds like it's been a little more vague.

Speaker Change: Versus the prior three quarters with more perspective.

Speaker Change: Alright.

Speaker Change: This is Stephen I'll take that one too Craig.

Speaker Change: Specific growth project opportunities.

Craig Shere: Yeah I think.

Speaker Change: In the deck.

Craig Shere: I think in my script I mentioned that we are pursuing things that we do think should drive short and intermediate term, but as you as you well know.

Speaker Change: Understand that discussions are ongoing it's kind of a fluid environment.

Speaker Change: Don't want to front run opportunities.

Speaker Change: But the.

Craig Shere: Getting a service we don't have that in guidance simply because.

Speaker Change: You've had a lot.

Speaker Change: Of simmering opportunities for a couple of years now in building.

Craig Shere: Primary.

Craig Shere: Either mix, where it does not make but certainly we are pursuing them.

Speaker Change: Hum.

Speaker Change: Would it be unreasonable for someone to think.

We are paddling hard beneath the surface.

Speaker Change: At least one maybe two chunky opportunities could cross the finish line before year end.

Craig Shere: And.

Craig Shere: I can't really do more until you guys are going to be the first to know.

Speaker Change: Right.

Speaker Change: This is Stephen I'll take that one too Craig.

Craig Shere: Great. Thank you.

Speaker Change: Yeah.

Speaker Change: I think in my script I mentioned that we are pursuing things that we do think should drive short and intermediate term, but as you as you well know is.

Craig Shere: Thank you.

Speaker Change: We currently have no further questions. So I'll hand back to the management team for any further remarks.

Steven Cobos: Sure. This is Steven again, I want to thank everyone on the call for joining us today.

Speaker Change: Getting a sense, we don't have that in guidance simply because.

Speaker Change: Gary.

Gary: Either mix, where it does not make but certainly we are pursuing them.

Speaker Change: All you are really appreciate the conversation.

Speaker Change: We remain steadfast in our commitment to connecting global LNG supply in some markets around the world.

Speaker Change: Our paddling hard beneath the surface.

Speaker Change: And.

Speaker Change: I can't really do more than until you guys are going to be the first to know.

Speaker Change: While providing value to our shareholders consider it's a big job and.

Speaker Change: One that all of US absolutely we believe done.

Speaker Change: Great. Thank you.

Speaker Change: We're excited about the growth opportunities ahead of us in 2025 and beyond.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: We currently have no further questions so I'll hand back.

Speaker Change: And with that thank you very much.

Speaker Change: Back to the management team for any further remarks.

Speaker Change: Thank you all for joining today you may now disconnect your lines.

Steven Cobos: Sure. This is Steven again, I want to thank everyone on the call for joining us today.

Speaker Change: Youre really appreciate the conversation.

Speaker Change: We remain steadfast in our commitment to connecting global LNG supply in some markets around the world.

Speaker Change: Providing value to our shareholders consider it's a big job.

Speaker Change: One that all.

Speaker Change: All of US absolutely we believe that.

Speaker Change: We're excited about the growth opportunities ahead of us in 2025 and beyond.

Speaker Change: Thank you very much.

Speaker Change: Thank you all for joining today you may now disconnect your lines.

Speaker Change: [music].