Q1 2025 Excelerate Energy Inc Earnings Call
Question, once the presentation has finished, please press start, followed by one on the telephone keypad.
Speaker Change: I'll now hand it over to your host, Craig Hicks, Vice President of Best Relations and Strategy. Please go ahead.
Speaker Change: Good morning, everyone. Thank you for joining Excelerate Energy's first quarter, 2025 Ergene Skull.
Stephen Kobos: Participating on the call today are Steven Kobos, Chief Executive Officer and Dana Armstrong, Chief Financial Officer.
Stephen Kobos: Also joining the call today are Oliver Simpson, Chief Commercial Officer, and David Liner, Chief Operating Officer.
Stephen Kobos: Our first quarter, 2025, earnings results, press release and presentation will release yesterday afternoon and can be found on our website at ir.excelerateenergy.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.
Speaker Change: Our actual results may differ materially from those expressed in these poor looking statements and we make no obligation to update or revise them.
Today's remarks will also refer to certain non-GAAP financial measures.
Speaker Change: Thanks, Craig, and good morning, everyone. It is truly a pleasure to have you on the call with us today.
Speaker Change: Excelerate is off to a great start in 25 and we continue to make progress on our strategic objectives.
Speaker Change: I know that many of you may be familiar with Excelerate.
Speaker Change: I also know that Excelerate is attracting the attention of a lot of new investors with our recent activities So for the new ears on the call and eyes on the deck, I want to touch on who we are as a company
Speaker Change: Excelerate Energy is the global leader in floating LNG import terminals and downstream LNG infrastructure.
Speaker Change: We operate 10 FSRUs, which represents approximately 25% of the world's floating regastification capacity.
and we have another FSRU under construction.
We are an experienced operator.
Speaker Change: and we are expanding our energy-term presence in key natural gas markets around the world.
Speaker Change: As a US company with a global presence, we help countries enhance their energy security while supporting the transition to a lower carbon future.
So what sets Excelerate apart from an investment perspective?
First, our business is predominantly supported by take-or-pay contracts.
Speaker Change: These give us the ability to generate sustainable earnings regardless of economic cycles.
Speaker Change: Second, we have a strong balance sheet that provides us with financial flexibility to execute progress strategy.
Speaker Change: And third, by focusing on the last mile of the LNG value chain, we are strategically positioned to scale our business as new LNG supply arrives online in the coming years.
Speaker Change: With these attributes as a foundation, Excelerate is a great investment opportunity.
Speaker Change: On today's call, I'll go over several key highlights from the quarter and give an update on our strategy.
Speaker Change: Then I'll hand the call over to Dana, who will discuss our financial results in more detail.
Q1 was another strong quarter for Excelerate [inaudible]
Speaker Change: We delivered 100 million of adjusted EBITDA and 56 million of adjusted net income.
Speaker Change: The financial results we achieved this quarter were driven primarily by the strong performance of our core regasification infrastructure business.
Speaker Change: Attached on this earlier, but I have to emphasize, our FSRU and Terminals business is underpinned by a high quality takeer pay customer contract portfolio.
Speaker Change: This year, that portfolio represents over 90% of our estimated full-year adjusted EBITDA.
Speaker Change: The steady cash flows, this business generates gives us a strong financial base and is the cornerstone of everything we do.
Let's talk operations for a moment.
Speaker Change: On the operations front, our teams continue to make operational excellence a top priority.
Speaker Change: We have an unwavering commitment to achieving high levels of reliability that helps us protect our revenue and consistently meet our customer commitments.
Speaker Change: During the quarter, our team continued to see operational reliability above 99.9%.
This is simply outstanding.
We exceeded all our primary safety targets as well.
This reaffirms our commitment to safe and sustainable operations.
Speaker Change: and short, we have a great base business with best-in-class operations.
Elk's turn toward Greth's strategy.
Speaker Change: Since last quarter, the Excelerate team has done a great job generating your term value creation for our shareholders.
Speaker Change: We continue to advance our fleet asset optimization and expansion strategy.
Speaker Change: The construction of Hole 34 has seven remains on track for expected delivery in mid-2026.
Speaker Change: We continue to see great demand for whole 30407 and we are in ongoing discussions with potential customers regarding the vessel's deployment.
Speaker Change: The next construction milestone will occur in June when we launch or float the asset for the first time.
Beyond ensuring robust support for our core regast business.
We are pursuing strategic growth catalysts.
Speaker Change: Obviously, this includes our recently announced agreement to acquire an integrated LNG infrastructure and power platform in Jamaica.
So let's talk a bit about our plans for Jamaica
Speaker Change: In March, we announced that we entered a definitive agreement to acquire the fully integrated downstream energy and power platform in Jamaica for a cash purchase price of approximately £1.00.
Speaker Change: Under the terms of the agreement, Excelerate will require the assets and operations of the Montiga Bay LNG Terminal, the Old Harbor LNG Terminal, and the Clarence CHP Power Plant.
Speaker Change: These assets constitute Jamaica's sole LNG platform, encompassing its only two LNG terminals and the island's only combined heat and power plant.
Speaker Change: This acquisition marks an important milestone for Excelerate and the execution of our downstream growth strategy, but most of all it is an outstanding strategic and financial fit.
Speaker Change: Strategically, it aligns with our goal of investing in both LNG import terminals and complimentary downstream infrastructure.
Speaker Change: It also enhances our aggregate long-term contract revenue and margins while diversifying our geographic exposure and customer base.
Lastly.
Speaker Change: The integration of this downstream and last mile infrastructure will secure a creative off-take that with DevTales nicely with the venture global volumes and our LG portfolio.
In short, it is a big step forward.
Speaker Change: Beyond the strategic benefits, the addition of the Jamaica business will deliver significant and your term value to accelerate and are shareholders.
Speaker Change: First, the transaction will be immediately accretive to EPS and significantly enhance our operating cash flow.
Speaker Change: Second, it provides us with a contract portfolio of mostly investment-grade counter parties, including Jamaica Public Service Company, which is one of the largest customers on the island.
Speaker Change: In fact, on an enterprise level, it pulls our aggregate off-take profile to investment grade.
Third, you will enhance our operational and financial profile.
Speaker Change: And finally, the acquisition is going to provide us with a new pipeline of growth opportunities in Beth Jamaica and the Atlantic Basin.
This is a great business and these are fantastic assets.
Speaker Change: We are excited to bring it into our portfolio and welcome the talented team of experts and professionals who have helped shape the LNG landscape in Jamaica.
Speaker Change: We are making good progress on integration planning and our own track to close this quarter.
Speaker Change: We are committed to working with the Jamaican government to ensure the transition is as seamless as possible.
Speaker Change: In summary, I am pleased with where Excelerate is positioned today and we are excited about the opportunities to lie ahead.
With that, I'll turn the call over to Dana.
Thanks, Steven, and good morning.
Delivered Strong Financial Results for the First Quarter [inaudible]
Speaker Change: We reported adjusted net income of 56 million, which is a sequential increase of 10 million or up 20% as compared to the fourth quarter of last year.
Speaker Change: A death to David up for the first quarter was $100 million, $9 million, or up about 10% versus the prior quarter.
Speaker Change: The sequential increases in both adjusted net income and adjusted EBITDA over the fourth quarter last year will primarily driven by the timing of vessel operating and maintenance activities as well as lower S-DNA expenses.
Speaker Change: In comparison to the first quarter of last year, the increase in adjusted net income and adjusted EBITDA was due to the dry docking of the FSRU Summit L&D in the first quarter of 2024 and an increase in direct gas sales margin.
Now let's turn to our balance sheet.
Speaker Change: For the three months ended March 31st, our total debt including finance leases was $677 million and we had $619 million of cash and cash equivalence on hand
as in March 31st.
Speaker Change: 350 million of Andron capacity under our revolver was available for additional warlings.
Speaker Change: In April , Excelerate Energ entered into an amendment to its senior secured revolving credit facility.
Speaker Change: The amendment extends the maturity of the Revolving Credit Facility from March 20, 27 to March 20, 29, and increases the total capacity available for borrowing from 350 million to 500 million.
Speaker Change: The amendment is contingent on the closing of the previously announced pending acquisition of the Jamaica business and the repayment in full of the existing term under the credit
Speaker Change: Also in April , Fitch Ratings and S&P Global Ratings issued inaugural credit rating for Accelerate Energy.
Speaker Change: We are proud of our inaugural credit ratings. This achievement reflects our strong financial health and the stability of our take-or-pay business model.
Speaker Change: Now let's turn to a recap of our recent capital markets activity.
Speaker Change: We are pleased to announce that we have completed the equity and debt financing for our previously announced acquisition of the business in Jamaica.
Speaker Change: Early in the second quarter, we completed an equity offering of 8 million shares of Class A comments doc at a price per share of $26.50 for $212 million of gross proceeds inclusive of the green shoe.
Speaker Change: Additionally, on May 5th, we closed on our $800 million offering of 8% Senior Uncensored notes due in 2030.
Speaker Change: The equity and debt proceeds will be used to fund the Jamaica Acquisition and to pay down the term loan under the credit facility.
Speaker Change: Now let's turn to an update on our Financial Guidance for 2025.
Speaker Change: Based on our first quarter results, we are increasing our previously communicated adjusted ebidic guidance range for 2025.
Speaker Change: This guidance range does not yet reflect any incremental EBITDA from the Jamaica acquisition.
Speaker Change: For the full year, we now expect adjusted EBITDA to range between $345 million and $365 million.
Speaker Change: Exploding any additional capital expenditures related to the pending Jamaica acquisition, we reaffirm our previously announced guidance of maintenance capex and committed growth capital for 2025, which are expected to range between 60 million and 70 million, and 65 million and 75 million respectively.
Speaker Change: As a reminder, most of the committed growth capital this year is related to the milestone payments on our New Build FSRU call 34-07.
Speaker Change: We made a roughly 30 million milestone payment related to the kill length of hole 34-07 in the first quarter.
Speaker Change: The next milestone payment of roughly 20 million will be made in late due to following the launch of the vessel.
Speaker Change: We will continue to provide updates on our committed growth capital estimates as contracts are executed with counterparties that drive incremental capital needs for 2025.
With that, we'll open up the call for Q&A.
Speaker Change: Thank you. As a reminder, if you'd like to ask a question, please press star for one by one on the telephone keypad. If you'd like to remove your question, that star for by two.
I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Speaker Change: Offers question for today comes from Theresa Chen of Barclays. Your line is now open, please go ahead.
Theresa, your line is now open, please go ahead.
Sorry, key, hear me now.
Yes, we can.
Good morning.
Speaker Change: Thank you for taking my questions. Good morning. On Janaka, a two-part question. Do you remind us what are the remaining steps to close the transaction at this point given the target timeline at this quarter and less than two months left?
Speaker Change: and then in terms of your growth endeavors for these assets.
Speaker Change: You outlined a variety of potential paths to growth, and now that we've had a bit of time to digest the news, and taking into account the evolving macro backdrop of both.
Speaker Change: Dipli, Ben O'Lingey, and Demand for Gas. What do you think are some of the lower hanging fruit and projects and what kind of eager dot can they bring?
Stephen Kobos: Thanks Theresa. I appreciate all four questions and good morning. This is Steven. In terms of closing, we're well into this, obviously we were.
Speaker Change: We did our due diligence earlier in the spring before we closed, before we signed in March.
Speaker Change: These are just a series of, you know, I don't want to say anything's routine, but just routine deliverables, consent, you know, I don't see any major impediments there, we have confidence, seller, we'll...
Speaker Change: Make good on those deliverables. So that's why we're comfortable just expressing the confidence that you heard earlier.
in terms of...
in terms of macro.
Speaker Change: You know, I'll just make a couple of comments and hand it over to Oliver and see if he wants to amplify what we liked about the Jamaica platform in particular is it does look like there are some some of them.
Speaker Change: You know, lower hanging opportunities there, there are also some opportunities that
Speaker Change: You know, compared with the scale of what we've talked about before, you know, there's some generally good opportunities that are of modest capex, you know, so we see that as...
Speaker Change: being an incremental driver on why we like this, this deal, that Paulette Paulver.
Spand upon that if you would.
Speaker Change: Thanks, Steven. Thanks, sir. So, yeah, I think for us, it's really, you know, the focus is on getting to close and I think, you know, post-close, you'll see as to how to communicate.
to communicate more on the year. [inaudible]
Speaker Change: on the growth strategy in Jamaica, but really, the way we see it is, these are some great assets that we're acquiring on the island, and they create an immediate platform for growth. They are, just through those assets, we can do incremental gas and LNG sales.
Speaker Change: which is what we'll be looking to capitalise on the completion.
Speaker Change: I also think, you know, Jamaica just from a geographical location, you know, we've talked about the sort of hub and spoke model, it's a fantastic hub.
Speaker Change: to create a platform to grow on in the region and look at other projects and other markets around
Speaker Change: as the base of that. So yeah, we're extremely excited about the platform that's created for us, but as I said we'll get this to close and then we'll look to communicate more details on this with you guys.
Speaker Change: Thank you for humoring me. My first question parts A through D. The second question on the new build whole 3407. Would you mind providing an update on the latest prospects in terms of finding a home for this asset, as well as gas supply, our market dynamics evolving for potential economics that a new build SFRU of this size scale and specificity can command.
Speaker Change: Theresa, I'll take that one just because I'm going to be careful about it because I welcome all our investors on the call, but those aren't the only people listening in on what our plans are. So I'll just say that we are excited about it. It is.
Speaker Change: It takes all of the lessons that we've learned over the past 23 years and applies to it. It's going to have the best in class boil-off, you know, just all kinds which economically is huge.
that we are talking.
We're in serious discussions on multiple fronts at this point.
Speaker Change: and people wanted for all kinds of ways. And we will not be hide bound and insist that that come with LNG supply, it might with certain of the counterparties we're talking to, it might not with some others. So we are...
Speaker Change: Leaving everything on the table, as we always do, we don't like to limit ourselves in terms of the opportunity set on this massive tab.
Speaker Change: So, I don't think I can say more without prejudicing our ability to continue in those discussions. So, I'll leave it at that.
Speaker Change: There's intense interest that's going to be the best asset to float, and we're excited and can't wait to bring it home.
Thank you so much.
Speaker Change: Thank you. Our next question comes from Chris Robertson of Deutsche Bank. Your line is now open. Please go ahead.
Chris Robertson: Thank you, operator. Good morning, everybody. Thank you for taking my questions. Steven, I just wanted to circle back on your comment related to the venture of global volumes.
Chris Robertson: Which I guess for our phase two placaments are expected by 3 Q2 027. So could you just walk us through?
Chris Robertson: The available supply volumes that would be available upon closing of the transaction.
Chris Robertson: Presumably from 2Q this year through 3 Q2 027, what does that look like? And then does it create a situation wherein then your long LNG supply, once the VG volumes come into play, or how should we think about that?
Speaker Change: Good morning, Chris. Thanks for joining us. So it's good to hear from you. I'm going to hand it to Oliver in a second. I would say obviously in terms of how the VG
You know, long term, perfectly. We're looking at 2021 years.
Speaker Change: Contracts and Extensions on the island. That base needs about 0.6 and as you know, MTPA and as you know, VG for us over, and as the exact same length of time is 0.7.
Speaker Change: in the LNG world. That's a perfect match. We are getting...
Speaker Change: We are getting a third party non-NFE supply for some interim period of time, but Oliver, you're going to help me out in terms of...
Speaker Change: But we haven't closed yet, so obviously I don't want to wrong foot anything here, but...
Speaker Change: You might talk to about that, if you would please Yeah, I think we haven't we haven't given specifics on on the timeline that you know as you mentioned Chris of VG volumes are coming out and
What will be inheriting with the NFE transaction and those?
I think that is…
Obviously, we have these VG volumes.
Prior to the Jamaica Transaction, so...
Speaker Change: We were going to manage those within the portfolio and I think that that continues to be the plan but as Steven alluded to I think longer term I think we see the tenure and the size of the volumes is a good fit for Jamaica and that potential growth. [inaudible]
Thank you.
Speaker Change: Yeah, I think I think the one thing, Chris, it is worth saying, you know, nothing's changed about how we viewed commodities. I think we are a must.
Speaker Change: Alone in the space and we try to be agnostic as to the price of
Speaker Change: Commodities. We tried to lock in fixed margins. We like to buy and sell in the same basin. And what I can't assure you is we'll bring that same philosophy that we always bring to all of this.
Speaker Change: Okay, yeah, make sense. Follow up questions from me. This is more of a...
Speaker Change: Diving into kind of the hub and spoke type of model you've talked about a bit here but
Speaker Change: Because as you kind of look at the landscape of countries, especially in the Caribbean here who are pursuing...
Speaker Change: Renewables, SolarWinds, some intermittent type of power, wherein they may need the flexibility.
Speaker Change: of LNG imports to have at least a base load backup system that runs on natural gas. Is there an opportunity to think with the Jamaica asset as a base there to pursue maybe a little bit more flexible terminals that are smaller scale and seasonal nature, much like you haven't?
Speaker Change: and Argentino with Edward Norther, Wells Gateway, just something in that realm.
Yeah, Chris, what I-
Speaker Change: I left the question because you're going to the part of why Excelerate is a good partner for the scaling of renewables, the poster child for that.
For us, is our valuable-
Speaker Change: Partner, customer, Petra Bros in Brazil, and as you know, Brazil's, gosh, they're hydroelectric power generation part of the mixes, 80%. You know, and then when you add their solar and wind, it's another.
10% at times, so...
Speaker Change: But you cannot be that dependent upon intermittency unless you've got that gaspired power.
Speaker Change: Backup. So I think that's going to be, that's not just true of someone who's done a fantastic job of scaling renewable power generation like Brazil. It's going to be true of anyone.
Speaker Change: who wants to be able to rely upon renewables. It has to be reliable. Also, you will see Chancellor
Speaker Change: this government was just sworn in a couple of days ago. I think it's why I think it's why Chancellor Mertz and was so keen to announce the amount of gas fired power generation the Germany's going to be outing because
Speaker Change: It doesn't matter what your base load is, if it's hydroelectric or wind, you still need a reliable backup to it. So on a different scale that same phenomenon is going to be apparent for anyone with these ambitions.
Thank you for watching!
Thanks, Steven. I'll turn it over.
Speaker Change: Thank you. Our next question comes from Bobbi Brooks of Northland capital markets. Your lines are now open, please go ahead.
Bobby Brooks: Hey, good morning guys. Thank you for taking my question. The first one for me is I was just curious what's got sales up over a hundred over a hundred million two quarters in a row now.
Speaker Change: I was kind of expecting that to kind of continue to be a smaller number so I was just curious kind of what's driving that.
Hey Bobby, this is Dana.
Speaker Change: It's a couple of things that we've spoken previously about our Atlantic Basin deal that we started in the fourth quarter and continued in the first quarter, so that's part of that number.
and then on top of that we had...
Speaker Change: Three other cargoes, two into Asia and one into Europe . So it's really those four items that are driving that number. So we think we can get success there and you know that's something that we expect to continue.
Fair enough. Good. Helpful.
Bobby Brooks: I was just going to say Bobby and I thought oh yeah [inaudible]
Bobby Brooks: Yeah, but once again, all those deals were locked in on a fixed basis. You know, we like them, but you know, we're not swinging for the fences there. That's just an example where we follow our philosophy and lock in either fixed prices or lock in same, same basis. Yeah, so good point. All of those are back to back. And that's all. [inaudible]
that's Steven said, that's our business model.
Thank you for watching!
Speaker Change: God, it really helpful color there. Thank you. And so obviously, also...
Speaker Change: You guys have more dry powder now after raising some equity and increasing the revolvers, so could you just kind of discuss, and obviously the opportunity set for growth in front of you is vast, so could you maybe just discuss the appetite for more growth capEx this year after you finalize that you make an asset acquisition?
Speaker Change: We're going to hand it over to Dana, but you're exactly right, Bobby, we do have adequate to try powder for our growth ambitions, I'll let Danny want.
Bruce.
Dana: We might as well speak to capital allocation, how we're thinking about it. Probably what he does remain. Yeah, priority remains growth. I mean obviously we're really excited about Jamaica. It's a big M&A acquisition. We're excited about it, but to Steven's point we've still got plenty of capacity to fund additional growth. You know, we have our new build being delivered in 2026. That's 200 million. We're excited about it. We're excited about it.
Dana: CapEx that we'll use next year, somebody you're from now. We obviously have our projects in Vietnam and other markets and so we're really pleased with where we landed. It was kind of a tough bond market so we're really excited with where we landed.
Dana: If you look at our net leverage profile, you know, on a pro-former basis.
Dana: I think we're at it like two and a half, and that's without Jamaica, so once you layer in Jamaica and add that EBITDA and that cash flow will be well under two and a half by the end of the year. So plenty of opportunity to fund additional growth.
Dana: As far as where the growth is going to come from, I'll turn that over to Oliver.
Yeah, I mean, I think, you know, we continue to...
Oliver Simpson: Look at the same pipeline, obviously, we've been focused on Jamaica, but there's a pipeline of opportunities that we've continued to focus on on the side. We see the fundamentals are good for that, we see the LNG supplies coming online, we see that general interest.
Oliver Simpson: as Steven spoke to with seeing interest on the new build. We're seeing a lot of interest in the market and we continue to be confident in these different, you know, different, great opportunities where I can.
[inaudible]
Speaker Change: Perfect. And then just, just last one for me, kind of a broader question. But
Speaker Change: Being a US-based LNG company, that's been a nice edge for y'all, but now with all the tariff back and forth and some uncertainty, I think some people might first think that
Speaker Change: that changes that dynamic of it being an edge. But I think that's not truly the case since you aren't an exporter of the actual molecule. So could you just discuss how US International diplomacy has impacted or likely not impacted the four growth opportunities for you guys? Yes.
[inaudible]
Stephen Kobos: Yeah, thanks Bobby, I'll take that one. This is Steven again. Look, short answer.
in many ways, Excelerate's essentially tariff proof. [inaudible]
Stephen Kobos: That's the short answer. The reality is we're not building a lot of, we're not building anything in the US that needs a lot of steel or aluminum, you know, we're not sitting here like so many companies wrestling.
Stephen Kobos: You know, what's our EPC cost going to be or anything like that? What we do is
Stephen Kobos: Overseas, we open up the downstream part of the LNG TAM. So I don't see a lot of that impacting us at all. In terms of support for Excelerate, we are seeing that...
Speaker Change: Many countries that do have a balance of trade deficit are in fact quite anxious to rebalance that deficit any way they can.
Speaker Change: And once you look around, I know you're dialing in for Minnesota but Bobby, there's only so much corn that those countries can't import, you know, or wheat that they can't import.
Speaker Change: So the only way they can quickly alter their balance of trade is through something like LNG. So we think we're actually seeing a lot of countries anxious to import more LNG.
and here's their pickle. [inaudible]
Speaker Change: If you don't have the import, the downstream infrastructure to do it, that tool is not available to you, so many people are waking up to the fact that they do need
Speaker Change: They do need the infrastructure that on this part of the value chain that we provide. So I look for this tailwinds to continue for some time.
Speaker Change: and we're going to do the best to be a good partner with any of those markets and help them achieve their ambition.
Speaker Change: Larry's very helpful and so I appreciate the color and congrats on another good quarter. I'll return to the queue.
Wade Suki: Thank you. Our next question comes from Wade Suki of Capital One. Your lines are open. Please go ahead.
Wade Suki: Good morning. Thank you operator. Appreciate you all taking the question. Just sort of a
And I will see you next time.
Speaker Change: Anxiety, I guess, being felt by some of our trade partners is maybe perhaps pushing forward or accelerating. I'm not intend to accelerate some of the opportunities out there. Is that a fair way to think about it?
Wade Suki: Good morning, Wade. Yeah, I do think that is a fair way of thinking about it. And I suppose I'd like to just lean in on this in that
Wade Suki: Yeah, those tailwinds are out there, but this is a reminder I'm well aware of gosh how many of our colleagues out there in the public company marketplace are giving two sets of guidance.
Wade Suki: Roberts, you know, just lowering guidance based upon Tirif. So I'm proud that our base business model.
Wade Suki: Just one where we can confidently say that it is not impacted by tariffs.
and this predictability of these take or pay patterns.
Wade Suki: Earnings. We have high confidence of continuing, and that's reflected in Dana's comments, raising the guidance on our based business. So, if anything...
Wade Suki: You know, this testing environment has just showed just how robust and resilient our base business is so thank you for letting me have that plug and yes those tailwinds are are real and out there
Wade Suki: Thank you. Appreciate that. I just switching gears a little bit.
Speaker Change: Anything any updates on your LG bestful kind of conversion plans here? Where does that sort of sit in now with with the Jamaica transaction coming up on close?
Yeah, I will.
Speaker Change: Wade, I'm going to take that question as being one of, can we walk in shoe gum? We definitely can walk in shoe gum, but I'm going to toss that over to Oliver and David to some degree. I mean, we've been
Speaker Change: We've had a number of discussions and we have been advancing our engineering substantially so let them elaborate on that please.
Oliver Simpson: Yeah, hey, Wade, it's Oliver here, but yeah, so I think, I think we...
Oliver Simpson: We're in discussions with a few people. We've identified some candidates. I think we're getting pretty close to doing something. It's still to be clear. It's still very much in the plan.
Oliver Simpson: in order to acquire an asset this year and then to do the engineering and to plan around the conversion. So I think it's
Oliver Simpson: It's just going through the steps, but it's still very much on target for this year from our side and, you know...
Oliver Simpson: I think that's probably ready but up for now.
Oliver Simpson: Yeah, on the engineering side that's progressing really well, we plan to wrap up the kind of initial phase of engineering here, middle of the year, and that'll give us good insight into those long lead items and
Oliver Simpson: and yet just help us get one step further down the road, so all is on track.
Oliver Simpson: Thanks so much, I appreciate your questions and I guess I'll see you all in a couple of weeks.
Thanks, Wade, look forward to it.
Speaker Change: Thank you. Our next question comes from Michael Scialla of Stevens.
Your lines don't open, please go ahead Go ahead
Michael Ciala: Good morning, I just want to see if you could provide any update on Vietnam and you need to see there before that MLU can move to some sort of binding agreement.
Speaker Change: Thanks, Mike. I'm going to think Oliver is going to weigh in there. We actually have two MOUs with two separate subsidiaries of Petro Vietnam. I will say Petro Vietnam is the constant there that is...
Speaker Change: That's the game in town, and we are, you know, we're striving to enhance that trust and relationship and that value for them in any way we can.
Speaker Change: Oled. Thanks, Steven. Thanks, Mike. Look, I think for us, you know, we're just talking about the terrorists and...
Speaker Change: the effect that has on some partners, I think, in Vietnam.
Speaker Change: We've seen pretty publicly from the enemies government that come out and talked about, you know, LNGs.
One of those solutions to do that trade deficit.
Speaker Change: So, I think there's an intense focus there from them on this. You know, we've been methodically sort of...
Working our way through.
Speaker Change: with our Vietnamese partners, and then going through this, and obviously...
Speaker Change: As Steven mentioned, we have these two MOUs with subsidiaries of Petra Bianan, PTSC, and PV guests.
Speaker Change: So, a lot of ongoing discussions with them, we're seeing the momentum there, we're pushing to get something over the line, we'll come back when we can, but there's no definitive updates on this call, but suddenly we really like the tailwinds there, and I hope to find some
David Liner, Craig Hicks, David Suki, David Suki, David Suki,
Speaker Change: Good, sounds good. I guess my second one is for Dana. You mentioned some of the timing issues that caused David Tonet to be a bit higher in the first quarter.
Speaker Change: You did increase the 2025 guidance a bit. Can you give us any idea how maintenance and operations will impact EBITDA over the remainder of the year at just kind of looking for some.
Speaker Change: Cadence, General Cadence on EBITDA over the course of the year.
Speaker Change: Yeah, so, as you know, we don't guide to the quarters, but what I can say is that we do have a tendency at times to see some lumpiness in our spin related to vessel op-exor.
Speaker Change: Best Low Repairs in Maintenance, and that just depends on our schedules and what we're able to do quarter of a quarter. Some of that overachievement that we saw in the first quarter was related to some of those costs pushing out to later in the year, but some of that overachievement was real cost saving, so it's a combination of its things.
Speaker Change: We also had some lower SG&A costs in the first quarter, which helped US which you know that's been baked for the year and then in terms of you know, where we will spend and what we'll spend on I mean, we still stand behind our full year guidance that we just pushed out and so we'll see some of that R&M catch up in over the course of Q <unk> Q4.
Speaker Change: And then as a reminder, we're still on track to do the Drydocks that we've talked about previously obviously, that's capital and capital expenditures since costs that'll be in the third quarter for the simpler and the fourth quarter for the explorer.
Speaker Change: And so we're still standing behind what we said in our previous earnings calls.
Speaker Change: Items.
Jeff: Thank you Jeff.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Matt Zack and Edelman of GTH. Your line is now open. Please go ahead.
Speaker Change: Hi, all thanks for taking my question just one from me.
Speaker Change: As we've seen international gas prices come down and the spot and the forward markets have you seen an uptick in demand whether it's for gas sales or more people coming to the table on the newbuild just around some of the developing countries that generally have.
Speaker Change: We can afford more of the gas when it comes down in price I'm. Just curious are you seeing change in demand there.
Speaker Change: Yeah good morning.
Speaker Change: Sure.
Speaker Change: Kevin Happy talk about long term and short term.
Speaker Change: Yeah look I think that's exactly right I think a lot of these especially developing all of these markets affordability of LNG is a critical part.
Speaker Change: For them so.
Speaker Change: However, this LNG supply is starting to come on this year in 'twenty six 'twenty seven through the end of the decade that suddenly provide some comfort that the LNG will be there for those projects. So I think we've definitely seen more.
Speaker Change: No more interest.
Speaker Change: More interest on the back of that and I think that.
Speaker Change: Okay.
Speaker Change: Earlier.
Speaker Change: You know, we we always say, we're agnostic to the price of LNG you know, we want to we want to open up these markets and in many ways.
Speaker Change: As the LNG prices return to sort of longtime affordable levels. This brings the buys ounces out of the woodwork. So I think I think I think we're seeing that interest and I think people are seeing that that.
Speaker Change: We didn't.
Speaker Change: Coming to the market within the next year or so that also is also.
Speaker Change: Translating into interest to do relatively fossette phosphate projects, which is what we're trying to look at.
Speaker Change: Perfect very helpful. I'll leave it there thanks guys.
Speaker Change: Okay.
Speaker Change: Thank you at this time, we currently have no further questions. So I'll hand back to CEO, Stephen <unk> for any further remarks.
Speaker Change: Okay.
Speaker Change: Wanted to think over analysts and investors on the call for your interest and.
Speaker Change: Youre going to see us out on the road I think will be out at a number of conferences. This month and next month and we look forward to seeing as many views weekend. Thank you.
Speaker Change: Thank you all for joining today's call you may now disconnect your lines.
Speaker Change: Uh huh.