Excelerate Energy Inc

Previous wording

Our business spans the globe, with regional offices in 11 countries and an operational presence in Argentina, Bangladesh, Brazil, Finland, Germany, Pakistan, the United Arab Emirates (“UAE”), and the United States. We are the largest provider of regasified LNG capacity in Argentina, Bangladesh, Finland and the UAE, one of the largest providers of regasified LNG capacity in Brazil and Pakistan, and we operate the largest floating storage and regasification unit (“FSRU”) in Brazil. We intend to continue marketing natural gas and LNG, both of which offer a cleaner energy source from which power can be generated consistently, in the markets where we operate. The high value our customers place on our services has resulted in a reliable source of revenues to us. For the three months ended March 31, 2024, we generated revenues of $200.1 million, net income of $28.1 million and Adjusted EBITDA of $75.4 million. For the three months ended March 31, 2023, we generated revenues of $211.1 million, net income of $30.7 million and Adjusted EBITDA of $79.9 million. For more information regarding our non-GAAP measure Adjusted EBITDA and a reconciliation to net income, the most comparable U.S. Generally Accepted Accounting Principles (“GAAP”) measure, see “How We Evaluate Our Operations.”

Current wording

Our business spans the globe, with regional offices in 11 countries and an operational presence in Argentina, Bangladesh, Brazil, Finland, Germany, Pakistan, the United Arab Emirates (“UAE”), and the United States. We are the largest provider of regasified LNG capacity in Argentina, Bangladesh, Finland and the UAE, one of the largest providers of regasified LNG capacity in Brazil and Pakistan, and we operate the largest floating storage and regasification unit (“FSRU”) in Brazil. We intend to continue marketing natural gas and LNG, both of which offer a cleaner energy source from which power can be generated consistently, in the markets where we operate. The high value our customers place on our services has resulted in a reliable source of revenues to us. For the three months ended June 30, 2024, we generated revenues of $183.3 million, net income of $33.3 million and Adjusted EBITDA of $89.0 million. For the three months ended June 30, 2023, we generated revenues of $432.4 million, net income of $29.6 million and Adjusted EBITDA of $88.6 million. For more information regarding our non-GAAP measure Adjusted EBITDA and a reconciliation to net income, the most comparable U.S. Generally Accepted Accounting Principles (“GAAP”) measure, see “How We Evaluate Our Operations.”

Previous wording

Our business focuses on the integration of the natural gas-to-power LNG value chain, and as part of this value chain, we operate regasification terminals in global economies that utilize our FSRU fleet. Our business is substantially supported by time charter and terminal use contracts, which are effectively long-term, take-or-pay arrangements and provide consistent revenue and cash flow from our high-quality customer base. As of March 31, 2024, we operate a fleet of ten purpose-built FSRUs, have completed more than 2,700 ship-to-ship transfers of LNG with over 50 LNG operators since we began operations and have safely delivered more than 6,700 billion cubic feet of natural gas through 16 LNG regasification terminals. For the three months ended March 31, 2024 and 2023, we generated revenues of $157.0 million and $118.6 million, respectively, from our FSRU and terminal services businesses, representing approximately 78% and 56% of our total revenues for each of those periods.

Current wording

Our business focuses on the integration of natural gas-to-power in the LNG value chain, and as part of this value chain, we operate at regasification terminals that utilize our FSRU fleet to serve economies throughout the world. Our business is substantially supported by time charter and terminal use contracts, which are effectively long-term, take-or-pay arrangements and provide consistent revenue and cash flow from our high-quality customer base. As of June 30, 2024, we operate a fleet of ten purpose-built FSRUs, have completed more than 2,800 ship-to-ship transfers of LNG with over 50 LNG operators since we began operations and have safely delivered more than 6,900 billion cubic feet of natural gas through 16 LNG regasification terminals. For the three months ended June 30, 2024 and 2023, we generated revenues of $151.0 million and $125.5 million, respectively, from our FSRU and terminal services businesses, representing approximately 82% and 29% of our total revenues for each of those periods.

Previous wording

We also procure LNG from major producers and sell natural gas through our flexible LNG terminals. For the three months ended March 31, 2024 and 2023 we generated revenues of $43.1 million and $92.5 million, respectively, from LNG and natural gas sales, representing approximately 22% and 44% of our total revenues for each of those periods. We believe that the commercial momentum that we have established in recent years and the increasing need for access to LNG around the world, have resulted in a significant portfolio of new growth opportunities for us to pursue. In addition to our FSRU and terminal services businesses and LNG and natural gas sales, we plan to expand our business through investments in organic and inorganic commercial opportunities. We are evaluating and pursuing early-stage projects with opportunities in South Asia, Asia Pacific, Latin America, Europe, and the Middle East.

Current wording

We also procure LNG from major producers and sell natural gas through our flexible LNG terminals. For the three months ended June 30, 2024 and 2023 we generated revenues of $32.3 million and $306.9 million, respectively, from LNG and natural gas sales, representing approximately 18% and 71% of our total revenues for each of those periods. We believe that the commercial momentum that we have established in recent years and the increasing need for access to LNG around the world, have resulted in a significant portfolio of new growth opportunities for us to pursue. In addition to our FSRU and terminal services businesses and LNG and natural gas sales, we plan to expand our business through investments in organic and inorganic commercial opportunities. We are evaluating and pursuing early-stage projects with opportunities in South Asia, Asia Pacific, Latin America, Europe, and the Middle East.

Previous wording

Excelerate is a corporation for U.S. federal and state income tax purposes. Excelerate’s accounting predecessor, Excelerate Energy Limited Partnership (“EELP”), is treated as a pass-through entity for U.S. federal income tax purposes and, as such, has generally not been subject to U.S. federal income tax at the entity level. Instead, EELP’s U.S. income is allocated to its Class A and Class B partners proportionate to their interest. In addition, EELP has international operations that are subject to foreign income tax and U.S. corporate subsidiaries subject to U.S. federal tax. These taxes are also included in our provision for income taxes.

Current wording

Excelerate is a corporation for U.S. federal and state income tax purposes. Excelerate Energy Limited Partnership (“EELP”) is treated as a pass-through entity for U.S. federal income tax purposes and, as such, has generally not been subject to U.S. federal income tax at the entity level. Instead, EELP’s U.S. income is allocated to its Class A and Class B partners proportionate to their interest. In addition, EELP has international operations that are subject to foreign income tax and U.S. corporate subsidiaries subject to U.S. federal tax. These taxes are also included in our provision for income taxes.

Previous wording

Net income was $28.1 million for the three months ended March 31, 2024, a decrease of $2.6 million, as compared to $30.7 million for the three months ended March 31, 2023. Net income was lower primarily due to the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($18.4 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($4.1 million), and a decrease in other gas sales opportunities ($3.9 million), partially offset by a full quarter of our charter with Germany ($8.1 million), a decrease in depreciation and amortization, primarily as a result of the update to our useful life assumption in the fourth quarter of 2023 ($5.9 million), various charter rate increases ($5.4 million), the benefit of the Sequoia acquisition ($3.6 million), and an increase in interest income ($2.3 million).

Current wording

Net income was $61.4 million for the six months ended June 30, 2024, an increase of $1.1 million, as compared to $60.3 million for the six months ended June 30, 2023. Net income was higher primarily due the update to our useful life assumption in the fourth quarter of 2023 ($11.8 million), various charter rate increases ($8.3 million), a full first quarter of our charter with Germany ($8.1 million), the benefit of the Sequoia acquisition ($4.0 million), an increase in interest income ($3.9 million), a decrease in the provision for income taxes ($3.0 million), as discussed below, accelerated depreciation recognized in the second quarter of 2023 for assets removed from service ($2.6 million), and lower logistics costs ($2.6 million), partially offset by the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($17.1 million), extended commissioning time for our power barge assets in Albania ($9.7 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($8.5 million), increased personnel costs in Argentina ($4.1 million), and a decrease in other gas sales opportunities ($3.9 million).

Previous wording

Gross Margin was $66.7 million for the three months ended March 31, 2024, a decrease of $5.2 million, as compared to $71.9 million for the three months ended March 31, 2023. For the three months ended March 31, 2024, Adjusted Gross Margin was $89.6 million, a decrease of $7.5 million, as compared to $97.1 million for the three months ended March 31, 2023. Gross Margin and Adjusted Gross Margin were lower primarily due to the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($18.4 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($4.4 million), and a decrease in other gas sales opportunities ($3.9 million), partially offset by a full quarter of our charter with Germany ($8.1 million), lower operating lease expense due to the acquisition of Sequoia ($6.0 million), and various charter rate increases ($5.4 million). Gross Margin also decreased due to higher depreciation and amortization as a result of acquiring Sequoia ($2.4 million), partially offset by the update to our useful life assumption in the fourth quarter of 2023 ($5.9 million).

Current wording

Gross Margin was $141.9 million for the six months ended June 30, 2024, a decrease of $5.2 million, as compared to $147.1 million for the six months ended June 30, 2023. For the six months ended June 30, 2024, Adjusted Gross Margin was $195.2 million, a decrease of $7.9 million, as compared to $203.1 million for the six months ended June 30, 2023. Gross Margin and Adjusted Gross Margin were lower primarily due to the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($17.1 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($8.8 million), increased personnel costs in Argentina ($4.1 million), and a decrease in other gas sales opportunities ($3.9 million), partially offset by various charter rate increases ($8.3 million), a full first quarter of our charter with Germany ($8.1 million), lower operating lease expense due to the acquisition of Sequoia ($6.0 million), and lower logistics costs ($2.6 million). Gross Margin also decreased due to extended commissioning time for our power barge assets in Albania ($9.7 million) and higher depreciation expense as a result of our acquisition of Sequoia($2.0 million), partially offset by the update to our useful life assumption in the fourth quarter of 2023 ($11.8 million) and accelerated depreciation recognized in the second quarter of 2023 for assets removed from service ($2.6 million).

Previous wording

Adjusted EBITDA was $75.4 million for the three months ended March 31, 2024, a decrease of $4.5 million, as compared to $79.9 million for the three months ended March 31, 2023. Adjusted EBITDA was lower primarily due to the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($18.4 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($4.1 million), and a decrease in other gas sales opportunities ($3.9 million), partially offset by a full quarter of our charter with Germany ($8.1 million), lower operating lease expense due to the acquisition of Sequoia ($6.0 million), various charter rate increases ($5.4 million), and an increase in interest income ($2.3 million).

Current wording

Adjusted EBITDA was $164.4 million for the six months ended June 30, 2024, a decrease of $4.1 million, as compared to $168.5 million for the six months ended June 30, 2023. Adjusted EBITDA was lower primarily due to the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($17.1 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($8.5 million), increased personnel costs in Argentina ($4.1 million), and a decrease in other gas sales opportunities ($3.9 million), partially offset by various charter rate increases ($8.3 million), a full first quarter of our charter with Germany ($8.1 million), lower operating lease expense due to the acquisition of Sequoia ($6.0 million), an increase in interest income ($3.9 million), and lower logistics costs ($2.6 million).

Previous wording

FSRU and terminal services revenues were $157.0 million for the three months ended March 31, 2024, an increase of $38.4 million as compared to $118.6 million for the three months ended March 31, 2023. FSRU and terminal services revenues were higher primarily due to beginning our TCP agreement in Brazil in the first quarter of 2024, and a full quarter of our charter with Germany.

Current wording

FSRU and terminal services revenues were $151.0 million for the three months ended June 30, 2024, an increase of $25.5 million, as compared to $125.5 million for the three months ended June 30, 2023. FSRU and terminal services revenues were higher primarily due to beginning our TCP agreement in Brazil in the first quarter of 2024 and our new charter in Germany, partially offset by 2023 seasonal service in Argentina.

Previous wording

Cost of revenue and vessel operating expenses was $70.6 million for the three months ended March 31, 2024, an increase of $11.8 million, as compared to $58.8 million for the three months ended March 31, 2023. The increase in cost of revenue and vessel operating expenses was primarily due to drydock costs on Summit LNG and increased personnel costs in Argentina, partially offset by lower operating lease expense due to the acquisition of Sequoia, and lower expenses in Brazil as a result of transitioning to a TCP agreement in the first quarter of 2024.

Current wording

Cost of revenue and vessel operating expenses was $117.2 million for the six months ended June 30, 2024, an increase of $9.7 million, as compared to $107.5 million for the six months ended June 30, 2023. The increase in cost of revenue and vessel operating expenses was primarily due to drydock costs on Summit LNG, partially offset by lower operating lease expense due to the acquisition of Sequoia, and lower expenses in Brazil as a result of transitioning to a TCP agreement in the first quarter of 2024.

Previous wording

Depreciation and amortization expenses were $22.9 million for the three months ended March 31, 2024, a decrease of $2.3 million, as compared to $25.2 million for the three months ended March 31, 2023. Depreciation and amortization decreased primarily due to the update to our useful life assumptions, partially offset by increases from the acquisition of Sequoia in the second quarter of 2023.

Current wording

Depreciation and amortization expenses were $30.4 million for the three months ended June 30, 2024, a decrease of $0.4 million, as compared to $30.8 million for the three months ended June 30, 2023. Depreciation and amortization decreased primarily due to the update to our useful life assumptions and accelerated depreciation recognized in the second quarter of 2023 for assets removed from service, partially offset by extended commissioning time on our power barge assets in Albania and increases from the acquisition of Sequoia in the second quarter of 2023.

Previous wording

Selling, general and administrative expenses were $21.6 million for the three months ended March 31, 2024, a decrease of $0.7 million, as compared to $22.3 million for the three months ended March 31, 2023. Selling, general and administrative expenses were essentially flat for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

Current wording

Selling, general and administrative expenses were $25.3 million for the three months ended June 30, 2024, an increase of $3.7 million, as compared to $21.6 million for the three months ended June 30, 2023. Selling, general and administrative expenses increased primarily due to business development activities.

Previous wording

Interest expense was $12.1 million for the three months ended March 31, 2024, an increase of $0.1 million, as compared to $12.0 million for the three months ended March 31, 2023. Interest expense increased due to our entering into the Term Loan (as defined herein) in the second quarter of 2023, partially offset by accelerated amortization of deferred issuance costs related to the Amended Credit Agreement (as defined herein) recognized in the three months ended March 31, 2023.

Current wording

Interest expense was $24.2 million for the six months ended June 30, 2024, a decrease of $1.2 million, as compared to $25.4 million for the six months ended June 30, 2023. Interest expense decreased due to accelerated amortization of deferred issuance costs related to the Amended Credit Agreement (as defined herein) recognized in the six months ended June 30, 2024, partially offset by our entering into the Term Loan Facility (as defined herein) in the second quarter of 2023.

Previous wording

Interest expense – related party was $3.5 million for the three months ended March 31, 2024, a decrease of $0.1 million, as compared to $3.6 million for the three months ended March 31, 2023. Interest expense – related party for the three months ended March 31, 2024 was essentially flat as compared to the three months ended March 31, 2023.

Current wording

Interest expense – related party was $3.4 million for the three months ended June 30, 2024, a decrease of $0.2 million, as compared to $3.6 million for the three months ended June 30, 2023. Interest expense – related party for the three months ended June 30, 2024 was essentially flat as compared to the three months ended June 30, 2024.

Previous wording

Other income, net was $5.0 million for the three months ended March 31, 2024, an increase of $1.1 million as compared to $3.9 million for the three months ended March 31, 2023. The increase was primarily due to higher interest income received on cash balances invested in money market funds, partially offset by higher foreign currency exchange losses related to our operations in Brazil.

Current wording

Other income, net was $10.7 million for the six months ended June 30, 2024, an increase of $4.5 million as compared to $6.2 million for the six months ended June 30, 2023. The increase was primarily due to higher interest income received on cash balances invested in money market funds, partially offset by higher foreign currency exchange losses related to our operations in Brazil.

Previous wording

The provision for income taxes for the three months ended March 31, 2024 and 2023, was $6.9 million and $7.6 million, respectively. The decrease was primarily attributable to the year-over-year change in the amount and geographical distribution of income.

Current wording

The provision for income taxes for the three months ended June 30, 2024 and 2023 was $7.4 million and $9.7 million, respectively. For the six months ended June 30, 2024 and 2023, the provision for income taxes was $14.3 million and $17.3 million, respectively. The decrease was primarily attributable to the year-over-year change in the amount and geographical distribution of income.

Previous wording

The effective tax rate for the three months ended March 31, 2024 and 2023, was 19.7% and 19.8%, respectively. The decrease was primarily driven by the geographical distribution of income and the varying tax regimes of jurisdictions.

Current wording

The effective tax rate for the three months ended June 30, 2024 and 2023 was 18.2% and 24.7%, respectively. For the six months ended June 30, 2024 and 2023, the effective tax rate was 18.9% and 22.3%, respectively. The decrease was primarily driven by the geographical distribution of income and the varying tax regimes of jurisdictions.

Previous wording

Excelerate is a corporation for U.S. federal and state income tax purposes. Excelerate’s accounting predecessor, EELP, is treated as a pass-through entity for U.S. federal income tax purposes and, as such, has generally not been subject to U.S. federal income tax at the entity level.

Current wording

Excelerate is a corporation for U.S. federal and state income tax purposes. EELP is treated as a pass-through entity for U.S. federal income tax purposes and, as such, has generally not been subject to U.S. federal income tax at the entity level.

Previous wording

Net income attributable to non-controlling interest was $21.8 million for the three months ended March 31, 2024, a decrease of $2.1 million, as compared to $23.9 million for the three months ended March 31, 2023. The decrease in net income attributable to non-controlling interest was primarily due to lower net income.

Current wording

Net income attributable to non-controlling interest was $26.6 million for the three months ended June 30, 2024, an increase of $3.0 million, as compared to $23.6 million for the three months ended June 30, 2023. The increase in net income attributable to non-controlling interest was primarily due to higher net income attributable to owners of our Class B Common Stock.

Previous wording

Based on our cash positions, cash flows from operating activities and borrowing capacity on our debt facilities, we believe we will have sufficient liquidity for the next 12 months for ongoing operations, planned capital expenditures, other investments, debt service obligations, payment of tax distributions and our announced and expected quarterly dividends and distributions, as described in our Dividend and Distribution Policy in the 2023 Annual Report. For more information regarding our planned dividend payments, see Note 11 – Equity. As of March 31, 2024, we had $578.9 million in unrestricted cash and cash equivalents.

Current wording

Based on our cash positions, cash flows from operating activities and borrowing capacity on our debt facilities, we believe we will have sufficient liquidity for the next 12 months for ongoing operations, planned capital expenditures, other investments, debt service obligations, payment of tax distributions and our announced and expected quarterly dividends and distributions, as described in our Dividend and Distribution Policy in the 2023 Annual Report. For more information regarding our planned dividend payments, see Note 11 – Equity. As of June 30, 2024, we had $609.1 million in unrestricted cash and cash equivalents.

Previous wording

On February 22, 2024, our board of directors approved a share repurchase program to purchase up to $50.0 million of our Class A Common Stock (the “Program”). The Program does not obligate us to acquire any specific number of shares and will expire on February 28, 2026, and the Program may be suspended, extended, modified or discontinued at any time. During the three months ended March 31, 2024, the Company repurchased 588,030 shares of its outstanding Class A Common Stock at a weighted average price of

Current wording

On February 22, 2024, our board of directors approved a share repurchase program to purchase up to $50.0 million of our Class A Common Stock (the “Program”). The Program does not obligate us to acquire any specific number of shares and will expire on February 28, 2026, and the Program may be suspended, extended, modified or discontinued at any time. During the three and six months ended June 30, 2024, the Company repurchased 673,780 and 1,261,810 shares, respectively, of its outstanding Class A Common Stock at a weighted average price of $16.27 and $16.11 per share, respectively, for a total net cost of approximately $11.0 million and $20.3 million, respectively. For more information, see Part II – Other Information – Item 2. Unregistered Sales of Equity Securities and Use of Proceeds –Share Repurchase Program.

Previous wording

Cash flows provided by operating activities increased by $17.9 million for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023, primarily due to:

Current wording

Cash flows provided by operating activities increased by $130.6 million for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to:

Previous wording

an $86.0 million decrease in cash flows used in settling accounts payable and accrued liabilities, primarily due to payments made the first quarter of 2023 for cargoes sold in the fourth quarter of 2022; and

Current wording

a $29.5 million decrease in cash flows used in settling accounts payable and accrued liabilities, primarily due to payments made in the first quarter of 2023 for LNG cargoes sold in the fourth quarter of 2022;

Previous wording

partially offset by a $44.1 million decrease in cash received for other current assets and other assets primarily due to gas sales in Brazil and Finland in the first quarter of 2023;

Current wording

partially offset by a $141.5 million decrease in cash received for other current assets and other assets primarily due inventory sold in the first quarter of 2023; and

Previous wording

a $7.0 million decrease in the amortization of operating lease right-of-use assets, primarily due to the acquisition of Sequoia and the end of the lease of the Bahia terminal in the fourth quarter of 2023.

Current wording

an $8.8 million decrease in the amortization of operating lease right-of-use assets, primarily due to the acquisition of Sequoia and the end of the lease of the Bahia terminal in the fourth quarter of 2023.

Previous wording

Cash flows used in investing activities were primarily comprised of capital expenditures made for the purchases of property and equipment, which decreased by $2.2 million for the three months ended March 31, 2024, as compared to the same period in 2023. The decrease was primarily due to 2023 vessel upgrades made ahead of beginning service at the Inkoo Terminal in Finland and lower spending on construction of our Albanian power barges, partially offset by upgrades on Excelsior.

Current wording

Cash flows used in investing activities were primarily comprised of capital expenditures made for the purchases of property and equipment, which decreased by $250.4 million for the six months ended June 30, 2024, as compared to the same period in 2023. The decrease was primarily due to the 2023 purchase of Sequoia and 2023 vessel upgrades made ahead of beginning service at the Inkoo Terminal in Finland, partially offset by upgrades on Excelsior in 2024.

Previous wording

Cash flows used in financing activities increased by $11.4 million for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023, primarily due to $8.4 million in cash paid under our Class A Common Stock share repurchase program, a $5.0 million increase in repayments on long-term debt and a $2.7 million increase in distributions to shareholders, partially offset by $4.6 million in cash paid for debt issuance costs incurred in 2023.

Current wording

Cash flows used in financing activities increased by $273.5 million for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to the proceeds of $250.0 million received from the Term Loan Facility in 2023, $20.3 million in cash paid under the Program in 2024, and a $10.1 million increase in repayments on long-term debt, partially offset by payments of $7.0 million for debt issuance costs in 2023.

Previous wording

As of March 31, 2024, the Company had issued $40.0 million in letters of credit under the EE Revolver. As a result of the EE Revolver’s financial ratio covenants and after taking into account the outstanding letters of credit issued under the facility, all of the $310.0 million of undrawn capacity was available for additional borrowingsas of March 31, 2024.

Current wording

As of June 30, 2024, the Company had issued $0.1 million in letters of credit under the EE Revolver. As a result of the EE Revolver’s financial ratio covenants and after taking into account the outstanding letters of credit issued under the facility, all of the $349.9 million of undrawn capacity was available for additional borrowingsas of June 30, 2024.

Previous wording

We lease a terminal and offices in various locations under noncancelable operating leases. As of December 31, 2023, we had future minimum lease payments totaling $7.3 million. As of March 31, 2024, we had future minimum lease payments totaling $7.2 million and are committed to $1.6 million in year one, $3.2 million for years two and three, $1.9 million for years four and five and $0.4 million thereafter.

Current wording

We lease a terminal and offices in various locations under noncancelable operating leases. As of December 31, 2023, we had future minimum lease payments totaling $7.3 million. As of June 30, 2024, we had future minimum lease payments totaling $6.6 million and are committed to $1.0 million in year one, $3.2 million for years two and three, $1.9 million for years four and five and $0.5 million thereafter.

Previous wording

Certain enforceable vessel charters and pipeline capacity agreements are classified as finance leases, and the right-of-use assets are included in property and equipment. As of December 31, 2023, we had future minimum lease payments totaling $274.1 million. As of March 31, 2024, we had future minimum lease payments totaling $265.4 million and are committed to $24.9 million in payments in year one, $66.5 million for years two and three, $60.8 million for years four and five and $113.2 million thereafter.

Current wording

Certain enforceable vessel charters and pipeline capacity agreements are classified as finance leases, and the right-of-use assets are included in property and equipment. As of December 31, 2023, we had future minimum lease payments totaling $274.1 million. As of June 30, 2024, we had future minimum lease payments totaling $257.1 million and are committed to $16.6 million in payments in year one, $66.5 million for years two and three, $60.8 million for years four and five and $113.2 million thereafter.

Previous wording

In October 2022, we signed a binding shipbuilding contract (“the Newbuild Agreement”) with HD Hyundai Heavy Industries for a new FSRU to be delivered in 2026. As part of the Newbuild Agreement, we currently expect to pay approximately $330.0 million, subject to adjustment. Related payments are due in five installments with the final installment due concurrently with the delivery of the vessel, which is expected in 2026. During the year ended December 31, 2022, we made the first installment payment of approximately $30.0 million. Our future payment commitments related to the Newbuild Agreement are expected to be approximately $50.0 million in 2024 and $250.0 million in 2025-2026.

Current wording

In October 2022, we signed a binding shipbuilding contract (“the Newbuild Agreement”) with HD Hyundai Heavy Industries for a new FSRU to be delivered in 2026. As part of and related to the Newbuild Agreement, we are currently committed to approximately $310 million in remaining spend. Our primary payments are due in installments with the final installment due concurrently with the delivery of the vessel, which is expected in 2026. Our near-term payment commitments related to the Newbuild Agreement are expected to be approximately $50 million in the fourth quarter of 2024, $30 million in the first quarter of 2025, and $20 million in the second quarter of 2025, with the remainder due beyond the next twelve months.

Previous wording

In April 2022, we entered into the TRA with Excelerate Energy Holdings, LLC and the George Kaiser Family Foundation (together, the “TRA Beneficiaries”). The TRA will provide for payment by us to the TRA Beneficiaries of 85% of the amount of the net cash tax savings, if any, that we are deemed to realize as a result of our utilization of certain tax benefits resulting from (i) certain increases in the tax basis of assets of EELP and its subsidiaries resulting from exchanges of EELP partnership interests in the future, (ii) certain tax attributes of EELP and subsidiaries of EELP (including the existing tax basis of assets owned by EELP or its subsidiaries and the tax basis of certain assets purchased from the Foundation) that exist as of the time of the IPO or may exist at the time when Class B interests of EELP are exchanged for shares of Class A Common Stock, and (iii) certain other tax benefits related to us entering into the TRA, including tax benefits attributable to payments that we make under the TRA.

Current wording

certain tax attributes of EELP and subsidiaries of EELP (including the existing tax basis of assets owned by EELP or its subsidiaries and the tax basis of certain assets purchased from the Foundation) that exist as of the time of the IPO or may exist at the time when Class B interests of EELP are exchanged for shares of Class A Common Stock, and (iii) certain other tax benefits related to us entering into the TRA, including tax benefits attributable to payments that we make under the TRA. As a result of the Program, our expected payments under the TRA decreased by $2.3 million.