Excelerate Energy Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
EE$36.81+4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0000950170-24-094614
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-123531
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 147 previous paragraphs and 148 current paragraphs.
86 unchanged; 46 reworded; 13 added; 14 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 4 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Global LNG trade volumes increased to about 99.6 million tons per annum (“MTPA”) in the third quarter of 2024, a slight increase from the second quarter’s trade volumes of 99.5 MTPA. Heat waves across Asia triggered increased spot cargo purchasing, causing LNG imports to rise to approximately 74 MTPA in the third quarter of 2024, a 3.5% increase as compared to the second quarter of 2024. Similarly in the Middle East and North Africa, domestic energy shortages, primarily caused by high electricity demand and low domestic gas production, also led to increased LNG imports.
Current report
At the end of summer 2024, the need for natural gas injections to fill storage was reduced as European natural gas inventories ended the 2023-2024 winter heating season at record levels. Natural gas demand was reduced during the summer of 2024, which saw temperatures closer to seasonal averages, as compared to the summer of 2023, which experienced higher than normal temperatures. As of the end of September 2024, European natural gas underground storage inventories were approximately 94% full. Although European LNG demand decreased to approximately 20 MTPA in the third quarter of 2024, a 13% decrease from the prior quarter, higher demand in other regions, coupled with supply side constraints, reduced LNG availability in the international market.
Current report
On the supply-side, planned and unplanned outages at major LNG production facilities for maintenance and technical issues reduced cargo availability. Geopolitical instability in certain LNG-producing regions, namely North Africa, the Middle East and Russia, further disrupted supply. Delays in new project start-ups, particularly from the United States, caused by construction setbacks and regulatory hurdles, limited anticipated growth in LNG production. Certain LNG-exporting countries faced increased domestic gas demand for electricity generation, reducing the amount of LNG available for export. These supply-side challenges combined with growing global demand significantly tightened the market and supported price increases during the third quarter of 2024.
Current report
Net income was $45.5 million for the three months ended September 30, 2024, a decrease of $1.0 million, as compared to $46.5 million for the three months ended September 30, 2023. Net income was lower primarily due to the transition of Sequoia to a time charter party (“TCP”) agreement in the first quarter of 2024 ($6.8 million), increased selling, general and administrative costs primarily related to business development activities ($4.3 million), a decrease in revenue related to 2023 seasonal service in Argentina ($3.8 million), a decrease in other gas sales opportunities ($3.5 million), partially offset by the update to our useful life assumption in the fourth quarter of 2023 ($6.0 million), extended commissioning time for our power barge assets in Albania during 2023 ($4.6 million), lower interest expense due to decreased debt balances ($2.2 million), a decrease in the provision for income taxes ($2.0 million), and higher interest income received on cash balances invested in money market funds ($1.3 million).
Current report
Gross Margin was $83.6 million for the three months ended September 30, 2024, a decrease of $3.4 million, as compared to $87.0 million for the three months ended September 30, 2023. Adjusted Gross Margin was $106.6 million for the three months ended September 30, 2024, a decrease of $13.6 million, as compared to $120.2 million for the three months ended September 30, 2023. Gross Margin and Adjusted Gross Margin decreased due to the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($6.8 million), a decrease in revenue related to 2023 seasonal service in Argentina ($3.8 million), and a decrease in other gas sales opportunities ($3.5 million). Gross Margin was improved by the update to our useful life assumption in the fourth quarter of 2023 ($6.0 million) and extended commissioning time for our power barge assets in Albania during 2023 ($4.6 million).
Current report
Adjusted EBITDA was $92.3 million for the three months ended September 30, 2024, a decrease of $14.6 million, as compared to $106.9 million for the three months ended September 30, 2023. Adjusted EBITDA was lower primarily due to the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($6.8 million), higher selling, general and administrative expenses primarily due to business development activities ($4.3 million), a decrease in revenue related to 2023 seasonal service in Argentina ($3.8 million), and a decrease in other gas sales opportunities ($3.5 million), partially offset by higher interest income received on cash balances invested in money market funds ($1.3 million).
Current report
Direct cost of gas sales was $41.4 million for the three months ended September 30, 2024, a decrease of $64.7 million, as compared to $106.1 million for the three months ended September 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023 and fewer LNG sales in Asia Pacific.
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
a $17.7 million decrease in cash related to the drydocking of Summit LNGand Excellence; and
Current report
a $10.0 million increase in various charter rates increases.
Current report
LNG purchase and sale obligations
Current report
In the third quarter of 2024, Excelerate signed medium-term agreements for LNG purchases and sales in one of the Atlantic Basin regions in which we do business. Over the term of these agreements, we will purchase and sell approximately 0.65 million tonnes of LNG, the pricing of which will be based on a major European natural gas index. We expect that, under these agreements, the first purchase will be made during the fourth quarter of 2024.
Current report
The following table presents our future contractual obligations as of September 30, 2024 (in thousands):
Removed paragraphs (14)
Previous report
During the second quarter of 2024, LNG price levels supported buying by the markets we serve. India experienced extreme heat in May and June, resulting in the country increasing their LNG imports in the second quarter of 2024 to seven million tonnes (“MT”) compared to six MT in the second quarter of 2023, due to higher related power consumption. New LNG importers, such as Vietnam and the Philippines, also increased their LNG cargo procurements to accommodate higher power demand.
Previous report
Average demand from Europe and healthy inventories in the region are prompting Atlantic-based cargoes to sell to markets in Asia where demand is stronger, resulting in higher premiums. The lack of competition from Europe with its high storage inventories, higher renewables power generation, and lower industrial demand, is limiting TTF price escalation. LNG supply disruptions, such as unplanned outages in Norway and Australia, caused temporary price increases, but prices retreated once these outages were resolved. An expected continuation of warmer summer temperatures in Asia could lead to higher average LNG prices in the third quarter of 2024.
Previous report
The January 2024 moratorium on the Department of Energy’s (“DOE”) approval of non-free trade agreement export licenses continued through the second quarter of 2024. However, on July 1, 2024, a federal court in Louisiana stayed the moratorium through a preliminary injunction. The judge ruled in favor of the 16 states that challenged the pause, citing harm to their economies. While the decision requires the DOE to proceed with evaluating pending LNG applications, this preliminary injunction does not order the DOE to issue any specific decisions, move faster on pending applications, or stop the critical process of updating the data it relies on to determine whether those applications are in the public interest. The DOE has not decided whether to appeal the court’s decision. Based on projects that have already received non-FTA export permits from the DOE, the United States is set to nearly double LNG export capacity by the end of the decade from the approximately 85 MT exported in 2023. Our agreement to purchase up to 0.7 MTPA of LNG from Venture Global’s Plaquemines Phase 2 LNG facility is not affected by the pause. Together with our additional LNG purchase commitments from QatarEnergy, we expect that our portfolio will give us the opportunity to assist both new and existing customers in better managing the typical uncertainties of local demand, while capturing potential arbitrage opportunities ourselves.
Previous report
Net income was $33.3 million for the three months ended June 30, 2024, an increase of $3.7 million, as compared to $29.6 million for the three months ended June 30, 2023. Net income was higher primarily due to the update to our useful life assumption in the fourth quarter of 2023 ($5.9 million), accelerated depreciation recognized in the second quarter of 2023 for assets removed from service ($2.6 million), various charter rate increases ($2.5 million), a decrease in the provision for income taxes ($2.3 million), as discussed below, higher interest income received on cash balances invested in money market funds ($1.6 million), a decrease in interest expense due to decreased debt balances ($1.4 million), and lower foreign currency exchanges losses ($0.4 million), partially offset by extended commissioning time for our power barge assets in Albania ($8.6 million), and the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($4.4 million).
Previous report
Gross Margin was $75.2 million for the three months ended June 30, 2024, which was essentially flat as compared to $75.2 million for the three months ended June 30, 2023. Adjusted Gross Margin was $105.6 million for the three months ended June 30, 2024, a decrease of $0.4 million, as compared to $106.0 million for the three months ended June 30, 2023. Gross Margin and Adjusted Gross Margin were negatively affected by the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($4.4 million), partially offset by various charter rate increases ($2.5 million). Gross Margin also decreased due to extended commissioning time for our power barge assets in Albania ($8.6 million), partially offset by the update to our useful life assumption in the fourth quarter of 2023 ($5.9 million) and accelerated depreciation recognized in the second quarter of 2023 for assets removed from service ($2.6 million).
Previous report
Adjusted EBITDA was $89.0 million for the three months ended June 30, 2024, an increase of $0.4 million, as compared to $88.6 million for the three months ended June 30, 2023. Adjusted EBITDA was higher primarily due to various charter rate increases ($2.5 million), higher interest income received on cash balances invested in money market funds ($1.6 million), and lower foreign currency exchanges losses ($0.4 million), partially offset by the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($4.4 million).
Previous report
Direct cost of gas sales was $31.2 million for the three months ended June 30, 2024, a decrease of $246.5 million, as compared to $277.7 million for the three months ended June 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023, partially offset by LNG sales in Bangladesh during the three months ended June 30, 2024.
Previous report
Interest expense – related party
Previous report
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 report
Interest expense – related party was $6.9 million for the six months ended June 30, 2024, a decrease of $0.3 million, as compared to $7.2 million for the six months ended June 30, 2023. Interest expense – related party for the six months ended June 30, 2024 was essentially flat as compared to the six months ended June 30, 2024.
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous report
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 report
Venture Global SPA
Previous report
QatarEnergy SPA
Reworded paragraphs (46)
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 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.”
Current wording
Our business spans the globe, with regional office presences 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 September 30, 2024, we generated revenues of $193.4 million, net income of $45.5 million and Adjusted EBITDA of $92.3 million. For the three months ended September 30, 2023, we generated revenues of $275.5 million, net income of $46.5 million and Adjusted EBITDA of $106.9 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.”
Previous 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.
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 September 30, 2024, we operate a fleet of ten purpose-built FSRUs, have completed more than 2,900 ship-to-ship transfers of LNG with over 50 LNG operators since we began operations and have safely delivered more than 7,100 billion cubic feet of natural gas through 16 LNG regasification terminals. For the three months ended September 30, 2024 and 2023, we generated revenues of $150.1 million and $133.2 million, respectively, from our FSRU and terminal services businesses, representing approximately 78% and 48% 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 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.
Current wording
We also procure LNG from major producers and sell natural gas through our flexible LNG terminals. For the three months ended September 30, 2024 and 2023 we generated revenues of $43.3 million and $142.3 million, respectively, from LNG and natural gas sales, representing approximately 22% and 52% 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
Natural gas and LNG prices increased during the second quarter of 2024 relative to the first quarter of 2024. Dutch Title Transfer Facility (“TTF”) and Japan Korea Marker (JKM) average first quarter pricing of $8.92/million British thermal units (“MMBtu”) and $9.43/MMBtu, respectively, increased to an average of $10.02/MMBtu and $11.14/MMBtu, respectively, in the second quarter of 2024. Higher structural demand and weather-related demand in Asia supported elevated deliveries to the region. In Europe, natural gas underground storage inventories are approximately 77% full, as compared to the five-year average of about 67%, and are on track to reach the EU-mandated 90% storage levels by October 1, 2024, a month before the imposed deadline.
Current wording
Natural gas and LNG prices increased during the third quarter of 2024 as compared to the second quarter of 2024. Dutch Title Transfer Facility (TTF) and Japan Korea Marker (JKM) average second quarter pricing of $10.02/million British thermal units (“MMBtu”) and $11.14/MMBtu, respectively, increased to an average of $11.53/MMBtu and $13.03/MMBtu, respectively, in the third quarter of 2024. The increase in pricing was due to higher demand amid supply constraints.
Previous wording
Net income (loss) attributable to non-controlling interests includes earnings allocable to our shares of Class B Common Stock as well as earnings allocable to the third-party equity ownership interests in our subsidiaries, Excelerate Energy Bangladesh, LLC and Excelerate Albania Holding Sh.p.k.
Current wording
Net income (loss) attributable to non-controlling interests includes earnings allocable to our shares of Class B Common Stock, $0.001 par value per share (“Class B Common Stock”) as well as earnings allocable to the third-party equity ownership interests in our subsidiaries, Excelerate Energy Bangladesh, LLC and Excelerate Albania Holding Sh.p.k.
Previous wording
Three and Six Months Ended June 30, 2024 Compared to Three and Six Months Ended June 30, 2023
Current wording
Three and Nine Months Ended September 30, 2024 Compared to Three and Nine Months Ended September 30, 2023
Previous wording
Three and Six Months Ended June 30, 2024 Compared to Three and Six Months Ended June 30, 2023
Current wording
Three and Nine Months Ended September 30, 2024 Compared to Three and Nine Months Ended September 30, 2023
Previous 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).
Current wording
Net income was $107.0 million for the nine months ended September 30, 2024, an increase of $0.2 million, as compared to $106.8 million for the nine months ended September 30, 2023. Net income was higher primarily due to the update to our useful life assumption in the fourth quarter of 2023 ($17.9 million), various charter rate increases ($10.0 million), a full first quarter of our charter with Germany ($8.1 million), an increase in interest income ($5.2 million), a decrease in the provision for income taxes ($5.0 million), the benefit of the Sequoia acquisition ($4.0 million), and lower interest expense due to decreased debt balances ($3.4 million), partially offset by the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($17.7 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($15.6 million), a decrease in other gas sales opportunities ($7.5 million), increased selling, general and administrative expenses primarily due to business development activities ($7.3 million), and increased personnel costs in Argentina ($4.8 million).
Previous 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).
Current wording
Gross Margin was $225.5 million for the nine months ended September 30, 2024, a decrease of $8.6 million, as compared to $234.1 million for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, Adjusted Gross Margin was $301.8 million, a decrease of $21.5 million, as compared to $323.3 million for the nine months ended September 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 ($17.7 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($15.6 million), a decrease in other gas sales opportunities ($7.5 million), and increased personnel costs in Argentina ($4.8 million), partially offset by various charter rate increases ($10.0 million), a full first quarter of our charter with Germany ($8.1 million), and lower operating lease expense due to the acquisition of Sequoia ($6.0 million). Gross Margin was improved by the update to our useful life assumption in the fourth quarter of 2023 ($17.9 million), partially offset by extended commissioning time for our power barge assets in Albania ($4.2 million) and lower depreciation expense as a result of our acquisition of Sequoia ($2.0 million).
Previous 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).
Current wording
Adjusted EBITDA was $256.6 million for the nine months ended September 30, 2024, a decrease of $18.8 million, as compared to $275.4 million for the nine months ended September 30, 2023. Adjusted EBITDA was lower primarily due to the drydocking of Summit LNGand Excellence, our two vessels accounted for as sales-type leases ($17.7 million), the transition of Sequoia to a TCP agreement in the first quarter of 2024 ($15.6 million), a decrease in other gas sales opportunities ($7.5 million), higher selling, general and administrative expenses primarily due to business development activities ($5.0 million), increased personnel costs in Argentina ($4.8 million), partially offset by various charter rate increases ($10.0 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 an increase in interest income ($5.2 million).
Previous 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.
Current wording
FSRU and terminal services revenues were $150.1 million for the three months ended September 30, 2024, an increase of $16.9 million, as compared to $133.2 million for the three months ended September 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
FSRU and terminal services revenues were $308.0 million for the six months ended June 30, 2024, an increase of $64.0 million as compared to $244.0 million for the six 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.
Current wording
FSRU and terminal services revenues were $458.1 million for the nine months ended September 30, 2024, an increase of $80.9 million as compared to $377.2 million for the nine months ended September 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
Gas sales revenues were $32.3 million for the three months ended June 30, 2024, a decrease of $274.6 million, as compared to $306.9 million for the three months ended June 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023, partially offset by LNG sales in Bangladesh during the three months ended June 30, 2024.
Current wording
Gas sales revenues were $43.3 million for the three months ended September 30, 2024, a decrease of $99.0 million, as compared to $142.3 million for the three months ended September 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023, partially offset by fewer LNG sales in Asia Pacific.
Previous wording
Gas sales revenues were $75.5 million for the six months ended June 30, 2024, a decrease of $323.9 million, as compared to $399.4 million for the six months ended June 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023 and a spot sale in Finland in the first quarter of 2023, partially offset by LNG sales in Bangladesh during the six months ended June 30, 2024.
Current wording
Gas sales revenues were $118.7 million for the nine months ended September 30, 2024, a decrease of $423.0 million, as compared to $541.7 million for the nine months ended September 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023, fewer LNG sales in Asia Pacific, and a spot sale in Finland in the first quarter of 2023.
Previous wording
Cost of revenue and vessel operating expenses was $46.6 million for the three months ended June 30, 2024, a decrease of $2.1 million, as compared to $48.7 million for the three months ended June 30, 2023. The decrease in cost of revenue and vessel operating expenses was primarily due to lower expenses in Brazil as a result of transitioning to a TCP agreement in the first quarter of 2024, partially offset by increased personnel costs in Argentina.
Current wording
Cost of revenue and vessel operating expenses was $45.4 million for the three months ended September 30, 2024, a decrease of $3.8 million, as compared to $49.2 million for the three months ended September 30, 2023. The decrease in cost of revenue and vessel operating expenses was primarily due to lower expenses in Brazil as a result of transitioning to a TCP agreement in the first quarter of 2024, partially offset by increased personnel costs in Argentina.
Previous 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.
Current wording
Cost of revenue and vessel operating expenses was $162.6 million for the nine months ended September 30, 2024, an increase of $6.0 million, as compared to $156.6 million for the nine months ended September 30, 2023. The increase in cost of revenue and vessel operating expenses was primarily due to drydock costs on Summit LNGand 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.
Previous wording
Direct cost of gas sales was $71.1 million for the six months ended June 30, 2024, a decrease of $261.8 million, as compared to $332.9 million for the six months ended June 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023 and a spot sale in Finland in the first quarter of 2023, partially offset by LNG sales in Bangladesh during the six months ended June 30, 2024.
Current wording
Direct cost of gas sales was $112.5 million for the nine months ended September 30, 2024, a decrease of $326.5 million, as compared to $439.0 million for the nine months ended September 30, 2023. The decrease was primarily due to the completion of our natural gas sales agreement in Brazil in December 2023, fewer LNG sales in Asia Pacific, and a spot sale in Finland in the first quarter of 2023.
Previous wording
Depreciation and amortization expenses were $53.3 million for the six months ended June 30, 2024, a decrease of $2.7 million, as compared to $56.0 million for the six 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.
Current wording
Depreciation and amortization expenses were $23.0 million for the three months ended September 30, 2024, a decrease of $10.2 million, as compared to $33.2 million for the three months ended September 30, 2023. Depreciation and amortization decreased primarily due to the update to our useful life assumptions and extended commissioning time on our power barge assets in Albania during 2023.
Previous 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.
Current wording
Depreciation and amortization expenses were $76.3 million for the nine months ended September 30, 2024, a decrease of $12.8 million, as compared to $89.1 million for the nine months ended September 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 $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.
Current wording
Selling, general and administrative expenses were $23.8 million for the three months ended September 30, 2024, an increase of $4.3 million, as compared to $19.5 million for the three months ended September 30, 2023. Selling, general and administrative expenses increased primarily due to business development activities.
Previous wording
Selling, general and administrative expenses were $46.9 million for the six months ended June 30, 2024, an increase of $3.0 million, as compared to $43.9 million for the six months ended June 30, 2023. Selling, general and administrative expenses increased primarily due to business development activities.
Current wording
Selling, general and administrative expenses were $70.7 million for the nine months ended September 30, 2024, an increase of $7.3 million, as compared to $63.4 million for the nine months ended September 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 June 30, 2024, a decrease of $1.4 million, as compared to $13.5 million for the three months ended June 30, 2023. Interest expense decreased primarily due to lower balances on our loans.
Current wording
Interest expense was $11.7 million for the three months ended September 30, 2024, a decrease of $2.2 million, as compared to $13.9 million for the three months ended September 30, 2023. Interest expense decreased primarily due to lower balances on our loans.
Previous 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.
Current wording
Interest expense was $35.9 million for the nine months ended September 30, 2024, a decrease of $3.5 million, as compared to $39.4 million for the nine months ended September 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 nine months ended September 30, 2024, partially offset by our entering into the Term Loan Facility (as defined herein) in the second quarter of 2023.
Previous wording
Other income, net was $5.7 million for the three months ended June 30, 2024, an increase of $3.4 million as compared to $2.3 million for the three months ended June 30, 2023. The increase was primarily due to higher interest income received on cash balances invested in money market funds.
Current wording
Other income, net was $6.5 million for the three months ended September 30, 2024, an increase of $1.2 million, as compared to $5.3 million for the three months ended September 30, 2023. The increase was primarily due to higher interest income received on cash balances invested in money market funds.
Previous 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.
Current wording
Other income, net was $17.2 million for the nine months ended September 30, 2024, an increase of $5.8 million as compared to $11.4 million for the nine months ended September 30, 2023. The increase was primarily due to higher interest income received on cash balances invested in money market funds.
Previous 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.
Current wording
The provision for income taxes for the three months ended September 30, 2024 and 2023 was $6.2 million and $8.2 million, respectively. For the nine months ended September 30, 2024 and 2023, the provision for income taxes was $20.5 million and $25.5 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 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.
Current wording
The effective tax rate for the three months ended September 30, 2024 and 2023 was 11.9% and 15.0%, respectively. For the nine months ended September 30, 2024 and 2023, the effective tax rate was 16.1% and 19.3%, respectively. The decrease was primarily driven by the geographical distribution of income and the varying tax regimes of jurisdictions.
Previous 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.
Current wording
Net income attributable to non-controlling interest was $36.6 million for the three months ended September 30, 2024, an increase of $4.0 million, as compared to $32.6 million for the three months ended September 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
Net income attributable to non-controlling interest was $48.4 million for the six months ended June 30, 2024, an increase of $0.9 million, as compared to $47.5 million for the six 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.
Current wording
Net income attributable to non-controlling interest was $85.0 million for the nine months ended September 30, 2024, an increase of $4.9 million, as compared to $80.1 million for the nine months ended September 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 June 30, 2024, we had $609.1 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 September 30, 2024, we had $608.4 million in unrestricted cash and cash equivalents.
Previous wording
At times, we import and sell natural gas and LNG into the countries in which we operate. Some of the inventory purchases that we make to fulfill these sales could potentially exceed cash on hand. We plan to fund any cash shortfalls with borrowings under the EE Revolver (as defined herein). Management believes the EE Revolver will provide sufficient liquidity to execute our contractual purchase obligations. In the event sufficient funds were not available under the EE Revolver, we would seek alternative funding sources.
Current wording
At times, we purchase and sell natural gas and LNG. Some of the inventory purchases that we make to fulfill these sales could potentially exceed cash on hand. We plan to fund any cash shortfalls with borrowings under the EE Revolver (as defined herein). Management believes the EE Revolver will provide sufficient liquidity to execute our contractual purchase obligations. In the event sufficient funds were not available under the EE Revolver, we would seek alternative funding sources.
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 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.
Current wording
Program does not obligate us to acquire any specific number of shares and will expire on February 28, 2026, and the Share Repurchase Program may be suspended, extended, modified or discontinued at any time. During the three and nine months ended September 30, 2024, the Company repurchased 363,974 and 1,625,784 shares, respectively, of its outstanding Class A Common Stock at a weighted average price of $20.61 and $17.24 per share, respectively, for a total net cost of approximately $7.5 million and $28.0 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 $130.6 million for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to:
Current wording
Cash flows provided by operating activities decreased by $0.5 million for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to:
Previous 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
Current wording
$158.8 million decrease in cash received for other current assets and other assets primarily due to inventory sold in the first quarter of 2023;
Previous wording
a $118.9 million increase in cash received from collections of accounts receivable, primarily related to receipt of payment for gas sales in Brazil; and
Current wording
a $15.8 million decrease in cash received from collections of accounts receivable primarily related to receipt of payment for gas sales in Brazil;
Previous wording
a $133.2 million decrease in deferred revenues recognized related to the 2023 gas sales in Brazil;
Current wording
partially offset by a $122.6 million increase in deferred revenues recognized related to the 2023 gas sales in Brazil;
Previous 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;
Current wording
a $57.1 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; and
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 $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.
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 $250.6 million for the nine months ended September 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 on Exemplar 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 $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.
Current wording
Cash flows used in financing activities increased by $284.3 million for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to the proceeds of $250.0 million received from the Term Loan Facility in 2023, $27.2 million in cash paid under the Share Repurchase Program in 2024, an $11.4 million increase in repayments on long-term debt, and a $2.1 million decrease in contributions received from our minority owner related to the Albania Power Project, partially offset by payments of $7.3 million for debt issuance costs in 2023.
Previous wording
On March 17, 2023, EELP entered into an amended and restated senior secured credit agreement (“Amended Credit Agreement”), by and among EELP, as borrower, Excelerate, as parent, the lenders party thereto, the issuing banks party thereto and Wells Fargo Bank, N.A., as administrative agent. Under the Amended Credit Agreement, EELP obtained a new $250.0 million term loan facility (the “Term Loan Facility” and, together with the EE Revolver, as amended by the Amended Credit Agreement, the “EE Facilities”). The EE Facilities mature in March 2027. In April 2023, Excelerate purchased Sequoia for $265.0 million using $250.0 million borrowed through our Term Loan Facility together with cash on hand.
Current wording
N.A., as administrative agent. Under the Amended Credit Agreement, EELP obtained a new $250.0 million term loan facility (the “Term Loan Facility” and, together with the EE Revolver, as amended by the Amended Credit Agreement, the “EE Facilities”). The EE Facilities mature in March 2027. In April 2023, Excelerate purchased Sequoia for $265.0 million using $250.0 million borrowed through our Term Loan Facility together with cash on hand.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
On February 22, 2024, our board of directors approved a share repurchase program (the “Share Repurchase Program”) to purchase up to $50.0 million of our Class A Common Stock, par value $0.001 per share (“Class A Common Stock”). The Share Repurchase
Current report — wording carried from elsewhere
On March 17, 2023, EELP entered into an amended and restated senior secured credit agreement (“Amended Credit Agreement”), by and among EELP, as borrower, Excelerate, as parent, the lenders party thereto, the issuing banks party thereto and Wells Fargo Bank,
Current report — wording carried from elsewhere
Hub natural gas futures contracts plus a contractual spread. The start of this commitment, however, is dependent on the LNG facility becoming operational, which is not expected in the next 12 months.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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)