Excelerate Energy, Inc. has recently released its 10-Q report, providing a comprehensive overview of its financial condition and operations. The company, a subsidiary of Excelerate Energy Holdings, LLC, specializes in providing flexible liquefied natural gas (LNG) solutions globally, including regasification services, LNG terminal services, and natural gas supply to power projects. As of September 30, 2024, Excelerate operated a fleet of ten purpose-built floating storage and regasification units (FSRUs) and had completed more than 2,900 ship-to-ship transfers of LNG with over 50 LNG operators. The company generated revenues of $193.4 million in the third quarter of 2024, with net income of $45.5 million and Adjusted EBITDA of $92.3 million, showcasing a decline from the same period in 2023 when revenues were $275.5 million, net income was $46.5 million, and Adjusted EBITDA was $106.9 million.
The 10-Q report also highlighted recent trends and the outlook for the natural gas and LNG market. It noted that natural gas and LNG prices increased in the third quarter of 2024 compared to the second quarter, with higher demand and supply constraints driving the price surge. Global LNG trade volumes slightly increased to about 99.6 million tons per annum in the third quarter of 2024. The report also mentioned that European natural gas inventories ended the 2023-2024 winter heating season at record levels, leading to reduced natural gas demand during the summer of 2024. However, geopolitical instability in LNG-producing regions and delays in new project start-ups limited anticipated growth in LNG production, tightening the market and supporting price increases.
The report delved into the components of Excelerate Energy's results of operations, outlining the various revenue streams and expenses. Revenue is primarily generated through regasification services using FSRUs and LNG terminal assets, as well as physical sales of LNG and natural gas. The company also incurs significant expenses related to operating costs, direct cost of gas sales, general and administrative expenses, and depreciation and amortization.
Moreover, the 10-Q report discussed factors affecting the comparability of Excelerate Energy's results of operations, including the impact of depreciation expense and changes in estimated useful lives of FSRU vessels. The company evaluates its operations using metrics such as Adjusted Gross Margin and Adjusted EBITDA, which provide insight into profitability and operational performance.
Following these announcements, the company's shares moved -7.5%, and are now trading at a price of $24.43. If you want to know more, read the company's complete 10-Q report here.
