tiprankstipranks
Trending News
More News >
Excelerate Energy, Inc. Class A (EE)
NYSE:EE
US Market

Excelerate Energy, Inc. Class A (EE) AI Stock Analysis

Compare
123 Followers

Top Page

EE

Excelerate Energy, Inc. Class A

(NYSE:EE)

Rating:66Neutral
Price Target:
$31.00
▲(4.48%Upside)
Excelerate Energy's stock score is primarily driven by a positive earnings call that emphasizes strategic growth and strong financial guidance. The technical analysis supports a bullish trend, while financial performance shows mixed results with strong cash flows but declining revenues. Valuation metrics suggest potential overvaluation, tempered by a low dividend yield.
Positive Factors
Expansion and Integration
EE's acquisition of Jamaica's LNG-to-power assets and integration into the LNG value chain offers growth and margin improvement opportunities.
Financial Growth and Performance
The acquisition is forecasted to increase Excelerate Energy's EBITDA estimates significantly, showing potential for improved financial performance.
LNG Demand and Infrastructure
EE offers a unique opportunity for exposure to long-term LNG demand tailwinds through its FSRU/regas infrastructure that has stable contracted cash flows and minimal commodity risk.
Negative Factors
Growth Expectations
The growth track record of EE has not kept up with expectations outlined at the IPO, leaving it as more of a 'show me' story.
Share Liquidity
Share liquidity and float remain a market concern, and it is expected that George Kaiser will remain a long-term holder.
Valuation Concerns
After notable 2024 outperformance, EE's current valuation is seen as rich compared to the US SMid cap valuation median.

Excelerate Energy, Inc. Class A (EE) vs. SPDR S&P 500 ETF (SPY)

Excelerate Energy, Inc. Class A Business Overview & Revenue Model

Company DescriptionExcelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions worldwide. The company offers floating regasification services, including floating storage and regasification units (FSRUs), infrastructure development, and LNG and natural gas supply, procurement, and distribution services; LNG terminal services; natural gas supply to-power projects; and a suite of smaller-scale gas distribution solutions. It also leases an LNG terminal in Bahia, Brazil. Excelerate Energy, LLC acts as general partner of the company. Excelerate Energy, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. Excelerate Energy, Inc. operates as a subsidiary of Excelerate Energy Holdings, LLC.
How the Company Makes MoneyExcelerate Energy makes money primarily through the operation and management of floating LNG import terminals. The company generates revenue by providing regasification services, which involve converting LNG back into its gaseous state for delivery to end-users. Additionally, Excelerate Energy engages in the sale of LNG, leveraging its fleet of floating storage and regasification units (FSRUs) to meet the demands of various international markets. The company's earnings are further supported by strategic partnerships and long-term contracts with governments and energy firms, ensuring a steady and reliable revenue stream.

Excelerate Energy, Inc. Class A Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 19.25%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant strategic advancements, particularly in Jamaica. However, there are potential challenges in contract flexibility and integration efforts. The overall outlook remains positive with increased financial guidance and a robust growth strategy.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Excelerate delivered $100 million of adjusted EBITDA and $56 million of adjusted net income for Q1 2025, with a 20% sequential increase in adjusted net income.
Operational Excellence
Excelerate maintained operational reliability above 99.9% and exceeded all primary safety targets, showcasing their commitment to operational excellence.
Strategic Acquisition in Jamaica
Excelerate announced a definitive agreement to acquire an integrated LNG infrastructure and power platform in Jamaica for approximately $1 billion, expected to be immediately accretive to EPS and enhance operational and financial profiles.
Increase in Financial Guidance
Based on Q1 results, Excelerate increased its adjusted EBITDA guidance range for 2025 to $345 million - $365 million.
Expansion and Growth Strategy
Excelerate continues to advance its fleet asset optimization and expansion strategy, including the construction of Hull 3407, which remains on track for mid-2026 delivery.
Robust Financial Position
Excelerate completed equity and debt financing for the Jamaica acquisition, with a $800 million offering of 8% senior unsecured notes due in 2030.
Negative Updates
Dependence on Take-or-Pay Contracts
While take-or-pay contracts support the business model, they may limit flexibility in rapidly changing market conditions.
Potential Challenges in Integration
The successful integration of Jamaica's assets and operations could present challenges, although Excelerate expressed confidence in a seamless transition.
Uncertainty in Vietnam
Despite ongoing discussions, there are no definitive updates on moving the Vietnam MOU to a binding agreement, indicating potential delays or challenges.
Company Guidance
During Excelerate Energy's first quarter 2025 conference call, the company provided several key financial and operational metrics. Excelerate delivered $100 million of adjusted EBITDA and $56 million of adjusted net income for Q1, driven by strong performance in their core regasification infrastructure business. The company's take-or-pay contracts underpinned over 90% of their estimated full-year adjusted EBITDA, ensuring steady cash flows. Operational reliability was reported at over 99.9%. Looking forward, Excelerate increased its 2025 adjusted EBITDA guidance to a range of $345 million to $365 million. The company also highlighted its strategic $1 billion acquisition of an integrated LNG infrastructure and power platform in Jamaica, expected to be accretive to EPS and enhance operating cash flow, while diversifying its customer base. The acquisition is on track to close within the quarter, with ongoing integration planning.

Excelerate Energy, Inc. Class A Financial Statement Overview

Summary
Excelerate Energy presents a mixed financial performance. While operational margins are stable and cash flow management is strong, negative gross profit margins and declining revenues are concerns. The balance sheet is healthy with reduced debt levels and positive equity metrics.
Income Statement
55
Neutral
The company has demonstrated inconsistent revenue growth with a decline in recent periods. Gross profit margins are negative in the TTM, raising concerns. However, the net profit margin is positive, suggesting some profitability. EBIT and EBITDA margins have remained relatively stable, indicating operational efficiency.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with a significant decrease in debt levels leading to a healthier debt-to-equity ratio. Return on equity is positive, reflecting efficient use of equity. The equity ratio is favorable, suggesting financial stability.
Cash Flow
70
Positive
The company has shown strong free cash flow growth in the TTM, indicating improved cash generation. Operating cash flow to net income ratio is strong, reflecting good cash conversion. The free cash flow to net income ratio is positive, suggesting healthy cash flow management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
966.41M851.44M1.16B2.47B888.55M430.84M
Gross Profit
-44.99B309.14M298.08M357.00M305.31M280.37M
EBIT
235.55M215.00M210.60M186.69M139.34M133.26M
EBITDA
355.79M341.10M326.70M297.86M273.00M254.18M
Net Income Common Stockholders
75.51M32.88M30.41M80.00M41.12M38.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
582.50M580.99M555.85M530.00M85.01M100.47M
Total Assets
2.86B2.88B2.86B2.87B2.50B2.26B
Total Debt
757.96M697.38M774.65M715.88M1.02B1.34B
Net Debt
175.46M159.86M218.79M199.23M945.37M1.25B
Total Liabilities
1.03B994.71M1.05B1.17B1.50B1.48B
Stockholders Equity
501.56M487.99M505.45M477.35M1.12B887.14M
Cash FlowFree Cash Flow
189.97M131.18M-80.85M105.82M105.52M67.71M
Operating Cash Flow
334.58M244.44M231.88M225.09M141.61M108.96M
Investing Cash Flow
-144.61M-113.26M-308.63M-119.27M-36.09M-41.26M
Financing Cash Flow
-148.94M-149.02M111.36M341.18M-124.10M-31.44M

Excelerate Energy, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.67
Price Trends
50DMA
27.49
Positive
100DMA
28.60
Positive
200DMA
26.72
Positive
Market Momentum
MACD
0.54
Negative
RSI
59.90
Neutral
STOCH
67.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EE, the sentiment is Positive. The current price of 29.67 is above the 20-day moving average (MA) of 28.77, above the 50-day MA of 27.49, and above the 200-day MA of 26.72, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 67.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EE.

Excelerate Energy, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$800.50M23.350.29%26.49%
ORORA
69
Neutral
$4.56B36.415.21%0.65%1.95%-6.57%
EEEE
66
Neutral
$3.40B25.347.58%0.69%-15.82%36.15%
RNRNW
65
Neutral
$2.52B97.832.00%-1.77%-41.65%
57
Neutral
$7.22B3.11-4.49%5.63%0.82%-49.15%
56
Neutral
$869.18M236.42-5.96%6.08%52.48%
SMSMR
42
Neutral
$9.04B-32.34%62.41%-85.81%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EE
Excelerate Energy, Inc. Class A
30.97
13.79
80.27%
ORA
Ormat Techno
75.12
1.65
2.25%
SMR
NuScale Power
31.19
23.11
286.01%
AMPS
Altus Power
4.99
1.01
25.38%
RNW
ReNew Energy Global
6.77
0.57
9.19%
FLNC
Fluence Energy
4.62
-17.74
-79.34%

Excelerate Energy, Inc. Class A Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Excelerate Energy Completes Major Acquisition in Jamaica
Positive
May 14, 2025

On May 14, 2025, Excelerate Energy, Inc. successfully completed the acquisition of New Fortress Energy Inc.’s business in Jamaica for $1.055 billion. This acquisition includes the Montego Bay LNG Terminal, the Old Harbour LNG Terminal, and the Clarendon combined heat and power plant. The transaction was funded through $1.0 billion raised in equity and debt financings, including an equity offering of eight million shares and an $800 million senior unsecured notes offering. This strategic acquisition is expected to enhance Excelerate’s downstream expansion strategy, providing stable, long-term cash flows and aligning with its operational expertise and LNG supply agreements, thereby generating substantial value for shareholders and advancing its mission to offer cleaner, cost-effective natural gas solutions in Jamaica.

The most recent analyst rating on (EE) stock is a Sell with a $29.00 price target. To see the full list of analyst forecasts on Excelerate Energy, Inc. Class A stock, see the EE Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Excelerate Energy Announces Major Acquisition in Jamaica
Positive
Mar 27, 2025

On March 26, 2025, Excelerate Energy Limited Partnership, a subsidiary of Excelerate Energy, Inc., announced an agreement to acquire New Fortress Energy’s business in Jamaica for $1.055 billion. This strategic acquisition, expected to close in the second quarter of 2025, positions Excelerate as a key provider of LNG infrastructure in the Atlantic basin, enhancing its financial profile with stable, long-term cash flows and growth opportunities in the Jamaican energy market.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.