What Excelerate Energy (EE) Said on Its Q3 Earnings Call

Key Points

• Excelerate posted record Q3 adjusted EBITDA of approximately $133 million, up $13 million sequentially, and narrowed 2026 adjusted EBITDA guidance to $495 million–$515 million.
• The company signed an 11-year LNG supply agreement for its planned Bahamas hub, with deliveries expected to begin in Q1 2027. Management expects about $6 million of EBITDA in 2027, rising to an average annual run rate of roughly $15 million after a dedicated floating storage unit is deployed.
• Excelerate is targeting startup of its Colombia terminal in Q1 2027 and Iraq terminal in Q2 2027, maintaining previously stated earnings expectations for both projects. It also said identified growth projects could add $250 million–$300 million in EBITDA by 2029.

Excelerate Energy NYSE: EE reported record quarterly adjusted EBITDA in the third quarter of 2026 and outlined plans for a Bahamas liquefied natural gas hub, as the company advances infrastructure projects in the Caribbean, Iraq and Colombia.

The LNG infrastructure provider reported net income of $60 million, up $10 million from the second quarter. Adjusted EBITDA rose $13 million sequentially to approximately $133 million, the highest quarterly figure in the company’s history.

Chief Financial Officer Dana Armstrong said results benefited from the start of a new charter in Jordan and higher direct margins from LNG, gas and power across the portfolio. President and CEO Steven Kobos said the company’s earnings are predominantly supported by long-term take-or-pay contracts.

Bahamas Hub to Begin Deliveries in 2027

Excelerate announced an 11-year LNG supply agreement with AxDo Bahamas Limited, a joint venture between energy trading company Axpo and Bahamas-based Domicisle LNG. AxDo will be an anchor customer for a planned offshore storage and distribution terminal near Grand Bahama.

The agreement calls for deliveries to ramp up to 16 trillion British thermal units of LNG annually. Kobos said the contracted volume represents less than half the capacity of the planned asset, leaving room for additional sales to AxDo and other regional customers. LNG from the hub is expected to support marine bunkering, power generation and other downstream uses.

The company plans to begin deliveries in the first quarter of 2027 using its existing Jamaica platform. Chief Commercial Officer Oliver Simpson said the initial plan is to move volumes from Jamaica to the Bahamas rather than use ISO containers.

Excelerate plans to deploy a dedicated floating storage unit near Grand Bahama in the second half of 2028. It estimates the unit will cost $85 million to $95 million, including the LNG carrier and its conversion, although final conversion costs remain subject to engineering and project scope.

Management expects the AxDo agreement to contribute approximately $6 million of EBITDA in 2027. After the storage unit is deployed, the company projects an average annual EBITDA run rate of approximately $15 million over the remaining 10 years of the contract, based on current contracted volumes.

Iraq and Colombia Deployment Plans

Excelerate continues to target a first-quarter 2027 startup for its Colombia terminal and a second-quarter 2027 startup in Iraq. Kobos said the company plans to use a floating storage and regasification unit, or FSRU, already in the Arabian Gulf for Iraq and other portfolio assets outside the Gulf for Colombia. Neither startup requires a vessel to transit the Strait of Hormuz, he said.

The company has not identified the individual vessels because customer arrangements are still being finalized. Armstrong said the temporary deployment plans are expected to preserve previously communicated financial expectations, including an approximately $100 million annual EBITDA run rate for Iraq at minimum contracted volumes and a 35% uplift for Colombia.

In Iraq, materials for jetty reinforcement and fixed terminal infrastructure are arriving, and construction workers are on site. Chief Operating Officer David Liner said the company is focused on jetty reinforcement and is targeting mechanical completion in April 2027, followed by commissioning.

Excelerate’s five-year Iraq agreement provides for minimum contracted offtake of 250 million standard cubic feet per day, with the ability to increase to 500 million. Kobos said the company expects to finalize an LNG supply agreement with an upstream supplier in the first quarter of 2027.

Vessel Investments and Financial Outlook

In August, Excelerate agreed to extend its FSRU Sequoia contract with Petrobras by five years through 2038, adding more than $400 million of contracted revenue to its backlog. The company plans to install a reliquefaction unit during the vessel’s scheduled 2028 dry dock to reduce LNG losses from boil-off and improve efficiency.

Excelerate also awarded Seatrium a contract to convert the LNG carrier Methane Patricia Camila into an FSRU. The company now estimates the total investment at approximately $260 million, including the vessel, and expects it to be available for commercial deployment in 2028.

For 2026, Excelerate narrowed its adjusted EBITDA guidance to $495 million to $515 million. It lowered its maintenance capital expenditure outlook to $65 million to $75 million, citing deferred maintenance, and raised committed growth capital guidance to $400 million to $410 million because of the timing of conversion project spending. Armstrong said total capital expenditure remains generally in line with prior guidance.

At September 30, the company had approximately $1.2 billion in total debt, including finance leases, and $357 million in cash. Its $500 million revolving credit facility remained fully available. The board approved a quarterly dividend of $0.09 per share, payable December 3 to shareholders of record on November 18.

Looking further ahead, Armstrong said the company’s identified growth projects could add $250 million to $300 million in EBITDA by 2029. She said management is still considering whether to provide multiyear guidance.

About Excelerate Energy (NYSE:EE)

Excelerate Energy, Inc is a U.S.-based energy infrastructure company that provides liquefied natural gas (LNG) delivery and regasification services. The company specializes in floating storage and regasification units (FSRUs), which receive, store and convert LNG back into natural gas for delivery to onshore or offshore pipeline systems.

Excelerate offers integrated LNG solutions that can include vessel ownership and operation, terminal and regasification services, LNG supply, logistics and project development.

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