Excelerate Energy, Inc.

Commercial Officer, and David Liner, Chief Operating Officer. Our second quarter earnings press release and presentation were published this morning and are available on our website at ir.accelerateenergy.com. Before we begin, please note that today's discussion will include forward-looking statements which involve risks and uncertainties that may cause actual results to differ materially. We undertake no obligation to update these statements. We'll also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found at the back of the presentation. With that, it is my pleasure to pass the call over to Stephen Kobos.

Thanks, Craig. Good morning, everyone. We appreciate you joining us today to discuss our second quarter 2025 results. At Accelerate, we are committed to operational excellence, disciplined growth, and delivering long-term value for our shareholders. This quarter was no exception. We delivered strong financial and operational results. We advanced the strategic priorities that will define the next phase of our growth. On today's call, I'll speak to the Accelerate Energy value proposition and provide an update on our recent Jamaica acquisition. Then I will share recent highlights from terminal services before turning the call over to Dana, who will walk through our financial results. Let's turn to our value proposition. I want to spend a few minutes on the key elements that define how Accelerate delivers long-term value to shareholders. and how we are positioning the company for continued success. First, we are a leading provider of critical energy infrastructure in the downstream part of the global LNG value chain. The recent Jamaica acquisition represents a pivotal step in our evolution. Our growth strategy has long included owning and operating downstream infrastructure assets, and today our business model reflects that ambition. Second, our business is predominantly supported by long-term take-or-pay contracts. These allow us to generate predictable earnings, and they are insulated from economic cycles. We told investors last quarter that our business model is essentially tariff proof. We aren't exposed to tariffs. That hasn't changed. It's one of the reasons Accelerate continues to stand out as a resilient investment, especially in today's geoeconomic environment. We are a safe haven. Third, As a result of the groundwork we have laid, we have a long runway for growth through both strategic opportunities and scalable assets. Fourth, and importantly, this growth strategy is bolstered by strong macro tailwinds. These include the growing demand for LNG tied to enhancing energy security and advancing the energy transition. Energy security will remain a paramount need for all nations. We are also seeing supportive policy momentum. For example, the recent U.S.-EU trade agreement focused on expanding LNG exports. Look, any deal that's good for U.S. LNG is good for Accelerate, and this one reinforces the relevance of our business in connecting supply to demand. Fifth and finally, all of this results in an attractive financial profile that gives us the flexibility to pursue new growth opportunities while returning capital to shareholders. Our foundational strategy remains unchanged. It continues to guide our commercial efforts and underpins the bold moves we're making as a company. We are focused on protecting and enhancing long-term contracted revenue and margins, and we are doing this while pursuing growth catalysts for near-term value creation. So with that context in mind, let's turn to Jamaica. The Jamaica transaction, which closed in May, brought into our portfolio the Montego Bay and Old Harbor LNG terminals, the Clarendon combined heat and power plant, and numerous small-scale regasification facilities throughout the island. Since we closed the acquisition, we have been laser-focused on ensuring a smooth integration of people, systems, and processes. We're also working to optimize the existing business, enhance customer service, and strengthen our continuity plans. I'm pleased to report that integration is proceeding as planned and that Jamaica assets are exceeding our operational expectations. Thanks to the excellent condition of the assets and the deep expertise of our new Accelerate colleagues, we are well positioned to deliver sustained reliability and high operational performance. The Jamaica transaction is a compelling strategic win for Accelerate and for our shareholders. The assets we acquired are contracted, cash generating, and already contributing meaningfully to earnings. Beyond immediate earnings contribution, the transaction also strengthens the foundation of our US LNG supply portfolio. Jamaica's 21-year contract profile dovetails nicely with our 20-year offtake of U.S. LNG from Venture Global's Plaquemines Phase 2. With this alignment, we have secured a long-term downstream destination for our volumes. As we optimize the Jamaica platform, we expect to unlock near-term EBITDA growth by improving asset performance and expanding commercial activity. At the same time, we see a clear path to scale this model across the Caribbean that will require targeted investment to support new infrastructure development, to expand our customer reach, and to deliver on broader commercial objectives. This approach is designed to enhance the value of the assets over time and strengthen the return profile of the broader transaction. By 2030, we expect to generate 80 to 110 million in incremental EBITDA from optimizing the Jamaica platform and investing 200 to 400 million in growth CapEx to expand our operational presence in Jamaica and across the Caribbean. Now let's talk about how this is going to happen. First, we are focused on optimizing and expanding the Jamaica platform to meet natural gas demand driven not only by fuel switching across the island, but also by the need for additional power generation as the Jamaican economy continues to grow. Our team is off to a great start identifying ways to increase throughput across existing infrastructure and extract greater value from current commercial agreements. We have already begun to sell incremental volumes of LNG and natural gas to customers on the island, and we expect this early momentum to continue. In the medium to longer term, we will make investments in larger scale infrastructure projects that support our growth. These opportunities span a diverse range of initiatives, including new power generation, terminal expansions, LNG bunkering, and additional pipelines. The second part of our approach is to position Jamaica as a regional hub for LNG distribution across the Caribbean. Jamaica's geographic location gives us a structural cost advantage. Its proximity to the US and to key regional markets allows us to respond quickly to regional demand making it an ideal launch point for LNG distribution and power development. We are advancing a hub-and-spoke model that leverages our floating LNG terminal in Old Harbor as a central storage and distribution point. From there, we can efficiently deliver LNG throughout the Caribbean using smaller vessels to reduce transportation times and lower fuel costs. We see this as a natural expansion of our downstream operations and an important part of our long-term Caribbean growth strategy. And while we are still early in our ownership, we have hit the ground running and we see clear opportunities to scale the platform efficiently. Now let's turn to terminal services. Before we get to the second quarter highlights, I want to underscore the progress we are making in expanding the asset portfolio that supports terminal services. We are strengthening our long-term infrastructure footprint and positioning ourselves to capitalize on new developing opportunities in the LNG import terminal space. These efforts will enable us to capture a greater share of our total addressable market particularly in regions where demand for reliable energy infrastructure continues to rise. Now to the highlights. This quarter marked several important milestones. In April, the FSRU Excelsior arrived in Germany at the port of Wilhelmshaven. In late May, the Excelsior officially commenced regasification operations and is regularly delivering gas ashore at maximum capacity. Really pleased with our operations team. In July, we acquired an LNG carrier, which we renamed the Accelerate Shenandoah. While the vessel will support our previously announced midterm Atlantic Basin supply agreement, its utility extends well beyond that. Shenandoah enhances our ability to serve Jamaica and support regional LNG storage and logistics. The LNG carrier also represents Accelerate's first owned asset to be selected as an FSRU conversion candidate. We have already begun engineering for the conversion to accelerate the construction timeline. Next, we signed a deal with Petrobras to install a reliquifaction unit on the FSRU experience, our floating LNG terminal located in Guanabara Bay, Brazil. The relic unit is expected to be installed in 27 during the next planned dry dock for the experience. Once installed, this technology will eliminate all excess LNG losses due to boil off and lower our scope one emissions. same time it will upgrade the performance and life expectancy of the asset. Finally, we continue to make strong progress on the construction of Hull 3407, our new build FSRU under construction at Hyundai Heavy Industries. The vessel remains on track for delivery in June 26. Hull 3407 will be a best-in-class asset. capable of delivering up to billion cubic feet a day of natural gas and also having the lowest rates of boil off in the industry. We remain confident in our ability to place hole 3407. The vessel's scale, performance, and flexibility position it as a cornerstone asset in our global LNG infrastructure portfolio. We expect to provide further updates on its commercial deployment in the coming quarters. Let's sum it up. Accelerate is executing on a clear growth roadmap that aligns with our long-term strategic priorities. We remain committed to transparency and delivering on the promises we've made. We know this approach will support long-term value creation and position Accelerate as a compelling investment opportunity. I want to thank each of you for your continued support and confidence in Accelerate Energy. With that, I'll turn the call over to Dana.

Good morning, and thank you for joining us. Before we dive into the numbers, I want to highlight a few important updates to our financial statements that better reflect the structure of our business following the Jamaica acquisition. On our income statement, we've renamed the FSRU and terminal services revenue line to terminal services, and the gas sales revenue line is now presented as LNG gas and power. The associated cost line items have been updated accordingly. Now let's turn to the results for the quarter. Q2 was a great quarter for Accelerate with adjusted EBITDA of $107 million. Adjusted EBITDA increased roughly $7 million quarter-over-quarter, driven primarily by the addition of Jamaica EBITDA for a partial quarter starting on May 14th when we closed the acquisition. This increase from Jamaica was partially offset by the seasonal impact of the Atlantic Basin winter cargo margin, which occurred in the first quarter of this year but not in the second quarter, and the timing of various vessel operating expenses which were higher in the second quarter as compared to the first quarter. Year over year, adjusted EBITDA grew by 18 million, driven both by the addition of the Jamaica EBITDA and the strength of our legacy business. Now let's turn to our balance sheet. Our balance sheet remains strong and continues to provide the stability and flexibility needed to execute on our long-term strategy and navigate dynamic market conditions. As of June 30th, our total debt, including finance leases, was $1.3 billion and we had $426 million of cash and cash equivalents on hand. Additionally, all of the $500 million of undrawn capacity under our revolver was available for additional borrowings. Net debt was $867 million and our trailing 12-month net leverage as of June 30th stood at 2.2 times. Our financial strength is rooted in the durability and predictability of our business model, with over 90% of our adjusted EBITDA supported by take-or-pay contracts. This structure gives us a high degree of visibility into future cash flows, supports disciplined capital allocation, and enables us to invest confidently in growth while returning capital to our shareholders. Now let's turn to capital allocation. Our capital allocation strategy remains unchanged. Investing in accretive growth opportunities remains our top priority. We're actively deploying capital into growth projects like our new build FSRU Hall 3407, which remains on track and on budget. We're also targeting additional infrastructure investments across our asset footprint that support long-term value creation. At the same time, we recognize the importance of returning capital to shareholders. That's why on July 31st, we announced an increase to our quarterly dividend. Raising the dividend is a direct reflection of our enhanced cash flow profile from the Jamaica acquisition. It's a signal of confidence in the cash flows of both the newly acquired Jamaica assets as well as our legacy business. Looking ahead with even greater confidence in our forward cash flow outlook, we are now targeting an annual dividend growth rate in the low double digits commencing in 2026 and continuing through 2028. Of course, all dividend decisions remain subject to board discretion and the pace of future growth investments. We believe this balanced approach of investing in growth while returning capital will create long-term value for our shareholders. As previously communicated on July 29th, Following the closing of the Jamaica acquisition and based on our second quarter results, we have raised our adjusted EBITDA guidance range for 2025. For the full year, adjusted EBITDA is expected to range between $420 million and $440 million. As a reminder, our adjusted EBITDA guidance continues to include the financial impacts of the two dry docks plan for the third and fourth quarters of this year. Maintenance capex has increased slightly and is now expected to range between $65 million and $75 million. Committed growth capital, which is defined as capital that has been contractually committed or internally approved for specific growth projects, is now expected to range between $95 million and $105 million. This represents an increase of $30 million from our prior guidance, the majority of which is related to the purchase of our new LNG carrier. In closing, Accelerate is exceptionally well positioned to create long-term value for our shareholders. We've integrated the Jamaica platform and it's already contributing meaningfully to our financial performance. We're executing with discipline and we will continue investing in growth opportunities that will enhance our long-term earnings power while returning capital to shareholders. We believe this combination, operational strength, financial discipline, and a clear focus on shareholder returns, positions Accelerate to thrive and lead in the evolving global energy landscape. Thank you. And with that, we will now open up the call for Q&A.