Excelerate Energy, Inc. (EE, Financial) has finalized the acquisition of New Fortress Energy's Jamaican assets and operations for $1.055 billion. This deal, originally announced on March 27, 2025, includes the complete transfer of NFE’s LNG import terminal in Montego Bay, a floating storage and regasification terminal in Old Harbour, and a 150 MW Combined Heat and Power Plant in Clarendon, along with the related infrastructure.
Proceeds from this sale will be used by New Fortress Energy to reduce its corporate debt and support general corporate activities. This transaction is considered a significant step for the company as it aims to streamline its operations while advancing its financial goals.
Excelerate Energy is expected to continue the vision of providing reliable and cost-efficient energy to Jamaica, furthering the efforts to enhance the country's energy landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Excelerate Energy Inc (EE, Financial) is $32.22 with a high estimate of $37.00 and a low estimate of $23.00. The average target implies an upside of 9.82% from the current price of $29.34. More detailed estimate data can be found on the Excelerate Energy Inc (EE) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Excelerate Energy Inc's (EE, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Excelerate Energy Inc (EE, Financial) in one year is $4.17, suggesting a downside of 85.79% from the current price of $29.34. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Excelerate Energy Inc (EE) Summary page.
EE Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Excelerate Energy Inc (EE, Financial) reported a strong financial performance in Q1 2025, with $100 million in adjusted EBITDA and $56 million in adjusted net income.
- The company's business model is supported by take-or-pay contracts, ensuring sustainable earnings regardless of economic cycles.
- Excelerate Energy Inc (EE) is expanding its LNG terminal presence globally, enhancing energy security and supporting the transition to a lower carbon future.
- The acquisition of an integrated LNG infrastructure and power platform in Jamaica is expected to be immediately accretive to EPS and enhance operating cash flow.
- The company has a strong balance sheet with $619 million in cash and cash equivalents and an increased revolving credit facility, providing financial flexibility for growth.
Negative Points
- The acquisition of the Jamaica business requires the completion of routine deliverables and consents, which could pose potential delays.
- There is uncertainty regarding the deployment and gas supply for the new build FSRU, with ongoing discussions but no finalized agreements.
- The company faces potential challenges in integrating the Jamaica assets and ensuring a seamless transition with the Jamaican government.
- Excelerate Energy Inc (EE) operates in a competitive market, and there is pressure to secure contracts and maintain high operational reliability.
- The company's growth strategy involves significant capital expenditures, including the construction of new FSRUs and potential further acquisitions, which could impact financial stability if not managed carefully.
