LNG - Excelerate Energy Decelerates

2024-04-03 11:12:38 ET

Summary

• Excelerate Energy provides flexible LNG solutions including international floating storage and regasification units.
• Today’s stock price is only 63% of the IPO price. Excelerate pays a $0.10/share annual dividend, for a tiny 0.7% yield.
• EE has a complicated ownership structure as the two entities own 83% of the Class A and Class B equity. Class A (public) owns only 24% of the equity and so faces significant dilution and management risk.

Excelerate Energy, Inc. ( EE ) did an initial public offering of a small portion of its equity (Class A or public shares) at $24/share in April 2022. Excelerate’s stock price is now only 63% of that level ($15.20/share), 83% of its total equity is held by just two entities, and the dividend of $0.10/share (0.7%) is almost invisible.

The company bridges natural gas liquefaction and customers’ energy needs in the developing and developed world by providing infrastructure to help meet immediate or short-term liquid natural gas ((LNG)) demand as well as long-term demand. While this is important in providing energy to those that need it and reducing emissions by supplying LNG rather than coal (or using biomass or nothing and leaving demand unsatisfied), Excelerate does not appear to be an attractive format for individual investors. I am ranking it as a sell. Investors who don’t already own shares may instead prefer to think of this as a “don’t-buy” rating....

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