Excelerate's $75M Buyback: A Bold Bet on Growth and Shareholder Value

THE WOODLANDS, TX – December 11, 2025 – In a move signaling robust confidence in its financial standing and future prospects, Excelerate Energy (NYSE: EE) has announced a new share repurchase authorization of up to $75 million. While stock buybacks are a common tool for returning capital to shareholders, Excelerate's decision comes at a pivotal moment, as the company simultaneously embarks on an aggressive and capital-intensive global expansion. This dual strategy of rewarding investors while fueling growth offers a fascinating look into the firm's strategic calculus in the dynamic Liquefied Natural Gas (LNG) market.

A Foundation of Financial Strength

The board's authorization is more than just a line item in a financial report; it's a declaration of strength. The company's leadership has explicitly tied the move to its healthy balance sheet. "Our approach to share repurchases reflects a commitment to enhancing shareholder returns while maintaining flexibility for growth investments and dividends," stated Chief Financial Officer Dana Armstrong in the announcement. She underscored that the program is "supported by robust cash generation and a solid balance sheet," reflecting a disciplined approach to capital allocation.

Recent financial results lend significant weight to these claims. Excelerate posted a stellar third quarter for 2025, with a net income of $55.0 million and an adjusted EBITDA of $129.3 million. Revenue for the quarter hit $391 million, soaring past analyst expectations. Buoyed by this performance, the company raised and narrowed its full-year 2025 adjusted EBITDA guidance to a range of $435 million to $450 million. With over $426 million in unrestricted cash and cash equivalents as of mid-2025 and a manageable debt-to-equity ratio of 0.56, the company appears well-positioned to fund both shareholder returns and its operational ambitions. This financial footing, built on a core business model where approximately 90% of future cash flows are secured by long-term, take-or-pay contracts, provides the predictability needed to make such confident capital commitments.

Balancing Buybacks with Ambitious Growth

What makes Excelerate's buyback particularly noteworthy is that it is not the action of a company in a holding pattern. Instead, it is actively pursuing a multi-pronged growth strategy that requires substantial capital. This balancing act between immediate shareholder returns and long-term reinvestment is at the heart of the company's current narrative.

Earlier this year, Excelerate closed a transformative $1.055 billion acquisition of New Fortress Energy's LNG business in Jamaica. This move significantly expanded its downstream footprint in the Atlantic basin and is expected to contribute approximately $118 million in annual EBITDA, with further optimization potential. The integration of these assets is reportedly exceeding operational expectations, bolstering the company's cash flow projections.

Simultaneously, the company is breaking new ground in the Middle East. In October, Excelerate finalized a landmark agreement with Iraq's Ministry of Electricity to develop the nation's first LNG import terminal. This integrated project, which includes a five-year regasification and LNG supply agreement, represents a total investment of roughly $450 million. To serve this project and other emerging markets, the company has a new, state-of-the-art Floating Storage and Regasification Unit (FSRU) under construction, Hull 3407, with delivery expected in mid-2026.

Further solidifying its global reach, Excelerate is advancing plans in Asia. It has secured long-term LNG supply from QatarEnergy and Venture Global LNG to support its contracts in Bangladesh and signed a Memorandum of Understanding with Vietnam's PV Gas to develop a strategic supply framework. These initiatives demonstrate a clear vision for expansion, making the decision to also allocate $75 million to share repurchases a powerful statement about management's belief in its ability to generate enough cash to do both.

Market Sentiment and Industry Context

The market appears to be buying into Excelerate's story. Following the strong Q3 earnings report, the company's stock saw a positive bump, and Wall Street sentiment has grown increasingly favorable. Several analysts have issued positive ratings, with Tudor Pickering upgrading the stock from "hold" to "strong-buy" and Jefferies Financial Group reiterating a "buy" rating with a $37.00 price target. The consensus rating has settled at a "Moderate Buy," with an average price target suggesting room for upside. This marks a significant shift from earlier in the year when some analysts expressed concerns over valuation and growth visibility.

Institutional investors are also taking note, with major players like JPMorgan Chase & Co. significantly increasing their holdings in the company. This growing confidence is crucial for a company whose stock has underperformed the broader US Oil and Gas industry over the past year. Since its IPO in April 2022, the stock's journey has been volatile, making the buyback a potentially stabilizing force and a signal from management that they believe the shares are undervalued.

Excelerate's strategy also aligns with a broader trend in the energy sector. Many companies are pivoting away from a growth-at-all-costs mindset towards a more disciplined model that prioritizes shareholder payouts. Peers like TotalEnergies and other LNG players have also recently announced substantial buyback programs. By joining this trend, Excelerate demonstrates to investors that it is committed to financial discipline and value creation, even as it lays the groundwork for its next phase of expansion.