Excelerate Energy Q3 2026 Earnings Call Transcript

Excelerate Energy (NYSE:EE) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Excelerate Energy reported a strong third quarter with adjusted EBITDA reaching a record $133 million, supported by long-term take-or-pay contracts and a diversified infrastructure portfolio.

The company announced the development of the Bahamas LNG Hub, an 11-year LNG supply agreement with AXTO Bahamas Limited, and plans to develop the hub in two phases, with initial deliveries in 2027 and full deployment by 2028.

Excelerate Energy outlined vessel deployment plans for Iraq and Colombia, with expected project startups in 2027, and emphasized the flexibility of its asset portfolio to avoid dependency on the Strait of Hormuz.

The company extended a contract with Petrobras for the FSRU Sequoia, adding over $400 million in contracted revenue, and announced plans to convert the Patricia Camila into an FSRU, with completion expected in 2028.

Excelerate Energy updated its full-year financial guidance, narrowing its adjusted EBITDA range to $495-515 million and increasing growth capital expenditure guidance to $400-410 million.

Management emphasized a strategic focus on global diversification, infrastructure expansion, and creating a hub-and-spoke model in the Caribbean, projecting incremental EBITDA growth of $250-300 million by 2029.

Full Transcript

OPERATOR

Welcome to Excelerate Energy’s third quarter 2026 earnings conference call. After today’s prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference call over to Craig Hicks, Vice President, Investor Relations and Strategy. Craig, please go ahead.

Craig Hicks Jr (Vice President, Investor Relations & Strategy)

Good morning, and thank you for joining Excelerate Energy’s third quarter 2026 earnings call. Joining me today are Steven Kobos, President and CEO, and Dana Armstrong, Chief Financial Officer. Also joining the call are Oliver Simpson, Chief Commercial Officer, and David Liner, Chief Operating Officer. Our third quarter earnings press release and presentation were published yesterday afternoon and are available on our website at ir.excelerateenergy.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 end of the presentation. With that, it is my pleasure to pass the call over to Steven Kobos.

Steven Kobos (President and CEO)

Thanks, Craig, and good morning to everyone joining us on the call today. Excelerate Energy is a global provider of critical last-mile energy infrastructure. No company in the world operates more floating LNG import terminals than we do. Today, against a complex geopolitical and economic backdrop, I am extremely proud of what our team has been able to accomplish this year across our business. Our teams have demonstrated tremendous commitment to our customers and continue to create new opportunities that position Excelerate for long-term growth.

The significant wave of new LNG supply coming online over the next few years reinforces the need for reliable downstream infrastructure to connect that supply with growing demand. We believe this creates attractive opportunities for Excelerate, particularly in markets where access to natural gas remains constrained by infrastructure. I’ll begin today’s call by highlighting our third quarter performance. From there, I’ll provide updates on the Bahamas LNG Hub, our vessel deployment plan for Iraq and Colombia, our new agreement with Petrobras, and our FSRU conversion project. Dana will then walk through our financial results and outlook in more detail. The third quarter was another period of strong financial performance and commercial progress for Excelerate. We delivered adjusted EBITDA of approximately 133 million.

This is the highest quarterly result in our company’s history. The strength of our financial performance reflects how we’ve built this business. Our earnings are predominantly supported by long-term take-or-pay contracts. Our business also continues to benefit from a diversified portfolio of infrastructure assets and commercial operations across multiple regions. The addition of the integrated platform in Jamaica last year expanded our business beyond floating regasification services, and we now operate an LNG and power infrastructure portfolio.

Looking ahead, our priority is clear: execute on the opportunities in front of us while continuing to strengthen and expand Excelerate’s global footprint. This morning, we announced an important milestone in Excelerate’s growth strategy: the development of the Bahamas LNG Hub. This is our first integrated infrastructure opportunity in the Caribbean since acquiring the Jamaica platform. I’m particularly pleased with this announcement because it demonstrates what we set out to accomplish. When we expanded our presence in the Caribbean, we saw an opportunity to build on our existing infrastructure and operating capabilities to serve a broader regional market.

Today, we’re taking an important step toward realizing that opportunity. At the center of this development is an 11-year LNG supply agreement with AXTO Bahamas Limited. This is a joint venture between Axpo, an international leader in energy trading and marketing, and Bahamas-based energy and maritime logistics company Domicile LNG. Under the agreement, AXTO will become an anchor customer of our planned offshore LNG storage and distribution terminal near the island of Grand Bahama. LNG supplied through the hub will support marine bunkering, power generation, and other downstream customers.

The supply agreement provides for deliveries ramping up to 16 TBTUs of LNG per year, establishing long-term investment-grade offtake and a strong commercial foundation for the project. Beyond this contracted volume, we have additional capacity to grow our sales to AXTO and serve other customers throughout the region. We plan to develop the Bahamas LNG Hub in two phases. Initial LNG deliveries are expected to begin in the first quarter of 2027 utilizing the existing FSRU, LNG supply, and logistics capabilities of our Jamaica platform. This will allow us to begin serving AXTO and generate earnings ahead of deploying dedicated infrastructure in the Bahamas. The second phase includes the planned deployment of a floating storage unit, or FSU, near the island of Grand Bahama in 2H28.

The FSU will serve as the offshore LNG storage and distribution terminal. We currently estimate the total capital investment in the FSU to range between 85 million to 95 million. This includes the cost for the LNG carrier and the cost of converting the vessel into the FSU. The final conversion costs remain subject to completion of engineering and finalization of the project scope. From an earnings perspective, we expect the AXTO deal to contribute approximately 6 million of EBITDA in 2027.

After the FSU is deployed, this will increase to an average annual EBITDA run rate of approximately 15 million over the remaining 10 years, based upon current contracted volumes with AXTO. Beyond that, we see potential for meaningful economic upside from additional sales to AXTO and other customers utilizing the terminal’s available capacity. For Excelerate, this development represents more than a new commercial agreement; it is a critical component of our multi-phase Caribbean growth strategy.

The Bahamas LNG Hub and our integrated Jamaica platform will give us two LNG storage and distribution hubs in the Caribbean. Together with our planned FSRU deployment in Colombia, they strengthen our position to serve growing LNG demand across the region. Turning to Iraq and Colombia, I’d like to clarify our vessel deployment plans for each of the projects. For the LNG import terminal in Iraq, we expect to utilize one of our FSRUs already positioned in the Arabian Gulf. For Colombia, we’ll utilize other assets in our portfolio located outside the Gulf to serve that terminal in the near term. Importantly, neither startup requires an FSRU to transit the Strait of Hormuz. This allows us to advance both projects without depending on vessel movements through the Strait.

It also allows us to prioritize the safety and security of our people and operations. We are working through the necessary arrangements with our customers, and given the commercial and security sensitivities involved, we do not intend to identify individual assets until those arrangements are finalized. These temporary arrangements will preserve both the near-term and the long-term earnings potential of both projects. We continue to target first quarter 2027 startup in Colombia and second quarter 2027 startup in Iraq.

Specifically, as it relates to Iraq, critical materials needed for jetty reinforcement and construction of the fixed terminal infrastructure are arriving in country. In addition, the construction workforce is on site, and we expect activity to ramp up over the coming weeks as work on the jetty and terminal facilities accelerates. This represents an important milestone as we advance construction toward commissioning and the start of operations. In parallel, we are advancing LNG supply agreements with a focus on intra-basin sources.

LNG cargoes have continued moving within the Arabian Gulf, including deliveries to Kuwait, and we expect similar supply arrangements to support Iraq’s requirements once the terminal enters service. We expect to finalize an LNG supply agreement with an upstream supplier in 1Q27. The project continues to receive strong support from the Government of Iraq, which recognizes the importance of additional natural gas supply for the country’s electricity generation needs.

Our five-year integrated agreement provides for a minimum contracted offtake of 250 million standard cubic feet per day, with the ability to increase volumes up to 500 million standard cubic feet per day. That provides a contracted earnings foundation with the potential for additional economic upside as Iraq’s natural gas demand grows. We continue to create value across our infrastructure portfolio through targeted initiatives that enhance existing assets and expand our capacity for future growth. In August, we signed an agreement with Petrobras to extend the FSRU Sequoia contract by five years through 2038. This extension adds over 400 million contracted revenue to our backlog. As part of the agreement, we will install a reliquefaction unit on the Sequoia during its next scheduled dry dock in 2028.

This technology will reduce LNG losses from boil-off, lower our Scope 1 emissions, and improve the vessel’s operating efficiency. The agreement also provides for a modest increase in contracted revenue beginning in 2028, generating incremental earnings ahead of the extension period. This is our second reliquefaction agreement with Petrobras. Last year, we entered into a similar arrangement for the FSRU Experience, with installation planned during its scheduled dry dock in 1Q27.

These agreements demonstrate how targeted initiatives can improve asset performance, strengthen customer relationships, and generate additional contracted earnings from infrastructure already in service. We’re applying that same focus on long-term value creation as we invest in additional FSRU capacity. In October, we awarded Seatrium the engineering, procurement, and construction contract to convert the Patricia Camila, a 170,000 m3 LNG carrier, into an FSRU. Engineering activities began earlier this quarter, and the converted FSRU will be available for commercial deployment in 2028. Following the award of the Seatrium contract, we now estimate the total investment in the FSRU conversion project to be approximately 260 million, including the cost of the vessel.

We will continue to target investment returns consistent with the five to seven times build multiple range we have previously communicated. The timing of this project is deliberate. We expect a significant amount of new LNG supply to enter the market around 2028, which will create numerous opportunities for additional import infrastructure. With limited FSRU capacity available at that time, we believe our FSRU conversion will be well positioned to pursue these opportunities.

We’ve covered a lot of ground this morning, and I want to leave you with one important point: Excelerate’s growth is not dependent on any single market or commercial opportunity. We are building a broader, more diversified infrastructure platform supported by long-term customer relationships and investments designed to generate additional contracted earnings. Over the past several quarters, we’ve outlined our sequenced pathway to growth through Iraq, Colombia, Caribbean expansion, and the additional FSRU capacity.

Progress on these projects is strengthening our visibility into future accretive earnings and positive operating cash flows as we continue to execute on our growth strategy. With that, I’ll turn the call over to Dana.

OPERATOR

We will now begin the question and answer session. Please limit yourself to one question and one follow up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Teresa Chen with Barclays. Your line is open. Please go ahead.

Teresa Chen (Analyst at Barclays)

Good morning everyone. I want to first touch on the Bahamas LNG hub. How do you see the opportunity scaling beyond the Axio agreement as you add the FSU and potentially other customers in the region? How should we think about the longer term earnings and capital deployment opportunity across the Caribbean?

Steven Kobos (President and CEO)

Hey Teresa, it’s Stephen. Thanks for dialing in. By the way, I can’t believe it was just 60 days since your conference at Labor Day. It feels like two years, not two months. But glad to report in on what we’ve done since then. We’re pretty excited about—no, not pretty excited, I’m ecstatic about the Bahamas. I mean this is a flagship opportunity within the Caribbean. The LNG bunkering opportunity in the Bahamas is significant. Bahamas represents the largest source of potential cruise sector LNG consumption among all the Caribbean locations we’ve assessed. We’re excited about this. You know, as I said on the prepared remarks, 16 TBtu under this contract—that’s less than half the capacity of the asset that we’ll be deploying.

When you think about that, once we get up to full steam, so to speak, that’s equal to or more than the pull through demand in Jamaica of our infrastructure there. So I like to think that we’re adding the second tank farm in the Caribbean, and we’re going to have great efficiencies and synergies from the logistics of delivering LNG to these two tank farms and then on to last mile customers. We’re pleased to work with Axio, but there are a lot of people that we can help with these tank farms. Personally, I expect to see even portfolio players recognize that we’re a good source for their own bunkering and last mile opportunities.

But you know, just remember, I think by the end of 2030 you’re going to have well over 1,500 LNG capable ships on the water. We don’t expect to capture all of that. We just want to keep building up the opportunity in the Caribbean. It’s a great location near U.S. export capacity, and we think we will have advantaged supply chains within the Caribbean to help anyone who wants to optimize their own last mile and bunkering opportunity set. So I could easily see us doubling this.

But that’s not the end of our ambition in the Caribbean by any means.

Teresa Chen (Analyst at Barclays)

That’s very helpful, thank you. And yes, echoing your sentiments, the time seems to fly, especially in these kinds of markets. Turning to the Middle East on Iraq, with materials arriving soon and the construction workforce on site, what are the key milestones between now and the targeted second quarter 2027 start time? And with contract volumes at the 250 MMcf per day minimum versus the 500 MMcf per day of capacity, how do you think about the potential RA over minimum volumes over time?

Steven Kobos (President and CEO)

Yeah, Teresa, this is Stephen again. Let me take part of that and then I’ll go to David for the rest of it. Obviously focused on the Middle East, I’m most excited today about getting this Caribbean opportunity in front of you guys. But we have been making steady progress there. Just landed back from Abu Dhabi. In fact, with Oliver yesterday—we were at, I think, my sixth trip to the region since February—and I’m just, I never knew I could be so excited with photographs of construction materials offloading at sites.

I mean what the team’s done in progressing this during this year and ensuring that we don’t have to be impacted by Hormuz on any part of this project is just amazing. I will tell you, this is where Excelerate shines—this nimble company that can keep moving. I mean, we prize the safety and security of our people and assets more than anything, but we also know that we have to evaluate conditions, adapt plans, and move forward. In terms of volume, you know by now—you’ve covered us for many years—we are conservative in nature. We talk to the contracted volumes on this project. The macro for Iraq, I mean, it’s rock solid for LNG. They have a tremendous power deficit. They need to fix that first. But even after they fix that for the long term, Iraq, we believe, will, like Kuwait—you know, Kuwait’s been taking LNG for nearly 20 years. And we believe just for reservoir maintenance, electrical load, that enhanced E&P activities will require a host of reasons.

We think that the opportunity in Iraq, as they continue to grow their E&P activities, means that LNG will be part of the mix for the long term. That being said, focus is on execution right now. There will be growth. And I think I’ve told you before that once people get LNG, they want more LNG. It’s almost a law of nature. That’s going to be true here. But I think what we really need to do is focus on execution, get through the first summer season, work with the government on their annual delivery profile that they want, and then we’ll be able to speak more clearly to that ramp up. But there will be a ramp up coming from this.

But David, you can, if you would, speak to the milestones on the project.

David Liner (Chief Operating Officer)

Sure. Hi Teresa. You know, we’re really focused on jetty reinforcement right now. That’s the largest scope. After that, the real milestone that we’re looking forward to is mechanical completion in early second quarter of ’27—so April of ’27. After we go into mechanical completion—and for those that may not be familiar with the term—that’s really everything is welded together, everything is bolted together, all the cables are secured and terminated, and the facility is ready for commissioning.

Now, commissioning on the terminal is really minimal. The terminal topsides really consist of a string of pipe and some valves and a control room. So it’s not an extensive commissioning scope. It’s a matter of a few weeks or possibly days if everything goes to plan. So it will go together very quickly.

Teresa Chen (Analyst at Barclays)

Thank you so much.

OPERATOR

Your next question comes from the line of Bobby Brooks with Northland Capital Markets. Your line is open. Please go ahead.

Bobby Brooks (Analyst at Northland Capital Markets)

Hey, good morning team and thank you for taking my questions. You guys laid out—or proved out—the flexibility of your assets and business model with how no assets are going to need to transit through the Strait of Hormuz. What I was looking for a little bit more color on, and just to make sure I’m thinking of it right, was the switching around of some assets that doesn’t ultimately really change the contracted financials, given those are based on just is the asset going to be ready and available to do LNG transits, right?

Am I thinking of that right, or is there some more nuance there?

Steven Kobos (President and CEO)

Yeah, Bobby, this is Stephen. Thank you for noting the flexibility. I mean that is the beauty of mobile redeployable assets and having a portfolio of assets. I mean that’s why we’re built for years like this when we have to. But our view is that it’s not going to change the contracted return profile. I mean there are going to be some puts and minuses on all of this. You know, you’re not transiting vast oceans, moving things around, consuming fuel, but there’ll be some incremental nets on the other side.

But across the board we think that this is flat to our assumptions. You want to add anything?

David Liner (Chief Operating Officer)

No, nothing to add. I agree with everything Steve has said. We’ve been obviously looking at this very closely and as you know, Bobby, on the Iraq project, the EBITDA run rate at the minimum take is about 100 million. That still holds. Same thing with the Colombia project. The 35% uplift still holds, and we’re very comfortable that all of this will stay in the range that we’ve looked at and be in line with what we’ve previously communicated.

Bobby Brooks (Analyst at Northland Capital Markets)

Terrific. And then just, it’s the hub-and-spoke strategy obviously that’s, with the Axe Dog announcement last night and this morning, you know, kind of starting to play out on that. But just like thinking, and the earlier question, I think you did a great job of explaining the next ramps there, but just like maybe turning because obviously global company, not based on any one geo. Are there any other opportunities to replicate that, or ones that you think are more interesting?

Maybe don’t need to get into specifics. But is there assets already out there that you have that could start to leverage that, become a hub? Just wanted to hear how you think about that a little bit more.

Steven Kobos (President and CEO)

You know, Bobby, I mean, the answer is probably yes — not probably. The answer is yes, whether you’re talking about the Caribbean or the world at large. I do want to focus on the Caribbean because this is the first incremental large, you know, infra that we’re putting into the column, putting into the Caribbean, generating further pull-through demand. It’s not the last play in the Caribbean. I mean, the Caribbean in our mind is just ideally suited, just jammed up next door to the United States, and if you can take efficient full parcels of LNG under your portfolio there, it just makes a world of sense.

And with, you know, I refer to them as tank farms, but as you add these tank farms in the Caribbean, it’s going to make your deliveries even more efficient, and then it’s going to give you better logistical lines on further hub-and-spoke development from there and, you know, further types of infra that can generate pull-through demand within the Caribbean. I mean, Oliver can probably talk about the wider world, how this is…

Oliver Simpson (Chief Commercial Officer)

Yeah, good morning, Bobby. I think, you know, what you’re seeing here with the Caribbean and this project is that, you know, when we acquired the Jamaica assets we started to show how we can diversify beyond the FSRUs and more into that downstream sector, creating that pull-through demand. I think the announcement in the Bahamas is a further proof point of that. Obviously it’s going to be our first FSU, giving us access to those markets, and obviously it’s only normal that we take what we’ve learned technically and commercially on that and then look at that in other markets — how we can use our infrastructure more broadly beyond the FSRUs to kind of open up these markets and create these new opportunities. So absolutely we’ll be looking to use the Caribbean, and are looking to use what we’ve done in the Caribbean, to replicate elsewhere.

Bobby Brooks (Analyst at Northland Capital Markets)

That’s terrific to hear. Appreciate the time and congrats on another strong quarter.

OPERATOR

Your next question comes from the line of Olivia Foster with Goldman Sachs. Your line is open. Please go ahead.

Olivia Foster (Analyst at Goldman Sachs)

Hi team, good morning. Thanks for taking our questions. Maybe to stay on the planned Bahamas LNG hub for a moment, could you walk us through the mechanics for both the volume ramp profile and expected project returns across both the initial phase one for an early 2027 delivery and phase two starting in the second half of 2028? And then, zooming out, could you spend a moment on the strategic vision for the Caribbean footprint as a whole? What other opportunities could we see accelerate, lean into, in the coming quarters?

Thank you.

Steven Kobos (President and CEO)

Olivia, I’m going to pass that around. But there are more opportunities in the Caribbean. You’ll notice we sat on this till it was fully baked because, you know, we appreciate everyone who listens in on this call, and some are a little more competitive with us than others. But I assure you we are wearing out that Miami hub airport of American — you know, their own hub-and-spoke — to the Caribbean, and we are all over that geography. We’re actually moving more personnel to Miami to be able to cover that ground more and more.

But longer term, there’s a lot more there. We’ve spoken about it in the past; we’ve spoken about our expectations on EBITDA that we expect to achieve in the Caribbean over the next, you know, four years. We haven’t come off of that at all. We think this is a solid proof point. But I’ll let Dana or Oliver talk to the ramp-up from the initial January deliveries to what comes from…

Dana Armstrong (Chief Financial Officer)

Yes. Yeah, thanks, Stephen. Thanks, Olivia. So obviously we’ve talked about this sort of phase one, phase two. The initial phase will be using our assets, our platform in Jamaica, to serve our customer AXTO, and we talked about 6 million of EBITDA in 2027 for that. I think we’ve also mentioned, at sort of full ramp, at full rate, around 15 million on the base AXTO contract. So that’ll be coming in from, once you get 2028 — obviously the FSU comes in middle of the year — so 2029 and 2030 you’ll start to see that full run rate there.

Obviously I think having the asset in the Bahamas is what will open us up to further opportunities and to further scale from there. So I think, you know, hopefully with that you can kind of figure out some of the incremental run rate there. I think, more broadly, we had talked last year to sort of a five-year outlook on the Caribbean, and I think that generally still holds. This is obviously supporting that, and we still continue to see other opportunities.

Last thing I’d add on this is that between, obviously, Jamaica, the Bahamas, and even our asset in Colombia, we’ve really got a good platform to build from. We’ve got assets that we can further optimize. So yes, we’ll be looking to deploy further capital for the right opportunities, but you’re also going to see opportunities coming from the assets that we’ve already committed to in the Caribbean.

Olivia Foster (Analyst at Goldman Sachs)

That’s clear. I appreciate the color. For my second question, I wanted to ask for an update on the Patricia Camilla conversion. Could you spend a moment on how commercial conversations are progressing for this vessel? Maybe a moment on the uptick in project capex? And then, sticking on the theme of conversions here, alongside your EPC award to Citrium, I believe there was a second shipyard conversion slot option that Excelerate had secured. What details can you share on the exercise window and/or commercial demand you’re seeing for the next FSRU opportunity more broadly?

Thank you.

Steven Kobos (President and CEO)

Olivia, this is Stephen. I’ll make a couple of comments and push it to David. The capex we zeroed in on all-in, including the asset, is about 260 million. David, the team, and I are all very pleased with the final engineering design that drove that. We still feel solid, comfortable that this is an awesome asset that will be delivered at just the right moment in time to capture good uplift. So we have no problem with saying we have absolute confidence in the five to seven build multiple off of that.

We think — we’re just very excited about it coming on, and it’s just a great asset. I’ve loved from the beginning the reliq that’s already installed on that vessel. You know, as we move more and more, I mean, we don’t know that we’ll go to an integrated infra project like Jamaica, like the Bahamas, like Iraq. But it’s going to be a very efficient vessel of a suitable size to get the widest range of cargoes. I like that about it in general. I don’t want to speak to any options that we hold. We like options, obviously, but we are very deliberate when we consider exercising options, so I’m not going to elaborate on that further at this time.

But David, if you want to speak further about the opportunity — or Oliver, further about how we’re thinking to deploy it.

David Liner (Chief Operating Officer)

I would just reinforce Stephen’s comments about the capability of the asset. I mean, we’re just delivering a different caliber of asset with the Patricia Camilla, and we’re just really excited. The earning potential of that asset is just going to be head and shoulders above what we had previously planned because of the candidate vessel that we were able to secure at such an attractive price as well. But in terms of commercial, maybe I’ll hand over to Oliver for any comments.

Oliver Simpson (Chief Commercial Officer)

Yeah, and obviously on the commercial side, you know, one, we’re, as David just said, we’re receiving a fantastic asset. The timing is great. I mean, you know, not only do we see a tight supply-demand on the FSRU side — obviously, you know, we’ve spent a while planning this conversion — so we don’t see that the time that we’re coming to market, certainly a newbuild or other conversions, just can’t compete. So we’re going to be at a fantastic time with very limited FSRUs there competing with us.

But also, as Stephen alluded to, it’s also when the LNG supply is coming on. So we see a lot of that LNG supply wave will be sort of fully up and running by then. So when you combine the asset, the LNG market conditions, the FSRU supply-demand balance, we just feel like we’ve got a very good mix. And, you know, we’re having a number of conversations, and obviously we’ll come back when we can, but we’re very confident on that timeline and that vessel.

Olivia Foster (Analyst at Goldman Sachs)

That’s clear. I appreciate the time. Thank you.

OPERATOR

Your next question comes from the line of Wade Suki with Capital One Securities. Your line is open. Please go ahead.

Wade Suki (Analyst at Capital One Securities)

Good morning everyone. I appreciate you all taking my questions and congratulations on the Bahamas announcement. I am just kind of curious, maybe to dovetail a little bit off, I think it was Olivia’s question here on the volume ramp to the Bahamas — any clarity you can give us there? And sort of logistically, I’m just kind of curious, more just personal curiosity on logistics. Are the ISO containers kind of going to the Bahamas early on until the FSU is delivered?

Any kind of color there would be great. Thank you.

Steven Kobos (President and CEO)

Wade, I know you love the Caribbean, man, and we’ll keep giving you more Caribbean opportunities. No secret — we’ll use the Jamaica platform to start off, and we’ll probably just make a milk run with our small-scale asset that we have on charter to satisfy it to start with. We’ll consider every kind of delivery, though. We are agnostic — we’re going to deliver all kinds. You know, we’re going to use FSUs, we’ll use the existing small scale we have.

If we need to break bulk for other islands from Jamaica with ISOs, we’ll do that too. So we are agnostic in how we will reach from our tank farms to end customers. Let’s see, in terms of the ramp-up in demand — I mean, come on, man. It’s like summer camp food — there’s never enough of it, right? I mean, we love this. I mean, you have to admit, Wade, you’re a little surprised that we could be doubling Jamaica’s throughput of LNG this quickly and announcing it less, you know, a year and a half after signing that agreement. So I’m excited with the team. I’m excited that we could very easily be doubling this throughput to all kinds of end users and suppliers who want to take advantage of it, and that we’re announcing this so soon after we’ve entered the Caribbean.

So it’s pretty exciting for us. Yeah. Wade, just one point of clarity. It’s a good question on your part. We’re not going to be using, you know, the plan is not to use ISOs to go up to the Bahamas. The plan is to use the existing tank farm that we have in Jamaica and to effectively take volumes from there up to the Bahamas, and to sell to our customer from that. So it’s a pretty— And I think that obviously from a volume perspective, that’s what allows decent volumes to start immediately in 27, and then obviously they’ll grow from there once we have the tank farm in the Bahamas in 28.

Wade, I’ll just leave you with the advantage in the Caribbean, if we’ve never been clear with it, is you got to take full parcels from the US and then deliver it to your staging areas. That’s the advantage we have. People delivering ISOs from the United States are never going to compete with the logistical efficiencies of what we’re building. So I do want you all to understand that.

Wade Suki (Analyst at Capital One Securities)

No doubt, appreciate that. This sort of leads me into the next question. Supply, right? I mean, I know you have, what, 35, 40 TPTUs contract with Plaquemines. I’m just kind of curious. I mean, again, especially considering the growth in Jamaica, now this Bahamas contract. Presumably you guys are looking to lock in some more supply anyway to tie in, tie in Colombia again. Any kind of color on the supply side would be great. Thank you.

Steven Kobos (President and CEO)

You know, Wade, obviously you’re right. We do have Plaquemines coming on next year. We are more than covered near term for this, but we will always be looking for— You know, we’re in the business of buying the LNG that our customers want. Almost uniquely among energy or LNG companies, that’s what we do. We buy the LNG that our customers wish to receive through our infra, you know, full stop. That’s our mission in life. We’re grateful for the matched portfolio that we’re building as part of that.

And obviously we will continue to do that as our customers’ needs expand.

Wade Suki (Analyst at Capital One Securities)

Understood. Thank you so much. Appreciate it.

OPERATOR

Your next question comes from the line of Eli Josin with JP Morgan. Your line is open. Please go ahead.

Eli Josin (Analyst at JP Morgan)

Hey, good morning, everyone. Just wanted to think about the shifting geopolitical landscape with respect to other markets where you might think about, you know, terminal integrations and a broader, you know, integration opportunity. Is there any kind of shifting within your thinking of where those opportunities might make sense? And if we could see incremental terminal announcements next year? Thanks.

Steven Kobos (President and CEO)

I mean, Eli, this is Steven. I hope we’ve made clear, like, we’re global, man. It’s everything from Caribbean, LatAm, Arabian Gulf, South Asia, Southeast Asia. I mean, nothing’s changed. We like having a diversified global portfolio. That’s part of what we hope investors find appealing to us; you know, not a shop with all eggs in one basket at all. Just a very balanced division across the global footprint. So I do think— I mean, but if you take a step back, Eli, I mean, look at what’s going on this year. I mean, it’s kind of crazy. Like 2025 through October, 357 mtpa of production LNG globally this year through October, 348. You know, that’s with Hormuz. So even with Hormuz, you’ve got a global supply that’s been stepping up, and all we’re going to see is that’s going to continue. So I think what your question, if I take a step back, it’s basically, is there going to be a thirst for LNG and is that thirst for LNG widespread across the world?

And we believe it is. I mean, it is. And it’s a good time to remind everybody, you know, with all due respect for the quants, we don’t care what the price of LNG is. You know, we’re buying and selling and doing so with fixed margins whenever we can. We don’t mind if TTF goes down. I mean, shockingly, we’re probably the only energy company in Houston— We don’t care if Henry Hub goes down. In fact, we kind of like it. So we want all of the world to be thirsty, and the thirstier they get, we will be deploying assets, terminals to generate pull-through demand in those markets.

But I hate— I wish I could say that we like one market more than the other, but it’s going to turn on the fundamentals of the individual opportunity.

Eli Josin (Analyst at JP Morgan)

Got it. And then if we think about the increasingly sequenced growth strategy you guys have outlined and more contracted EBITDA as we turn to next year and think about guidance—obviously early to give guidance—but just, is there contemplation to maybe extend the outlook or kind of provide a runway into later in the decade of what EBITDA growth might look like?

Dana Armstrong (Chief Financial Officer)

Hey Eli, this is Dana. I can take that. I mean, obviously we aren’t releasing guidance until February of next year, but we have outlined the building blocks, and just to kind of refresh you on that: you know, Aracatuba obviously is a very successful project, roughly 100 million of EBITDA run rate—that’s without any upside. We’ve obviously got Colombia with a 35 uplift. We’ve got the FSRU conversion coming out in 2028. And then we’ve talked a lot about our Bahamas project, which is part of our overall Caribbean strategy.

We’ve talked a lot about the EBITDA growth plans for that, which we’ve said previously is 80 to 110 million. So when you layer that all in by 2029, those building blocks add up to anywhere between 250 to 300 million of growth in EBITDA. Obviously we think there’s more to come with other projects and potential upside, but we’ll continue to reiterate that. As to whether or not we’ll give multi-year guidance, I mean, that’s something we’re still thinking through, but we’ll continue to provide those building blocks and those numbers to you guys as much as we can.

Eli Josin (Analyst at JP Morgan)

Awesome. Really appreciate the color. Thank you.

OPERATOR

Your next question comes from the line of Chris Robertson with Deutsche Bank. Your line is open. Please go ahead.

Chris Robertson (Analyst at Deutsche Bank)

Thank you. Good morning, everybody. Thank you for taking my questions. I just wanted to hone in on Bahamas a little bit more in terms of your partner there, Axto, and what—presumably they’re not the final end user. So wondering if you could comment what they plan to do with the initial offtake. Is this more going into the marine bunkering that Steven alluded to earlier, or is it for power gen, or a mix of both? And what exactly will they do with it?

Steven Kobos (President and CEO)

You know, Chris, I don’t think that’s really our place to talk about. You can likely form a view on it. There are all kinds of advantageous last-quarter-mile destinations in the Bahamas. But I’m going to let—I’m sure there’ll be further announcements from the Axto side on this, and I don’t want to steal their thunder from them, so we’ll let them do that. But we are excited, and just to be clear, you know, we don’t— We may end up with some bunkering assets in the future, but we kind of like being agnostic as to who’s actually loading it onto the ship.

So I think our vision at this point is kind of last mile rather than last 500 meters, and you can look for us to continue along that. So apologies for this, but I’m sure there’ll be some further announcements from the Axto side, and we’ll let them have that opportunity.

Chris Robertson (Analyst at Deutsche Bank)

Now it’s— I think you’re reading my mind, Steven, because I was coming into a question here leading off that one, which was: as you look around the world in terms of marine LNG bunkering opportunity, obviously you have some assets sitting in Europe at the moment with some major ports and infrastructure there, including Rotterdam, etc. But as you look around at some of the more major port areas—of course Bahamas known for large cruise ships and other things like that—but looking at Singapore, Rotterdam, Shanghai, etc., are there any places like that where LNG bunkering infrastructure opportunities are interesting to accelerate?

Steven Kobos (President and CEO)

I think there will be more in the Caribbean. But, I mean, you are an expert on these subjects, Chris. But, I mean, you know, I think I mentioned it earlier: it’s going to be 1,500, 1,600 LNG-capable, fueled assets on the water. You know, those typically have fuel tanks of like 12,000 cubic meters to, I think, 18,000 cubic meters, depending upon the design of the vessel. These are enormous quantities of LNG. You know, and I always— I love Shell’s annual outlook and forecast; you know, they’re talking about LNG bunkering demand reaching 27 MTPA by 2035. I mean, it’s just—it’s extraordinary. And we will want to have infrastructure assets that will give us an advantage on creating pull-through demand for LNG through those, and we think we can assist people who want to have that last 500 meter connection by giving them an additional advantaged logistical cost of reaching those end users. So we, as with much in the Caribbean—Caribbean is a way to prove up the advantage of an interconnected hub, and then you want to take your show on the road and put it to use elsewhere.

But this will be a global opportunity. At this point, we’re kind of laser focused on Caribbean.

Chris Robertson (Analyst at Deutsche Bank)

Absolutely. I appreciate the color, Steven. Thank you.

OPERATOR

Your next question comes from the line of Michael Shala with Stevens. Your line is open. Please go ahead.

Michael Shala (Analyst at Stephens)

Good morning. Want to get your latest thoughts on the Shenandoah. Are you still contemplating a potential conversion for it, and could it be a candidate for the FSU that you’re going to be putting in the Bahamas in 2H28?

Steven Kobos (President and CEO)

Hey, Mike, this is Steven. It certainly can be a candidate for that. We are looking at that through the lens of our other fleet commitments, you know, Atlantic Basin requirements, all kinds of factors. So we don’t have to make the call right now. Shenandoah would be an excellent candidate for that, but there are a number of other assets out there that we’re evaluating as well. So, you know, coming up before too long, we will make that call and share it with you—just not in a position to do so today.

Michael Shala (Analyst at Stephens)

Got it. And then want to go back to the PatCam, the conversion there. You selected a couple of companies, Seatrium and NGS, for work on that. Can you give us some idea of what went into that selection process for those companies? Have either of them done a conversion before? Are you breaking new ground here? Just trying to get a sense for the risks and maybe some of the milestones to look forward to there.

Steven Kobos (President and CEO)

I’ll let David take that. I’m pretty sure—I’m hoping we’re not breaking any new ground.

David Liner (Chief Operating Officer)

No, absolutely not. So thanks for the question, Michael. The Seatrium shipyard— they’ve really done the lion’s share of all the conversions in the industry. They are leading the industry in that type of project. So we’re very comfortable with the selection of Seatrium. We’re very happy with the partnership that we formed with them, and we look forward to a successful construction program. In terms of Nordgas NGS, this is the former Wärtsilä Group. They also have done this type of work. I would consider them the leading company in doing this type of work. Also have a long running history with them, a very good relationship and a partnership that we value. We’re going to use them for the PatCam. We’re also using them for the reliquefaction modules that have gone together very well for the experience work that’s upcoming in next quarter.

So we’re really pleased with the selection of both of those contractors or contracts, and it just gives us a lot of confidence in how this project is going to be executed.

Michael Shala (Analyst at Stephens)

Sounds good. Thank you.

OPERATOR

We have reached the end of the Q and A session. I will now turn the call back over to Steven Kobos for closing remarks.

Steven Kobos (President and CEO)

Thank you all for joining us today. I think we covered a lot of good ground today, and I want to reiterate Dana Armstrong’s comment on building blocks because I think it’s important. Basically, those building blocks, to repeat, are Iraq; Colombia; the FSRU conversion; the reliquefaction deal on Experience; the reliquefaction deal on Sequoia; the Bahamas Hub project; and other Jamaica/Caribbean growth. If you take all those building blocks we’ve pointed to, we expect incremental growth EBITDA of 250 to 300 million by 2029. I don’t want anyone to miss that. That’s stuff that’s happening. That’s stuff that’s coming down the pike, and we feel comfortable laying that out with this clarity.

So, with that, we’ll end the call. We’ll see you guys on the road.

OPERATOR

This concludes today’s call. Thank you for attending. You may now disconnect.

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