THE WOODLANDS, Texas - Excelerate Energy, Inc. (NYSE: EE) has announced a significant increase in its quarterly cash dividend, setting it at $0.06 per share of Class A common stock, which marks a 140% hike from the previous quarter. The latest dividend, pertaining to the quarter ending September 30, 2024, will be payable to shareholders on record as of November 20, 2024, with the distribution date set for December 5, 2024.
In tandem with the dividend for its Class A common stockholders, Excelerate Energy Limited Partnership, the company's operational arm, will also distribute $0.06 per interest to holders of its Class B limited partnership interests on December 5, 2024.
The Board's recent decision to raise the dividend is a reflection of Excelerate's ongoing efforts to improve shareholder returns. Executive Vice President and Chief Financial Officer, Dana Armstrong, highlighted the company's strategic growth initiatives and expressed confidence in its financial health and the robustness of its core regasification business. The dividend increase aligns with Excelerate's capital allocation strategy, which emphasizes both growth investment and capital return to shareholders through dividends and share repurchases.
While the dividend boost is a positive development for shareholders, the company has made it clear that future dividends will remain at the discretion of the Board, depending on various factors, including business performance.
Excelerate Energy is an American LNG company based in The Woodlands, Texas, focusing on providing integrated services across the LNG value chain. The company aims to deliver rapid-to-market and reliable LNG solutions to customers worldwide, operating in several international locations.
This announcement is based on a press release statement issued by Excelerate Energy, Inc. The information provided is subject to change and does not constitute any form of investment advice. Investors should note that forward-looking statements involve risks and uncertainties, and actual events or results may differ materially.
In other recent news, Excelerate Energy has seen significant developments in its operations and strategic initiatives. The U.S.-based liquefied natural gas company welcomed Tyler D. Todd to its Board of Directors, coinciding with the retirement of Henry G. "Buddy" Kleemeier. Todd, a Senior Vice President of Business Development at Kaiser-Francis Oil Company, brings to the board a wealth of experience from his tenure at various energy companies.
Financially, Excelerate Energy reported an 18% increase in adjusted EBITDA to $89 million in Q2 2024. The company is also making strategic investments in Vietnam and Alaska, with an aim to meet the growing global demand for LNG. As a result, Excelerate Energy has raised its financial guidance for 2024, expecting adjusted EBITDA to be between $320 million and $340 million.
On the analyst front, Stephens upgraded Excelerate Energy's stock target to $28, citing the company's promising growth prospects. This optimism is grounded in the expected rise in global LNG supply and the company's strategic infrastructure projects. However, Wells Fargo (NYSE:WFC) downgraded the company's stock to Underweight, adjusting the price target to $19 due to concerns about unclear growth prospects and limited capital returns. These are the latest updates from Excelerate Energy's ongoing operations and strategic initiatives.
InvestingPro Insights
Excelerate Energy's recent decision to significantly increase its quarterly dividend aligns well with several key metrics and insights from InvestingPro. The company's strong financial position is evident in its ability to boost shareholder returns while maintaining a focus on growth.
According to InvestingPro data, Excelerate Energy boasts a market capitalization of $2.53 billion USD, reflecting its substantial presence in the LNG industry. The company's price-to-earnings (P/E) ratio stands at 20.88, indicating investor confidence in its future earnings potential. This is further supported by an InvestingPro Tip suggesting that net income is expected to grow this year.
Notably, Excelerate Energy has demonstrated impressive stock performance, with a 67.26% total return over the past year. This strong momentum is reinforced by another InvestingPro Tip highlighting the company's high return over the last year. The stock is currently trading near its 52-week high, with its price at 99.1% of the peak, underscoring investor optimism.
The company's financial health appears robust, with an InvestingPro Tip indicating that liquid assets exceed short-term obligations. This solid financial footing likely contributed to the Board's confidence in raising the dividend. Additionally, Excelerate Energy operates with a moderate level of debt, providing flexibility for future growth initiatives.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Excelerate Energy, providing a deeper understanding of the company's financial outlook and market position.
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