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EE: Long-Term LNG Contract Will Drive Stronger Future Profit Outlook

Urbanization And Decarbonization Will Energize LNG Infrastructure

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EE
AnalystHighTarget
Not Invested
Published 06 May 2025

Update shared on 17 Dec 2025

Fair value Increased 3.07%
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AnalystHighTarget's Fair Value
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1Y
-9.3%
7D
1.7%

Analysts have raised their price target on Excelerate Energy from approximately $41.91 to $43.20 per share. This reflects expectations for improved profitability and a more reasonable future earnings multiple that offset slightly lower projected revenue growth.

What's in the News

  • The Board of Directors authorizes a new share buyback plan for Excelerate Energy, signaling confidence in the company’s valuation and long term outlook (company announcement).
  • Excelerate Energy launches a share repurchase program of up to $75 million of common stock, with no expiration date on the authorization (company announcement).
  • The company signs a definitive commercial agreement with Iraq’s Ministry of Electricity subsidiary to develop the country’s first LNG import terminal at the Port of Khor Al Zubair, including a five year regasification and LNG supply contract with options to extend and a minimum of 250 MMscf/d offtake (company announcement).
  • Excelerate’s newest FSRU, Hull 3407, under construction in South Korea for 2026 delivery, is positioned as a strategic fit for Iraq’s LNG project with 170,000 cubic meters of storage and up to 1 Bscf/d regasification capacity, supporting Iraq’s energy security and diversification goals (company announcement).

Valuation Changes

  • The fair value estimate has risen slightly from $41.91 to $43.20 per share, reflecting modestly higher long-term expectations.
  • The discount rate has fallen moderately from 7.75 percent to about 7.05 percent, implying a lower required return and higher present value of future cash flows.
  • The revenue growth assumption has declined significantly from roughly 41.74 percent to about 30.27 percent, indicating more conservative top-line expectations.
  • The net profit margin has improved slightly from about 3.33 percent to roughly 3.71 percent, suggesting incremental efficiency and profitability gains.
  • The future P/E multiple has fallen sharply from about 77.9x to roughly 21.3x, signaling expectations for stronger earnings relative to price and a less aggressive valuation.

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Disclaimer

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