Excelerate Energy (NYSE: EE) has announced a significant decision to repurchase $75 million of its outstanding shares, a move authorized by its Board of Directors on December 11, 2023. This buyback plan allows the company to acquire up to 2.4% of its stock through open market purchases, signaling management’s belief that the shares are currently undervalued.
As of Friday, December 12, 2023, shares of Excelerate Energy opened at $27.31, reflecting a 1% increase. The company boasts a fifty-day moving average of $27.12 and a 200-day moving average of $26.57. Excelerate’s financial health is underscored by a debt-to-equity ratio of 0.56, alongside a quick ratio and current ratio of 2.39. Over the past year, the company’s stock has fluctuated between a low of $21.28 and a high of $32.99.
In its most recent quarterly earnings report, released on November 5, 2023, Excelerate Energy reported earnings of $0.45 per share, exceeding analysts’ consensus expectations of $0.32 by $0.13. The company generated revenue of $391.04 million for the quarter, significantly surpassing the consensus estimate of $270.82 million. This represents a remarkable year-on-year revenue increase of 102.2%.
Analysts are optimistic about Excelerate Energy’s future performance. Current projections estimate that the company will achieve earnings of $1.16 per share for the current fiscal year.
Analyst Ratings and Market Outlook
Brokerages have responded positively to Excelerate’s financial results and its buyback announcement. JPMorgan Chase & Co. initiated coverage on the company with a “neutral” rating and a price target of $30.00 on September 8, 2023. DNB Markets followed suit, setting a price objective of $31.00 on September 10, 2023. On November 6, 2023, Morgan Stanley assigned an “equal weight” rating with a similar price target of $30.00.
In contrast, Jefferies Financial Group set a more ambitious price target of $37.00 while giving the stock a “buy” rating on October 28, 2023. Furthermore, Tudor Pickering upgraded its rating from “hold” to “strong buy” on November 17, 2023. Currently, one analyst has rated Excelerate Energy as a strong buy, five have issued buy ratings, and four have assigned a hold rating. The stock holds a consensus rating of “Moderate Buy” with an average target price of $32.38.
About Excelerate Energy
Excelerate Energy, Inc. specializes in providing flexible liquefied natural gas (LNG) solutions globally. The company’s services encompass regasification, infrastructure development, and LNG supply, procurement, and distribution. It also offers LNG terminal services and natural gas supply for power projects.
This latest buyback initiative reflects the company’s commitment to enhancing shareholder value while maintaining a robust operational framework. As the market reacts to these developments, Excelerate Energy is poised for continued growth in the competitive energy sector.
