Excelerate Energy to develop LNG import terminal in Iraq

Published 01/10/2025, 21:34
Excelerate Energy to develop LNG import terminal in Iraq

THE WOODLANDS, Texas - Excelerate Energy, Inc. (NYSE:EE), a $2.9 billion market cap LNG infrastructure company with nearly 10% revenue growth over the past year, has received an official Award Letter from the Government of Iraq to develop an integrated floating liquefied natural gas (LNG) import terminal, the company announced Wednesday.

The award follows approval from Iraq’s Prime Minister Mohammed Shia’ al-Sudani. Iraq’s Deputy Prime Minister and Foreign Minister Fuad Hussein congratulated Excelerate President and CEO Steven Kobos during a September 25 meeting on the sidelines of the 80th United Nations General Assembly in New York City.

The proposed terminal will enable Iraq to import LNG to support domestic power generation, help stabilize the national grid, and diversify from current natural gas supply sources. Excelerate, which maintains a strong liquidity position with a current ratio of 2.6x and operates with moderate debt levels according to InvestingPro analysis, will lead the development in coordination with the Iraqi government.

"We are honored to be selected for this critical infrastructure project and look forward to working closely with Iraqi leadership to bring it to fruition," said Kobos in a statement included in the press release.

Thomas Lersten, Senior Official to the Office of the Under Secretary for Economic Growth, Energy, and the Environment at the U.S. Department of State, who attended the meeting, called the terminal opportunity "a vital step in advancing Iraq’s energy security and reducing its reliance on Iranian pipeline gas."

The Award Letter represents a preliminary step in the process. The development remains subject to successful negotiation and execution of binding commercial agreements. Excelerate is currently working with Iraqi authorities to finalize the necessary contracts.

Excelerate Energy is a U.S.-based LNG company that provides integrated services along the LNG-to-power value chain, including floating LNG terminals, infrastructure development, and LNG supply. Analysts maintain a bullish outlook on the company, with InvestingPro data showing significant upside potential from current levels. For deeper insights into Excelerate Energy’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Excelerate Energy Inc. reported its second-quarter 2025 earnings, with an earnings per share (EPS) of $0.34, exceeding the projected $0.29. However, the company’s revenue did not meet expectations, registering $204.6 million compared to the anticipated $243.2 million, a shortfall of 15.87%. This performance comes amidst analyst activity surrounding the company. Wells Fargo recently upgraded Excelerate Energy’s stock from Underweight to Equal Weight, adjusting the price target from $23.00 to $26.00. This upgrade was influenced by the company’s acquisition in Jamaica, which Wells Fargo believes expands Excelerate Energy’s growth opportunities. On another note, JPMorgan initiated coverage on the company with a Neutral rating and a price target of $30.00. Previously, the stock was rated Underweight by a different analyst at JPMorgan with a higher price target of $32. These developments indicate a mixed outlook from analysts regarding Excelerate Energy’s future performance.

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