Floating storage and regasification unit provider Excelerate Energy wants to expand downstream, move into small-scale LNG distribution and grow an LNG portfolio, it details in its initial public offering prospectus.
Excelerate announced on Monday that it is planning to list its Class A common stock on the New York Stock Exchange under the ticker symbol EE, but gave few other details.
Outlining its business strategies in its prospectus, the company said it wants to develop its reputation as "more than an FSRU provider".
"In addition to our FSRU and terminal services businesses and natural gas sales, we plan to expand our business to provide customers with an array of products, including LNG-to-power projects and a suite of smaller-scale natural gas distribution solutions," it said.
Excelerate said it wants to pursue new downstream opportunities in existing LNG import markets.
It considers its terminals to be "natural hubs for smaller-scale distribution of LNG, through the use of trucks, trains and smaller marine vessels".
It wants to enter new markets, citing Albania, the Philippines and Vietnam as areas it is working on.
Excelerate wants to grow its LNG portfolio to help manage the uncertainties of local demand.
But it will maintain a "disciplined investment philosophy".
According to the prospectus, Excelerate is sitting on just over $1bn-worth of debt.
The company revealed it is negotiating a new three-year, $350m credit facility with JPMorgan Chase Bank in connection with this offering, which will be used for working capital, including investments and acquisitions.
Excelerate said it generated revenues of $430.8m and net income of $32.9m for 2020. The figures for the first nine months of 2021 were $549.8m and $43m respectively.
Those who follow the company closely said it has been working on the planned IPO for around a year.
Some questioned what investors would be buying, highlighting that eight out of the 10-vessel fleet are older, smaller and less-efficient steam turbine FSRUs, which are likely to compare less favourably on emissions with some of their 170,000-cbm younger cousins in the market.
They also questioned the length of some of the existing contracts on Excelerate's FSRUs.
The company said it has eight contracts in place on its 10 FSRUs, with the average remaining term on these being 6.1 years. A long-term contract for its vessel in Israel expires in October.
"We believe that LNG will play a critical part in the global transition to a lower-carbon future," it said.
