Wells Fargo upgrades Excelerate Energy to Equal-Weight, raises PT to $26.

Wells Fargo upgrades Excelerate Energy to Equal-Weight, raises PT to $26.

Wells Fargo & Company has upgraded Excelerate Energy, Inc. (EE) to an Equal-Weight rating and raised its price target to $26. The upgrade comes following the company's strong financial performance and strategic market expansion initiatives. Wells Fargo analysts have expressed confidence in Excelerate's ability to capitalize on growing demand for LNG and regasification services.

Excelerate Energy, a leading provider of regasified LNG capacity and floating regasification terminals, has shown robust financial health in its recent quarters. The company reported a total revenue of $204.6 million in Q3 2025, an increase of $21.2 million compared to the same period in 2024. This growth was primarily driven by the acquisition of New Fortress Energy Inc.'s business in Jamaica and increased LNG, gas, and power revenues [1].

The company's gross margin improved to $92.6 million, an increase of $17.4 million compared to the same period in 2024. This improvement was largely due to the acquisition and extended commissioning time for power barge assets. However, operating income decreased to $43.4 million, a decrease of $6.5 million compared to the same period in 2024, primarily due to transition and transaction costs related to the acquisition [1].

Excelerate Energy's net income attributable to shareholders decreased to $4.7 million, a decrease of $1.9 million compared to the same period in 2024. This decrease was primarily due to transition and transaction costs and increased interest expense. Despite this, the company's financial position remains strong, with a focus on operational efficiency and market expansion [1].

Wells Fargo analysts have highlighted the company's strategic expansion into new markets as a key growth catalyst. Excelerate's acquisition of New Fortress Energy Inc.'s business in Jamaica aligns with its strategy to enhance long-term contract revenue and diversify its geographic and customer base [1].

The company's revenue segments show a decrease in terminal services revenues due to lower reimbursable costs, while LNG, gas, and power revenues increased significantly, primarily due to the acquisition and increased sales opportunities in Asia Pacific and the Atlantic Basin [1].

Looking ahead, Excelerate Energy anticipates continued demand for LNG driven by a global shift towards cleaner energy sources and heightened focus on energy security. The company expects an increasing need for regasification assets to connect growing LNG supply with demand centers worldwide [1].

Wells Fargo's upgrade and price target increase reflect a bullish stance on Excelerate Energy's future prospects. The company's ability to leverage market opportunities and innovate within the energy sector positions it well for continued success. Stakeholders can expect a favorable Q2 earnings report, reinforcing Excelerate Energy's position in the industry.

References:
[1] https://www.tradingview.com/news/tradingview:dd11ff5f4ef58:0-excelerate-energy-inc-sec-10-q-report/
[2] https://www.ainvest.com/news/excelerate-energy-ee-2025q2-earnings-preview-upside-potential-driven-market-expansion-2508/
[3] https://www.investing.com/news/earnings/the-woodlands--excelerate-energy-beats-q2-expectations-raises-guidance-93CH-4182390