Excelerate Energy saw sales grew over 300% to $803.3 million beating estimates of $492.1 million, according to FactSet. Earnings of 34 cents a share beat views of 21 cents. The Woodlands, Texas based natural gas play raised its full year guidance with EBITDA of $300 million - $310 million. The natural gas play also announced a dividend of $0.025 a share payable to shareholders on record as of Nov. 22. Shares have fallen over 2% after market hours despite the strong performance.
Earlier, fellow liquefied natural gas play New Fortress Energy reported mixed third-quarter earnings Tuesday. LNG stocks have shown strength in 2022, but Excelerate and NFE stock are backing off buy points. Excelerate is forming a steep handle in a cup base as volume surges. A light volume in a shallower handle is ideal for a sustained base set up.
Both EE and NFE have cut through their 50-day average lines.
New Fortress Energy came public in January 2019 while EE stock had its IPO this past April.
Though news of Europe filling its energy storage capacity has dimmed the outlook for LNG stocks, recent findings suggest that Europe's LNG imports going forward are set to outpace global export capacity.
Excelerate Earnings
In the second quarter, Excelerate Energy had a loss of $4 million due to an expected floating storage and re-gasification unit (FSRU) acquisition cost of $21.8 million. Adjusted earnings leapt 200% to 18 cents a share, while revenue surged 233% to $622.9 million.
The Woodland, Texas, based LNG play regasifies liquid gas in its FSRUs, stores and delivers LNG to places that have limited or no onshore energy capabilities. The company also signed a five-year contract with the German government in October.
The win is crucial as Europe tries to balance out its move away from Russian oil and uncertain demand through flexible energy sourcing. The terminal LNG provider raised $384 million through 16 million shares sold during its IPO this year.
Shares of the LNG stock are in a cup-with-handle base, but are some 22% below a buy point of 28.49.
The RS line for Excelerate stock is backing off after nearing peaks set in June.
The Composite Rating of 67 is below the desirable level of 80 though the Relative Strength Rating of 85 is sufficiently strong.
New Fortress Energy Earnings
New Fortress Energy ships and delivers natural and liquefied natural gas to several markets. NFE has several terminals for liquefying natural gas in the U.S., the Caribbean and other parts of the world. It also develops natural-gas fired power stations.
Estimates: Analysts expected New Fortress Energy adjusted earnings of 72 cents a share vs. a 5-cent loss a year earlier. Revenue was seen more than doubling to $603.9 million.
Results: New Fortress Energy earnings came in at 41 cents a share, while revenue surged 140% to $731.92 million.
Outlook: Last week, New Fortress increased its outlook for earnings before income, tax, depreciation and amortization (EBITDA) by $0.1 billion to $1.1 billion. It also expects a more hefty EBITDA increase for 2023 to $2.5 billion from $1.5 billion.
NFE stock plunged 10.7% to 49.36 in Wednesday's market trading. after skidding 6.25% on Tuesday. New Fortress stock is trading in a cup base with a buy point of 63.16. It's possible NFE will forge a handle, but high-volume sell-off through the 50-day line isn't a great start.
Volume was above average last week as New Fortress Energy raised EBITDA guidance.
The relative strength line has fallen, but is still near record highs, reflecting New Fortress stock's outperformance vs. the S&P 500 index. The RS line is the blue line in the charts provided.
New Fortress Energy is an IBD 50 stock and has a high Composite Rating of 98. Its Relative Strength Rating is a 98.
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