Excelerate Energy Raises Quarterly Dividend 12.5% to $0.09

Excelerate Energy Inc. raised its quarterly dividend 12.5% to $0.09 a share from $0.08. The shares traded ex-dividend on August 19, 2026. The new rate lifts the annual dividend to $0.36 a share.

Why the dividend changed

Excelerate described the increase as consistent with its previously announced dividend-growth target. The policy fits a capital-allocation framework that prioritizes investment in growth projects, shareholder returns and balance-sheet flexibility, according to the company’s 2025 annual report.

The increase also followed a stronger second quarter. Excelerate reported net income of $50.1 million and adjusted EBITDA of $120.1 million. Both measures increased from the prior-year quarter, primarily because the Jamaica platform contributed for the full period. Management raised and narrowed its full-year adjusted EBITDA guidance to between $490 million and $515 million. It also increased committed growth-capital guidance to between $380 million and $400 million, reflecting spending on an FSRU conversion and the timing of costs for the Iraq LNG project. Excelerate Energy’s second-quarter results provide the operating context for the dividend decision.

The company’s contracted infrastructure helps stabilize the underlying business. Excelerate said its operations are substantially supported by long-term, take-or-pay agreements. Its quarterly filing also showed $342.4 million of unrestricted cash and cash equivalents at June 30, with its $500 million revolving facility undrawn. Those resources must support both shareholder returns and an expanding project pipeline.

Dividend track record

The payment history shows several step-ups in a relatively young dividend program. Quarterly payments were $0.06 through May 21, 2025, then increased to $0.08 on August 20, 2025. That rate continued through May 20, 2026, before the latest $0.09 payment went ex-dividend on August 19, 2026.

Annual totals have risen quickly, although the short history matters when interpreting the percentages. Excelerate paid $0.05 across 2 payments in 2022 and $0.10 across 4 payments in 2023. The total rose 35.0% to $0.14 in 2024 and 107.4% to $0.28 in 2025. The consecutive dividend-growth streak stands at 1 year, so the record does not yet have the duration associated with established dividend growers.

The new annual rate of $0.36 continues the upward pattern, but recent growth reflects discrete increases from a low starting base rather than a long record of incremental annual raises.

Is the dividend covered?

The dividend consumes 22% of earnings. That relatively low payout ratio means only a minority of reported earnings is being distributed, leaving a substantial earnings buffer for operating needs, debt service and investment.

SmarterDividends rates the dividend B, with a safety score of 64. The B grade describes the dividend as safe: current earnings coverage is supportive, although the rating stops short of the highest safety tier. Capital requirements remain relevant because Excelerate is funding the Iraq terminal, vessel work and its first FSRU conversion while continuing its regular cash distribution.

Yield and valuation

At a share price of $33.64, the forward yield is 1.06%. That is well below the Energy sector median forward yield of 4.23%, positioning EE more as a low-yield dividend grower than a high-current-income stock. The shares also recorded a 39.0% gain over the past year, which provides context for the modest yield.

SmarterDividends’ fair-value estimate is $88.62. That produces an undervalued verdict and 146% upside to the estimate. The estimate is a valuation reference rather than a price target or forecast.

What to watch

Execution and capital spending are the immediate operating checkpoints. Excelerate expects the FSRU Express to begin service under a new Colombian charter in the first quarter of 2027. The company is also advancing the Iraq LNG import terminal toward an expected start early in the second quarter of 2027, while its first converted FSRU is planned for commercial availability in early 2028. These milestones and the updated growth-capital range will indicate how much cash the expansion program requires. The company’s results release outlines each project timetable.

For the dividend, the next board declaration will show whether the new $0.09 quarterly rate is maintained as project spending advances. The 22% earnings payout ratio and B safety grade provide the current coverage baseline.