February 26, 2024

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Buy Excelerate Energy now to get a bargain

Buy Excelerate Energy now to get a bargain

Jim Kramer of CNBC advised investors on Friday to buy shares energy superiority While she is stealing.

“The stock is a little cheaper than Cheniere Energy, which is the king of LNG exports here in the US, at least when you judge it based on last year’s EBITDA. … the evaluation seems reasonable to me,mad money‘ said the host.

“If you’re looking for a way to participate in the LNG rally, which you should, I think Excelerate Energy is a great way to play it, especially now that the stock has fallen off its highs,” he added.

Excelerate Energy share prices rose 2.02% on Friday but reached a 52-week low earlier in the day.

Cramer said he likes the company because it’s an LNG game in no time “The rest of the world badly needs to import LNG from the US.” He also highlighted the company’s strong financial statements.

“Excelerate had huge profit margins. EBITDA margin came in at 29.5% last year – I think EBITDA margin is the right thing to watch because it is a very capital intensive business, so it is important to undo the financial hit it took from the start – paper depreciation of gas stations Their natural liquefied floating,” referring to the company’s profitability.

However, Cramer also highlighted some of the company’s downsides, including that it is a controlled company with founder George Kaiser holding 77% of the voting power.

Kramer added that the Xelrate program also does not represent direct manipulation of US LNG exports.

“However, as more and more countries conclude deals to buy US natural gas, they will need the infrastructure to offload those shipments. This is where Excelerate comes in,” he said.

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