Buy Excelerate Energy now for a bargain

CNBC’s Jim Cramer on Friday advised investors to buy shares of Excelerate Energy while it was stolen.

“The stock is a bit cheaper than Cheniere Energy, which is the king of LNG exports here in the US, at least when you judge them based on last year’s earnings before interest, taxes, depreciation and amortization. … Valuation seems reasonable to me,” in the “Mad Money” host.

“If you’re looking for a way to participate in the rise of liquefied natural gas, something you should, I think Excelerate Energy is a great way to play it, especially now that the stock has retreated from its heights,”[ads1]; he added.

Shares of Excelerate Energy rose 2.02% on Friday, but reached a new low of 52 weeks earlier in the day.

Cramer said he likes the company because it’s an LNG game at a time then “The rest of the world is desperate to import liquefied natural gas from the United States.” He also highlighted the company’s solid finances.

Excelerate has fantastic margins. Their EBITDA margin came in at 29.5% last year – I think the EBITDA margin is the right one to follow, because it is a very capital-intensive business, so it is important to refute the financial blow. they get from off – Paper depreciation of their floating LNG terminals, “he said, also mentioning the company’s profitability.

However, Cramer also highlighted some disadvantages of the company, including the fact that it is a controlled company with founder George Kaiser who has 77% of the voting power.

Excelerate is also not a direct bet on US exports of liquefied natural gas, Cramer added.

“But as more and more countries enter into agreements to buy American natural gas, they will need infrastructure to unload these shipments. And that’s where Excelerate comes in,” he said.

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