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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to__________
Commission File Number: 001-38790
New Fortress Energy Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware83-1482060
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
111 W. 19th Street, 8th Floor
New York, NY
10011
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (516) 268-7400
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer x
Accelerated filer ¨
Non-accelerated filer ¨
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock
NFE
Nasdaq Global Select Market
As of August 2, 2022, the registrant had 207,556,249 shares of Class A common stock outstanding.


TABLE OF CONTENTS
i

GLOSSARY OF TERMS
As commonly used in the liquefied natural gas industry, to the extent applicable and as used in this Quarterly Report on Form 10-Q (“Quarterly Report”), the terms listed below have the following meanings:
ADOautomotive diesel oil
Bcf/yrbillion cubic feet per year
Btuthe amount of heat required to raise the temperature of one avoirdupois pound of pure water from 59 degrees Fahrenheit to 60 degrees Fahrenheit at an absolute pressure of 14.696 pounds per square inch gage
CAAClean Air Act
CERCLAComprehensive Environmental Response, Compensation and Liability Act
CWAClean Water Act
DOEU.S. Department of Energy
DOTU.S. Department of Transportation
EPAU.S. Environmental Protection Agency
FTA countriescountries with which the United States has a free trade agreement providing for national treatment for trade in natural gas
GAAPgenerally accepted accounting principles in the United States
GHGgreenhouse gases
GSAgas sales agreement
Henry Huba natural gas pipeline located in Erath, Louisiana that serves as the official delivery location for futures contracts on the New York Mercantile Exchange
ISO containerInternational Organization of Standardization, an intermodal container
LNGnatural gas in its liquid state at or below its boiling point at or near atmospheric pressure
MMBtuone million Btus, which corresponds to approximately 12.1 gallons of LNG
mtpametric tons per year
MWmegawatt. We estimate 2,500 LNG gallons would be required to produce one megawatt
NGANatural Gas Act of 1938, as amended
non-FTA countriescountries without a free trade agreement with the United States providing for national treatment for trade in natural gas and with which trade is permitted
OPAOil Pollution Act
ii

OUROffice of Utilities Regulation (Jamaica)
PHMSAPipeline and Hazardous Materials Safety Administration
PPApower purchase agreement
SSAsteam supply agreement
TBtuone trillion Btus, which corresponds to approximately 12,100,000 gallons of LNG
iii

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This Quarterly Report contains forward-looking statements regarding, among other things, our plans, strategies, prospects and projections, both business and financial. All statements contained in this Quarterly Report other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “targets,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include:
our limited operating history;
the results of our subsidiaries, affiliates, joint ventures and special purpose entities in which we invest and their ability to make dividends or distributions to us;
construction and operational risks related to our facilities and assets, including cost overruns and delays;
complex regulatory and legal environments related to our business, assets and operations, including actions by governmental entities or changes to regulation or legislation, in particular related to our permits, approvals and authorizations for the construction and operation of our facilities;
delays or failure to obtain and maintain approvals and permits from governmental and regulatory agencies;
failure to maintain sufficient working capital for the development and operation of our business and assets;
failure to obtain a return on our investments for the development of our projects and assets and the implementation of our business strategy;
failure to convert our customer pipeline into actual sales;
lack of asset, geographic or customer diversification, including loss of one or more of our customers;
competition from third parties in our business;
failure of LNG or natural gas to be a competitive source of energy in the markets in which we operate, and seek to operate;
cyclical or other changes in the demand for and price of LNG and natural gas;
inability to procure LNG at necessary quantities or at favorable prices to meet customer demand, or otherwise to manage LNG supply and price risks, including hedging arrangements;
inability to successfully develop and implement our technological solutions;
inability to service our debt and comply with our covenant restrictions;
inability to obtain additional financing to effect our strategy;
inability to successfully complete mergers, sales, divestments or similar transactions related to our businesses or assets or to integrate such businesses or assets and realize the anticipated benefits, including with respect to the Mergers (as defined below);
economic, political, social and other risks related to the jurisdictions in which we do, or seek to do, business;
weather events or other natural or manmade disasters or phenomena;
the extent of the global COVID-19 pandemic or any other major health and safety incident;
increased labor costs, disputes or strikes, and the unavailability of skilled workers or our failure to attract and retain qualified personnel;
the tax treatment of, or changes in tax laws applicable to, us or our business or of an investment in our Class A shares; and
other risks described in the “Risk Factors” section of this Quarterly Report.

All forward-looking statements speak only as of the date of this Quarterly Report. When considering forward-looking statements, you should keep in mind the risks set forth under “Item 1A. Risk Factors” and other cautionary statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 (our “Annual Report”), this Quarterly Report and in our other filings with the Securities and Exchange Commission (the “SEC”). The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf. We undertake no duty to update these forward-looking statements, even though our situation may change in the future. Furthermore, we cannot guarantee future results, events, levels of activity, performance, projections or achievements.
iv

PART I
FINANCIAL INFORMATION
Item 1.    Financial Statements.
New Fortress Energy Inc.
Condensed Consolidated Balance Sheets
As of June 30, 2022 and December 31, 2021
(Unaudited, in thousands of U.S. dollars, except share amounts)
June 30, 2022December 31, 2021
Assets
Current assets
Cash and cash equivalents$138,329 $187,509 
Restricted cash71,602 68,561 
Receivables, net of allowances of $164 and $164, respectively
313,457 208,499 
Inventory72,152 37,182 
Prepaid expenses and other current assets, net141,092 83,115 
Total current assets736,632 584,866 
Restricted cash7,960 7,960 
Construction in progress1,401,468 1,043,883 
Property, plant and equipment, net2,156,431 2,137,936 
Equity method investments939,738 1,182,013 
Right-of-use assets407,689 309,663 
Intangible assets, net121,088 142,944 
Finance leases, net600,885 602,675 
Goodwill778,488 760,135 
Deferred tax assets, net5,628 5,999 
Other non-current assets, net95,369 98,418 
Total assets$7,251,376 $6,876,492 
Liabilities
Current liabilities
Current portion of long-term debt$99,756 $97,251 
Accounts payable111,436 68,085 
Accrued liabilities236,535 244,025 
Current lease liabilities53,983 47,114 
Other current liabilities94,286 106,036 
Total current liabilities595,996 562,511 
Long-term debt4,051,756 3,757,879 
Non-current lease liabilities329,972 234,060 
Deferred tax liabilities, net140,289 269,513 
Other long-term liabilities60,835 58,475 
Total liabilities5,178,848 4,882,438 
Commitments and contingencies (Note 21)
Stockholders’ equity
Class A common stock, $0.01 par value, 750.0 million shares authorized, 207.6 million issued and outstanding as of June 30, 2022; 206.9 million issued and outstanding as of December 31, 2021
2,076 2,069 
Additional paid-in capital1,868,618 1,923,990 
Accumulated deficit(63,895)(132,399)
Accumulated other comprehensive income (loss)78,232 (2,085)
Total stockholders’ equity attributable to NFE1,885,031 1,791,575 
Non-controlling interest187,497 202,479 
Total stockholders’ equity2,072,528 1,994,054 
Total liabilities and stockholders’ equity$7,251,376 $6,876,492 
The accompanying notes are an integral part of these condensed consolidated financial statements.
1

New Fortress Energy Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
For the three and six months ended June 30, 2022 and 2021
Unaudited, in thousands of U.S. dollars, except share and per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenues
Operating revenue$497,240 $102,836 $897,315 $194,032 
Vessel charter revenue75,134 64,561 167,554 64,561 
Other revenue12,481 56,442 25,104 110,930 
Total revenues584,855 223,839 1,089,973 369,523 
Operating expenses
Cost of sales272,401 101,430 480,699 198,101 
Vessel operating expenses18,628 15,400 41,592 15,400 
Operations and maintenance20,490 18,565 43,658 34,816 
Selling, general and administrative50,310 44,536 98,351 78,152 
Transaction and integration costs4,866 29,152 6,767 40,716 
Depreciation and amortization36,356 26,997 70,646 36,886 
Asset impairment expense48,109  48,109  
Total operating expenses451,160 236,080 789,822 404,071 
Operating income (loss)133,695 (12,241)300,151 (34,548)
Interest expense47,840 31,482 92,756 50,162 
Other (income), net(22,102)(7,457)(41,827)(8,058)
Net income (loss) before (loss) income from equity method investments and income taxes107,957 (36,266)249,222 (76,652)
(Loss) income from equity method investments(372,927)38,941 (322,692)38,941 
Tax (benefit) provision(86,539)4,409 (136,220)3,532 
Net (loss) income(178,431)(1,734)62,750 (41,243)
Net income attributable to non-controlling interest8,666 (4,310)5,754 (2,704)
Net loss attributable to stockholders$(169,765)$(6,044)$68,504 $(43,947)
Net (loss) income per share – basic$(0.81)$(0.03)$0.33 $(0.23)
Net (loss) income per share – diluted$(0.81)$(0.03)$0.33 $(0.23)
Weighted average number of shares outstanding – basic209,669,188 202,331,304 209,797,133 189,885,473 
Weighted average number of shares outstanding – diluted209,669,188 202,331,304 209,810,647 189,885,473 
Other comprehensive income (loss):
Net (loss) income$(178,431)$(1,734)$62,750 $(41,243)
Currency translation adjustment(39,703)101,690 81,127 100,693 
Comprehensive (loss) income (218,134)99,956 143,877 59,450 
Comprehensive income attributable to non-controlling interest9,812 (4,637)4,944 (2,157)
Comprehensive (loss) income attributable to stockholders$(208,322)$95,319 $148,821 $57,293 
The accompanying notes are an integral part of these condensed consolidated financial statements.
2

New Fortress Energy Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
For the three and six months ended June 30, 2022 and 2021
(Unaudited, in thousands of U.S. dollars, except share amounts)
Class A common stockAdditional
paid-in
capital
Retained earnings (accumulated
deficit)
Accumulated other
comprehensive
(loss) income
Non-
controlling
interest
Total
stockholders’ equity
Shares Amount
Balance as of December 31, 2021
206,863,242 $2,069 $1,923,990 $(132,399)$(2,085)$202,479 $1,994,054 
Net income— — — 238,269 — 2,912 241,181 
Other comprehensive income— — — — 118,874 1,956 120,830 
Share-based compensation expense— — 880 — — — 880 
Issuance of shares for vested RSUs1,121,255 7 — — — — 7 
Shares withheld from employees related to share-based compensation, at cost(442,146)— (15,274)— — — (15,274)
Dividends— — (20,754)— — (3,019)(23,773)
Balance as of March 31, 2022
207,542,351 $2,076 $1,888,842 $105,870 $116,789 $204,328 $2,317,905 
Net income (loss)— — — (169,765)— (8,666)(178,431)
Other comprehensive loss— — — — (38,557)(1,146)(39,703)
Share-based compensation expense— — 358 — — — 358 
Issuance of shares for vested RSUs13,898 — — — — — — 
Dividends— — (20,582)— — (7,019)(27,601)
Balance as of June 30, 2022
207,556,249 $2,076 $1,868,618 $(63,895)$78,232 $187,497 $2,072,528 
Class A common stockAdditional
paid-in
capital
Accumulated
deficit
Accumulated other
comprehensive
(loss) income
Non-
controlling
interest
Total
stockholders’
equity
Shares Amount
Balance as of December 31, 2020
174,622,862 $1,746 $594,534 $(229,503)$182 $8,127 $375,086 
Net loss— — — (37,903)— (1,606)(39,509)
Other comprehensive loss— — — — (123)(874)(997)
Share-based compensation expense— — 1,770 — — — 1,770 
Issuance of shares for vested RSUs1,335,787 — — — — — — 
Shares withheld from employees related to share-based compensation, at cost(638,235)— (27,571)— — — (27,571)
Dividends— — (17,598)— — — (17,598)
Balance as of March 31, 2021
175,320,414 $1,746 $551,135 $(267,406)$59 $5,647 $291,181 
Net (loss) income— — — (6,044)— 4,310 (1,734)
Other comprehensive income— — — — 101,363 327 101,690 
Share-based compensation expense— — 1,613 — — — 1,613 
Shares issued as consideration in business combinations31,372,549 314 1,400,470 — — — 1,400,784 
Issuance of shares for vested RSUs8,930 — — — — — — 
Shares withheld from employees related to share-based compensation, at cost(3,329)— (164)— — — (164)
Non-controlling interest acquired in business combinations— — — — — 229,285 229,285 
Dividends— — (20,736)— — (20,736)
Balance as of June 30, 2021
206,698,564 $2,060 $1,932,318 $(273,450)$101,422 $239,569 $2,001,919 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3

New Fortress Energy Inc.
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2022 and 2021
(Unaudited, in thousands of U.S. dollars)
Six Months Ended June 30,
2022 2021
Cash flows from operating activities
Net income (loss)$62,750 $(41,243)
Adjustments for:
Amortization of deferred financing costs and debt guarantee, net2,383 (6,290)
Depreciation and amortization71,172 37,462 
Loss (earnings) of equity method investees322,692 (38,941)
Drydocking expenditure(12,439) 
Dividends received from equity method investees14,859 7,386 
Sales-type lease payments received in excess of interest income1,426 2,388 
Change in market value of derivatives(9,798)(7,073)
Deferred taxes(178,109)2,447 
Change in value of investment of equity securities1,090 (88)
Share-based compensation1,238 3,383 
Asset impairment expense48,109  
Other671 275 
Changes in operating assets and liabilities, net of acquisitions:
(Increase) in receivables(123,843)(38,018)
(Increase) in inventories(35,167)(35,458)
(Increase) Decrease in other assets(58,949)3,679 
Decrease in right-of-use assets35,265 2,072 
Increase in accounts payable/accrued liabilities71,603 24,732 
Increase (Decrease) in amounts due to affiliates1,238 (2,919)
(Decrease) Increase in lease liabilities(31,352)133 
Decrease in other liabilities(13,906)(25,279)
Net cash provided by (used in) operating activities170,933 (111,352)
Cash flows from investing activities
Capital expenditures(441,708)(235,324)
Cash paid for business combinations, net of cash acquired (1,586,042)
Entities acquired in asset acquisitions, net of cash acquired (8,817)
Other investing activities (750)
Net cash (used in) investing activities(441,708)(1,830,933)
Cash flows from financing activities
Proceeds from borrowings of debt437,917 1,652,500 
Payment of deferred financing costs(4,805)(20,989)
Repayment of debt(146,030)(15,864)
Payments related to tax withholdings for share-based compensation(13,054)(29,717)
Payment of dividends(47,374)(41,346)
Net cash provided by financing activities226,654 1,544,584 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(2,018)(1,317)
Net (decrease) in cash, cash equivalents and restricted cash(46,139)(399,018)
Cash, cash equivalents and restricted cash – beginning of period264,030 629,336 
Cash, cash equivalents and restricted cash – end of period$217,891 $230,318 
Supplemental disclosure of non-cash investing and financing activities:
Changes in accounts payable and accrued liabilities associated with construction in progress and property, plant and equipment additions$5,302 $85,513 
Liabilities associated with consideration paid for entities acquired in asset acquisitions 9,959 
Consideration paid in shares for business combinations 1,400,784 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4


1.    Organization
New Fortress Energy Inc. (“NFE,” together with its subsidiaries, the “Company”), a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas ("LNG") infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Mexico and Brazil. The Company also has marine operations with vessels operating under time charters and in the spot market globally.
The Company currently conducts its business through two operating segments, Terminals and Infrastructure and Ships. The business and reportable segment information reflect how the Chief Operating Decision Maker (“CODM”) regularly reviews and manages the business.
2.    Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements contained herein were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect all normal and recurring adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations and cash flows of the Company for the interim periods presented. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual audited consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2021 (the "Annual Report"). Certain prior year amounts have been reclassified to conform to current year presentation.

The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions, impacting the reported amounts of assets and liabilities, net earnings and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. Actual results could be different from these estimates.

3.    Adoption of new and revised standards
(a)New standards, amendments and interpretations issued but not effective for the year beginning January 1, 2022:

The Company has reviewed recently issued accounting pronouncements and concluded that such pronouncements are either not applicable to the Company or no material impact is expected in the consolidated financial statements as a result of future adoption.
(b)New and amended standards adopted by the Company:
In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. ASU 2020-06 requires entities to provide expanded disclosures about the terms and features of convertible instruments and amends certain guidance in ASC 260 on the computation of EPS for convertible instruments and contracts on an entity’s own equity. ASU 2020-06 is effective for public companies for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption of all amendments in the same period permitted. The adoption of this guidance in the first quarter of 2022 did not have a material impact on the Company’s financial position, results of operations or cash flows.
4.    Acquisitions
Hygo Merger
On April 15, 2021, the Company completed the acquisition of all of the outstanding common and preferred shares representing all voting interests of Hygo Energy Transition Ltd. (“Hygo”), a 50-50 joint venture between Golar LNG Limited (“GLNG”) and Stonepeak Infrastructure Fund II Cayman (G) Ltd., a fund managed by Stonepeak Infrastructure Partners (“Stonepeak”), in exchange for 31,372,549 shares of NFE Class A common stock and $580,000 in cash (the "Hygo Merger"). The acquisition of Hygo expanded the Company’s footprint in South America with three gas-to-power
5

projects in Brazil’s large and fast-growing market. Assets acquired as a result of the Hygo Merger included a 50% interest in a 1.5GW power plant in Sergipe, Brazil (the “Sergipe Power Plant”) and its operating FSRU terminal in Sergipe, Brazil (the “Sergipe Facility”), as well as a terminal and power plant under development in the State of Pará, Brazil (the “Barcarena Facility” and "Barcarena Power Plant," respectively), and a terminal under development on the southern coast of Brazil (the “Santa Catarina Facility”). In addition, the Company also acquired included two LNG carriers and the Nanook, a newbuild FSRU moored and in service at the Sergipe Facility.
Based on the closing price of NFE’s common stock on April 15, 2021, the total value of consideration in the Hygo Merger was $1.98 billion, shown as follows:
ConsiderationAs of
April 15, 2021
Cash consideration for Hygo Preferred Shares$180,000 
Cash consideration for Hygo Common Shares400,000 
Total Cash Consideration$580,000 
Merger consideration to be paid in shares of NFE Common Stock1,400,784 
Total Non-Cash Consideration1,400,784 
Total Consideration$1,980,784 

The Company determined it was the accounting acquirer of Hygo, which was accounted for under the acquisition method of accounting for business combinations. The total purchase price of the transaction was allocated to identifiable assets acquired, liabilities assumed and non-controlling interests of Hygo based on their respective estimated fair values as of the closing date. The final adjusted fair values assigned to the assets acquired, liabilities assumed and non-controlling interests of Hygo as of the closing date were as follows:
6

HygoAs of
April 15, 2021
Assets Acquired
Cash and cash equivalents$26,641 
Restricted cash48,183 
Accounts receivable5,126 
Inventory1,022 
Other current assets8,095 
Construction in process128,625 
Property, plant and equipment, net385,389 
Equity method investments823,521 
Finance leases, net601,000 
Deferred tax assets, net1,065 
Other non-current assets52,996 
Total assets acquired:$2,081,663 
Liabilities Assumed
Current portion of long-term debt$38,712 
Accounts payable3,059 
Accrued liabilities39,149 
Other current liabilities13,495 
Long-term debt433,778 
Deferred tax liabilities, net275,410 
Other non-current liabilities21,520 
Total liabilities assumed:825,123 
Non-controlling interest38,306 
Net assets acquired:1,218,234 
Goodwill$762,550 

The fair value of Hygo’s non-controlling interest (“NCI”) as of April 15, 2021 was $38,306, including the fair value of the net assets of VIEs that Hygo has consolidated. These VIEs are SPVs (both defined below) for the sale and leaseback of certain vessels, and Hygo has no equity investment in these entities. The fair value of NCI was determined based on the valuation of the SPV’s external debt and the lease receivable asset associated with the sales leaseback transaction with Hygo’s subsidiary, using a discounted cash flow method.
The fair value of receivables acquired from Hygo was $8,009, which approximated the gross contractual amount; no material amounts were expected to be uncollectible.

Goodwill was calculated as the excess of the purchase price over the net assets acquired. Goodwill represents access to additional LNG and natural gas distribution systems and power markets, including workforce, that will allow the Company to rapidly develop and deploy LNG to power solutions. While the goodwill is not deductible for local tax purposes, it is treated as an amortizable expense for the U.S. global intangible low-taxed income ("GILTI") computation.
The Company’s results of operations for the six months ended June 30, 2022 include Hygo’s result of operations for the entire period. Revenue and net loss attributable to Hygo during the period was $49,391 and $179,826, respectively.
GMLP Merger
On April 15, 2021, the Company completed the acquisition of all of the outstanding common units, representing all voting interests, of Golar LNG Partners LP ("GMLP") in exchange for $3.55 in cash per common unit and for each of the outstanding membership interest of GMLP’s general partner (the "GMLP Merger, and collectively with the Hygo Merger,
7

the "Mergers"). In conjunction with the closing of the GMLP Merger, NFE simultaneously extinguished a portion of GMLP’s debt for total consideration of $1.15 billion.
As a result of the GMLP Merger, the Company acquired a fleet of six FSRUs and four LNG carriers, which are expected to help support the Company’s existing facilities and international business development pipeline. Acquired FSRUs are operating in Brazil, Indonesia and Jordan under time charters, and uncontracted vessels are available for short term employment in the spot market. Assets acquired also included an interest in a floating natural gas liquefaction vessel ("FLNG"), the Hilli Episeyo (the "Hilli"), which is expected to provide consistent cash flow streams under a long-term tolling arrangement. The interest in the FLNG facility also provides the Company access to intellectual property that will be used to develop future FLNG solutions.
The consideration paid by the Company in the GMLP Merger was as follows:
ConsiderationAs of
April 15, 2021
GMLP Common Units ($3.55 per unit x 69,301,636 units)
$246,021 
GMLP General Partner Interest ($3.55 per unit x 1,436,391 units)
5,099 
Partnership Phantom Units ($3.55 per unit x 58,960 units)
209 
Cash Consideration$251,329 
GMLP debt repaid in acquisition899,792 
Total Cash Consideration1,151,121 
Cash settlement of preexisting relationship(3,978)
Total Consideration$1,147,143 

The Company determined it is the accounting acquirer of GMLP, which was accounted for under the acquisition method of accounting for business combinations. The total purchase price of the transaction was allocated to identifiable assets acquired, liabilities assumed and non-controlling interests of GMLP based on their respective estimated fair values as of the closing date. The final adjusted fair values assigned to the assets acquired, liabilities assumed and non-controlling interests of GMLP as of the closing date were as follows:
8

GMLPAs of
April 15, 2021
Assets Acquired
Cash and cash equivalents$41,461 
Restricted cash24,816 
Accounts receivable3,195 
Inventory2,151 
Other current assets2,789 
Equity method investments355,500 
Property, plant and equipment, net1,063,215 
Intangible assets, net106,500 
Deferred tax assets, net963 
Other non-current assets4,400 
Total assets acquired:$1,604,990 
Liabilities Assumed
Current portion of long-term debt$158,073 
Accounts payable3,019 
Accrued liabilities17,226 
Other current liabilities73,774 
Deferred tax liabilities, net14,907 
Other non-current liabilities10,630 
Total liabilities assumed:277,629 
Non-controlling interest196,156 
Net assets to be acquired:1,131,205 
Goodwill$15,938 
The fair value of GMLP’s NCI as of April 15, 2021 was $196,156, which represents the fair value of other investors’ interest in the Mazo, GMLP’s preferred units which were not acquired by the Company and the fair value of net assets of an SPV formed for the purpose of a sale and leaseback of the Eskimo. The fair value of GMLP’s preferred units and the valuation of the SPV’s external debt and the lease receivable asset associated with the sale leaseback transaction have been estimated using a discounted cash flow method.
The fair value of receivables acquired from GMLP was $4,797, which approximated the gross contractual amount; no material amounts were expected to be uncollectible.
The Company acquired favorable and unfavorable leases for the use of GMLP’s vessels. The fair value of the favorable contracts was $106,500 and the fair value of the unfavorable contracts was $13,400. The total weighted average amortization period is approximately three years; the favorable contract asset has a weighted average amortization period of approximately three years and the unfavorable contract liability has a weighted average amortization period of approximately one year.
The Company and GMLP had an existing lease agreement prior to the GMLP Merger. As a result of the acquisition, the lease agreement and any associated receivable and payable balances were effectively settled. The lease agreement also included provisions that required a subsidiary of NFE to indemnify GMLP to the extent that GMLP incurred certain tax liabilities as a result of the lease. A loss of $3,978 related to settlement of this indemnification provision was recognized in Transaction and integration costs in the condensed consolidated statements of operations and comprehensive income (loss) in the second quarter of 2021.
The Company’s results of operations for the six months ended June 30, 2022 include GMLP’s result of operations for the entire period. Revenue and net income attributable to GMLP during the period was $139,674 and $105,970, respectively.
9

Unaudited pro forma financial information
The following table summarizes the unaudited pro forma condensed financial information of the Company as if the Mergers had occurred on January 1, 2020.
Three Months Ended June 30,Six Months Ended June 30,
20212021
Revenue$239,554 $474,990 
Net income (loss)4,438 (48,746)
Net income (loss) attributable to stockholders3,904 (46,146)
The unaudited pro forma financial information is based on historical results of operations as if the acquisitions had occurred on January 1, 2020, adjusted for transaction costs incurred, adjustments to depreciation expense associated with the recognition of the fair value of vessels acquired, additional amortization expense associated with the recognition of the fair value of favorable and unfavorable customer contracts for vessel charters, additional interest expense as a result of incurring new debt and extinguishing historical debt, elimination of a pre-existing lease relationship between the Company and GMLP, and a step-up of the equity method investments.

Adjustments for non-recurring items increased pro forma net income by $25,887 and $37,450 for the three and six months ended June 30, 2021, respectively. Transaction costs incurred and the elimination of a pre-existing lease relationship between the Company and GMLP are considered to be non-recurring. The unaudited pro forma financial information does not give effect to any synergies, operating efficiencies or cost savings that may result from the Mergers.
Asset acquisitions
On January 12, 2021, the Company acquired 100% of the outstanding shares of CH4 Energia Ltda. (“CH4”), an entity that owns key permits and authorizations to develop an LNG terminal and an up to 1.37GW gas-fired power plant at the Port of Suape in Brazil. The purchase consideration consisted of $903 of cash paid at closing in addition to potential future payments contingent on achieving certain construction milestones of up to approximately $3,600. As the contingent payments meet the definition of a derivative, the fair value of the contingent payments as of the acquisition date of $3,047 was included as part of the purchase consideration and was recognized in Other long-term liabilities on the condensed consolidated balance sheets. The selling shareholders of CH4 may also receive future payments based on gas consumed by the power plant or sold to customers from the LNG terminal.
The purchase of CH4 has been accounted for as an asset acquisition. As a result, no goodwill was recorded, and the Company’s acquisition-related costs of $295 were included in the purchase consideration. The total purchase consideration of $5,776, which included a deferred tax liability of $1,531 recognized as a result from the acquisition, was allocated to permits and authorizations acquired and was recorded within Intangible assets, net.
On March 11, 2021, the Company acquired 100% of the outstanding shares of Pecém Energia S.A. (“Pecém”) and Energetica Camacari Muricy II S.A. (“Muricy”). These companies collectively hold grants to operate as an independent power provider and 15-year power purchase agreements for the development of thermoelectric power plants in the State of Bahia, Brazil. The Company is seeking to obtain the necessary approvals to transfer the power purchase agreements in connection with the construction the gas-fired power plant and LNG import terminal at the Port of Suape.
The purchase consideration consisted of $8,041 of cash paid at closing in addition to potential future payments contingent on achieving commercial operations of the gas-fired power plant at the Port of Suape of up to approximately $10.5 million. As the contingent payments meet the definition of a derivative, the fair value of the contingent payments as of the acquisition date of $7,473 was included as part of the purchase consideration and was recognized in Other long-term liabilities on the condensed consolidated balance sheets. The selling shareholders may also receive future payments based on power generated by the power plant in Suape, subject to a maximum payment of approximately $4.6 million.
The purchases of Pecém and Muricy were accounted for as asset acquisitions. As a result, no goodwill was recorded, and the Company’s acquisition-related costs of $1,275 were included in the purchase consideration. Of the total purchase consideration, $16,585 was allocated to acquired power purchase agreements and recorded in Intangible assets, net on the condensed consolidated balance sheets; the remaining purchase consideration was related to working capital acquired.
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5.    VIEs
Lessor VIEs

The Company assumed sale leaseback arrangements for four vessels as part of the Mergers, one of which was terminated in 2021. As part of these financings, the vessel was sold to a single asset entity wholly owned by the lending bank (a special purpose vehicle or "SPV") and then leased back. While the Company does not hold an equity investment in these lending entities, these entities are variable interest entities ("VIEs"), and the Company has a variable interest in these lending entities due to the guarantees and fixed price repurchase options that absorb the losses of the VIE that could potentially be significant to the entity. The Company has concluded that it has the power to direct the economic activities that most impact the economic performance as it controls the significant decisions relating to the assets and it has the obligation to absorb losses or the right to receive the residual returns from the leased asset. Therefore, the Company consolidates these lending entities; as NFE has no equity interest in these VIEs, all equity attributable to these VIEs is included in non-controlling interest in the consolidated financial statements. Transactions between NFE's wholly-owned subsidiaries and these VIEs are eliminated in consolidation, including sale leaseback transactions.
CCB Financial Leasing Corporation Limited (“CCBFL”)
In September 2018, the Nanook was sold to a subsidiary of CCBFL, Compass Shipping 23 Corporation Limited, and subsequently leased back on a bareboat charter for a term of twelve years. The Company has options to repurchase the vessel throughout the charter term at fixed pre-determined amounts, commencing from the third anniversary of the commencement of the bareboat charter, with an obligation to repurchase the vessel at the end of the twelve-year lease period.
Oriental Shipping Company (“COSCO”)
In December 2019, the Penguin was sold to a subsidiary of COSCO, Oriental Fleet LNG 02 Limited, and subsequently leased back on a bareboat charter for a term of six years. The Company has options to repurchase the vessel throughout the charter term at fixed pre-determined amounts, commencing from the first anniversary of the commencement of the bareboat charter, with an obligation to repurchase the vessel at the end of the six-year lease period.
AVIC International Leasing Company Limited (“AVIC”)
In March 2020, the Celsius was sold to a subsidiary of AVIC, Noble Celsius Shipping Limited, and subsequently leased back on a bareboat charter for a term of seven years. The Company has options to repurchase the vessel throughout the charter term at fixed predetermined amounts, commencing from the first anniversary of the commencement of the bareboat charter, with an obligation to repurchase the vessel at the end of the seven-year lease period.
As of June 30, 2022, the Penguin and Celsius were recorded as Property, plant and equipment, net on the condensed consolidated balance sheet, and the Nanook was recognized in Finance leases, net on the condensed consolidated balance sheet.
The following table gives a summary of the sale and leaseback arrangements, including repurchase options and obligations as of June 30, 2022:
VesselEnd of lease termDate of next
repurchase
option
Repurchase price
at next repurchase
option date
Repurchase
obligation at end of
lease term
NanookSeptember 2030September 2022$193,066 $94,179 
PenguinDecember 2025December 202284,668 63,040 
CelsiusMarch 2027March 202386,456 45,000 
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A summary of payment obligations under the bareboat charters with the lessor VIEs as of June 30, 2022, are shown below:
Vessel
Remaining 2022
2023202420252026
2027+
Nanook$12,015 $23,426 $22,698 $21,910 $21,152 $72,595 
Penguin6,600 12,889 12,379 8,973   
Celsius