New Fortress Energy Inc. [NFE] Filings

10-Q 1 nfe-20230930.htm 10-Q nfe-20230930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


¨			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)


Delaware			83-1482060
(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, a 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 class

Trading Symbol(s)

Name of each exchange on which registered

Class A common stock

“NFE”

Nasdaq Global Select Market

As of November 6, 2023, the registrant had 205,031,406 shares of Class A common stock outstanding.

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TABLE OF CONTENTS


GLOSSARY OF TERMS		ii

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS		iv

PART I FINANCIAL INFORMATION		1

Item 1.	Financial Statements.	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	31

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	52

Item 4.	Controls and Procedures.	52

PART II OTHER INFORMATION		54

Item 1.	Legal Proceedings.	54

Item 1A.	Risk Factors.	54

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	86

Item 3.	Defaults Upon Senior Securities.	86

Item 4.	Mine Safety Disclosures.	86

Item 5.	Other Information.	86

Item 6.	Exhibits.	86

SIGNATURES		92

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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:


ADO			automotive diesel oil

Bcf/yr			billion cubic feet per year

Btu			the 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

CAA			Clean Air Act

CERCLA			Comprehensive Environmental Response, Compensation and Liability Act

CWA			Clean Water Act

DOE			U.S. Department of Energy

DOT			U.S. Department of Transportation

EPA			U.S. Environmental Protection Agency

FTA countries			countries with which the United States has a free trade agreement providing for national treatment for trade in natural gas

GAAP			generally accepted accounting principles in the United States

GHG			greenhouse gases

GSA			gas sales agreement

Henry Hub			a natural gas pipeline located in Erath, Louisiana that serves as the official delivery location for futures contracts on the New York Mercantile Exchange

ISO container			International Organization of Standardization, an intermodal container

LNG			natural gas in its liquid state at or below its boiling point at or near atmospheric pressure

MMBtu			one million Btus, which corresponds to approximately 12.1 gallons of LNG

mtpa			metric tons per year

MW			megawatt. We estimate 2,500 LNG gallons would be required to produce one megawatt

NGA			Natural Gas Act of 1938, as amended

non-FTA countries			countries without a free trade agreement with the United States providing for national treatment for trade in natural gas and with which trade is permitted

OPA			Oil Pollution Act

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OUR			Office of Utilities Regulation (Jamaica)

PHMSA			Pipeline and Hazardous Materials Safety Administration

PPA			power purchase agreement

SSA			steam supply agreement

TBtu			one trillion Btus, which corresponds to approximately 12,100,000 gallons of LNG

iii

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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;

•failure of LNG or natural gas to be a competitive source of energy in the markets in which we operate, and seek to operate;

•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 obtain a return on our investments for the development of our projects and assets and the implementation of our business strategy;

•failure to maintain sufficient working capital for the development and operation of our business and assets;

•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;

•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;

•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, 2022 (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.

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PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

New Fortress Energy Inc.

Condensed Consolidated Balance Sheets

As of September 30, 2023 and December 31, 2022

(Unaudited, in thousands of U.S. dollars, except share amounts)


	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	171,329	$	675,492
Restricted cash	66,162		165,396
Receivables, net of allowances of $1,133 and $884, respectively	360,820		280,313
Inventory	103,331		39,070
Prepaid expenses and other current assets, net	164,559		226,883
Total current assets	866,201		1,387,154


Construction in progress	4,789,799		2,418,608
Property, plant and equipment, net	2,563,871		2,116,727
Equity method investments	139,058		392,306
Right-of-use assets	474,483		377,877
Intangible assets, net	67,443		85,897

Goodwill	776,760		776,760
Deferred tax assets, net	8,074		8,074
Other non-current assets, net	110,681		141,679
Total assets	$	9,796,370	$	7,705,082

Liabilities
Current liabilities
Current portion of long-term debt and short-term borrowings	$	270,547	$	64,820
Accounts payable	892,924		80,387
Accrued liabilities	435,692		1,162,412
Current lease liabilities	142,296		48,741
Other current liabilities	169,744		52,878
Total current liabilities	1,911,203		1,409,238

Long-term debt	5,897,528		4,476,865
Non-current lease liabilities	318,082		302,121
Deferred tax liabilities, net	27,206		25,989
Other long-term liabilities	63,789		49,010
Total liabilities	8,217,808		6,263,223

Commitments and contingencies (Note 19)

Stockholders’ equity
Class A common stock, $0.01 par value, 750 million shares authorized, 205.0 million issued and outstanding as of September 30, 2023; 208.8 million issued and outstanding as of December 31, 2022	2,050		2,088
Additional paid-in capital	1,039,428		1,170,254
Retained earnings	331,282		62,080
Accumulated other comprehensive income	63,312		55,398
Total stockholders’ equity attributable to NFE	1,436,072		1,289,820
Non-controlling interest	142,490		152,039
Total stockholders’ equity	1,578,562		1,441,859
Total liabilities and stockholders’ equity	$	9,796,370	$	7,705,082

The accompanying notes are an integral part of these condensed consolidated financial statements.

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New Fortress Energy Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the three and nine months ended September 30, 2023 and 2022

(Unaudited, in thousands of U.S. dollars, except share and per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues
Operating revenue	$	420,868	$	632,684	$	1,417,175	$	1,529,999
Vessel charter revenue	67,287		92,860		209,651		260,414
Other revenue	26,307		6,386		28,112		31,490
Total revenues	514,462		731,930		1,654,938		1,821,903

Operating expenses
Cost of sales (exclusive of depreciation and amortization shown separately below)	191,920		393,830		602,626		874,529
Vessel operating expenses	11,613		20,318		36,347		61,910
Operations and maintenance	60,819		22,033		121,187		65,691
Selling, general and administrative	49,107		67,601		157,048		165,952
Transaction and integration costs	2,739		5,620		4,787		12,387

Depreciation and amortization	48,670		35,793		125,160		106,439
Asset impairment expense	—		—		—		48,109
Total operating expenses	364,868		545,195		1,047,155		1,335,017
Operating income	149,594		186,735		607,783		486,886
Interest expense	64,822		63,588		200,891		156,344
Other (income) expense, net	(2,271)		10,214		16,150		(31,613)
Loss on extinguishment of debt, net	—		14,997		—		14,997
Income before income from equity method investments and income taxes	87,043		97,936		390,742		347,158
Income (loss) from equity method investments	489		(31,734)		12,738		(354,426)
Tax provision (benefit)	25,194		9,971		69,476		(126,249)
Net income	62,338		56,231		334,004		118,981
Net (income) loss attributable to non-controlling interest	(1,117)		5,617		(3,329)		11,371
Net income attributable to stockholders	$	61,221	$	61,848	$	330,675	$	130,352

Net income per share – basic	$	0.30	$	0.30	$	1.60	$	0.62
Net income per share – diluted	$	0.30	$	0.29	$	1.59	$	0.62

Weighted average number of shares outstanding – basic	205,032,928		209,629,936		206,249,474		209,749,139
Weighted average number of shares outstanding – diluted	205,032,928		209,800,427		206,804,833		209,869,058

Other comprehensive income (loss):
Net income	$	62,338	$	56,231	$	334,004	$	118,981
Currency translation adjustment	(11,356)		(33,087)		7,693		48,040
Comprehensive income	50,982		23,144		341,697		167,021
Comprehensive (income) loss attributable to non-controlling interest	(795)		6,085		(3,108)		11,029
Comprehensive income attributable to stockholders	$	50,187	$	29,229	$	338,589	$	178,050

The accompanying notes are an integral part of these condensed consolidated financial statements.

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New Fortress Energy Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three and nine months ended September 30, 2023 and 2022

(Unaudited, in thousands of U.S. dollars, except share amounts)


	Class A common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income		Non- controlling interest		Total stockholders’ equity
		Shares											Amount
Balance as of December 31, 2022		208,770,088	$	2,088	$	1,170,254	$	62,080	$	55,398	$	152,039	$	1,441,859
Net income		—	—		—		150,206		—		1,360		151,566
Other comprehensive income		—	—		—		—		1,946		195		2,141



Cancellation of shares		(4,100,000)	(41)		(122,713)		—		—		—		(122,754)
Dividends		—	—		—		(20,467)		—		(3,019)		(23,486)
Balance as of March 31, 2023		204,670,088	$	2,047	$	1,047,541	$	191,819	$	57,344	$	150,575	$	1,449,326
Net income		—	—		—		119,248		—		852		120,100
Other comprehensive income (loss)		—	—		—		—		17,002		(94)		16,908
Share-based compensation expense		—	—		1,179		—		—		—		1,179
Issuance of shares for vested share-based compensation awards		689,401	3		—		—		—		—		3
Shares withheld from employees related to share-based compensation, at cost		(328,083)	—		(9,519)		—		—		—		(9,519)

Dividends		—	—		—		(20,503)		—		(6,619)		(27,122)
Balance as of June 30, 2023		205,031,406	$	2,050	$	1,039,201	$	290,564	$	74,346	$	144,714	$	1,550,875
Net income		—	—		—		61,221		—		1,117		62,338
Other comprehensive loss		—	—		—		—		(11,034)		(322)		(11,356)
Share-based compensation expense		—	—		227		—		—		—		227
Dividends		—	—		—		(20,503)		—		(3,019)		(23,522)
Balance as of September 30, 2023		205,031,406	$	2,050	$	1,039,428	$	331,282	$	63,312	$	142,490	$	1,578,562

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	Class A common stock	Additional paid-in capital	Retained earnings (Accumulated deficit)		Accumulated other comprehensive income (loss)		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 RSUs		1,121,255	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 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 RSUs		13,898	—		—		—		—			—			—


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
Net income (loss)		—	—		—		61,848		—			(5,617)			56,231
Other comprehensive loss		—	—		—		—		(32,619)			(468)			(33,087)
Share-based compensation expense		—	—		13,417		—		—			—			13,417
Issuance of shares for vested RSU/PSUs		2,291,060	12		(12)		—		—			—			—
Shares withheld from employees related to share-based compensation, at cost		(1,077,221)	—		(59,548)		—		—			—			(59,548)
Deconsolidation of vessels		—	—		—		—		—			(23,569)			(23,569)
Dividends		—	—		(20,756)		—		—			(3,019)			(23,775)
Balance as of September 30, 2022		208,770,088	$	2,088	$	1,801,719	$	(2,047)	$	45,613		$	154,824		$	2,002,197

The accompanying notes are an integral part of these condensed consolidated financial statements.

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New Fortress Energy Inc.

Condensed Consolidated Statements of Cash Flows

For the nine months ended September 30, 2023 and 2022

(Unaudited, in thousands of U.S. dollars)


	Nine Months Ended September 30,
	2023		2022
Cash flows from operating activities
Net income	$	334,004	$	118,981
Adjustments for:

Depreciation and amortization	125,853		107,185
(Earnings) losses of equity method investees	(12,738)		354,426

Dividends received from equity method investees	5,830		23,195


Change in market value of derivatives	(2,672)		(6,700)
Deferred taxes	1,217		(203,026)


Asset impairment expense	—		48,109
Earnings recognized from vessels chartered to third parties transferred to Energos	(112,608)		(14,341)
Loss on the disposal of equity method investment	37,401		—
Loss on extinguishment of debt	—		14,997
Loss on sale of net investment in lease	—		11,592
Other	2,211		15,464
Changes in operating assets and liabilities:
(Increase) in receivables	(86,743)		(287,748)
(Increase) in inventories	(29,238)		(28,078)
Decrease (Increase) in other assets	56,512		(93,329)
Decrease in right-of-use assets	68,360		51,265
Increase (decrease) in accounts payable/accrued liabilities	73,211		(10,487)
Increase (decrease) in amounts due to affiliates	1,613		(3,220)
(Decrease) in lease liabilities	(56,908)		(47,237)
Increase in other liabilities	131,879		40,057
Net cash provided by operating activities	537,184		91,105

Cash flows from investing activities
Capital expenditures	(2,191,605)		(787,166)
Sale of equity method investment	100,000		—
Proceeds from sale of net investment in lease	—		593,000
Other investing activities	26,043		(1,794)
Net cash used in investing activities	(2,065,562)		(195,960)

Cash flows from financing activities
Proceeds from borrowings of debt	1,768,715		1,932,020
Payment of deferred financing costs	(18,064)		(16,093)
Repayment of debt	(104,530)		(1,518,471)
Payments related to tax withholdings for share-based compensation	(9,519)		(72,597)
Payment of dividends	(700,440)		(75,149)

Other financing activities	(12,090)		—
Net cash provided by financing activities	924,072		249,710
Impact of changes in foreign exchange rates on cash and cash equivalents	923		(4,896)
Net (decrease) increase in cash, cash equivalents and restricted cash	(603,383)		139,959
Cash, cash equivalents and restricted cash – beginning of period	855,083		264,030
Cash, cash equivalents and restricted cash – end of period	$	251,700	$	403,989


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	$	641,967	$	112,886
Principal payments on financing obligation to Energos by third party charterers	(52,035)		(5,438)
Shares received in Hilli Exchange	(122,754)		—

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Investment in Energos	—	129,518
Non-cash financing	—	41,264

The following table identifies the balance sheet line-items included in Cash and cash equivalents, Current restricted cash, and Non-current restricted cash presented in the Condensed Consolidated Statement of Cash Flows:


	Nine Months Ended September 30,
	2023		2022
Cash and cash equivalents	$	171,329	$	364,313
Current restricted cash	66,162		24,204
Non-current restricted cash	—		2,581
Cash and cash equivalents classified as held for sale	14,209		12,891
Cash, cash equivalents and restricted cash – end of period	$	251,700	$	403,989

Cash and cash equivalents as of September 30, 2023 and 2022 includes $14,209 and $12,891, respectively, which have been classified as assets held for sale and included in Other current assets on the condensed consolidated balance sheets.

The accompanying notes are an integral part of these condensed consolidated financial statements.

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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, 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, Brazil and Mexico. The Company 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, 2022 (the "Annual Report"). Certain prior year amounts have been reclassified to conform to current year presentation.

The preparation of condensed 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 condensed consolidated financial statements. Actual results could be different from these estimates.

3. Adoption of new and revised standards

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 condensed consolidated financial statements as a result of future adoption.

4. Revenue recognition

Operating revenue in the condensed consolidated statements of operations and comprehensive income (loss) includes revenue from sales of LNG and natural gas as well as outputs from the Company’s natural gas-fueled power generation facilities, including power and steam, and the sale of LNG cargos. The Company did not have any LNG cargo sales in the third quarter of 2023. For the nine months ended September 30, 2023, the Company recognized LNG cargo sales to customers of $617,138, which included $332,000 of contract settlements. LNG cargo sales for the three and nine months ended September 30, 2022 were $350,550 and $944,751, respectively.

Under most customer contracts, invoicing occurs once the Company’s performance obligations have been satisfied, at which point payment is unconditional. As of September 30, 2023 and December 31, 2022, receivables related to revenue from contracts with customers totaled $351,160 and $280,382, respectively, and were included in Receivables, net on the condensed consolidated balance sheets, net of current expected credit losses of $1,133 and $884, respectively. Other items included in Receivables, net not related to revenue from contracts with customers represent leases, which are accounted for outside the scope of ASC 606, and receivables associated with reimbursable costs.

Contract assets are comprised of the transaction price allocated to completed performance obligations that will be billed to customers in subsequent periods. The Company has recognized contract liabilities, comprised of unconditional payments due or paid under the contracts with customers prior to the Company’s satisfaction of the related performance obligations. The contract assets and contract liabilities balances as of September 30, 2023 and December 31, 2022 are detailed below:

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	September 30, 2023		December 31, 2022
Contract assets, net - current	$	8,567	$	8,083
Contract assets, net - non-current	22,176		28,651
Total contract assets, net	$	30,743	$	36,734

Contract liabilities, net - current	$	69,254	$	12,748
Contract liabilities, net - non-current	41,818		—
Total contract liabilities, net	$	111,072	$	12,748

Revenue recognized in the year from:
Amounts included in contract liabilities at the beginning of the year	$	12,748	$	2,951

Contract assets are presented net of expected credit losses of $326 and $401 as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, contract assets was comprised of $30,603 and $36,483 of unbilled receivables, respectively, which represent unconditional rights to payment only subject to the passage of time.

Contract liabilities increased during the nine months ended September 30, 2023 primarily due to upfront payments received under the Company's contracts in Puerto Rico to provide temporary power and to operate and maintain PREPA's power generation assets. These payments will be recognized as revenue over the expected term of these contracts.

The Company has recognized costs to fulfill contracts with customers, which primarily consist of expenses required to enhance resources to deliver under agreements with these customers. These costs can include set-up and mobilization costs incurred ahead of the service period, and such costs will be recognized on a straight-line basis over the expected terms of the agreements. As of September 30, 2023, the Company has capitalized $26,587 of which $2,753 of these costs is presented within Prepaid expenses and other current assets, net and $23,834 is presented within Other non-current assets, net on the condensed consolidated balance sheets. As of December 31, 2022, the Company had capitalized $10,377, of which $604 of these costs was presented within Prepaid expenses and other current assets, net and $9,773 was presented within Other non-current assets, net on the condensed consolidated balance sheets.

Transaction price allocated to remaining performance obligations

Some of the Company’s contracts are short-term in nature with a contract term of less than a year. The Company applied the optional exemption not to report any unfulfilled performance obligations related to these contracts.

The Company has arrangements in which LNG, natural gas or outputs from the Company’s power generation facilities are sold on a “take-or-pay” basis whereby the customer is obligated to pay for the minimum guaranteed volumes even if it does not take delivery. The price under these agreements is typically based on a market index plus a fixed margin. The fixed transaction price allocated to the remaining performance obligations under these arrangements represents the fixed margin multiplied by the outstanding minimum guaranteed volumes. The Company expects to recognize this revenue over the following time periods. The pattern of recognition reflects the minimum guaranteed volumes in each period:


Period	Revenue
Remainder of 2023	$	473,460
2024	2,044,859
2025	1,449,971
2026	528,514
2027	525,643
Thereafter	8,004,334
Total	$	13,026,781

For all other sales contracts that have a term exceeding one year, the Company has elected the practical expedient in ASC 606 under which the Company does not disclose the transaction price allocated to remaining performance obligations if the

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variable consideration is allocated entirely to a wholly unsatisfied performance obligation. For these excluded contracts, the sources of variability are (a) the market index prices of natural gas used to price the contracts, and (b) the variation in volumes that may be delivered to the customer. Both sources of variability are expected to be resolved at or shortly before delivery of each unit of LNG, natural gas, power or steam. As each unit of LNG, natural gas, power or steam represents a separate performance obligation, future volumes are wholly unsatisfied.

Lessor arrangements

Property, plant and equipment subject to vessel charters accounted for as operating leases is included within Vessels within "Note 12 Property, plant and equipment, net." Vessels included in the Energos Formation Transaction (defined below in "Note 10 Equity method investments"), including those vessels chartered to third parties, continue to be recognized on the condensed consolidated balance sheet. The carrying amount of these vessels that are leased to third parties under operating leases is as follows:


	September 30, 2023		December 31, 2022
Property, plant and equipment	$	917,563	$	1,292,957
Accumulated depreciation	(84,503)		(80,233)
Property, plant and equipment, net	$	833,060	$	1,212,724

The components of lease income from vessel operating leases for the three and nine months ended September 30, 2023 and 2022 are shown below. As the Company has not recognized the sale of all of the vessels included in the Energos Formation Transaction, the operating lease income shown below for the three and nine months ended September 30, 2023 is comprised of revenue from third-party charters of vessels included in the Energos Formation Transaction.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease income	$	66,557	$	83,188	$	208,921	$	235,092
Variable lease income	730		8,238		730		19,470
Total operating lease income	$	67,287	$	91,426	$	209,651	$	254,562

Prior to the completion of the Energos Formation Transaction, the Company's charter of the Nanook was accounted for as a finance lease, and the Company recognized interest income of $5,517 and $28,643 for the three and nine months ended September 30, 2022, respectively, related to this finance lease, which was presented within Other revenue in the condensed consolidated statements of operations and comprehensive income (loss). The Company also recognized revenue of $1,434 and $5,852 for the three and nine months ended September 30, 2022, respectively, related to the operation and services agreement and variable charter revenue within Vessel charter revenue in the condensed consolidated statements of operations and comprehensive income (loss). The Company recognized the sale of the net investment in the finance lease of the Nanook as part of the Energos Formation Transaction.

Subsequent to the Energos Formation Transaction, all cash receipts on vessel charters, including the finance lease of the Nanook, will be received by Energos. As such, there are no future cash receipts from operating leases, and the future cash receipts from other finance leases are not significant as of September 30, 2023.

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5. Leases, as lessee

The Company has operating leases primarily for the use of LNG vessels, marine port space, office space, land and equipment under non-cancellable lease agreements. The Company’s leases may include multiple optional renewal periods that are exercisable solely at the Company’s discretion. Renewal periods are included in the lease term when the Company is reasonably certain that the renewal options would be exercised, and the associated lease payments for such periods are reflected in the right-of-use ("ROU") asset and lease liability.

The Company’s leases include fixed lease payments which may include escalation terms based on a fixed percentage or may vary based on an inflation index or other market adjustments. Escalations based on changes in inflation indices and market adjustments and other lease costs that vary based on the use of the underlying asset are not included as lease payments in the calculation of the lease liability or ROU asset; such payments are included in variable lease cost when the obligation that triggers the variable payment becomes probable. Variable lease cost includes contingent rent payments for office space based on the percentage occupied by the Company in addition to common area charges and other charges that are variable in nature. The Company also has a component of lease payments that are variable related to the LNG vessels, in which the Company may receive credits based on the performance of the LNG vessels during the period.

As of September 30, 2023 and December 31, 2022, ROU assets, current lease liabilities and non-current lease liabilities consisted of the following:


	September 30, 2023		December 31, 2022
Operating right-of-use-assets	$	418,265	$	355,883
Finance right-of-use-assets (1)	56,218		21,994
Total right-of-use assets	$	474,483	$	377,877

Current lease liabilities:
Operating lease liabilities	$	114,536	$	44,371
Finance lease liabilities	27,760		4,370
Total current lease liabilities	$	142,296	$	48,741
Non-current lease liabilities:
Operating lease liabilities	$	294,972	$	290,899
Finance lease liabilities	23,110		11,222
Total non-current lease liabilities	$	318,082	$	302,121

(1) Finance lease ROU assets are recorded net of accumulated amortization of $15,582 and $2,134 as of September 30, 2023 and December 31, 2022, respectively.

For the three and nine months ended September 30, 2023 and 2022, the Company’s operating lease cost recorded within the condensed consolidated statements of operations and comprehensive income (loss) was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Fixed lease cost	$	33,840	$	19,433	$	73,066	$	58,346
Variable lease cost	1,435		622		3,036		1,558
Short-term lease cost	11,502		6,204		17,421		12,326

Lease cost - Cost of sales	$	28,409	$	23,438	$	59,300	$	64,453
Lease cost - Operations and maintenance	16,274		1,066		28,322		2,675
Lease cost - Selling, general and administrative	2,094		1,755		5,901		5,102

For the three months ended September 30, 2023 and 2022, the Company has capitalized $8,111 and $4,005 of lease costs, respectively. For the nine months ended September 30, 2023 and 2022, the Company has capitalized $26,816 and $15,220

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of lease costs, respectively. Capitalized costs include vessels and port space used during the commissioning of development projects. Short-term lease costs for vessels chartered by the Company to transport inventory from a supplier’s facilities to the Company’s storage locations are capitalized to inventory.

The Company has leases of turbines, ISO tanks and a parcel of land that are recognized as finance leases. For the three and nine months ended September 30, 2023 and 2022, the Company’s finance interest expense and amortization recorded in Interest expense and Depreciation and amortization, respectively, within the condensed consolidated statements of operations and comprehensive income (loss) were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest expense related to finance leases	$	1,080	$	208	$	2,766	$	655
Amortization of right-of-use asset related to finance leases	5,888		378		13,448		1,137

Cash paid for operating leases is reported in operating activities in the condensed consolidated statements of cash flows. Supplemental cash flow information related to leases was as follows for the nine months ended September 30, 2023 and 2022:


	Nine Months Ended September 30,
	2023		2022
Cash outflows for operating lease liabilities	$	89,326	$	73,389
Cash outflows for finance lease liabilities	13,582		3,654
Right-of-use assets obtained in exchange for new operating lease liabilities	130,646		135,075
Right-of-use assets obtained in exchange for new finance lease liabilities	47,672		—

The future payments due under operating and finance leases as of September 30, 2023 are as follows:


	Operating Leases		Financing Leases
Due remainder of 2023	$	39,454	$	8,101
2024	137,439		29,997
2025	75,637		12,427
2026	52,744		3,041
2027	52,281		436
Thereafter	187,505		943
Total lease payments	$	545,060	$	54,945
Less: effects of discounting	135,552		4,075
Present value of lease liabilities	$	409,508	$	50,870

Current lease liability	$	114,536	$	27,760
Non-current lease liability	294,972		23,110

As of September 30, 2023, the weighted average remaining lease term for operating leases was 6.4 years and finance leases was 2.2 years. Because the Company generally does not have access to the rate implicit in the lease, the incremental borrowing rate is utilized as the discount rate. The weighted average discount rate associated with operating leases as of September 30, 2023 was 8.8% and as of December 31, 2022 was 8.5%. The weighted average discount rate associated with finance leases as of September 30, 2023 was 8.2% and as of December 31, 2022 was 5.1%.

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6. Financial instruments

Commodity risk management

The Company has utilized commodity swap transactions to manage exposure to changes in market pricing of natural gas or LNG. Realized and unrealized gains and losses on these transactions have been recognized in Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss).

During the fourth quarter of 2022, the Company entered into a commodity swap transaction to swap market pricing exposure for approximately 6.8 TBtus for a fixed price of $40.55 per MMBtu. The swap settled during the first quarter of 2023 resulting in a gain of $41,315 recognized as a reduction to Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss). The gain was comprised of a realized gain of $146,112 and the reversal of the unrealized gain of $104,797 recognized in the fourth quarter of 2022.

In January 2023, the Company entered into a series of commodity swap transactions. Mark-to-market unrealized gains of $975 for the three months ended September 30, 2023 and unrealized losses of $1,841 for the nine months ended September 30, 2023 on this instrument have been recognized in Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss).

Interest rate and currency risk management

The Company was party to an interest rate swap, and in the first quarter of 2023, the interest rate swap was terminated.

The Company does not hold or issue instruments for speculative purposes, and the counterparties to such contracts are major banking and financial institutions. Credit risk exists to the extent that the counterparties are unable to perform under the contracts; however, the Company does not anticipate non-performance by any counterparties.

The mark-to-market gain or loss on the interest rate swap and other derivative instruments that are not intended to mitigate commodity risk are reported in Other (income) expense, net in the condensed consolidated statements of operations and comprehensive income (loss).

Fair value

Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows:

•Level 1 – observable inputs such as quoted prices in active markets for identical assets or liabilities.

•Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs.

•Level 3 – unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants price the asset or liability.

The valuation techniques that may be used to measure fair value are as follows:

•Market approach – uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

•Income approach – uses valuation techniques, such as the discounted cash flow technique, to convert future amounts to a single present amount based on current market expectations about those future amounts.

•Cost approach – based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).

The Company uses the market approach when valuing investment in equity securities which is recorded in Other non-current assets on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022.

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The Company uses the income approach when valuing the following financial instruments:

◦Interest rate swap - The Company did not have any interest rate swaps outstanding as of September 30, 2023. As of December 31, 2022, the Company had an interest rate swap that was recorded within Other non-current assets on the condensed consolidated balance sheets.

◦The liability and asset associated with commodity swaps are recorded within Other current liabilities and Prepaid expenses and other current assets on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively.

◦Contingent consideration derivative liability represents consideration due to the sellers in asset acquisitions when certain contingent events occur. The liabilities associated with these derivative liabilities are recorded within Other current liabilities and Other long-term liabilities on the condensed consolidated balance sheets based on the timing of expected settlement.

The fair value of derivative instruments, including commodity swaps is estimated considering current interest rates, foreign exchange rates, closing quoted market prices and the creditworthiness of counterparties. The Company estimates fair value of the contingent consideration derivative liabilities using a discounted cash flows method with discount rates based on the average yield curve for bonds with similar credit ratings and matching terms to the discount periods as well as a probability of the contingent events occurring.

The following table presents the Company’s financial assets and financial liabilities, including those that are measured at fair value, as of September 30, 2023 and December 31, 2022:


	Level 1		Level 2		Level 3		Total
September 30, 2023
Assets
Investment in equity securities	$	—	$	—	$	7,678	$	7,678




Liabilities
Commodity swap	$	—	$	1,841	$	—	$	1,841
Contingent consideration derivative liabilities	—		—		40,946		40,946

December 31, 2022
Assets
Investment in equity securities	$	10,128	$	—	$	7,678	$	17,806
Interest rate swap	—		11,650		—		11,650
Commodity swap	—		104,797		—		104,797

Liabilities
Contingent consideration derivative liabilities	$	—	$	—	$	46,619	$	46,619

The Company believes the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of September 30, 2023 and December 31, 2022 and are classified as Level 1 within the fair value hierarchy.

The table below summarizes the fair value adjustment to instruments measured at Level 3 in the fair value hierarchy, including the contingent consideration derivative liabilities. These adjustments have been recorded within Other (income) expense, net in the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022:

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Contingent consideration derivative liabilities - Fair value adjustment - (gain) / loss	$	(2,722)	$	177	$	(5,757)	$	1,161
Foreign currency forward purchase - (gain)	—		(2,923)		—		(20,394)

During the nine months ended September 30, 2023 and 2022, the Company had no settlements or transfers in or out of Level 3 in the fair value hierarchy.

7. Restricted cash

As of September 30, 2023 and December 31, 2022, restricted cash consisted of the following:


	September 30, 2023		December 31, 2022
Cash restricted under the terms of loan agreements	$	3,825	$	124,085
Collateral for letters of credit and performance bonds	62,337		41,392
Collateral for interest rate swaps	—		2,500

Total restricted cash	$	66,162	$	167,977

Current restricted cash	$	66,162	$	165,396
Non-current restricted cash	—		2,581

As of September 30, 2023, the balance presented as collateral for letters of credit and performance bonds includes $21,300 to support a letter of credit to facilitate the purchase of turbines that was completed in the third quarter of 2023. A portion of these turbines will be utilized to support the Company's contract to generate temporary power in Puerto Rico.

Use of cash proceeds under the Barcarena Term Loan are restricted to certain payments to construct the Barcarena Power Plant (each as defined in our Annual Report). Non-current restricted cash is presented in Other non-current assets, net on the condensed consolidated balance sheets.

8. Inventory

As of September 30, 2023 and December 31, 2022, inventory consisted of the following:


	September 30, 2023		December 31, 2022
LNG and natural gas inventory	$	73,936	$	15,398
Automotive diesel oil inventory	9,848		8,164
Bunker fuel, materials, supplies and other	19,547		15,508
Total inventory	$	103,331	$	39,070

Inventory is adjusted to the lower of cost or net realizable value each quarter. Changes in the value of inventory are recorded within Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss). In the second quarter of 2023, the Company acquired a spot cargo at a higher cost to obtain a new customer contract. The net realizable value of this cargo was below the cost as of June 30, 2023, and as such, we recognized an adjustment to inventory of $6,232. No adjustments were recorded during the three months ended September 30, 2023 or the nine months ended September 30, 2022.

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9. Prepaid expenses and other current assets

As of September 30, 2023 and December 31, 2022, prepaid expenses and other current assets consisted of the following:


	September 30, 2023		December 31, 2022
Prepaid expenses	$	26,831	$	56,380
Recoverable taxes	68,748		37,504
Commodity swap	—		104,797
Due from affiliates	1,542		698
Assets held for sale	48,879		—
Other current assets	18,559		27,504
Total prepaid expenses and other current assets, net	$	164,559	$	226,883

Prepaid expenses as December 31, 2022 included $34,882 of prepaid LNG inventory. The Company does not have any significant prepaid LNG inventory as of September 30, 2023. Other current assets as of September 30, 2023 and December 31, 2022 primarily consists of deposits and the current portion of contract assets (Note 4).

Assets held for sale

In the third quarter of 2022, NFE Brazil Holdings LLC ("Brazil Holdings"), a consolidated indirect subsidiary of NFE and indirect owner of Pecém Energia S.A. (“Pecém”) and Energetica Camacari Muricy II S.A. (“Muricy”), and Centrais Elétricas de Pernambuco S.A. – EPESA (“EPESA”), entered into a Share Purchase Agreement pursuant to which Brazil Holdings agreed to sell 100% of the shares of Pecém and Muricy to EPESA, following an internal reorganization. The sale price includes cash consideration of BRL 59 million (approximately $12 million using the exchange rate as of September 30, 2023), as well as additional consideration for the satisfaction of certain milestones. Consideration under this agreement also includes potential future earnout payments based on the revenue generated from power purchase agreements held by Pecém and Muricy. The sale of Pecém and Muricy was approved by Agência Nacional de Energia Elétrica ("ANEEL") after the balance sheet date; the sale is subject to customary terms and conditions and conditions precedent prior to closing.

All assets and liabilities of Pecém and Muricy were classified as held for sale as of September 30, 2023 and December 31, 2022. The estimated fair value of these entities based on the consideration in the agreement was in excess of the carrying value, and no impairment loss was recognized upon classification as held for sale. Assets held for sale include a cash balance of $14,209 and $11,614 as of September 30, 2023 and December 31, 2022, respectively, which have been included in the ending cash and cash equivalents on the condensed consolidated statement of cash flows.

10. Equity method investments

Changes in the balance of the Company’s equity method investments is as follows:


	September 30, 2023
Equity method investments as of December 31, 2022	$	392,306

Dividends	(5,830)
Equity in earnings of investees	12,738

Sale of equity method investments	(260,156)

Equity method investments as of September 30, 2023	$	139,058

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The carrying amounts of the Company's equity method investments as of September 30, 2023 and December 31, 2022 are:


	September 30, 2023		December 31, 2022
Hilli LLC	$	—	$	260,000
Energos	139,058		132,306
Total	$	139,058	$	392,306

As of September 30, 2023, the carrying value of the Company’s equity method investment was less than its proportionate share of the underlying net assets of its investee by $1,548. At December 31, 2022, the carrying value of the Company’s equity method investments exceeded its proportionate share of the underlying net assets of its investees by $16,976, and the basis difference attributable to amortizable net assets was amortized to Income (loss) from equity method investments in the condensed consolidated statements of operations and comprehensive income (loss) over the remaining estimated useful lives of the underlying assets.

Hilli LLC

On March 15, 2023, the Company completed a transaction with Golar LNG Limited ("GLNG") for the sale of the Company's investment in the common units of Hilli LLC in exchange for approximately 4.1 million NFE shares and $100,000 in cash (the "Hilli Exchange"). In the fourth quarter of 2022, the Company recognized an other-than-temporary impairment on the investment in Hilli LLC of $118,558; this impairment was recognized in Income (loss) from equity method investments in the consolidated statements of operations and comprehensive income (loss). Upon completion of the Hilli Exchange, a loss on disposal of $37,401 was recognized in Other (income) expense, net in the condensed consolidated statements of operations and comprehensive income (loss). As a result of the Hilli Exchange, the Company no longer has an ownership interest in the Hilli. NFE shares received from GLNG were cancelled upon closing of the Hilli Exchange.

The Company had guaranteed 50% of the outstanding principal and interest amounts payable by Hilli Corp., a direct subsidiary of Hilli LLC. The Company had also guaranteed letters of credit issued by a financial institution in the event of Hilli Corp.’s underperformance or non-performance under the liquefaction tolling agreement with its customer. In conjunction with the Hilli Exchange, the Company is no longer a guarantor under these arrangements, and the remaining guarantee liability of $2,286 was derecognized as a reduction to Selling, general and administrative in the condensed consolidated statements of operations in the first quarter of 2023.

Energos

In August 2022, the Company completed a transaction (the “Energos Formation Transaction”) with an affiliate of Apollo Global Management, Inc., pursuant to which the Company transferred ownership of 11 vessel to Energos Infrastructure ("Energos") in exchange for approximately $1.85 billion in cash and a 20% equity interest in Energos. The Company's equity investment provides certain rights, including representation on the board of directors, which give the Company significant influence over the operations of Energos, and as such, the investment has been accounted for under the equity method; this investment is included within the Ships segment. Energos is also an affiliate, and all transactions with Energos are transactions with an affiliate.

Due to the timing and availability of financial information of Energos, the Company recognizes its proportional share of the income or loss from the equity method investment on a financial reporting lag of one fiscal quarter. For the three and nine months ended September 30, 2023, the Company has recognized earnings from Energos of $489 and $6,752.

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11. Construction in progress

The Company’s construction in progress activity during the nine months ended September 30, 2023 is detailed below:


	September 30, 2023
Construction in progress as of December 31, 2022	$	2,418,608

Additions	2,889,770

Impact of currency translation adjustment	13,811
Assets placed in service	(532,390)
Construction in progress as of September 30, 2023	$	4,789,799

Interest expense of $201,890 and $56,778, inclusive of amortized debt issuance costs, was capitalized for the nine months ended September 30, 2023 and 2022, respectively.

The Company has significant development activities in Latin America as well as the development of the Company's Fast LNG liquefaction solution, and the completion of such developments are subject to risks of successful completion, including those related to government approvals, site identification, financing, construction permitting and contract compliance. The Company's development activities for the nine months ended September 30, 2023 were primarily focused on Fast LNG and the construction of temporary power generation assets to support the Puerto Rican grid stabilization project; additions to construction in progress in the first nine months of 2023 of $2,569,197 were to develop Fast LNG projects and Puerto Rican temporary power.

Assets placed in service during 2023 are primarily comprised of assets to support our Puerto Rican temporary power project and our power plant at the Port of Pichilingue in Baja California Sur, Mexico.

12. Property, plant and equipment, net

As of September 30, 2023 and December 31, 2022, the Company’s property, plant and equipment, net consisted of the following:


	September 30, 2023		December 31, 2022
Vessels	$	1,527,684	$	1,518,839
Terminal and power plant equipment	430,883		218,296
CHP facilities	273,978		123,897
Gas terminals	179,103		177,780
ISO containers and other equipment	148,756		134,324
LNG liquefaction facilities	63,316		63,316
Gas pipelines	66,319		65,985
Land	52,759		52,995
Leasehold improvements	152,962		9,377
Accumulated depreciation	(331,889)		(248,082)
Total property, plant and equipment, net	$	2,563,871	$	2,116,727

The book value of the vessels that was recognized due to the failed sale leaseback in the Energos Formation Transaction as of September 30, 2023 and December 31, 2022 was $1,308,795 and $1,328,553, respectively.

Depreciation expense for the three months ended September 30, 2023 and 2022 totaled $36,705 and $26,326, respectively, of which $230 and $222, respectively, is included within Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss). Depreciation expense for the nine months ended September 30, 2023 and 2022 totaled $92,980 and $78,393, respectively, of which $693 and $749, respectively, is included within Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss).

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13. Goodwill and intangible assets

Goodwill

The carrying amount of goodwill was $776,760 as of both September 30, 2023 and December 31, 2022.

Intangible assets

The following tables summarize the composition of intangible assets as of September 30, 2023 and December 31, 2022:


	September 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Currency Translation Adjustment		Net Carrying Amount		Weighted Average Life
Definite-lived intangible assets
Favorable vessel charter contracts	$	106,500	$	(82,373)	$	—	$	24,127	3
Permits and development rights	48,217		(5,020)		(2,207)		40,990		38

Easements	1,556		(330)		—		1,226		30

Indefinite-lived intangible assets
Easements	1,191		—		(91)		1,100		n/a
Total intangible assets	$	157,464	$	(87,723)	$	(2,298)	$	67,443


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Currency Translation Adjustment		Net Carrying Amount		Weighted Average Life
Definite-lived intangible assets
Favorable vessel charter contracts	$	106,500	$	(64,836)	$	—	$	41,664	3
Permits and development rights	48,217		(4,115)		(2,239)		41,863		38
Easements

New Fortress Energy Inc. [NFE] Filings
10-Q	[2023-11-09]
10-Q	[2023-08-08]
10-Q	[2023-05-04]
10-K	[2023-03-01]
10-Q	[2022-11-08]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-03-01]
10-Q	[2021-11-03]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-03-16]
10-Q	[2020-10-29]
10-Q	[2020-08-04]
10-Q	[2020-05-06]
10-K	[2020-03-04]
10-Q	[2019-11-12]
10-Q	[2019-08-13]
10-Q	[2019-05-15]
10-K	[2019-03-26]
S-1	[2018-11-09]