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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 March 31, 2024
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, 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 classTrading Symbol(s)Name of each exchange on which registered
Class A common stock
NFE
Nasdaq Global Select Market
As of May 6, 2024, the registrant had 205,063,510 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:
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;
any future pandemic or any other major health and safety incident;
iv

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 common stock; 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, 2023 (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.


v

PART I
FINANCIAL INFORMATION
Item 1.    Financial Statements.
New Fortress Energy Inc.
Condensed Consolidated Balance Sheets
As of March 31, 2024 and December 31, 2023
(Unaudited, in thousands of U.S. dollars, except share amounts)
March 31, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$143,457 $155,414 
Restricted cash171,476 155,400 
Receivables, net of allowances of $12,828 and $1,158, respectively
335,313 342,371 
Inventory186,584 113,684 
Prepaid expenses and other current assets, net201,953 213,104 
Total current assets1,038,783 979,973 
Construction in progress5,797,511 5,348,294 
Property, plant and equipment, net2,175,882 2,481,415 
Equity method investments 137,793 
Right-of-use assets726,391 588,385 
Intangible assets, net211,854 51,815 
Goodwill776,760 776,760 
Deferred tax assets, net27,549 9,907 
Other non-current assets, net125,632 126,903 
Total assets$10,880,362 $10,501,245 
Liabilities
Current liabilities
Current portion of long-term debt and short-term borrowings$291,518 $292,625 
Accounts payable524,535 549,489 
Accrued liabilities417,612 471,675 
Current lease liabilities147,793 164,548 
Other current liabilities185,415 227,951 
Total current liabilities1,566,873 1,706,288 
Long-term debt6,734,860 6,510,523 
Non-current lease liabilities552,619 406,494 
Deferred tax liabilities, net93,083 44,444 
Other long-term liabilities36,645 55,627 
Total liabilities8,984,080 8,723,376 
Commitments and contingencies (Note 21)
Series A convertible preferred stock, $0.01 par value, 96,746 shares authorized, issued and outstanding as of March 31, 2024 (0 as of December 31, 2023); aggregate liquidation preference of $96,746 and $0 at March 31, 2024 and December 31, 2023
96,655  
Stockholders’ equity
Class A common stock, $0.01 par value, 750 million shares authorized, 205.0 million issued and outstanding as of March 31, 2024; 205.0 million issued and outstanding as of December 31, 2023
2,050 2,050 
Additional paid-in capital1,043,652 1,038,530 
Retained earnings561,422 527,986 
Accumulated other comprehensive income 64,179 71,528 
Total stockholders’ equity attributable to NFE1,671,303 1,640,094 
Non-controlling interest128,324 137,775 
Total stockholders’ equity1,799,627 1,777,869 
Total liabilities, convertible preferred stock and stockholders’ equity$10,880,362 $10,501,245 
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
For the three months ended March 31, 2024 and 2023
(Unaudited, in thousands of U.S. dollars, except share and per share amounts)
Three Months Ended March 31,
20242023
Revenues
Operating revenue$609,504 $501,688 
Vessel charter revenue46,655 76,524 
Other revenue34,162 919 
Total revenues690,321 579,131 
Operating expenses
Cost of sales (exclusive of depreciation and amortization shown separately below)229,117 184,938 
Vessel operating expenses8,396 13,291 
Operations and maintenance68,548 26,671 
Selling, general and administrative70,754 52,138 
Transaction and integration costs1,371 494 
Depreciation and amortization50,491 34,375 
Loss on sale of assets, net77,140  
Total operating expenses505,817 311,907 
Operating income184,504 267,224 
Interest expense77,344 71,673 
Other expense, net19,112 25,005 
Loss on extinguishment of debt, net9,754  
Income before income from equity method investments and income taxes78,294 170,546 
Income from equity method investments 9,980 
Tax provision21,624 28,960 
Net income56,670 151,566 
Net (income) attributable to non-controlling interest(2,589)(1,360)
Net income attributable to stockholders$54,081 $150,206 
Net income per share – basic$0.26 $0.72 
Net income per share – diluted$0.26 $0.71 
Weighted average number of shares outstanding – basic205,061,967 208,707,385 
Weighted average number of shares outstanding – diluted205,977,720 209,325,619 
Other comprehensive income:
Currency translation adjustment$(7,708)$2,141 
Comprehensive income 48,962 153,707 
Comprehensive (income) attributable to non-controlling interest(2,230)(1,555)
Comprehensive income attributable to stockholders$46,732 $152,152 

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 months ended March 31, 2024 and 2023
(Unaudited, in thousands of U.S. dollars, except share amounts)
Series A convertible preferred stockClass A common stockAdditional
paid-in
capital
Retained earningsAccumulated other
comprehensive
income
Non-
controlling
interest
Total
stockholders’ equity
SharesAmountShares Amount
Balance as of December 31, 2023 $ 205,031,406 $2,050 $1,038,530 $527,986 $71,528 $137,775 $1,777,869 
Net income— — — — — 54,081 — 2,589 56,670 
Other comprehensive income— — — — — — (7,349)(359)(7,708)
Share-based compensation expense— — — — 5,248 — — — 5,248 
Issuance of shares for vested share-based compensation awards— — 14,126 — — — — — — 
Shares withheld from employees related to share-based compensation, at cost— — (3,708)— (126)— — — (126)
Issuance of Series A convertible preferred stock, net
96,746 96,513 — — — — — — — 
Dividends— 142 — — — (20,645)— (11,681)(32,326)
Balance as of March 31, 202496,746 $96,655 205,041,824 $2,050 $1,043,652 $561,422 $64,179 $128,324 $1,799,627 

Class A common stockAdditional
paid-in
capital
Retained earningsAccumulated other
comprehensive income
Non-
controlling
interest
Total
stockholders’
equity
Shares Amount
Balance as of December 31, 2022208,770,088 $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, 2023204,670,088 $2,047 $1,047,541 $191,819 $57,344 $150,575 $1,449,326 




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 three months ended March 31, 2024 and 2023
(Unaudited, in thousands of U.S. dollars)
Three Months Ended March 31,
2024 2023
Cash flows from operating activities
Net income$56,670 $151,566 
Adjustments for:
Depreciation and amortization50,491 34,608 
Deferred taxes(6,822) 
Share-based compensation5,248  
Movement in credit loss allowances
11,588 (167)
Loss on asset sales77,140  
Loss on extinguishment of debt9,754  
(Earnings) recognized from vessels chartered to third parties transferred to Energos(23,952)(31,954)
Loss on the disposal of equity method investment7,222 37,401 
Other12,697 (2,743)
Changes in operating assets and liabilities:
(Increase) decrease in receivables
(8,656)28,136 
(Increase) in inventories(85,539)(2,271)
(Increase) in other assets(19,394)(27,966)
Decrease in right-of-use assets57,190 13,336 
Increase (decrease) in accounts payable/accrued liabilities63,208 (43,400)
(Decrease) in amounts due to affiliates(3,479)(2,519)
(Decrease) in lease liabilities(62,090)(9,709)
(Decrease) increase in other liabilities(71,226)55,822 
Net cash provided by operating activities70,050 200,140 
Cash flows from investing activities
Capital expenditures(683,449)(563,268)
Sale of equity method investment136,365 100,000 
Asset sales328,999  
Other investing activities(1,695) 
Net cash used in investing activities(219,780)(463,268)
Cash flows from financing activities
Proceeds from borrowings of debt2,164,687 700,000 
Payment of deferred financing costs(25,781)(5,903)
Repayment of debt(1,944,044)(1,080)
Payment of dividends(32,326)(649,796)
Other financing activities(4,919) 
Net cash provided by financing activities157,617 43,221 
Impact of changes in foreign exchange rates on cash and cash equivalents(3,768)948 
Net increase (decrease) in cash, cash equivalents and restricted cash4,119 (218,959)
Cash, cash equivalents and restricted cash – beginning of period310,814 855,083 
Cash, cash equivalents and restricted cash – end of period$314,933 $636,124 
4

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$(117,304)$348,737 
Accounts payable and accrued liabilities associated with construction in progress and property, plant and equipment additions
623,318 773,707 
Principal payments on financing obligation to Energos by third party charters(2,912)(11,648)
Shares received in Hilli Exchange (122,754)
Class A convertible preferred stock issued and debt assumed in the PortoCem Acquisition(125,198) 
The following table identifies the balance sheet line-items included in Cash and cash equivalents and Restricted cash presented in the Condensed Consolidated Statement of Cash Flows:
Three Months Ended March 31,
20242023
Cash and cash equivalents$143,457 $296,860 
Restricted cash171,476 325,298 
Cash and cash equivalents classified as held for sale 13,966 
Cash, cash equivalents and restricted cash – end of period$314,933 $636,124 
















The accompanying notes are an integral part of these condensed consolidated financial statements.
5


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, 2023 (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
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses and other segment items that are regularly provided to the CODM and included within each reported measure of segment profit or loss, and the title and position of the entity’s CODM. The amendments in this update also require entities to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments in this update are required to be applied retrospectively to all periods presented in the financial statements, unless it is impracticable. The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on the Company's consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requiring companies to annually disclose specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires disclosure of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, and early adoption is permitted. The amendments should be applied on a prospective basis, but retrospective application is permitted. The Company is currently reviewing the impact that the adoption of ASU 2023-09 may have on the Company's consolidated financial statements and disclosures.
In March 2024, the FASB issued ASU 2024-01, Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, providing illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements within the scope of Topic 718. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted, and the amendments can be applied on a prospective or retrospective basis. The Company is currently reviewing the impact that the adoption of ASU 2024-01 may have on the Company's consolidated financial statements and disclosures.
6

The Company has reviewed all other 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.
4. Asset acquisition and redeemable preferred stock
On March 20, 2024, the Company completed transactions pursuant to an agreement among the Company, Ceiba Energy Fundo de Investimento em Participações Multiestratégia - Investimento no Exterior (“Ceiba Energy”) and PortoCem Geração de Energia S.A., a wholly-owned subsidiary of Ceiba Energy (“PortoCem”), pursuant to which the Company issued to Ceiba Energy 96,746 shares of 4.8% Series A Convertible Preferred Stock of the Company (the “Series A Convertible Preferred Stock”), and assumed certain of PortoCem’s existing indebtedness in exchange for all outstanding equity interests in PortoCem, the owner of a 15-year 1.6GW capacity reserve contract in Brazil (the “PortoCem Acquisition”).
The PortoCem Acquisition was accounted for as an asset acquisition. As a result, no goodwill was recorded, and the Company’s acquisition-related costs of $592 were included in the purchase consideration. The total purchase consideration of $162,860, which was comprised of the value of the Series A Convertible Preferred Stock issued, PortoCem BTG Loan assumed (defined in Note 19) and deferred tax liability of $37,662 recognized as a result of the acquisition, was allocated to acquired capacity reserve contract within Intangible assets, net.
Series A Convertible Preferred Stock
The Series A Convertible Preferred Stock has a liquidation preference of $1,000 per share and is not subject to any sinking fund. The Series A Convertible Preferred Stock has no stated maturity and will remain outstanding indefinitely unless redeemed or repurchased by the Company or converted into shares of Class A common stock.
Dividend rights
The Series A Convertible Preferred Stock ranks senior to the shares of the Company’s common stock, with respect to dividend rights and rights upon any voluntary or involuntary liquidation, dissolution or winding up of the Company. Holders of Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 4.8% per annum, which is payable quarterly in arrears. If the Company does not declare and pay a dividend, the dividend rate will increase to 6.8% per annum until all accrued but unpaid dividends have been paid in full.
Conversion features
The Series A Convertible Preferred Stock may be converted by each holder, in whole or in minimum increments of 5,000 shares, at any time into a number of shares of Class A common stock per share of Series A Convertible Preferred Stock equal to the quotient of $1,000 per share plus any accumulated and unpaid dividends thereon and the then applicable conversion price. The initial conversion price is $47.43 per share of Class A common stock, subject to customary anti-dilution adjustments.
Redemption rights
Upon the occurrence of certain events, the holders constituting at least a majority of the outstanding voting power of the Series A Convertible Preferred Stock may require the Company to repurchase the Series A Convertible Preferred Stock, in whole but not in part, for cash or shares of Class A common stock (or any combination thereof) at a repurchase price of $1,000 per share plus any accumulated and unpaid dividends thereon. Contingent events that would allow the holders to require repurchase by the Company include:
change in control, downgrade in the credit rating of certain of the Company's debt or if certain financial leverage ratios aren't achieved ("Change Event");
as of the 30th trading day following March 20, 2027, if the arithmetic average of the daily volume-weighted average price of the Company's common stock for the thirty consecutive trading day period beginning on first trading day following March 20, 2027 is less than the then-applicable conversion price ("Share Price Condition").
7

If the Series A Convertible Preferred Stock is to be repurchased by the Company, the majority of the holders of the Series A Convertible Preferred Stock may require the Company to repurchase the Series A Convertible Preferred Stock for shares of Class A common stock.
The Series A Convertible Preferred Stock may be redeemed by the Company, in whole but not in part, at its option upon 45 days’ written notice as follows:
on or before March 20, 2027 at a redemption price equal to the greater of (i) $1,000 per share plus any accumulated and unpaid dividends and (ii) the cash amount necessary per share for a holder to achieve a Return on Investment (as defined in the Certificate of Designations) as of the redemption date equal to 1.4;
after the 30th trading day following March 20, 2027 if the Share Price Condition is not met or (y) 30 calendar days after the delivery of the required notice if the Share Price Condition is met, in each case, at a redemption price equal to $1,000 per share plus any accumulated and unpaid dividends;
occurrence of a Change Event at a redemption price equal to $1,000 per share plus any accumulated and unpaid dividends.
The Company may redeem the Series A Convertible Preferred Stock for cash or shares of Class A common stock (or any combination thereof); provided that for a redemption prior to March 20, 2027 due to a Change Event, a majority of the holders of the Series A Convertible Preferred Stock may require the Company to redeem for cash or shares of Class A common stock.
Since the redemption of the Series A Convertible Preferred Stock is contingently redeemable and therefore not certain to occur, the Series A Convertible Preferred Stock is not required to be classified as a liability. The Series A Convertible Preferred Stock is redeemable at the option of the holder in certain circumstances upon the occurrence of an event that is not solely within the Company's control, and as such, the Series A Convertible Preferred Stock is classified as mezzanine equity on the Condensed Consolidated Balance Sheets.
Voting rights
Holders of Series A Convertible Preferred Stock are generally entitled to vote with the holders of common stock on an as-converted basis. Holders of Series A Convertible Preferred Stock are entitled to a separate class vote with respect to amendments to the Company’s organizational documents that adversely affect the rights, preferences or voting powers of the Series A Convertible Preferred Stock.
5. Asset sale
In March 2024, the Company completed a suite of transactions that included the sale of turbines and related equipment to the Puerto Rico Electric Power Authority ("PREPA") under an Asset Purchase Agreement ("APA"). The Company deployed this equipment in 2023 in response to a request to provide emergency power to stabilize the power grid in Puerto Rico. The purchase price was $306,599. Additionally, the APA includes a requirement that the Company provide major maintenance services on certain of the sold turbines within 12 months of the sale date; the standalone selling price of these maintenance services of $15,330 will be recognized when these services are performed, and the transaction price allocated to the sale of turbines was reduced by this amount. The book value of the turbines and equipment at the time of sale was $368,799, and the Company recognized a loss of $77,530 in Loss on sale of assets, net in the Condensed Consolidated Statements of Operations and Comprehensive Income.
A portion of the assets sold to PREPA were previously leased by the Company. To facilitate the sale of these leased turbines, the Company terminated leases, acquiring turbines and equipment immediately prior to the sale of such turbines and equipment to PREPA. The cost to acquire the leased turbines, including the write-off of the right-of-use asset and lease liability were included in the book value of the turbines and the related loss upon sale.
As part of these transactions, the Company repaid the Equipment Notes (See Note 19) that were collateralized by the sold turbines, recognizing a loss on extinguishment of debt of $7,879, which was comprised of fees due upon prepayment as well as the unamortized portion of financing costs incurred at the inception of the loan.
8

The Company's contract to provide emergency power services to support the grid stabilization project was also terminated. All unrecognized contract liabilities and cost to fulfil at the time of termination were recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (See Note 6). The Company believes that there are remedies available under the customer contract, and is currently in pursuit of these remedies. As the result of this process is uncertain, any transaction price associated with closing this contract has been fully constrained. The Company has been awarded a new gas sale agreement with PREPA under which the Company will continue to provide gas supply to the sold turbines.
6. Revenue recognition
Operating revenue in the Condensed Consolidated Statements of Operations and Comprehensive Income 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. LNG cargo sales for the three months ended March 31, 2023 were $349,361, of which $169,500 was recognized for a cancellation fee received from a customer to cancel a future delivery. The Company did not complete any cargo sales in the first quarter of 2024, and all volumes sold were delivered through the Company's terminals.
The table below summarizes the balances in Other revenue:
Three Months Ended March 31,
20242023
Interest income and other revenue$4,931 $919 
Operation and maintenance revenue29,231  
Total other revenue$34,162 $919 
Operation and maintenance revenue is recognized by the Company's subsidiary, Genera PR LLC ("Genera"), under its contract for the operation and maintenance of PREPA's thermal generation assets. Under this agreement, Genera is paid a fixed annual fee and reimbursed for pass-through expenses, including payroll expenses of Genera employees, beginning when the contract commenced on July 1, 2023. Amounts recognized in the first quarter of 2024 include fixed fees and the reimbursement of pass-through expenditures, and all variable consideration was fully constrained as of March 31, 2024.

Under most customer contracts, invoicing occurs once the Company’s performance obligations have been satisfied, at which point payment is unconditional. As of March 31, 2024 and December 31, 2023, receivables related to revenue from contracts with customers totaled $328,064 and $331,108, respectively, and were included in Receivables, net on the Condensed Consolidated Balance Sheets, net of current expected credit losses of $12,828 and $1,158, respectively. During the first quarter of 2024, the Company recorded an additional allowance for uncollectible receivables of $11,595. The allowance reduces outstanding receivables for certain customers to reflect the amount that the Company expects to receive. 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 March 31, 2024 and December 31, 2023 are detailed below:
9

March 31, 2024December 31, 2023
Contract assets, net - current$8,865 $8,714 
Contract assets, net - non-current17,738 19,901 
Total contract assets, net$26,603 $28,615 
Contract liabilities, net - current$10,242 $65,287 
Contract liabilities, net - non-current12,578 31,698 
Total contract liabilities, net$22,820 $96,985 
Revenue recognized in the year from:
Amounts included in contract liabilities at the beginning of the year$80,162 $12,748 
Contract assets are presented net of expected credit losses of $376 and $326 as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, contract assets was comprised of $26,376 and $28,536 of unbilled receivables, respectively, which represent unconditional rights to payment only subject to the passage of time.
Contract liabilities decreased in the first quarter of 2024 due to the termination of the Company's contract to support the grid stabilization project in Puerto Rico (Refer to Note 5 - Asset sale). Deferred revenue at the time of termination of $43,577 was recognized as Operating revenue in the Condensed Consolidated Statements of Operations and Comprehensive Income.
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 March 31, 2024, the Company has capitalized $23,802 of which $2,199 of these costs is presented within Prepaid expenses and other current assets, net and $21,603 is presented within Other non-current assets, net on the Condensed Consolidated Balance Sheets. As of December 31, 2023, the Company had capitalized $25,282, of which $2,864 of these costs was presented within Prepaid expenses and other current assets, net and $22,418 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
10

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:
PeriodRevenue
Remainder of 2024
$392,201 
2025689,179 
2026687,236 
2027683,546 
2028668,315 
Thereafter9,227,248 
Total$12,347,725 
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 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 in Note 14. Vessels included in the Energos Formation Transaction (defined below in Note 12), including those vessels chartered to third parties, continue to be recognized on the Condensed Consolidated Balance Sheets. The carrying amount of these vessels that are leased to third parties under operating leases is as follows:
March 31, 2024December 31, 2023
Property, plant and equipment$686,683 $686,683 
Accumulated depreciation(76,569)(69,977)
Property, plant and equipment, net$610,114 $616,706 
The components of lease income from vessel operating leases for the three months ended March 31, 2024 and 2023 are shown below. As the Company has not recognized the sale of all of the vessels included in the Energos Formation Transaction (defined below), the operating lease income for the three months ended March 31, 2024 and March 31, 2023 includes revenue of $42,584 and $76,524 from third-party charters of vessels included in the Energos Formation Transaction.
Three Months Ended March 31,
20242023
Operating lease income$43,359 $76,524 
Variable lease income3,296  
Total operating lease income$46,655 $76,524 
Subsequent to the Energos Formation Transaction, all cash receipts on long-term vessel charters will be received by Energos. As such, future cash receipts from operating leases both operating and finance leases are not significant as of March 31, 2024.
11

7. 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 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 March 31, 2024 and December 31, 2023, ROU assets, current lease liabilities and non-current lease liabilities consisted of the following:
March 31, 2024 December 31, 2023
Operating right-of-use-assets$704,463 $538,055 
Finance right-of-use-assets (1)
21,928 50,330 
Total right-of-use assets$726,391 $588,385 
Current lease liabilities:
Operating lease liabilities$142,523 $135,867 
Finance lease liabilities5,270 28,681 
Total current lease liabilities$147,793 $164,548 
Non-current lease liabilities:
Operating lease liabilities$545,267 $390,519 
Finance lease liabilities7,352 15,975 
Total non-current lease liabilities$552,619 $406,494 
(1) Finance lease ROU assets are recorded net of accumulated amortization of $4,217 and $21,470 as of March 31, 2024 and December 31, 2023, respectively.
During the first quarter of 2024, the Company terminated the finance lease of certain turbines and purchased the turbines from the lessor. Immediately subsequent to the purchase of the turbines, the assets were sold as part of the sale of assets to PREPA (Refer to Note 5). The termination of the lease resulted in the write-off of the right-of-use asset and lease liability of $24,339 and $29,443, respectively, which was included in the book value of the turbines and the related loss upon sale.
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For the three months ended March 31, 2024 and 2023, the Company’s operating lease cost recorded within the Condensed Consolidated Statements of Operations and Comprehensive Income was as follows:
Three Months Ended March 31,
20242023
Fixed lease cost$33,094 $16,368 
Variable lease cost1,636 597 
Short-term lease cost3,026 3,549 
Lease cost - Cost of sales$26,002 $15,754 
Lease cost - Operations and maintenance9,573 2,841 
Lease cost - Selling, general and administrative2,181 1,919 
For the three months ended March 31, 2024 and 2023, the Company has capitalized $14,929 and $4,256 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 ISO tanks and a parcel of land that are recognized as finance leases. For the three months ended March 31, 2024 and 2023, 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 were as follows:
Three Months Ended March 31,
20242023
Interest expense related to finance leases$598 $468 
Amortization of right-of-use asset related to finance leases4,971 1,789 
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 three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
20242023
Operating cash outflows for operating lease liabilities$53,140 $24,849 
Financing cash outflows for finance lease liabilities3,928 372 
Right-of-use assets obtained in exchange for new operating lease liabilities200,071 65,040 
Right-of-use assets obtained in exchange for new finance lease liabilities 49,999 
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The future payments due under operating and finance leases as of March 31, 2024 are as follows:
Operating LeasesFinancing Leases
Due remainder of 2024
$155,610 $4,572 
2025157,880 4,797 
2026110,472 3,041 
2027110,009 436 
2028109,509 89 
Thereafter337,864 848 
Total lease payments$981,344 $13,783 
Less: effects of discounting293,554 1,161 
Present value of lease liabilities$687,790 $12,622 
Current lease liability$142,523 $5,270 
Non-current lease liability545,267 7,352 
As of March 31, 2024, the weighted average remaining lease term for operating leases was 7.0 years and finance leases was 3.4 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 March 31, 2024 was 10.3% and as of December 31, 2023 was 10.1%. The weighted average discount rate associated with finance leases as of March 31, 2024 was 5.2% and as of December 31, 2023 was 8.2%.
8. Financial instruments
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. The Company does not have outstanding commodity swaps as of March 31, 2024 and December 31, 2023.
During the first quarter of 2024, the Company entered into a series of foreign exchange forward contracts to reduce exchange rate risk associated with U.S. dollar borrowings that will be utilized to fund expected Brazilian real capital expenditures. The notional of the forwards is approximately $71,111, and the Company recognized unrealized loss of $822 for the three months ended March 31, 2024. These forwards are expected to settle within 2024.
The mark-to-market gain or loss on the foreign exchange contracts and other derivative instruments that are not intended to mitigate commodity risk are reported in Other expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income.
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.
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.
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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 and foreign exchange forward contracts which are recorded in Other non-current assets and Other current liabilities on the Condensed Consolidated Balance Sheets, respectively.
The Company uses the income approach for valuing the contingent consideration derivative liabilities. The liabilities represent consideration due to the sellers in asset acquisitions when certain contingent events occur and are recorded within Other current liabilities and Other long-term liabilities based on the timing of expected settlement.
The fair value of derivative instruments 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 March 31, 2024 and December 31, 2023:
Level 1Level 2Level 3Total
March 31, 2024
Assets
Investment in equity securities$ $ $8,678 $8,678 
Liabilities
Foreign exchange contracts 822  822 
Contingent consideration derivative liabilities  36,420 36,420 
December 31, 2023
Assets
Investment in equity securities$ $ $7,678 $7,678 
Liabilities
Contingent consideration derivative liabilities  37,83237,832
The Company believes the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of March 31, 2024 and December 31, 2023 and are classified as Level 1 within the fair value hierarchy.
The table below summarizes the fair value adjustment to instruments measured at Level 3 in the fair value hierarchy. These adjustments have been recorded within Other expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2024 and 2023:
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Three Months Ended March 31,
20242023
Contingent consideration derivative liabilities - Fair value adjustment - (gain)$(636)$(3,013)
During the three months ended March 31, 2024 and 2023, the Company had no transfers in or out of Level 3 in the fair value hierarchy. During the first quarter of 2024, the Company sold substantially all of its investment in Energos; this investment had been accounted for as an equity method investment (refer to Note 12). The Company retained an investment in Energos valued at $1,000, which is shown as a Level 3 investment in equity securities in the table above.
9. Restricted cash
As of March 31, 2024 and December 31, 2023, restricted cash consisted of the following:
March 31, 2024December 31, 2023
Cash restricted under the terms of loan agreements$114,633 $102,079 
Collateral for letters of credit and performance bonds56,843 53,321 
  Total restricted cash$171,476 $155,400 
Uses of cash proceeds under the BNDES Term Loan and Barcarena Debentures (see Note 19) are restricted to certain payments to construct the Barcarena Power Plant.
10. Inventory
As of March 31, 2024 and December 31, 2023, inventory consisted of the following:
March 31, 2024December 31, 2023
LNG and natural gas inventory$141,843 $75,417 
Automotive diesel oil inventory9,884 10,121 
Bunker fuel, materials, supplies and other34,857 28,146 
Total inventory$186,584 $113,684 
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. No adjustments were recorded during the three months ended March 31, 2024 and 2023.
11. Prepaid expenses and other current assets
As of March 31, 2024 and December 31, 2023, prepaid expenses and other current assets consisted of the following:
March 31, 2024December 31, 2023
Prepaid expenses$27,148 $31,490 
Recoverable taxes108,684 80,630 
Due from affiliates1,781 1,566 
Assets held for sale 21,265 
Other current assets64,340 78,153 
Total prepaid expenses and other current assets, net$201,953 $213,104 
During the fourth quarter of 2023, the Company began to sub-charter the Winter, a vessel included in the Energos Formation Transaction, and an asset was recorded representing the existing charterer's remaining payments to Energos,
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which was $59,074 as of December 31, 2023. The Company also recognized a liability of $49,400 (see Note 18) as of December 31, 2023 representing the Company's obligation to pay sub-charter payments until the vessel is chartered directly from Energos. The balance of the asset and liability as of March 31, 2024 was $44,305 and $32,149, respectively.
The remaining balance of other current assets as of March 31, 2024 and December 31, 2023 primarily consists of deposits, as well as the current portion of contract assets (Note 6).
Assets held for sale
In December 2023, the Company entered into an agreement to sell the vessel, Mazo, for $22,400, and the vessel was classified as held for sale as of December 31, 2023. In conjunction with the classification to held for sale, the Company recognized an impairment of $10,958 within Asset impairment expense in the Consolidated Statement of Operations and Comprehensive income for the year-ended December 31, 2023. The sale was completed in the first quarter of 2024, and the Company recognized a gain of $391 within Loss on sale of assets, net in the Condensed Consolidated Statements of Operations and Comprehensive Income.
12. Equity method investments
In August 2022, the Company completed a transaction with an affiliate of Apollo Global Management, Inc., pursuant to which the Company transferred ownership of 11 vessels to Energos Infrastructure ("Energos") in exchange for approximately $1.85 billion in cash and a 20% equity interest in Energos (the “Energos Formation Transaction”). The Company's equity investment provided certain rights, including representation on the Energos board of directors, that gave the Company significant influence over the operations of Energos, and as such, the investment was accounted for under the equity method. Energos was also an affiliate, and all transactions with Energos were transactions with an affiliate.
Changes in the balance of the Company’s equity method investment in Energos is as follows:
March 31, 2024
Equity method investments as of December 31, 2023
$137,793 
Capital contribution6,794 
Sale of equity method investment(144,587)
Equity method investments as of March 31, 2024
$ 
In February 2024, the Company sold substantially all of its stake in Energos. As a result of the transaction, the Company recognized an other than temporary impairment ("OTTI") of the investment in Energos totaling $5,277, and this loss was recognized in Income (loss) from equity method investments in the Consolidated Statement of Operations and Comprehensive income for the year-ended December 31, 2023. The sale was completed on February 14, 2024 and the Company received proceeds of $136,365, resulting in a loss of $7,222 presented within Other expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income. The Company retained an investment in Energos valued at $1,000, which has been recognized within Other non-current assets. Following the disposition of substantially all of the stake in Energos, the Company no longer has significant influence over Energos.
13. Construction in progress
The Company’s construction in progress activity during the three months ended March 31, 2024 is detailed below:
March 31, 2024
Construction in progress as of December 31, 2023
$5,348,294 
Additions481,081 
Impact of currency translation adjustment(14,633)
Assets placed in service(17,231)
Construction in progress as of March 31, 2024
$5,797,511 
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Interest expense of $104,212 and $50,976, inclusive of amortized debt issuance costs, was capitalized for the three months ended March 31, 2024 and 2023, 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 three months ended March 31, 2024 were primarily focused on Fast LNG; additions to construction in progress in the first quarter of 2024 of $259,724 were to develop Fast LNG projects.
14. Property, plant and equipment, net
As of March 31, 2024 and December 31, 2023, the Company’s property, plant and equipment, net consisted of the following:
March 31, 2024December 31, 2023
Vessels$1,494,087 $1,494,433 
Terminal and power plant equipment206,897 430,883 
Power facilities
275,005 273,978 
Gas terminals180,800 179,103 
ISO containers and other equipment157,374 156,925 
LNG liquefaction facilities58,752 63,316 
Gas pipelines66,319 66,319 
Land50,734 54,324 
Leasehold improvements72,829 139,967 
Accumulated depreciation(386,915)(377,833)
Total property, plant and equipment, net$2,175,882 $2,481,415 
The book value of the vessels that were recognized due to the failed sale leaseback in the Energos Formation Transaction as of March 31, 2024 and December 31, 2023 was $1,286,555 and $1,293,384, respectively. The reduction to terminal and power plant equipment and leasehold improvements reflects the sale of turbines to PREPA (Note 5).
Depreciation expense for the three months ended March 31, 2024 and 2023 totaled $44,525 and $26,000, respectively, of which $261 and $231, respectively, is included within Cost of sales in the Condensed Consolidated Statements of Operations and Comprehensive Income.
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15. Goodwill and intangible assets
Goodwill
The carrying amount of goodwill was $776,760 as of both March 31, 2024 and December 31, 2023.
Intangible assets
The following tables summarize the composition of intangible assets as of March 31, 2024 and December 31, 2023:
March 31, 2024
Gross Carrying
Amount
Accumulated
Amortization
Currency Translation
Adjustment
Net Carrying
Amount
Weighted
Average Life
Definite-lived intangible assets
Acquired capacity reserve contract
$162,045 $ $ $162,045 17
Permits and development rights48,217 (5,662)(1,428)41,127 38
Favorable vessel charter contracts17,700 (11,342) 6,358 4
Easements1,551 (348) 1,203 30
Indefinite-lived intangible assets
Easements1,191 — (70)1,121 n/a
Total intangible assets$230,704 $(17,352)$(1,498)$211,854 
December 31, 2023
Gross Carrying
Amount
Accumulated
Amortization
Currency Translation
Adjustment
Net Carrying
Amount
Weighted
Average Life
Definite-lived intangible assets
Favorable vessel charter contracts$17,700 $(10,615)$ $7,085 4
Permits and development rights48,217 (5,557)(291)42,369 38
Easements1,555 (341) 1,214 30
Indefinite-lived intangible assets
Easements1,191 — (44)1,147 n/a
Total intangible assets$68,663 $(16,513)$(335)$51,815 
Amortization expense for the three months ended March 31, 2024 and 2023 was $995 and $6,796, respectively which were inclusive of reductions in expense for the amortization of unfavorable contract liabilities.
In the third quarter of 2023, An Bord Pleanála, Ireland's planning commission, denied the Company's application for the development of an LNG terminal and power plant in Shannon, Ireland. The Company is challenging this decision. Capitalized permits and development rights are primarily comprised of capitalized costs related to this project. The continued development of this project is uncertain and there are multiple risks, including regulatory risks, that could preclude the development of this project, and the results of these risks could have a material effect to the Company's results of operations.

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16. Other non-current assets, net

As of March 31, 2024 and December 31, 2023, Other non-current assets consisted of the following:
March 31, 2024December 31, 2023
Cost to fulfill (Note 6)
$21,603 $22,418 
Contract assets, net (Note 6)
17,738 19,901 
Investments in equity securities8,678 7,678 
Other77,613 76,906 
Total other non-current assets, net$125,632 $126,903 
The Company recognized unrealized (loss) gain on its investments in equity securities of $0 and $2,525 for the three months ended March 31, 2024 and 2023, respectively, within Other expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income. Investments in equity securities include investments without a readily determinable fair value of $8,678 and $7,678 as of March 31, 2024 and December 31, 2023, respectively (Refer to Note 8).
Other non-current assets includes the value of the earnout receivable recognized upon the sale of two project companies in Brazil, development costs for hosted software products and deferred financing costs related to the Revolving Facility.
17. Accrued liabilities
As of March 31, 2024 and December 31, 2023, Accrued liabilities consisted of the following:
March 31, 2024December 31, 2023
Accrued development costs$259,697 $286,030 
Accrued interest39,419 82,507 
Accrued bonuses10,943 41,356 
Other accrued expenses107,553 61,782 
Total accrued liabilities$417,612 $471,675 
18. Other current liabilities
As of March 31, 2024 and December 31, 2023, Other current liabilities consisted of the following:
March 31, 2024December 31, 2023
Derivative liabilities$19,037 $19,450 
Contract liabilities (Note 6)10,242 65,287 
Income tax payable79,115 54,040 
Due to affiliates6,100 9,579 
Winter sub-charter liability32,149 49,400 
Other current liabilities38,772 30,195 
Total other current liabilities$185,415 $227,951 

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19. Debt
As of March 31, 2024 and December 31, 2023, debt consisted of the following:
March 31, 2024December 31, 2023
Senior Secured Notes, due September 2025$872,049 $1,245,662 
Senior Secured Notes, due September 20261,487,258 1,486,374 
Senior Secured Notes, due March 2029736,733  
Vessel Financing Obligation, due August 20421,391,582 1,359,995 
Term Loan B, due October 2028772,763 771,420 
Revolving Facility750,000 866,600 
BNDES Term Loan, due October 2045273,379  
South Power 2029 Bonds, due May 2029217,205 216,993 
Short-term Borrowings177,492 182,270 
Barcarena Debentures, due October 2028175,389 175,025 
EB-5 Loan, due July 202897,587 61,614 
Tugboat Financing, due December 203846,629 46,728 
PortoCem BTG Loan, due December 202428,312  
Barcarena Term Loan, due February 2024 199,678 
Equipment Notes, due July 2026 190,789 
Total debt$7,026,378 $6,803,148 
Current portion of long-term debt$291,518 $292,625 
Long-term debt6,734,860 6,510,523 
Long-term debt is recorded at amortized cost on the Condensed Consolidated Balance Sheets. The fair value of the Company's long-term debt was $7,103,385 and $6,835,487 as of March 31, 2024 and December 31, 2023, respectively, and is classified as Level 2 within the fair value hierarchy. The Company's debt arrangements include cross-acceleration clauses whereby events of default under an individual debt agreement can lead to acceleration of principal under other debt arrangements.
The terms of the Company's debt instruments have been described in the Annual Report on Form 10-K. Significant changes to the Company's outstanding debt are described below.
2029 Notes
In March 2024, the Company issued $750,000 of 8.75% senior secured notes in a private offering pursuant to Rule 144A under the Securities Act (the “2029 Notes”). Interest is payable semi-annually in arrears on March 15 and September 15 of each year; no principal payments are due until maturity on March 15, 2029. The Company may redeem the 2029 Notes, in whole or in part, at any time prior to maturity, subject to certain make-whole premiums.
The 2029 Notes are guaranteed on a senior secured basis by each domestic subsidiary and foreign subsidiary that is a guarantor under the 2025 Notes and 2026 Notes. The 2029 Notes are secured by substantially the same collateral as the first lien obligations under the 2025 Notes and 2026 Notes. The 2029 Notes may limit the Company’s ability to incur additional indebtedness or issue certain preferred shares, make certain payments, and sell or transfer certain assets subject to certain conditions and qualifications. The 2029 Notes also provide for customary events of default and prepayment provisions.
In connection with the offering of the 2029 Notes, we completed a cash tender offer to repurchase $375,000 of the outstanding 2025 Notes, for an aggregate repurchase price of $376,875. The tender offer was closed and the partial repurchase of the 2025 Notes was completed in the first quarter of 2024. The premium over the repurchase price of $1,875 was recognized as Loss on extinguishment of debt, net in the Condensed Consolidated Statements of Operations and Comprehensive Income.
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In connection with the issuance of the 2029 Notes, the Company incurred $13,488 in origination, structuring and other fees, which was deferred as a reduction of the principal balance of the 2029 Notes on the Condensed Consolidated Balance Sheets. As of March 31, 2024, total remaining unamortized deferred financing costs for the 2029 Notes was $13,378.
BNDES Term Loan
The owner of the Company's power plant under construction in Pará, Brazil (the "Barcarena Power Plant") entered into a credit agreement with BNDES, the Brazilian Development Bank (the "BNDES Credit Agreement"). The Company is able to borrow up to $355,556 under the BNDES Credit Agreement, segregated into three tranches based on the use of proceeds ("BNDES Term Loan"). In the first quarter of 2024, lenders funded $273,379 under the BNDES Credit Agreement. Each tranche bears a different rate of interest ranging from 2.61% to 4.41% plus the fixed rate announced by BNDES. No principal payments are required until April 2026 and are due quarterly thereafter until maturity in 2045.
The obligations under the BNDES Credit Agreement are guaranteed by certain indirect Brazilian subsidiaries that are constructing the Barcarena Power Plant, and are secured by the Barcarena Power Plant and receivables under the Barcarena Power Plant's capacity reserve contracts. These Brazilian subsidiaries are required to comply with customary affirmative and negative covenants, and the BNDES Credit Agreement also provides for customary events of default, prepayment and cure provisions.
Proceeds received are to be used to repay the existing Barcarena Term Loan (defined in the Annual Report) and to pay for all remaining expected construction costs through the planned completion of the Barcarena Power Plant in 2025. In February 2024, the Company repaid the full outstanding principal balance of the Barcarena Term Loan, fully extinguishing the obligation. No material loss on extinguishment was recognized in conjunction with this repayment.
EB-5 Loan Agreement
On July 21, 2023, the Company entered into a loan agreement under the U.S. Citizenship and Immigration Services EB-5 Program (“EB-5 Loan Agreement”) to pay for the development and construction of a new green hydrogen facility in Texas. The maximum aggregate principal amount available under the EB-5 Loan Agreement is $100,000, and outstanding borrowings bear interest at a fixed rate of 4.75%. The loan matures in 5 years from the initial advance with an option to extend the maturity by two one-year periods. It is expected that the loan will be secured by NFE's green hydrogen facility, and NFE has provided a guarantee of the obligations under the EB-5 Loan Agreement. In the three months ended March 31, 2024, an additional $36,272 was funded under the EB-5 Loan Agreement.
PortoCem BTG Loan
As part of the PortoCem Acquisition, the Company assumed a term loan in the aggregate principal amount of BRL 141,445 million ($28,093 based on rates in effect on the acquisition date) due December 2024, bearing interest at a rate equal to the one-day interbank deposit rate in Brazil plus 5.0% (the “PortoCem BTG Loan”).
Lenders under the PortoCem BTG Loan waived acceleration requirements in the event of a change in control in conjunction with the PortoCem Acquisition, and repayment of the PortoCem BTG Loan is now required upon the earlier of PortoCem obtaining additional financing or the original maturity date of December 2024.
NFE provided a parent company guarantee to the lenders under the PortoCem BTG Loan. The PortoCem BTG Loan contains usual and customary representations and warranties, usual and customary affirmative and negative covenants and events of default. No financial debt covenant compliance is required under this loan facility.
In April 2024, the Company repaid the PortoCem BTG Loan with proceeds from a short term credit note (Note 26).
Equipment Notes
In conjunction with the execution of the APA to sell certain turbines to PREPA in March 2024 (Note 5), the Company repaid the Equipment Notes in full, releasing any liens held on the turbines prior to their sale. The balance outstanding as of the repayment date was $188,431, and the Company incurred a prepayment premium of 3%. The prepayment premium and
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any unamortized financing costs of $7,879 were recognized as Loss on extinguishment of debt, net in the Condensed Consolidated Statements of Operations and Comprehensive Income.
Interest expense

Interest and related amortization of debt issuance costs, premiums and discounts recognized during major development and construction projects are capitalized and included in the cost of the project. Interest expense, net of amounts capitalized, recognized for the three months ended March 31, 2024 and 2023 consisted of the following:
Three Months Ended March 31,
20242023
Interest per contractual rates$123,418 $64,259 
Interest expense on Vessel Financing Obligation 49,087 54,330 
Amortization of debt issuance costs, premiums and discounts8,453 3,592 
Interest expense incurred on finance lease obligations598 468 
Total interest costs$181,556 $122,649 
Capitalized interest104,212 50,976 
Total interest expense$77,344 $71,673 
Interest expense on the Vessel Financing Obligation includes non-cash expense of $33,193 and $49,903 for the three months ended March 31, 2024 and 2023, respectively, related to payments received by Energos from third-party charterers.
20. Income Taxes
The effective tax rate for the three months ended March 31, 2024 was 27.6% compared to 16.0% for the three months ended March 31, 2023. The total tax provision for the three months ended March 31, 2024 was $21,624 compared to a provision of $28,960 for the three months ended March 31, 2023. The Company's effective tax rate for the three months ended March 31, 2024 is higher than the Company's statutory tax rate and the prior year principally due to the inclusion of non-US income, as well as the increased valuation allowance on the U.S. operations.
21. Commitments and contingencies
The Company is subject to certain legal and regulatory proceedings, claims and disputes that arise in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows.
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22. Earnings per share
Three Months Ended March 31,
20242023
Basic
Numerator:
Net income$56,670 $151,566 
Net (income) attributable to non-controlling interests(2,589)(1,360)
Series A convertible preferred stock cumulative dividend(142) 
Net income attributable to Class A common stock$53,939 $150,206 
Denominator:
Weighted-average shares - basic205,061,967 208,707,385 
Net income per share - basic$0.26 $0.72 
Diluted
Numerator:
Net income$56,670 151,566 
Net (income) attributable to non-controlling interests(2,589)(1,360)
Series A convertible preferred stock cumulative dividend(142) 
Adjustments attributable to dilutive securities(750)(1,650)
Net income attributable to Class A common stock$53,189 $148,556 
Denominator:
Weighted-average shares - diluted205,977,720 209,325,619 
Net income per share - diluted$0.26 $0.71 
The following table presents potentially dilutive securities excluded from the computation of diluted net income per share for the periods presented because its effects would have been anti-dilutive.
March 31, 2024March 31, 2023
Series A convertible preferred stock(1)
246,565  
Total246,565  

(1) Represents the weighted average number of potentially dilutive shares that are anti-dilutive if the Series A convertible preferred stock was converted on the issuance date.
The Company declared and paid quarterly dividends totaling $20,503 and $20,467 during the three months ended March 31, 2024 and 2023, respectively, representing $0.10 per Class A share. During each of the three months ended March 31, 2024 and 2023, the Company paid dividends of $3,019 to holders of Golar LNG Partners LP's ("GMLP") 8.75% Series A Cumulative Redeemable Preferred Units (“GMLP Series A Preferred Units”). As these equity interests have been issued by one of the Company’s consolidated subsidiaries, the value of the GMLP Series A Preferred Units is recognized as non-controlling interest in the condensed consolidated financial statements.
Upon the sale of the vessel Mazo (Refer to Note 11), one of the Company's non-wholly owned subsidiaries paid a dividend using proceeds from the sale. The dividend of $8,662 paid to the other shareholder in this subsidiary was recognized as a reduction to non-controlling interest during the three months ended March 31, 2024.
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23. Share-based compensation
The Company has granted restricted stock units ("RSUs") to select officers, employees and certain non-employees under the New Fortress Energy Inc. 2019 Omnibus Incentive Plan. The fair value of RSUs on the grant date is estimated based on the closing price of the underlying shares on the grant date. The following table summarizes the RSU activity for the three months ended March 31, 2024:
Restricted Stock
Units
Weighted-average
grant date fair
value per share
Non-vested RSUs as of December 31, 2023
32,327 $27.12 
Granted2,786,112 32.66 
Vested(34,047)30.06 
Forfeited(506)26.20 
Non-vested RSUs as of March 31, 2024
2,783,886 $32.63 
For the three months ended March 31, 2024, the Company recognized $5,248 of compensation costs associated with RSUs within Selling, general and administrative in the Condensed Consolidated Statements of Operations and Comprehensive Income. During the three months ended March 31, 2024, there was no significant reversal of cumulative compensation expense recognized for forfeited RSU awards. The Company recognizes the income tax benefits resulting from vesting of RSUs in the period of vesting, to the extent the compensation expense has been recognized. As of March 31, 2024, unrecognized compensation costs from non-vested RSUs was $86,669.
The non-vested RSUs vest over a periods from ten months to approximately two years following the grant date. The weighted-average remaining vesting period of non-vested RSUs totaled 1.34 years as of March 31, 2024.
24. Related party transactions
Management services
Messrs. Edens, chief executive officer and chairman of the Board of Directors, and Nardone, member of the Board of Directors, are currently employed by Fortress Investment Group LLC (“Fortress”). In the ordinary course of business, Fortress, through affiliated entities, charges the Company for administrative and general expenses incurred pursuant to its Administrative Services Agreement (“Administrative Agreement”). The charges under the Administrative Agreement that are attributable to the Company totaled $1,975 and $1,345 for the three months ended March 31, 2024 and 2023, respectively. Costs associated with the Administrative Agreement are included within Selling, general and administrative in the Condensed Consolidated Statements of Operations and Comprehensive Income. As of March 31, 2024 and December 31, 2023, $1,907 and $5,691 were due to Fortress, respectively.
In addition to administrative services, Mr. Edens owns an aircraft that we charter from a third party operator for business purposes in the ordinary course of operations. The Company incurred, at market rates, charter costs of $570 and $771 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, $716 and $1,095 was due, respectively.
Fortress affiliated entities
The Company provides certain administrative services to related parties including entities affiliated with Fortress. No costs are incurred for such administrative services by the Company as the Company is fully reimbursed for all costs incurred. The Company has subleased a portion of office space to affiliates of entities managed by Fortress, and for the three months ended March 31, 2024 and 2023, $218 and $192 of rent and office related expenses were incurred by these affiliates, respectively. As of March 31, 2024 and December 31, 2023, $1,765 and $1,547 were due from affiliates, respectively.
Additionally, an entity formerly affiliated with Fortress and currently owned by Messrs. Edens and Nardone provides certain administrative services to the Company, as well as providing office space under a month-to-month non-exclusive
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license agreement. The Company incurred rent and administrative expenses of approximately $683 and $589 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, $3,385 and $2,702 were due to Fortress affiliated entities, respectively.
Land leases
The Company has leased land from Florida East Coast Industries, LLC (“FECI”), which is controlled by funds managed by an affiliate of Fortress. The Company recognized expense related to the land lease of $103 during the three months ended March 31, 2024 and 2023, which was included within Operations and maintenance in the Condensed Consolidated Statements of Operations and Comprehensive Income. The Company has amounts due to FECI of $92 as both of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, the Company has recorded a lease liability of $3,373 and $3,368, respectively, within Non-current lease liabilities on the Condensed Consolidated Balance Sheets.
In September 2023, the Company entered into a lease agreement to lease land from Jefferson Terminal South LLC, which is an indirect, majority-owned subsidiary of a public company which is managed by an affiliate of Fortress. As of March 31, 2024, the Company has recorded a right-of-use asset of $3,798 and a lease liability of $4,194 on the Condensed Consolidated Balance Sheets. As of December 31, 2023, the Company recorded a right-of-use asset of $3,885