XML 31 R23.htm IDEA: XBRL DOCUMENT
v3.24.3

Revenue | 9 Months Ended
--- | ---
Sep. 30, 2024
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue The following table presents the Company’s revenue for the three and nine months ended September 30, 2024 and 2023 (in thousands):
| For the three months ended September 30, |  |  | For the nine months ended September 30, |
| 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Revenue from leases | $ | 138,532 |  |  | $ | 121,277 |  |  | $ | 414,555 |  |  | $ | 338,040 |
Revenue from contracts with customers |  |  |  |  |  |  |  |  |  |  |
Time charter, regasification and other services |  | 11,607 |  |  |  | 11,900 |  |  |  | 43,565 |  |  |  | 39,176 |
Gas sales |  | 43,280 |  |  |  | 142,294 |  |  |  | 118,745 |  |  |  | 541,683 |
Total revenue | $ | 193,419 |  |  | $ | 275,471 |  |  | $ | 576,865 |  |  | $ | 918,899 |
As a result of the Company’s adoption of the ASC 842 practical expedient discussed in Note 2 – Summary of significant accounting policies, $30.7 million and $79.6 million, respectively, in the three and nine months ended September 30, 2023, was reclassified from time charter, regasification and other services to revenue from leases to conform with the current period presentation. Lease revenue The Company’s time charter contracts are accounted for as operating or sales-type leases. The Company’s revenue from leases is presented within revenues in the consolidated statements of income and for the three and nine months ended September 30, 2024 and 2023 consists of the following (in thousands):
| For the three months ended September 30, |  |  | For the nine months ended September 30, |
| 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Operating lease income | $ | 120,900 |  |  | $ | 102,948 |  |  | $ | 364,241 |  |  | $ | 283,718 |
Sales-type lease income |  | 17,632 |  |  |  | 18,329 |  |  |  | 50,314 |  |  |  | 54,322 |
Total revenue from leases | $ | 138,532 |  |  | $ | 121,277 |  |  | $ | 414,555 |  |  | $ | 338,040 |
Sales-type leases Sales-type lease income is interest income that is presented within lease revenues on the consolidated statements of income. The Company earns sales-type lease interest income from two vessels and a terminal as it is reasonably certain that the ownership of these assets will transfer to the customer at the end of the term. For the three and nine months ended September 30, 2024, the Company recorded lease income from the net investment in the leases within revenue from lease contracts of $17.6 million and $50.3 million, respectively, as compared to $18.3 million and $54.3 million for the three and nine months ended September 30, 2023, respectively. Operating leases Revenue from time charter contracts accounted for as operating leases is recognized by the Company on a straight-line basis over the term of the contract. As of September 30, 2024, the Company is the lessor to time charter agreements with customers on eight of its vessels. The following represents the amount of property and equipment that is leased to customers as of September 30, 2024 and December 31, 2023 (in thousands):
| September 30, 2024 |  |  | December 31, 2023 |
Property and equipment | $ | 2,469,444 |  |  | $ | 2,184,347 |
Accumulated depreciation |  | (986,195 | ) |  |  | (929,141 | )
Property and equipment, net | $ | 1,483,249 |  |  | $ | 1,255,206 |
The future minimum revenues presented in the table below should not be construed to reflect total charter hire revenues for any of the years presented. Minimum future revenues included below are based on the fixed components and do not include variable or contingent revenue. Additionally, revenue generated from short-term charters is not included as the duration of each contract is less than a year. As of September 30, 2024, the minimum contractual future revenues to be received under the time charters during the next five years and thereafter are as follows (in thousands):
Year | Sales-type |  |  | Operating |
Remainder of 2024 | $ | 22,083 |  |  | $ | 111,109 |
2025 |  | 87,612 |  |  |  | 421,213 |
2026 |  | 87,612 |  |  |  | 350,693 |
2027 |  | 87,612 |  |  |  | 346,339 |
2028 |  | 80,848 |  |  |  | 304,990 |
Thereafter |  | 411,507 |  |  |  | 1,031,070 |
Total undiscounted | $ | 777,274 |  |  | $ | 2,565,414 |
Less: imputed interest |  | (346,538 | ) |  |  |
Net investment in sales-type leases |  | 430,736 |  |  |  |
Less: current portion |  | (42,616 | ) |  |  |
Non-current net investment in sales-type leases | $ | 388,120 |  |  |  |
Revenue from contracts with customers The following tables show disaggregated revenues from customers attributable to the region in which the party to the applicable agreement has its principal place of business (in thousands):
| For the three months ended September 30, 2024 |
|  |  |  | Revenue from contracts with customers |  |  |  |
| Revenue from |  |  | TCP, Regas |  |  | Gas |  |  | Total |
| leases |  |  | and other |  |  | sales |  |  | revenue |
Asia Pacific | $ | 17,672 |  |  | $ | 10,290 |  |  | $ | 43,280 |  |  | $ | 71,242 |
Latin America |  | 53,183 |  |  |  | — |  |  |  | — |  |  |  | 53,183 |
Middle East (1) |  | 38,615 |  |  |  | — |  |  |  | — |  |  |  | 38,615 |
Europe |  | 29,062 |  |  |  | — |  |  |  | — |  |  |  | 29,062 |
Other |  | — |  |  |  | 1,317 |  |  |  | — |  |  |  | 1,317 |
Total revenue | $ | 138,532 |  |  | $ | 11,607 |  |  | $ | 43,280 |  |  | $ | 193,419 |
| For the three months ended September 30, 2023 |
|  |  |  | Revenue from contracts with customers |  |  |  |
| Revenue from |  |  | TCP, Regas |  |  | Gas |  |  | Total |
| leases |  |  | and other |  |  | sales |  |  | revenue |
Asia Pacific | $ | 18,329 |  |  | $ | 10,661 |  |  | $ | 88,890 |  |  | $ | 117,880 |
Latin America |  | 50,907 |  |  |  | — |  |  |  | 53,404 |  |  |  | 104,311 |
Middle East (1) |  | 37,095 |  |  |  | — |  |  |  | — |  |  |  | 37,095 |
Europe |  | 14,946 |  |  |  | — |  |  |  | — |  |  |  | 14,946 |
Other |  | — |  |  |  | 1,239 |  |  |  | — |  |  |  | 1,239 |
Total revenue | $ | 121,277 |  |  | $ | 11,900 |  |  | $ | 142,294 |  |  | $ | 275,471 |
| For the nine months ended September 30, 2024 |
|  |  |  | Revenue from contracts with customers |  |  |  |
| Revenue from |  |  | TCP, Regas |  |  | Gas |  |  | Total |
| leases |  |  | and other |  |  | sales |  |  | revenue |
Asia Pacific | $ | 50,354 |  |  | $ | 36,690 |  |  | $ | 117,081 |  |  | $ | 204,125 |
Latin America |  | 161,849 |  |  |  | — |  |  |  | — |  |  |  | 161,849 |
Middle East (1) |  | 117,514 |  |  |  | — |  |  |  | — |  |  |  | 117,514 |
Europe |  | 84,838 |  |  |  | — |  |  |  | — |  |  |  | 84,838 |
Other |  | — |  |  |  | 6,875 |  |  |  | 1,664 |  |  |  | 8,539 |
Total revenue | $ | 414,555 |  |  | $ | 43,565 |  |  | $ | 118,745 |  |  | $ | 576,865 |
| For the nine months ended September 30, 2023 |
|  |  |  | Revenue from contracts with customers |  |  |  |
| Revenue from |  |  | TCP, Regas |  |  | Gas |  |  | Total |
| leases |  |  | and other |  |  | sales |  |  | revenue |
Asia Pacific | $ | 54,321 |  |  | $ | 31,751 |  |  | $ | 169,823 |  |  | $ | 255,895 |
Latin America |  | 126,609 |  |  |  | — |  |  |  | 349,634 |  |  |  | 476,243 |
Middle East (1) |  | 110,779 |  |  |  | — |  |  |  | — |  |  |  | 110,779 |
Europe |  | 46,331 |  |  |  | — |  |  |  | 22,226 |  |  |  | 68,557 |
Other |  | — |  |  |  | 7,425 |  |  |  | — |  |  |  | 7,425 |
Total revenue | $ | 338,040 |  |  | $ | 39,176 |  |  | $ | 541,683 |  |  | $ | 918,899 |
(1) Includes Pakistan and the United Arab Emirates. Assets and liabilities related to contracts with customers Under most gas sales contracts, invoicing occurs once the Company’s performance obligations have been satisfied, at which point payment is unconditional. Invoicing timing for TCP, regasification and other services varies and occurs according to the contract. As of September 30, 2024 and December 31, 2023, receivables from contracts with customers were $40.1 million and $73.8 million, respectively. These amounts are presented within accounts receivable, net on the consolidated balance sheets. In addition, revenue for services recognized in excess of the invoiced amounts, or accrued revenue, outstanding at September 30, 2024 and December 31, 2023, was $0.7 million and $0.4 million, respectively. Accrued revenue represents current contract assets that will turn into accounts receivable within the next 12 months and be collected during the Company’s normal business operating cycle. Accrued revenue is presented in accounts receivable, net on the consolidated balance sheets. Other items included in accounts receivable, net represent receivables associated with leases, which are accounted for in accordance with the leasing standard. There were no write downs of trade receivables for lease or time charter services or contract assets for the nine months ended September 30, 2024 and 2023. There were no contract liabilities from advance payments in excess of revenue recognized from services as of September 30, 2024 and December 31, 2023. If the performance obligations are expected to be satisfied during the next 12 months, the contract liabilities are classified within current portion of deferred revenue on the consolidated balance sheets. Amounts to be recognized in revenue after 12 months are recorded in other long-term liabilities. The remaining portion of current deferred revenue relates to the lease component of the Company’s time charter contracts, which are accounted for in accordance with the leasing standard. Noncurrent deferred revenue presented in other long-term liabilities on the consolidated balance sheets represents payments allocated to the Company’s performance obligation for drydocking services within time charter contracts in which the lease component is accounted for as a sales-type lease, customer requested upgrades made to certain vessels, and vessel repositioning. Revenue will be recognized as the performance obligations are complete. The following table reflects the changes in our liabilities related to long-term contracts with customers as of September 30, 2024 (in thousands):
| September 30, 2024 |
Deferred revenues, beginning of period | $ | 56,267 |
Cash received but not yet recognized |  | 32,586 |
Revenue recognized from prior period deferral |  | (31,511 | )
Deferred revenues, end of period | $ | 57,342 |
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. In November 2023, Excelerate signed a 15-year LNG sale and purchase agreement (the “Petrobangla SPA”) with Bangladesh Oil, Gas & Mineral Corporation (“Petrobangla”). Under the agreement, Petrobangla has agreed to purchase LNG from Excelerate beginning in 2026. Excelerate will deliver 0.85 million tonnes per annum (“MTPA”) of LNG in 2026 and 2027 and 1.0 MTPA from 2028 to 2040. The take-or-pay LNG volumes are expected to be delivered through Excelerate’s two existing FSRUs in Bangladesh, Excellence and Summit LNG. In the third quarter of 2024, Excelerate signed a medium-term LNG sales agreement in one of the Atlantic Basin regions in which we do business. Over the term of the agreement, we will sell approximately 0.65 million tonnes of LNG, the pricing of which will be based on a major European natural gas index. The Company has long-term arrangements with customers in which the Company provides regasification and other services as part of TCP contracts. The price under these agreements is typically stated in the contracts. Beginning in 2026, we will provide take-or-pay LNG volumes to Bangladesh through the Petrobangla SPA. The Company also earns revenue from other occasional LNG cargo sales, which are contracted in advance. The estimated fixed transaction price allocated to the remaining performance obligations under these arrangements is $8,379.0 million as of September 30, 2024. The Company expects to recognize revenue from contracts exceeding one year over the following time periods (in thousands):
Remainder of 2024 | $ | 11,099 |
2025 |  | 228,465 |
2026 |  | 565,013 |
2027 |  | 553,614 |
2028 |  | 631,696 |
Thereafter |  | 6,389,127 |
Total expected revenue | $ | 8,379,014 |

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration