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Leases | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
Leases | Leases Lessee arrangements Finance leases Certain enforceable vessel charters and pipeline capacity agreements are classified as finance leases, and the right-of-use assets are included in property and equipment, net on the consolidated balance sheets. Lease obligations are recognized based on the rate implicit in the lease or the Company’s incremental borrowing rate at lease commencement. As of September 30, 2024, the Company was a lessee in finance lease arrangements on one pipeline capacity agreement and one tugboat. These arrangements were determined to be finance leases as their terms represent the majority of the economic life of their respective assets. Finance lease liabilities as of September 30, 2024 and December 31, 2023 consisted of the following (in thousands):
| September 30, 2024 |  |  | December 31, 2023 |
Finance lease liabilities | $ | 196,635 |  |  | $ | 211,887 |
Less current portion of finance lease liabilities |  | (23,115 | ) |  |  | (22,080 | )
Finance lease liabilities, long-term | $ | 173,520 |  |  | $ | 189,807 |
Operating leases As of December 31, 2023, the Company was a lessee in a terminal use lease, which was accounted for as an operating lease. In January 2024, this agreement transitioned to a TCP agreement. Operating lease right-of-use assets are included within other assets on the consolidated balance sheets. The current and non-current portions of operating lease liabilities are included within accrued liabilities and other liabilities and other long-term liabilities, respectively, on the consolidated balance sheets. Additionally, the Company has operating leases for offices in various locations in which operations are performed. Such leases will often include options to extend the lease and the Company will include option periods that, on commencement date, it is reasonably certain the Company will exercise. Variable lease costs relate to certain lease agreements, which include payments that vary for items such as inflation adjustments, or common area charges. Variable lease costs that are not dependent on an index are excluded from the lease payments that comprise the operating lease liability and are expensed in the period in which they are incurred. None of the Company’s operating leases contain any residual value guarantees. A maturity analysis of the Company’s operating and finance lease liabilities (excluding short-term leases) at September 30, 2024 is as follows (in thousands):
Year | Operating |  |  | Finance |
Remainder of 2024 | $ | 501 |  |  | $ | 8,312 |
2025 |  | 1,811 |  |  |  | 33,235 |
2026 |  | 1,426 |  |  |  | 33,235 |
2027 |  | 1,022 |  |  |  | 33,235 |
2028 |  | 886 |  |  |  | 27,584 |
Thereafter |  | 449 |  |  |  | 113,152 |
Total lease payments | $ | 6,095 |  |  | $ | 248,753 |
Less: imputed interest |  | (673 | ) |  |  | (52,118 | )
Carrying value of lease liabilities |  | 5,422 |  |  |  | 196,635 |
Less: current portion |  | (1,639 | ) |  |  | (23,115 | )
Carrying value of long-term lease liabilities | $ | 3,783 |  |  | $ | 173,520 |
As of September 30, 2024, the Company’s weighted average remaining lease term for operating and finance leases was 3.8 years and 8.3 years, respectively, with a weighted average discount rate of 6.2% and 6.3%, respectively. As of December 31, 2023, the Company’s weighted average remaining lease term for operating and finance leases was 4.3 years and 9.1 years, respectively, with a weighted average discount rate of 6.2% and 6.3%, respectively. The Company’s total lease costs for the three and nine months ended September 30, 2024 and 2023 recognized in the consolidated statements of income consisted of the following (in thousands):
| For the three months ended September 30, |  |  | For the nine months ended September 30, |
| 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Amortization of finance lease right-of-use assets | $ | 434 |  |  | $ | 652 |  |  | $ | 1,739 |  |  | $ | 2,835 |
Interest on finance lease liabilities |  | 3,123 |  |  |  | 3,436 |  |  |  | 9,609 |  |  |  | 11,709 |
Operating lease expense |  | 426 |  |  |  | 2,483 |  |  |  | 1,316 |  |  |  | 13,325 |
Short-term lease expense |  | 274 |  |  |  | 113 |  |  |  | 808 |  |  |  | 378 |
Total lease costs | $ | 4,257 |  |  | $ | 6,684 |  |  | $ | 13,472 |  |  | $ | 28,247 |
Other information related to leases for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands):
| For the three months ended September 30, |  |  | For the nine months ended September 30, |
| 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Operating cash flows for finance leases | $ | 3,123 |  |  | $ | 3,436 |  |  | $ | 9,609 |  |  | $ | 11,709 |
Financing cash flows for finance leases |  | 5,172 |  |  |  | 4,909 |  |  |  | 15,252 |  |  |  | 15,661 |
Operating cash flows for operating leases |  | 495 |  |  |  | 2,520 |  |  |  | 1,600 |  |  |  | 13,697 |

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- Definition Lessee operating and finance leases. + References No definition available. + Details
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- References No definition available. + Details
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