Property and Equipment, net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

As of September 30, 2024 and December 31, 2023, the Company’s property and equipment, net consisted of the following (in thousands):


	September 30, 2024			December 31, 2023
Vessels	$	2,529,873		$	2,497,449
Finance lease right-of-use assets		40,007			40,007
Other equipment		24,530			23,807
Assets in progress		60,131			93,341
Less accumulated depreciation		(1,068,946	)		(1,004,825	)
Property and equipment, net	$	1,585,595		$	1,649,779

For the three months ended September 30, 2024 and 2023, depreciation expense was $22.2 million and $32.3 million, respectively. For the nine months ended September 30, 2024 and 2023, depreciation expense was $73.7 million and $86.5 million, respectively.

Newbuild FSRU

In October 2022, Excelerate entered into a shipbuilding contract (“the Newbuild Agreement”) with HD Hyundai Heavy Industries Co., Ltd. to construct a 170,000 m3 FSRU. Our milestone payments are due in installments with the final installment due concurrently with the delivery of the vessel, which is expected in 2026. In the fourth quarter of 2024, we made a milestone payment of approximately $50 million. Our near-term payment commitments related to the Newbuild Agreement are expected to be approximately $30 million in the first quarter of 2025 and $20 million in the second quarter of 2025, with the remainder due beyond the next twelve months.