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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