Leases

9 Months Ended

Sep. 30, 2025

Lessee arrangements

Finance leases

Certain enforceable floating regasification terminal leases 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, 2025, 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, 2025 and December 31, 2024 consisted of the following (in thousands):


	September 30, 2025			December 31, 2024
Finance lease liabilities	$	175,168		$	191,383
Less current portion of finance lease liabilities		(24,590	)		(23,475	)
Finance lease liabilities, long-term	$	150,578		$	167,908

Operating leases

Operating lease right-of-use assets are included within other assets on the consolidated balance sheets. The current portion of operating lease liabilities is included within accrued liabilities on the consolidated balance sheets.

As of September 30, 2025, the Company was a lessee to one floating regasification terminal lease and one vessel lease, which are both accounted for as operating leases. 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, 2025 is as follows (in thousands):


Year	Operating			Finance
Remainder of 2025	$	8,854		$	8,309
2026		33,932			33,235
2027		33,931			33,235
2028		34,190			27,584
2029		33,780			27,571
Thereafter		75,607			85,581
Total lease payments	$	220,294		$	215,515
Less: imputed interest		(52,267	)		(40,347	)
Carrying value of lease liabilities		168,027			175,168
Less: current portion		(23,528	)		(24,590	)
Carrying value of long-term lease liabilities	$	144,499		$	150,578

As of September 30, 2025, the Company’s weighted average remaining lease term for operating and finance leases was 6.4 years and 7.3 years, respectively, with a weighted average discount rate of 7.0% and 6.3%, respectively. As of December 31, 2024, the Company’s weighted average remaining lease term for operating and finance leases was 3.6 years and 8.1 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, 2025 and 2024 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,
	2025		2024		2025		2024
Amortization of finance lease right-of-use assets	$	652	$	434	$	1,957	$	1,739
Interest on finance lease liabilities		2,792		3,123		8,630		9,609
Operating lease expense		8,953		426		14,388		1,316
Short-term lease expense		158		274		408		808
Total lease costs	$	12,555	$	4,257	$	25,383	$	13,472

Other information related to leases for the three and nine months ended September 30, 2025 and 2024 are as follows (in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
	2025		2024		2025		2024
Operating cash flows for finance leases	$	2,792	$	3,123	$	8,630	$	9,609
Financing cash flows for finance leases		5,501		5,172		16,215		15,252
Operating cash flows for operating leases		8,845		495		14,121		1,600