nfe-20230930
000174972312-312023Q3false3111100017497232023-01-012023-09-3000017497232023-11-06xbrli:shares00017497232023-09-30iso4217:USD00017497232022-12-31iso4217:USDxbrli:shares00017497232023-07-012023-09-3000017497232022-07-012022-09-3000017497232022-01-012022-09-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-12-310001749723us-gaap:AdditionalPaidInCapitalMember2022-12-310001749723us-gaap:RetainedEarningsMember2022-12-310001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001749723us-gaap:NoncontrollingInterestMember2022-12-310001749723us-gaap:RetainedEarningsMember2023-01-012023-03-310001749723us-gaap:NoncontrollingInterestMember2023-01-012023-03-3100017497232023-01-012023-03-310001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2023-01-012023-03-310001749723us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2023-03-310001749723us-gaap:AdditionalPaidInCapitalMember2023-03-310001749723us-gaap:RetainedEarningsMember2023-03-310001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001749723us-gaap:NoncontrollingInterestMember2023-03-3100017497232023-03-310001749723us-gaap:RetainedEarningsMember2023-04-012023-06-300001749723us-gaap:NoncontrollingInterestMember2023-04-012023-06-3000017497232023-04-012023-06-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001749723us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2023-04-012023-06-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2023-06-300001749723us-gaap:AdditionalPaidInCapitalMember2023-06-300001749723us-gaap:RetainedEarningsMember2023-06-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001749723us-gaap:NoncontrollingInterestMember2023-06-3000017497232023-06-300001749723us-gaap:RetainedEarningsMember2023-07-012023-09-300001749723us-gaap:NoncontrollingInterestMember2023-07-012023-09-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001749723us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2023-09-300001749723us-gaap:AdditionalPaidInCapitalMember2023-09-300001749723us-gaap:RetainedEarningsMember2023-09-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001749723us-gaap:NoncontrollingInterestMember2023-09-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-12-310001749723us-gaap:AdditionalPaidInCapitalMember2021-12-310001749723us-gaap:RetainedEarningsMember2021-12-310001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001749723us-gaap:NoncontrollingInterestMember2021-12-3100017497232021-12-310001749723us-gaap:RetainedEarningsMember2022-01-012022-03-310001749723us-gaap:NoncontrollingInterestMember2022-01-012022-03-3100017497232022-01-012022-03-310001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001749723us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-01-012022-03-310001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-03-310001749723us-gaap:AdditionalPaidInCapitalMember2022-03-310001749723us-gaap:RetainedEarningsMember2022-03-310001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001749723us-gaap:NoncontrollingInterestMember2022-03-3100017497232022-03-310001749723us-gaap:RetainedEarningsMember2022-04-012022-06-300001749723us-gaap:NoncontrollingInterestMember2022-04-012022-06-3000017497232022-04-012022-06-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001749723us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-04-012022-06-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-06-300001749723us-gaap:AdditionalPaidInCapitalMember2022-06-300001749723us-gaap:RetainedEarningsMember2022-06-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001749723us-gaap:NoncontrollingInterestMember2022-06-3000017497232022-06-300001749723us-gaap:RetainedEarningsMember2022-07-012022-09-300001749723us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001749723us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-07-012022-09-300001749723us-gaap:CommonClassAMemberus-gaap:CommonStockMember2022-09-300001749723us-gaap:AdditionalPaidInCapitalMember2022-09-300001749723us-gaap:RetainedEarningsMember2022-09-300001749723us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001749723us-gaap:NoncontrollingInterestMember2022-09-3000017497232022-09-30nfe:Segment0001749723nfe:CargoSalesMember2023-07-012023-09-300001749723nfe:CargoSalesMember2023-01-012023-09-300001749723nfe:CargoSalesCancellationFeeMember2023-01-012023-09-300001749723nfe:CargoSalesMember2022-07-012022-09-300001749723nfe:CargoSalesMember2022-01-012022-09-3000017497232022-01-012022-12-3100017497232023-10-012023-09-3000017497232024-01-012023-09-3000017497232025-01-012023-09-3000017497232026-01-012023-09-3000017497232027-01-012023-09-3000017497232028-01-012023-09-300001749723nfe:CentraisEletricasDeSergipeSAMember2022-07-012022-09-300001749723nfe:CentraisEletricasDeSergipeSAMember2022-01-012022-09-30xbrli:pure0001749723us-gaap:SwapMember2022-10-012022-12-31utr:MMBTUiso4217:USDutr:MMBTU0001749723us-gaap:FairValueInputsLevel1Member2023-09-300001749723us-gaap:FairValueInputsLevel2Member2023-09-300001749723us-gaap:FairValueInputsLevel3Member2023-09-300001749723us-gaap:FairValueInputsLevel1Memberus-gaap:SwapMember2023-09-300001749723us-gaap:FairValueInputsLevel2Memberus-gaap:SwapMember2023-09-300001749723us-gaap:FairValueInputsLevel3Memberus-gaap:SwapMember2023-09-300001749723us-gaap:SwapMember2023-09-300001749723us-gaap:FairValueInputsLevel1Membernfe:ContingentConsiderationDerivativeMember2023-09-300001749723us-gaap:FairValueInputsLevel2Membernfe:ContingentConsiderationDerivativeMember2023-09-300001749723us-gaap:FairValueInputsLevel3Membernfe:ContingentConsiderationDerivativeMember2023-09-300001749723nfe:ContingentConsiderationDerivativeMember2023-09-300001749723us-gaap:FairValueInputsLevel1Member2022-12-310001749723us-gaap:FairValueInputsLevel2Member2022-12-310001749723us-gaap:FairValueInputsLevel3Member2022-12-310001749723us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Member2022-12-310001749723us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2022-12-310001749723us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2022-12-310001749723us-gaap:InterestRateSwapMember2022-12-310001749723us-gaap:FairValueInputsLevel1Memberus-gaap:SwapMember2022-12-310001749723us-gaap:FairValueInputsLevel2Memberus-gaap:SwapMember2022-12-310001749723us-gaap:FairValueInputsLevel3Memberus-gaap:SwapMember2022-12-310001749723us-gaap:SwapMember2022-12-310001749723us-gaap:FairValueInputsLevel1Membernfe:ContingentConsiderationDerivativeMember2022-12-310001749723us-gaap:FairValueInputsLevel2Membernfe:ContingentConsiderationDerivativeMember2022-12-310001749723us-gaap:FairValueInputsLevel3Membernfe:ContingentConsiderationDerivativeMember2022-12-310001749723nfe:ContingentConsiderationDerivativeMember2022-12-310001749723nfe:ContingentConsiderationDerivativeMember2023-07-012023-09-300001749723nfe:ContingentConsiderationDerivativeMember2022-07-012022-09-300001749723nfe:ContingentConsiderationDerivativeMember2023-01-012023-09-300001749723nfe:ContingentConsiderationDerivativeMember2022-01-012022-09-300001749723us-gaap:ForeignExchangeForwardMember2023-07-012023-09-300001749723us-gaap:ForeignExchangeForwardMember2022-07-012022-09-300001749723us-gaap:ForeignExchangeForwardMember2023-01-012023-09-300001749723us-gaap:ForeignExchangeForwardMember2022-01-012022-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:CostOfSalesMember2023-01-012023-09-300001749723nfe:CentraisEletricasDePernambucoSAEPESAMembernfe:NewcoMember2022-07-012022-09-30iso4217:BRL0001749723nfe:HilliLLCMember2023-09-300001749723nfe:HilliLLCMember2022-12-310001749723nfe:EnergosMember2023-09-300001749723nfe:EnergosMember2022-12-310001749723nfe:HilliLLCMember2023-03-152023-03-150001749723nfe:HilliLLCMember2022-10-012022-12-310001749723nfe:HilliLLCMember2023-01-012023-03-3100017497232022-08-31nfe:Vessel00017497232022-08-012022-08-310001749723nfe:EnergosMember2022-08-310001749723nfe:EnergosMember2023-07-012023-09-300001749723nfe:EnergosMember2023-01-012023-09-300001749723us-gaap:ConstructionInProgressMember2023-01-012023-09-300001749723us-gaap:ConstructionInProgressMember2022-01-012022-09-300001749723nfe:FASTLNGProjectsMember2023-01-012023-09-300001749723nfe:VesselsMember2023-09-300001749723nfe:VesselsMember2022-12-310001749723nfe:TerminalAndPowerPlantEquipmentMember2023-09-300001749723nfe:TerminalAndPowerPlantEquipmentMember2022-12-310001749723nfe:CHPFacilitiesMember2023-09-300001749723nfe:CHPFacilitiesMember2022-12-310001749723us-gaap:OilAndGasPropertiesMember2023-09-300001749723us-gaap:OilAndGasPropertiesMember2022-12-310001749723nfe:ISOContainersAndOtherEquipmentMember2023-09-300001749723nfe:ISOContainersAndOtherEquipmentMember2022-12-310001749723nfe:LNGLiquefactionFacilitiesMember2023-09-300001749723nfe:LNGLiquefactionFacilitiesMember2022-12-310001749723us-gaap:PipelinesMember2023-09-300001749723us-gaap:PipelinesMember2022-12-310001749723us-gaap:LandMember2023-09-300001749723us-gaap:LandMember2022-12-310001749723us-gaap:LeaseholdImprovementsMember2023-09-300001749723us-gaap:LeaseholdImprovementsMember2022-12-310001749723us-gaap:CostOfSalesMember2023-07-012023-09-300001749723us-gaap:CostOfSalesMember2022-07-012022-09-300001749723us-gaap:CostOfSalesMember2023-01-012023-09-300001749723us-gaap:CostOfSalesMember2022-01-012022-09-300001749723nfe:FavorableVesselCharterContractsMember2023-09-300001749723nfe:FavorableVesselCharterContractsMember2023-01-012023-09-300001749723nfe:PermitsAndDevelopmentRightsMember2023-09-300001749723nfe:PermitsAndDevelopmentRightsMember2023-01-012023-09-300001749723nfe:EasementsMember2023-09-300001749723nfe:EasementsMember2023-01-012023-09-300001749723nfe:EasementsMember2023-09-300001749723nfe:EasementsMember2023-01-012023-09-300001749723nfe:FavorableVesselCharterContractsMember2022-12-310001749723nfe:FavorableVesselCharterContractsMember2022-01-012022-12-310001749723nfe:PermitsAndDevelopmentRightsMember2022-12-310001749723nfe:PermitsAndDevelopmentRightsMember2022-01-012022-12-310001749723nfe:EasementsMember2022-12-310001749723nfe:EasementsMember2022-01-012022-12-310001749723nfe:EasementsMember2022-12-310001749723nfe:EasementsMember2022-01-012022-12-31nfe:contract0001749723nfe:SeniorSecuredNotesDueSeptember152025Member2023-09-300001749723nfe:SeniorSecuredNotesDueSeptember152025Member2022-12-310001749723nfe:SeniorSecuredNotesDueSeptember302026Member2023-09-300001749723nfe:SeniorSecuredNotesDueSeptember302026Member2022-12-310001749723nfe:VesselFinancingTransactionDueAugust2042Member2023-09-300001749723nfe:VesselFinancingTransactionDueAugust2042Member2022-12-310001749723us-gaap:RevolvingCreditFacilityMember2023-09-300001749723us-gaap:RevolvingCreditFacilityMember2022-12-310001749723nfe:BridgeTermLoanDueAugust2024Member2023-09-300001749723nfe:BridgeTermLoanDueAugust2024Member2022-12-310001749723nfe:SouthPower2029BondsMember2023-09-300001749723nfe:SouthPower2029BondsMember2022-12-310001749723nfe:EquipmentNotesDueJuly2026Member2023-09-300001749723nfe:EquipmentNotesDueJuly2026Member2022-12-310001749723nfe:BarcarenaTermLoanDueFebruary2024Member2023-09-300001749723nfe:BarcarenaTermLoanDueFebruary2024Member2022-12-310001749723nfe:EB5LoanAgreementMember2023-09-300001749723nfe:EB5LoanAgreementMember2022-12-310001749723us-gaap:RevolvingCreditFacilityMember2021-04-300001749723us-gaap:SecuredDebtMembernfe:TermLoanBCreditAgreementMemberus-gaap:SubsequentEventMember2023-10-302023-10-300001749723us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-12-310001749723us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-09-300001749723us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-01-012023-09-300001749723srt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2023-01-012023-09-300001749723nfe:December312021ThroughSeptember302023Memberus-gaap:RevolvingCreditFacilityMember2023-01-012023-09-300001749723nfe:FiscalQuarterEndedThroughDecember312023Memberus-gaap:RevolvingCreditFacilityMember2023-01-012023-09-300001749723us-gaap:SecuredDebtMembernfe:BridgeTermLoanDueAugust2024Member2023-08-030001749723us-gaap:SecuredDebtMembernfe:BridgeTermLoanDueAugust2024Membernfe:SecuredOvernightFinancingRateSOFRMember2023-08-032023-08-030001749723us-gaap:SecuredDebtMembernfe:BridgeTermLoanDueAugust2024Member2023-09-300001749723nfe:EquipmentNotesDueJuly2026Member2023-06-300001749723nfe:EB5LoanAgreementMemberus-gaap:ConstructionLoansMember2023-07-21nfe:extensionOption0001749723nfe:EB5LoanAgreementMemberus-gaap:ConstructionLoansMember2023-07-012023-09-300001749723nfe:EB5LoanAgreementMemberus-gaap:ConstructionLoansMember2023-09-300001749723us-gaap:DebtMember2023-07-012023-09-300001749723us-gaap:DebtMember2022-07-012022-09-300001749723us-gaap:DebtMember2023-01-012023-09-300001749723us-gaap:DebtMember2022-01-012022-09-300001749723us-gaap:EquityUnitPurchaseAgreementsMember2023-07-012023-09-300001749723us-gaap:EquityUnitPurchaseAgreementsMember2022-07-012022-09-300001749723us-gaap:EquityUnitPurchaseAgreementsMember2023-01-012023-09-300001749723us-gaap:EquityUnitPurchaseAgreementsMember2022-01-012022-09-300001749723us-gaap:CommonClassAMember2022-12-310001749723us-gaap:CommonClassAMember2022-10-012022-12-310001749723us-gaap:CommonClassAMember2023-07-012023-09-300001749723us-gaap:CommonClassAMember2022-07-012022-09-300001749723us-gaap:CommonClassAMember2023-01-012023-09-300001749723us-gaap:CommonClassAMember2022-01-012022-09-300001749723nfe:GMLPMergerAgreementMembernfe:SeriesACumulativeRedeemablePreferredUnitMember2023-07-012023-09-300001749723nfe:GMLPMergerAgreementMembernfe:SeriesACumulativeRedeemablePreferredUnitMember2022-07-012022-09-300001749723nfe:GMLPMergerAgreementMembernfe:SeriesACumulativeRedeemablePreferredUnitMember2022-09-300001749723nfe:GMLPMergerAgreementMembernfe:SeriesACumulativeRedeemablePreferredUnitMember2023-09-300001749723nfe:GMLPMergerAgreementMembernfe:SeriesACumulativeRedeemablePreferredUnitMember2023-01-012023-09-300001749723nfe:GMLPMergerAgreementMembernfe:SeriesACumulativeRedeemablePreferredUnitMember2022-01-012022-09-300001749723us-gaap:PerformanceSharesMembersrt:MinimumMembernfe:EmployeeAndNonEmployeeMember2023-01-012023-09-300001749723us-gaap:PerformanceSharesMembernfe:EmployeeAndNonEmployeeMember2022-10-012022-12-310001749723us-gaap:PerformanceSharesMembersrt:MinimumMembernfe:EmployeeAndNonEmployeeMember2022-10-012022-12-310001749723srt:MaximumMemberus-gaap:PerformanceSharesMembernfe:EmployeeAndNonEmployeeMember2022-10-012022-12-310001749723us-gaap:PerformanceSharesMembernfe:EmployeeAndNonEmployeeMember2022-12-310001749723us-gaap:RelatedPartyMemberus-gaap:ServiceAgreementsMember2023-07-012023-09-300001749723us-gaap:RelatedPartyMemberus-gaap:ServiceAgreementsMember2022-07-012022-09-300001749723us-gaap:RelatedPartyMemberus-gaap:ServiceAgreementsMember2023-01-012023-09-300001749723us-gaap:RelatedPartyMemberus-gaap:ServiceAgreementsMember2022-01-012022-09-300001749723us-gaap:RelatedPartyMemberus-gaap:ServiceAgreementsMember2023-09-300001749723us-gaap:RelatedPartyMemberus-gaap:ServiceAgreementsMember2022-12-310001749723nfe:CharteredAircraftMember2023-07-012023-09-300001749723nfe:CharteredAircraftMember2022-07-012022-09-300001749723nfe:CharteredAircraftMember2023-01-012023-09-300001749723nfe:CharteredAircraftMember2022-01-012022-09-300001749723srt:AffiliatedEntityMembernfe:CharteredAircraftMember2023-09-300001749723srt:AffiliatedEntityMembernfe:CharteredAircraftMember2022-12-310001749723srt:AffiliatedEntityMembernfe:FortressMembernfe:RentAndRelatedOfficeExpensesMember2023-07-012023-09-300001749723srt:AffiliatedEntityMembernfe:FortressMembernfe:RentAndRelatedOfficeExpensesMember2022-07-012022-09-300001749723srt:AffiliatedEntityMembernfe:FortressMembernfe:RentAndRelatedOfficeExpensesMember2023-01-012023-09-300001749723srt:AffiliatedEntityMembernfe:FortressMembernfe:RentAndRelatedOfficeExpensesMember2022-01-012022-09-300001749723srt:AffiliatedEntityMembernfe:FortressMember2023-09-300001749723srt:AffiliatedEntityMembernfe:FortressMember2022-12-310001749723nfe:RentAndAdministrativeExpensesMembersrt:AffiliatedEntityMembernfe:FortressFormerlyOwnedEntityMember2023-07-012023-09-300001749723nfe:RentAndAdministrativeExpensesMembersrt:AffiliatedEntityMembernfe:FortressFormerlyOwnedEntityMember2022-07-012022-09-300001749723nfe:RentAndAdministrativeExpensesMembersrt:AffiliatedEntityMembernfe:FortressFormerlyOwnedEntityMember2023-01-012023-09-300001749723nfe:RentAndAdministrativeExpensesMembersrt:AffiliatedEntityMembernfe:FortressFormerlyOwnedEntityMember2022-01-012022-09-300001749723srt:AffiliatedEntityMembernfe:FortressFormerlyOwnedEntityMember2023-09-300001749723srt:AffiliatedEntityMembernfe:FortressFormerlyOwnedEntityMember2022-12-310001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:FloridaEastCoastIndustriesLLCMember2023-07-012023-09-300001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:FloridaEastCoastIndustriesLLCMember2022-07-012022-09-300001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:FloridaEastCoastIndustriesLLCMember2023-01-012023-09-300001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:FloridaEastCoastIndustriesLLCMember2022-01-012022-09-300001749723srt:AffiliatedEntityMembernfe:FloridaEastCoastIndustriesLLCMember2023-09-300001749723srt:AffiliatedEntityMembernfe:FloridaEastCoastIndustriesLLCMember2022-12-310001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:FloridaEastCoastIndustriesLLCMember2023-09-300001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:FloridaEastCoastIndustriesLLCMember2022-12-310001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:JeffersonTerminalSouthLLCMember2023-07-012023-09-300001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:JeffersonTerminalSouthLLCMember2023-01-012023-09-300001749723srt:AffiliatedEntityMemberus-gaap:LandMembernfe:JeffersonTerminalSouthLLCMember2023-09-300001749723nfe:DevTechEnvironmentLimitedMember2018-08-310001749723us-gaap:RelatedPartyMembernfe:DevTechEnvironmentLimitedMember2023-07-012023-09-300001749723us-gaap:RelatedPartyMembernfe:DevTechEnvironmentLimitedMember2022-07-012022-09-300001749723us-gaap:RelatedPartyMembernfe:DevTechEnvironmentLimitedMember2023-01-012023-09-300001749723us-gaap:RelatedPartyMembernfe:DevTechEnvironmentLimitedMember2022-01-012022-09-300001749723us-gaap:RelatedPartyMembernfe:DevTechEnvironmentLimitedMember2023-09-300001749723us-gaap:RelatedPartyMembernfe:DevTechEnvironmentLimitedMember2022-12-310001749723nfe:TerminalsAndInfrastructureSegmentMembernfe:CentraisEletricasDeSergipeParticipacoesSAMember2023-09-300001749723nfe:ShipsSegmentMember2023-01-012023-09-300001749723nfe:ShipsSegmentMembernfe:HilliLLCMember2023-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300001749723nfe:ShipsSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300001749723us-gaap:OperatingSegmentsMember2023-07-012023-09-300001749723us-gaap:IntersegmentEliminationMember2023-07-012023-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:OperatingSegmentsMember2023-09-300001749723nfe:ShipsSegmentMemberus-gaap:OperatingSegmentsMember2023-09-300001749723us-gaap:OperatingSegmentsMember2023-09-300001749723us-gaap:IntersegmentEliminationMember2023-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001749723nfe:ShipsSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300001749723us-gaap:OperatingSegmentsMember2023-01-012023-09-300001749723us-gaap:IntersegmentEliminationMember2023-01-012023-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001749723nfe:ShipsSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001749723us-gaap:OperatingSegmentsMember2022-07-012022-09-300001749723us-gaap:IntersegmentEliminationMember2022-07-012022-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:OperatingSegmentsMember2022-09-300001749723nfe:ShipsSegmentMemberus-gaap:OperatingSegmentsMember2022-09-300001749723us-gaap:OperatingSegmentsMember2022-09-300001749723us-gaap:IntersegmentEliminationMember2022-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001749723nfe:ShipsSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001749723us-gaap:OperatingSegmentsMember2022-01-012022-09-300001749723us-gaap:IntersegmentEliminationMember2022-01-012022-09-300001749723us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2023-07-012023-09-300001749723us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember2023-01-012023-09-300001749723nfe:TerminalsAndInfrastructureSegmentMemberus-gaap:CostOfSalesMember2023-07-012023-09-300001749723nfe:BarcarenaFinancingsMemberus-gaap:SubsequentEventMember2023-10-31nfe:financingAgreement0001749723us-gaap:SubsequentEventMembernfe:BNDESCreditAgreementMember2023-10-310001749723us-gaap:SubsequentEventMembernfe:BNDESCreditAgreementMember2023-10-012023-10-31nfe:tranch0001749723srt:MinimumMemberus-gaap:SubsequentEventMembernfe:BNDESCreditAgreementMember2023-10-310001749723srt:MaximumMemberus-gaap:SubsequentEventMembernfe:BNDESCreditAgreementMember2023-10-310001749723nfe:BarcarenaDebenturesMemberus-gaap:SubsequentEventMemberus-gaap:ConvertibleDebtMember2023-10-310001749723nfe:BarcarenaDebenturesMemberus-gaap:SubsequentEventMemberus-gaap:ConvertibleDebtMember2023-10-012023-10-310001749723us-gaap:SecuredDebtMembernfe:TermLoanBCreditAgreementMemberus-gaap:SubsequentEventMember2023-10-300001749723us-gaap:SecuredDebtMembernfe:TermLoanBCreditAgreementMemberus-gaap:SubsequentEventMembernfe:SecuredOvernightFinancingRateSOFRMember2023-10-302023-10-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to__________
Commission File Number: 001-38790
New Fortress Energy Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware83-1482060
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
111 W. 19th Street, 8th Floor
New York, NY
10011
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (516) 268-7400
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer x
Accelerated filer ¨
Non-accelerated filer ¨
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock
NFE
Nasdaq Global Select Market
As of November 6, 2023, the registrant had 205,031,406 shares of Class A common stock outstanding.


Table of Contents
TABLE OF CONTENTS
i

Table of Contents
GLOSSARY OF TERMS
As commonly used in the liquefied natural gas industry, to the extent applicable and as used in this Quarterly Report on Form 10-Q (“Quarterly Report”), the terms listed below have the following meanings:
ADOautomotive diesel oil
Bcf/yrbillion cubic feet per year
Btuthe amount of heat required to raise the temperature of one avoirdupois pound of pure water from 59 degrees Fahrenheit to 60 degrees Fahrenheit at an absolute pressure of 14.696 pounds per square inch gage
CAAClean Air Act
CERCLAComprehensive Environmental Response, Compensation and Liability Act
CWAClean Water Act
DOEU.S. Department of Energy
DOTU.S. Department of Transportation
EPAU.S. Environmental Protection Agency
FTA countriescountries with which the United States has a free trade agreement providing for national treatment for trade in natural gas
GAAPgenerally accepted accounting principles in the United States
GHGgreenhouse gases
GSAgas sales agreement
Henry Huba natural gas pipeline located in Erath, Louisiana that serves as the official delivery location for futures contracts on the New York Mercantile Exchange
ISO containerInternational Organization of Standardization, an intermodal container
LNGnatural gas in its liquid state at or below its boiling point at or near atmospheric pressure
MMBtuone million Btus, which corresponds to approximately 12.1 gallons of LNG
mtpametric tons per year
MWmegawatt. We estimate 2,500 LNG gallons would be required to produce one megawatt
NGANatural Gas Act of 1938, as amended
non-FTA countriescountries without a free trade agreement with the United States providing for national treatment for trade in natural gas and with which trade is permitted
OPAOil Pollution Act
ii

Table of Contents
OUROffice of Utilities Regulation (Jamaica)
PHMSAPipeline and Hazardous Materials Safety Administration
PPApower purchase agreement
SSAsteam supply agreement
TBtuone trillion Btus, which corresponds to approximately 12,100,000 gallons of LNG
iii

Table of Contents
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This Quarterly Report contains forward-looking statements regarding, among other things, our plans, strategies, prospects and projections, both business and financial. All statements contained in this Quarterly Report other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “targets,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include:
our limited operating history;
the results of our subsidiaries, affiliates, joint ventures and special purpose entities in which we invest and their ability to make dividends or distributions to us;
construction and operational risks related to our facilities and assets, including cost overruns and delays;
failure of LNG or natural gas to be a competitive source of energy in the markets in which we operate, and seek to operate;
complex regulatory and legal environments related to our business, assets and operations, including actions by governmental entities or changes to regulation or legislation, in particular related to our permits, approvals and authorizations for the construction and operation of our facilities;
delays or failure to obtain and maintain approvals and permits from governmental and regulatory agencies;
failure to obtain a return on our investments for the development of our projects and assets and the implementation of our business strategy;
failure to maintain sufficient working capital for the development and operation of our business and assets;
failure to convert our customer pipeline into actual sales;
lack of asset, geographic or customer diversification, including loss of one or more of our customers;
competition from third parties in our business;
cyclical or other changes in the demand for and price of LNG and natural gas;
inability to procure LNG at necessary quantities or at favorable prices to meet customer demand, or otherwise to manage LNG supply and price risks, including hedging arrangements;
inability to successfully develop and implement our technological solutions;
inability to service our debt and comply with our covenant restrictions;
inability to obtain additional financing to effect our strategy;
inability to successfully complete mergers, sales, divestments or similar transactions related to our businesses or assets or to integrate such businesses or assets and realize the anticipated benefits;
economic, political, social and other risks related to the jurisdictions in which we do, or seek to do, business;
weather events or other natural or manmade disasters or phenomena;
the extent of the global COVID-19 pandemic or any other major health and safety incident;
increased labor costs, disputes or strikes, and the unavailability of skilled workers or our failure to attract and retain qualified personnel;
the tax treatment of, or changes in tax laws applicable to, us or our business or of an investment in our Class A shares; and
other risks described in the “Risk Factors” section of this Quarterly Report.

All forward-looking statements speak only as of the date of this Quarterly Report. When considering forward-looking statements, you should keep in mind the risks set forth under “Item 1A. Risk Factors” and other cautionary statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 (our “Annual Report”), this Quarterly Report and in our other filings with the Securities and Exchange Commission (the “SEC”). The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf. We undertake no duty to update these forward-looking statements, even though our situation may change in the future. Furthermore, we cannot guarantee future results, events, levels of activity, performance, projections or achievements.


iv

Table of Contents
PART I
FINANCIAL INFORMATION
Item 1.    Financial Statements.
New Fortress Energy Inc.
Condensed Consolidated Balance Sheets
As of September 30, 2023 and December 31, 2022
(Unaudited, in thousands of U.S. dollars, except share amounts)
September 30, 2023December 31, 2022
Assets
Current assets
Cash and cash equivalents$171,329 $675,492 
Restricted cash66,162 165,396 
Receivables, net of allowances of $1,133 and $884, respectively
360,820 280,313 
Inventory103,331 39,070 
Prepaid expenses and other current assets, net164,559 226,883 
Total current assets866,201 1,387,154 
Construction in progress4,789,799 2,418,608 
Property, plant and equipment, net2,563,871 2,116,727 
Equity method investments139,058 392,306 
Right-of-use assets474,483 377,877 
Intangible assets, net67,443 85,897 
Goodwill776,760 776,760 
Deferred tax assets, net8,074 8,074 
Other non-current assets, net110,681 141,679 
Total assets$9,796,370 $7,705,082 
Liabilities
Current liabilities
Current portion of long-term debt and short-term borrowings$270,547 $64,820 
Accounts payable892,924 80,387 
Accrued liabilities435,692 1,162,412 
Current lease liabilities142,296 48,741 
Other current liabilities169,744 52,878 
Total current liabilities1,911,203 1,409,238 
Long-term debt5,897,528 4,476,865 
Non-current lease liabilities318,082 302,121 
Deferred tax liabilities, net27,206 25,989 
Other long-term liabilities63,789 49,010 
Total liabilities8,217,808 6,263,223 
Commitments and contingencies (Note 19)
Stockholders’ equity
Class A common stock, $0.01 par value, 750 million shares authorized, 205.0 million issued and outstanding as of September 30, 2023; 208.8 million issued and outstanding as of December 31, 2022
2,050 2,088 
Additional paid-in capital1,039,428 1,170,254 
Retained earnings331,282 62,080 
Accumulated other comprehensive income 63,312 55,398 
Total stockholders’ equity attributable to NFE1,436,072 1,289,820 
Non-controlling interest142,490 152,039 
Total stockholders’ equity1,578,562 1,441,859 
Total liabilities and stockholders’ equity$9,796,370 $7,705,082 
The accompanying notes are an integral part of these condensed consolidated financial statements.
1

Table of Contents
New Fortress Energy Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
For the three and nine months ended September 30, 2023 and 2022
(Unaudited, in thousands of U.S. dollars, except share and per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Revenues
Operating revenue$420,868 $632,684 $1,417,175 $1,529,999 
Vessel charter revenue67,287 92,860 209,651 260,414 
Other revenue26,307 6,386 28,112 31,490 
Total revenues514,462 731,930 1,654,938 1,821,903 
Operating expenses
Cost of sales (exclusive of depreciation and amortization shown separately below)191,920 393,830 602,626 874,529 
Vessel operating expenses11,613 20,318 36,347 61,910 
Operations and maintenance60,819 22,033 121,187 65,691 
Selling, general and administrative49,107 67,601 157,048 165,952 
Transaction and integration costs2,739 5,620 4,787 12,387 
Depreciation and amortization48,670 35,793 125,160 106,439 
Asset impairment expense   48,109 
Total operating expenses364,868 545,195 1,047,155 1,335,017 
Operating income149,594 186,735 607,783 486,886 
Interest expense64,822 63,588 200,891 156,344 
Other (income) expense, net(2,271)10,214 16,150 (31,613)
Loss on extinguishment of debt, net 14,997  14,997 
Income before income from equity method investments and income taxes87,043 97,936 390,742 347,158 
Income (loss) from equity method investments489 (31,734)12,738 (354,426)
Tax provision (benefit)25,194 9,971 69,476 (126,249)
Net income62,338 56,231 334,004 118,981 
Net (income) loss attributable to non-controlling interest(1,117)5,617 (3,329)11,371 
Net income attributable to stockholders$61,221 $61,848 $330,675 $130,352 
Net income per share – basic$0.30 $0.30 $1.60 $0.62 
Net income per share – diluted$0.30 $0.29 $1.59 $0.62 
Weighted average number of shares outstanding – basic205,032,928 209,629,936 206,249,474 209,749,139 
Weighted average number of shares outstanding – diluted205,032,928 209,800,427 206,804,833 209,869,058 
Other comprehensive income (loss):
Net income$62,338 $56,231 $334,004 $118,981 
Currency translation adjustment(11,356)(33,087)7,693 48,040 
Comprehensive income50,982 23,144 341,697 167,021 
Comprehensive (income) loss attributable to non-controlling interest (795)6,085 (3,108)11,029 
Comprehensive income attributable to stockholders$50,187 $29,229 $338,589 $178,050 
The accompanying notes are an integral part of these condensed consolidated financial statements.
2

Table of Contents
New Fortress Energy Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
For the three and nine months ended September 30, 2023 and 2022
(Unaudited, in thousands of U.S. dollars, except share amounts)
Class A common stockAdditional
paid-in
capital
Retained earningsAccumulated other
comprehensive
income
Non-
controlling
interest
Total
stockholders’ equity
Shares Amount
Balance as of December 31, 2022208,770,088 $2,088 $1,170,254 $62,080 $55,398 $152,039 $1,441,859 
Net income— — — 150,206 — 1,360 151,566 
Other comprehensive income— — — — 1,946 195 2,141 
Cancellation of shares(4,100,000)(41)(122,713)— — — (122,754)
Dividends— — — (20,467)— (3,019)(23,486)
Balance as of March 31, 2023204,670,088 $2,047 $1,047,541 $191,819 $57,344 $150,575 $1,449,326 
Net income— — — 119,248 — 852 120,100 
Other comprehensive income (loss)— — — — 17,002 (94)16,908 
Share-based compensation expense— — 1,179 — — — 1,179 
Issuance of shares for vested share-based compensation awards689,401 3 — — — — 3 
Shares withheld from employees related to share-based compensation, at cost(328,083)— (9,519)— — — (9,519)
Dividends— — — (20,503)— (6,619)(27,122)
Balance as of June 30, 2023205,031,406 $2,050 $1,039,201 $290,564 $74,346 $144,714 $1,550,875 
Net income— — — 61,221 — 1,117 62,338 
Other comprehensive loss— — — — (11,034)(322)(11,356)
Share-based compensation expense— — 227 — — — 227 
Dividends— — — (20,503)— (3,019)(23,522)
Balance as of September 30, 2023205,031,406 $2,050 $1,039,428 $331,282 $63,312 $142,490 $1,578,562 
3

Table of Contents
Class A common stockAdditional
paid-in
capital
Retained earnings (Accumulated
deficit)
Accumulated other
comprehensive income (loss)
Non-
controlling
interest
Total
stockholders’
equity
Shares Amount
Balance as of December 31, 2021206,863,242 $2,069 $1,923,990 $(132,399)$(2,085)$202,479 $1,994,054 
Net income— — — 238,269 — 2,912 241,181 
Other comprehensive income— — — — 118,874 1,956 120,830 
Share-based compensation expense— — 880 — — — 880 
Issuance of shares for vested RSUs1,121,255 7 — — — — 7 
Shares withheld from employees related to share-based compensation, at cost(442,146)— (15,274)— — — (15,274)
Dividends— — (20,754)— — (3,019)(23,773)
Balance as of March 31, 2022207,542,351 $2,076 $1,888,842 $105,870 $116,789 $204,328 $2,317,905 
Net loss— — — (169,765)— (8,666)(178,431)
Other comprehensive loss— — — — (38,557)(1,146)(39,703)
Share-based compensation expense— — 358 — — — 358 
Issuance of shares for vested RSUs13,898 — — — — —  
Dividends— — (20,582)— — (7,019)(27,601)
Balance as of June 30, 2022207,556,249 $2,076 $1,868,618 $(63,895)$78,232 $187,497 $2,072,528 
Net income (loss)— — — 61,848 — (5,617)56,231 
Other comprehensive loss— — — — (32,619)(468)(33,087)
Share-based compensation expense— — 13,417 — — — 13,417 
Issuance of shares for vested RSU/PSUs2,291,060 12 (12)— — —  
Shares withheld from employees related to share-based compensation, at cost(1,077,221)— (59,548)— — — (59,548)
Deconsolidation of vessels— — — — — (23,569)(23,569)
Dividends— — (20,756)— — (3,019)(23,775)
Balance as of September 30, 2022208,770,088 $2,088 $1,801,719 $(2,047)$45,613 $154,824 $2,002,197 




The accompanying notes are an integral part of these condensed consolidated financial statements.
4

Table of Contents
New Fortress Energy Inc.
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2023 and 2022
(Unaudited, in thousands of U.S. dollars)
Nine Months Ended September 30,
2023 2022
Cash flows from operating activities
Net income$334,004 $118,981 
Adjustments for:
Depreciation and amortization125,853 107,185 
(Earnings) losses of equity method investees(12,738)354,426 
Dividends received from equity method investees5,830 23,195 
Change in market value of derivatives(2,672)(6,700)
Deferred taxes1,217 (203,026)
Asset impairment expense 48,109 
Earnings recognized from vessels chartered to third parties transferred to Energos(112,608)(14,341)
Loss on the disposal of equity method investment37,401  
Loss on extinguishment of debt 14,997 
Loss on sale of net investment in lease 11,592 
Other2,211 15,464 
Changes in operating assets and liabilities:
(Increase) in receivables(86,743)(287,748)
(Increase) in inventories(29,238)(28,078)
Decrease (Increase) in other assets56,512 (93,329)
Decrease in right-of-use assets68,360 51,265 
Increase (decrease) in accounts payable/accrued liabilities73,211 (10,487)
Increase (decrease) in amounts due to affiliates1,613 (3,220)
(Decrease) in lease liabilities(56,908)(47,237)
Increase in other liabilities131,879 40,057 
Net cash provided by operating activities537,184 91,105 
Cash flows from investing activities
Capital expenditures(2,191,605)(787,166)
Sale of equity method investment100,000  
Proceeds from sale of net investment in lease 593,000 
Other investing activities26,043 (1,794)
Net cash used in investing activities(2,065,562)(195,960)
Cash flows from financing activities
Proceeds from borrowings of debt1,768,715 1,932,020 
Payment of deferred financing costs(18,064)(16,093)
Repayment of debt(104,530)(1,518,471)
Payments related to tax withholdings for share-based compensation(9,519)(72,597)
Payment of dividends(700,440)(75,149)
Other financing activities(12,090) 
Net cash provided by financing activities924,072 249,710 
Impact of changes in foreign exchange rates on cash and cash equivalents923 (4,896)
Net (decrease) increase in cash, cash equivalents and restricted cash(603,383)139,959 
Cash, cash equivalents and restricted cash – beginning of period855,083 264,030 
Cash, cash equivalents and restricted cash – end of period$251,700 $403,989 
Supplemental disclosure of non-cash investing and financing activities:
Changes in accounts payable and accrued liabilities associated with construction in progress and property, plant and equipment additions$641,967 $112,886 
Principal payments on financing obligation to Energos by third party charterers(52,035)(5,438)
Shares received in Hilli Exchange(122,754) 
5

Table of Contents
Investment in Energos 129,518 
Non-cash financing 41,264 
The following table identifies the balance sheet line-items included in Cash and cash equivalents, Current restricted cash, and Non-current restricted cash presented in the Condensed Consolidated Statement of Cash Flows:
Nine Months Ended September 30,
20232022
Cash and cash equivalents$171,329 $364,313 
Current restricted cash66,162 24,204 
Non-current restricted cash 2,581 
Cash and cash equivalents classified as held for sale14,209 12,891 
Cash, cash equivalents and restricted cash – end of period$251,700 $403,989 
Cash and cash equivalents as of September 30, 2023 and 2022 includes $14,209 and $12,891, respectively, which have been classified as assets held for sale and included in Other current assets on the condensed consolidated balance sheets.















The accompanying notes are an integral part of these condensed consolidated financial statements.
6

Table of Contents

1. Organization
New Fortress Energy Inc. (“NFE,” together with its subsidiaries, the “Company”), a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas ("LNG") infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally.
The Company currently conducts its business through two operating segments, Terminals and Infrastructure and Ships. The business and reportable segment information reflect how the Chief Operating Decision Maker (“CODM”) regularly reviews and manages the business.
2. Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements contained herein were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect all normal and recurring adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations and cash flows of the Company for the interim periods presented. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual audited consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2022 (the "Annual Report"). Certain prior year amounts have been reclassified to conform to current year presentation.
The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions, impacting the reported amounts of assets and liabilities, net earnings and disclosures of contingent assets and liabilities as of the date of the condensed consolidated financial statements. Actual results could be different from these estimates.
3. Adoption of new and revised standards
The Company has reviewed recently issued accounting pronouncements and concluded that such pronouncements are either not applicable to the Company or no material impact is expected in the condensed consolidated financial statements as a result of future adoption.
4. Revenue recognition
Operating revenue in the condensed consolidated statements of operations and comprehensive income (loss) includes revenue from sales of LNG and natural gas as well as outputs from the Company’s natural gas-fueled power generation facilities, including power and steam, and the sale of LNG cargos. The Company did not have any LNG cargo sales in the third quarter of 2023. For the nine months ended September 30, 2023, the Company recognized LNG cargo sales to customers of $617,138, which included $332,000 of contract settlements. LNG cargo sales for the three and nine months ended September 30, 2022 were $350,550 and $944,751, respectively.

Under most customer contracts, invoicing occurs once the Company’s performance obligations have been satisfied, at which point payment is unconditional. As of September 30, 2023 and December 31, 2022, receivables related to revenue from contracts with customers totaled $351,160 and $280,382, respectively, and were included in Receivables, net on the condensed consolidated balance sheets, net of current expected credit losses of $1,133 and $884, respectively. Other items included in Receivables, net not related to revenue from contracts with customers represent leases, which are accounted for outside the scope of ASC 606, and receivables associated with reimbursable costs.
Contract assets are comprised of the transaction price allocated to completed performance obligations that will be billed to customers in subsequent periods. The Company has recognized contract liabilities, comprised of unconditional payments due or paid under the contracts with customers prior to the Company’s satisfaction of the related performance obligations. The contract assets and contract liabilities balances as of September 30, 2023 and December 31, 2022 are detailed below:
7

Table of Contents
September 30, 2023December 31, 2022
Contract assets, net - current$8,567 $8,083 
Contract assets, net - non-current22,176 28,651 
Total contract assets, net$30,743 $36,734 
Contract liabilities, net - current$69,254 $12,748 
Contract liabilities, net - non-current41,818  
Total contract liabilities, net$111,072 $12,748 
Revenue recognized in the year from:
Amounts included in contract liabilities at the beginning of the year$12,748 $2,951 
Contract assets are presented net of expected credit losses of $326 and $401 as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, contract assets was comprised of $30,603 and $36,483 of unbilled receivables, respectively, which represent unconditional rights to payment only subject to the passage of time.
Contract liabilities increased during the nine months ended September 30, 2023 primarily due to upfront payments received under the Company's contracts in Puerto Rico to provide temporary power and to operate and maintain PREPA's power generation assets. These payments will be recognized as revenue over the expected term of these contracts.
The Company has recognized costs to fulfill contracts with customers, which primarily consist of expenses required to enhance resources to deliver under agreements with these customers. These costs can include set-up and mobilization costs incurred ahead of the service period, and such costs will be recognized on a straight-line basis over the expected terms of the agreements. As of September 30, 2023, the Company has capitalized $26,587 of which $2,753 of these costs is presented within Prepaid expenses and other current assets, net and $23,834 is presented within Other non-current assets, net on the condensed consolidated balance sheets. As of December 31, 2022, the Company had capitalized $10,377, of which $604 of these costs was presented within Prepaid expenses and other current assets, net and $9,773 was presented within Other non-current assets, net on the condensed consolidated balance sheets.
Transaction price allocated to remaining performance obligations
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.
The Company has arrangements in which LNG, natural gas or outputs from the Company’s power generation facilities are sold on a “take-or-pay” basis whereby the customer is obligated to pay for the minimum guaranteed volumes even if it does not take delivery. The price under these agreements is typically based on a market index plus a fixed margin. The fixed transaction price allocated to the remaining performance obligations under these arrangements represents the fixed margin multiplied by the outstanding minimum guaranteed volumes. The Company expects to recognize this revenue over the following time periods. The pattern of recognition reflects the minimum guaranteed volumes in each period:
PeriodRevenue
Remainder of 2023
$473,460 
20242,044,859 
20251,449,971 
2026528,514 
2027525,643 
Thereafter8,004,334 
Total$13,026,781 
For all other sales contracts that have a term exceeding one year, the Company has elected the practical expedient in ASC 606 under which the Company does not disclose the transaction price allocated to remaining performance obligations if the
8

Table of Contents
variable consideration is allocated entirely to a wholly unsatisfied performance obligation. For these excluded contracts, the sources of variability are (a) the market index prices of natural gas used to price the contracts, and (b) the variation in volumes that may be delivered to the customer. Both sources of variability are expected to be resolved at or shortly before delivery of each unit of LNG, natural gas, power or steam. As each unit of LNG, natural gas, power or steam represents a separate performance obligation, future volumes are wholly unsatisfied.
Lessor arrangements
Property, plant and equipment subject to vessel charters accounted for as operating leases is included within Vessels within "Note 12 Property, plant and equipment, net." Vessels included in the Energos Formation Transaction (defined below in "Note 10 Equity method investments"), including those vessels chartered to third parties, continue to be recognized on the condensed consolidated balance sheet. The carrying amount of these vessels that are leased to third parties under operating leases is as follows:
September 30, 2023December 31, 2022
Property, plant and equipment$917,563 $1,292,957 
Accumulated depreciation(84,503)(80,233)
Property, plant and equipment, net$833,060 $1,212,724 
The components of lease income from vessel operating leases for the three and nine months ended September 30, 2023 and 2022 are shown below. As the Company has not recognized the sale of all of the vessels included in the Energos Formation Transaction, the operating lease income shown below for the three and nine months ended September 30, 2023 is comprised of revenue from third-party charters of vessels included in the Energos Formation Transaction.
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating lease income$66,557 $83,188 $208,921 $235,092 
Variable lease income730 8,238 730 19,470 
Total operating lease income$67,287 $91,426 $209,651 $254,562 
Prior to the completion of the Energos Formation Transaction, the Company's charter of the Nanook was accounted for as a finance lease, and the Company recognized interest income of $5,517 and $28,643 for the three and nine months ended September 30, 2022, respectively, related to this finance lease, which was presented within Other revenue in the condensed consolidated statements of operations and comprehensive income (loss). The Company also recognized revenue of $1,434 and $5,852 for the three and nine months ended September 30, 2022, respectively, related to the operation and services agreement and variable charter revenue within Vessel charter revenue in the condensed consolidated statements of operations and comprehensive income (loss). The Company recognized the sale of the net investment in the finance lease of the Nanook as part of the Energos Formation Transaction.
Subsequent to the Energos Formation Transaction, all cash receipts on vessel charters, including the finance lease of the Nanook, will be received by Energos. As such, there are no future cash receipts from operating leases, and the future cash receipts from other finance leases are not significant as of September 30, 2023.
9

Table of Contents
5. Leases, as lessee
The Company has operating leases primarily for the use of LNG vessels, marine port space, office space, land and equipment under non-cancellable lease agreements. The Company’s leases may include multiple optional renewal periods that are exercisable solely at the Company’s discretion. Renewal periods are included in the lease term when the Company is reasonably certain that the renewal options would be exercised, and the associated lease payments for such periods are reflected in the right-of-use ("ROU") asset and lease liability.
The Company’s leases include fixed lease payments which may include escalation terms based on a fixed percentage or may vary based on an inflation index or other market adjustments. Escalations based on changes in inflation indices and market adjustments and other lease costs that vary based on the use of the underlying asset are not included as lease payments in the calculation of the lease liability or ROU asset; such payments are included in variable lease cost when the obligation that triggers the variable payment becomes probable. Variable lease cost includes contingent rent payments for office space based on the percentage occupied by the Company in addition to common area charges and other charges that are variable in nature. The Company also has a component of lease payments that are variable related to the LNG vessels, in which the Company may receive credits based on the performance of the LNG vessels during the period.
As of September 30, 2023 and December 31, 2022, ROU assets, current lease liabilities and non-current lease liabilities consisted of the following:
September 30, 2023 December 31, 2022
Operating right-of-use-assets$418,265 $355,883 
Finance right-of-use-assets (1)
56,218 21,994 
Total right-of-use assets$474,483 $377,877 
Current lease liabilities:
Operating lease liabilities$114,536 $44,371 
Finance lease liabilities27,760 4,370 
Total current lease liabilities$142,296 $48,741 
Non-current lease liabilities:
Operating lease liabilities$294,972 $290,899 
Finance lease liabilities23,110 11,222 
Total non-current lease liabilities$318,082 $302,121 
(1) Finance lease ROU assets are recorded net of accumulated amortization of $15,582 and $2,134 as of September 30, 2023 and December 31, 2022, respectively.
For the three and nine months ended September 30, 2023 and 2022, the Company’s operating lease cost recorded within the condensed consolidated statements of operations and comprehensive income (loss) was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Fixed lease cost$33,840 $19,433 $73,066 $58,346 
Variable lease cost1,435 622 3,036 1,558 
Short-term lease cost11,502 6,204 17,421 12,326 
Lease cost - Cost of sales$28,409 $23,438 $59,300 $64,453 
Lease cost - Operations and maintenance16,274 1,066 28,322 2,675 
Lease cost - Selling, general and administrative2,094 1,755 5,901 5,102 
For the three months ended September 30, 2023 and 2022, the Company has capitalized $8,111 and $4,005 of lease costs, respectively. For the nine months ended September 30, 2023 and 2022, the Company has capitalized $26,816 and $15,220
10

Table of Contents
of lease costs, respectively. Capitalized costs include vessels and port space used during the commissioning of development projects. Short-term lease costs for vessels chartered by the Company to transport inventory from a supplier’s facilities to the Company’s storage locations are capitalized to inventory.
The Company has leases of turbines, ISO tanks and a parcel of land that are recognized as finance leases. For the three and nine months ended September 30, 2023 and 2022, the Company’s finance interest expense and amortization recorded in Interest expense and Depreciation and amortization, respectively, within the condensed consolidated statements of operations and comprehensive income (loss) were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Interest expense related to finance leases$1,080 $208 $2,766 $655 
Amortization of right-of-use asset related to finance leases5,888 378 13,448 1,137 
Cash paid for operating leases is reported in operating activities in the condensed consolidated statements of cash flows. Supplemental cash flow information related to leases was as follows for the nine months ended September 30, 2023 and 2022:
Nine Months Ended September 30,
20232022
Cash outflows for operating lease liabilities$89,326 $73,389 
Cash outflows for finance lease liabilities13,582 3,654 
Right-of-use assets obtained in exchange for new operating lease liabilities130,646 135,075 
Right-of-use assets obtained in exchange for new finance lease liabilities47,672  
The future payments due under operating and finance leases as of September 30, 2023 are as follows:
Operating LeasesFinancing Leases
Due remainder of 2023
$39,454 $8,101 
2024137,439 29,997 
202575,637 12,427 
202652,744 3,041 
202752,281 436 
Thereafter187,505 943 
Total lease payments$545,060 $54,945 
Less: effects of discounting135,552 4,075 
Present value of lease liabilities$409,508 $50,870 
Current lease liability$114,536 $27,760 
Non-current lease liability294,972 23,110 
As of September 30, 2023, the weighted average remaining lease term for operating leases was 6.4 years and finance leases was 2.2 years. Because the Company generally does not have access to the rate implicit in the lease, the incremental borrowing rate is utilized as the discount rate. The weighted average discount rate associated with operating leases as of September 30, 2023 was 8.8% and as of December 31, 2022 was 8.5%. The weighted average discount rate associated with finance leases as of September 30, 2023 was 8.2% and as of December 31, 2022 was 5.1%.
11

Table of Contents
6. Financial instruments
Commodity risk management
The Company has utilized commodity swap transactions to manage exposure to changes in market pricing of natural gas or LNG. Realized and unrealized gains and losses on these transactions have been recognized in Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss).
During the fourth quarter of 2022, the Company entered into a commodity swap transaction to swap market pricing exposure for approximately 6.8 TBtus for a fixed price of $40.55 per MMBtu. The swap settled during the first quarter of 2023 resulting in a gain of $41,315 recognized as a reduction to Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss). The gain was comprised of a realized gain of $146,112 and the reversal of the unrealized gain of $104,797 recognized in the fourth quarter of 2022.
In January 2023, the Company entered into a series of commodity swap transactions. Mark-to-market unrealized gains of $975 for the three months ended September 30, 2023 and unrealized losses of $1,841 for the nine months ended September 30, 2023 on this instrument have been recognized in Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss).
Interest rate and currency risk management
The Company was party to an interest rate swap, and in the first quarter of 2023, the interest rate swap was terminated.
The Company does not hold or issue instruments for speculative purposes, and the counterparties to such contracts are major banking and financial institutions. Credit risk exists to the extent that the counterparties are unable to perform under the contracts; however, the Company does not anticipate non-performance by any counterparties.
The mark-to-market gain or loss on the interest rate swap and other derivative instruments that are not intended to mitigate commodity risk are reported in Other (income) expense, net in the condensed consolidated statements of operations and comprehensive income (loss).
Fair value
Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows:
Level 1 – observable inputs such as quoted prices in active markets for identical assets or liabilities.
Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs.
Level 3 – unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants price the asset or liability.
The valuation techniques that may be used to measure fair value are as follows:
Market approach – uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
Income approach – uses valuation techniques, such as the discounted cash flow technique, to convert future amounts to a single present amount based on current market expectations about those future amounts.
Cost approach – based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).
The Company uses the market approach when valuing investment in equity securities which is recorded in Other non-current assets on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022.
12

Table of Contents
The Company uses the income approach when valuing the following financial instruments:
Interest rate swap - The Company did not have any interest rate swaps outstanding as of September 30, 2023. As of December 31, 2022, the Company had an interest rate swap that was recorded within Other non-current assets on the condensed consolidated balance sheets.
The liability and asset associated with commodity swaps are recorded within Other current liabilities and Prepaid expenses and other current assets on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively.
Contingent consideration derivative liability represents consideration due to the sellers in asset acquisitions when certain contingent events occur. The liabilities associated with these derivative liabilities are recorded within Other current liabilities and Other long-term liabilities on the condensed consolidated balance sheets based on the timing of expected settlement.
The fair value of derivative instruments, including commodity swaps is estimated considering current interest rates, foreign exchange rates, closing quoted market prices and the creditworthiness of counterparties. The Company estimates fair value of the contingent consideration derivative liabilities using a discounted cash flows method with discount rates based on the average yield curve for bonds with similar credit ratings and matching terms to the discount periods as well as a probability of the contingent events occurring.
The following table presents the Company’s financial assets and financial liabilities, including those that are measured at fair value, as of September 30, 2023 and December 31, 2022:
Level 1Level 2Level 3Total
September 30, 2023
Assets
Investment in equity securities$ $ $7,678 $7,678 
Liabilities
Commodity swap$ $1,841 $ $1,841 
Contingent consideration derivative liabilities  40,946 40,946 
December 31, 2022
Assets
Investment in equity securities$10,128 $ $7,678 $17,806 
Interest rate swap 11,650  11,650 
Commodity swap 104,797  104,797 
Liabilities
Contingent consideration derivative liabilities$ $ $46,619 $46,619 
The Company believes the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of September 30, 2023 and December 31, 2022 and are classified as Level 1 within the fair value hierarchy.
The table below summarizes the fair value adjustment to instruments measured at Level 3 in the fair value hierarchy, including the contingent consideration derivative liabilities. These adjustments have been recorded within Other (income) expense, net in the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022:
13

Table of Contents
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Contingent consideration derivative liabilities - Fair value adjustment - (gain) / loss$(2,722)$177 $(5,757)$1,161 
Foreign currency forward purchase - (gain) (2,923) (20,394)
During the nine months ended September 30, 2023 and 2022, the Company had no settlements or transfers in or out of Level 3 in the fair value hierarchy.
7. Restricted cash
As of September 30, 2023 and December 31, 2022, restricted cash consisted of the following:
September 30, 2023December 31, 2022
Cash restricted under the terms of loan agreements$3,825 $124,085 
Collateral for letters of credit and performance bonds62,337 41,392 
Collateral for interest rate swaps 2,500 
  Total restricted cash$66,162 $167,977 
Current restricted cash$66,162 $165,396 
Non-current restricted cash 2,581 
As of September 30, 2023, the balance presented as collateral for letters of credit and performance bonds includes $21,300 to support a letter of credit to facilitate the purchase of turbines that was completed in the third quarter of 2023. A portion of these turbines will be utilized to support the Company's contract to generate temporary power in Puerto Rico.
Use of cash proceeds under the Barcarena Term Loan are restricted to certain payments to construct the Barcarena Power Plant (each as defined in our Annual Report). Non-current restricted cash is presented in Other non-current assets, net on the condensed consolidated balance sheets.
8. Inventory
As of September 30, 2023 and December 31, 2022, inventory consisted of the following:
September 30, 2023December 31, 2022
LNG and natural gas inventory$73,936 $15,398 
Automotive diesel oil inventory9,848 8,164 
Bunker fuel, materials, supplies and other19,547 15,508 
Total inventory$103,331 $39,070 
Inventory is adjusted to the lower of cost or net realizable value each quarter. Changes in the value of inventory are recorded within Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss). In the second quarter of 2023, the Company acquired a spot cargo at a higher cost to obtain a new customer contract. The net realizable value of this cargo was below the cost as of June 30, 2023, and as such, we recognized an adjustment to inventory of $6,232. No adjustments were recorded during the three months ended September 30, 2023 or the nine months ended September 30, 2022.
14

Table of Contents
9. Prepaid expenses and other current assets
As of September 30, 2023 and December 31, 2022, prepaid expenses and other current assets consisted of the following:
September 30, 2023December 31, 2022
Prepaid expenses$26,831 $56,380 
Recoverable taxes68,748 37,504 
Commodity swap 104,797 
Due from affiliates1,542 698 
Assets held for sale48,879  
Other current assets18,559 27,504 
Total prepaid expenses and other current assets, net$164,559 $226,883 
Prepaid expenses as December 31, 2022 included $34,882 of prepaid LNG inventory. The Company does not have any significant prepaid LNG inventory as of September 30, 2023. Other current assets as of September 30, 2023 and December 31, 2022 primarily consists of deposits and the current portion of contract assets (Note 4).
Assets held for sale
In the third quarter of 2022, NFE Brazil Holdings LLC ("Brazil Holdings"), a consolidated indirect subsidiary of NFE and indirect owner of Pecém Energia S.A. (“Pecém”) and Energetica Camacari Muricy II S.A. (“Muricy”), and Centrais Elétricas de Pernambuco S.A. – EPESA (“EPESA”), entered into a Share Purchase Agreement pursuant to which Brazil Holdings agreed to sell 100% of the shares of Pecém and Muricy to EPESA, following an internal reorganization. The sale price includes cash consideration of BRL 59 million (approximately $12 million using the exchange rate as of September 30, 2023), as well as additional consideration for the satisfaction of certain milestones. Consideration under this agreement also includes potential future earnout payments based on the revenue generated from power purchase agreements held by Pecém and Muricy. The sale of Pecém and Muricy was approved by Agência Nacional de Energia Elétrica ("ANEEL") after the balance sheet date; the sale is subject to customary terms and conditions and conditions precedent prior to closing.
All assets and liabilities of Pecém and Muricy were classified as held for sale as of September 30, 2023 and December 31, 2022. The estimated fair value of these entities based on the consideration in the agreement was in excess of the carrying value, and no impairment loss was recognized upon classification as held for sale. Assets held for sale include a cash balance of $14,209 and $11,614 as of September 30, 2023 and December 31, 2022, respectively, which have been included in the ending cash and cash equivalents on the condensed consolidated statement of cash flows.
10. Equity method investments
Changes in the balance of the Company’s equity method investments is as follows:
September 30, 2023
Equity method investments as of December 31, 2022
$392,306 
Dividends(5,830)
Equity in earnings of investees12,738 
Sale of equity method investments(260,156)
Equity method investments as of September 30, 2023
$139,058 
15

Table of Contents
The carrying amounts of the Company's equity method investments as of September 30, 2023 and December 31, 2022 are:
September 30, 2023December 31, 2022
Hilli LLC$ $260,000 
Energos139,058 132,306 
Total$139,058 $392,306 
As of September 30, 2023, the carrying value of the Company’s equity method investment was less than its proportionate share of the underlying net assets of its investee by $1,548. At December 31, 2022, the carrying value of the Company’s equity method investments exceeded its proportionate share of the underlying net assets of its investees by $16,976, and the basis difference attributable to amortizable net assets was amortized to Income (loss) from equity method investments in the condensed consolidated statements of operations and comprehensive income (loss) over the remaining estimated useful lives of the underlying assets.
Hilli LLC
On March 15, 2023, the Company completed a transaction with Golar LNG Limited ("GLNG") for the sale of the Company's investment in the common units of Hilli LLC in exchange for approximately 4.1 million NFE shares and $100,000 in cash (the "Hilli Exchange"). In the fourth quarter of 2022, the Company recognized an other-than-temporary impairment on the investment in Hilli LLC of $118,558; this impairment was recognized in Income (loss) from equity method investments in the consolidated statements of operations and comprehensive income (loss). Upon completion of the Hilli Exchange, a loss on disposal of $37,401 was recognized in Other (income) expense, net in the condensed consolidated statements of operations and comprehensive income (loss). As a result of the Hilli Exchange, the Company no longer has an ownership interest in the Hilli. NFE shares received from GLNG were cancelled upon closing of the Hilli Exchange.
The Company had guaranteed 50% of the outstanding principal and interest amounts payable by Hilli Corp., a direct subsidiary of Hilli LLC. The Company had also guaranteed letters of credit issued by a financial institution in the event of Hilli Corp.’s underperformance or non-performance under the liquefaction tolling agreement with its customer. In conjunction with the Hilli Exchange, the Company is no longer a guarantor under these arrangements, and the remaining guarantee liability of $2,286 was derecognized as a reduction to Selling, general and administrative in the condensed consolidated statements of operations in the first quarter of 2023.
Energos
In August 2022, the Company completed a transaction (the “Energos Formation Transaction”) with an affiliate of Apollo Global Management, Inc., pursuant to which the Company transferred ownership of 11 vessel to Energos Infrastructure ("Energos") in exchange for approximately $1.85 billion in cash and a 20% equity interest in Energos. The Company's equity investment provides certain rights, including representation on the board of directors, which give the Company significant influence over the operations of Energos, and as such, the investment has been accounted for under the equity method; this investment is included within the Ships segment. Energos is also an affiliate, and all transactions with Energos are transactions with an affiliate.
Due to the timing and availability of financial information of Energos, the Company recognizes its proportional share of the income or loss from the equity method investment on a financial reporting lag of one fiscal quarter. For the three and nine months ended September 30, 2023, the Company has recognized earnings from Energos of $489 and $6,752.
16

Table of Contents
11. Construction in progress
The Company’s construction in progress activity during the nine months ended September 30, 2023 is detailed below:
September 30, 2023
Construction in progress as of December 31, 2022
$2,418,608 
Additions2,889,770 
Impact of currency translation adjustment13,811 
Assets placed in service(532,390)
Construction in progress as of September 30, 2023
$4,789,799 
Interest expense of $201,890 and $56,778, inclusive of amortized debt issuance costs, was capitalized for the nine months ended September 30, 2023 and 2022, respectively.
The Company has significant development activities in Latin America as well as the development of the Company's Fast LNG liquefaction solution, and the completion of such developments are subject to risks of successful completion, including those related to government approvals, site identification, financing, construction permitting and contract compliance. The Company's development activities for the nine months ended September 30, 2023 were primarily focused on Fast LNG and the construction of temporary power generation assets to support the Puerto Rican grid stabilization project; additions to construction in progress in the first nine months of 2023 of $2,569,197 were to develop Fast LNG projects and Puerto Rican temporary power.
Assets placed in service during 2023 are primarily comprised of assets to support our Puerto Rican temporary power project and our power plant at the Port of Pichilingue in Baja California Sur, Mexico.
12. Property, plant and equipment, net
As of September 30, 2023 and December 31, 2022, the Company’s property, plant and equipment, net consisted of the following:
September 30, 2023December 31, 2022
Vessels$1,527,684 $1,518,839 
Terminal and power plant equipment430,883 218,296 
CHP facilities273,978 123,897 
Gas terminals179,103 177,780 
ISO containers and other equipment148,756 134,324 
LNG liquefaction facilities63,316 63,316 
Gas pipelines66,319 65,985 
Land52,759 52,995 
Leasehold improvements152,962 9,377 
Accumulated depreciation(331,889)(248,082)
Total property, plant and equipment, net$2,563,871 $2,116,727 
The book value of the vessels that was recognized due to the failed sale leaseback in the Energos Formation Transaction as of September 30, 2023 and December 31, 2022 was $1,308,795 and $1,328,553, respectively.
Depreciation expense for the three months ended September 30, 2023 and 2022 totaled $36,705 and $26,326, respectively, of which $230 and $222, respectively, is included within Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss). Depreciation expense for the nine months ended September 30, 2023 and 2022 totaled $92,980 and $78,393, respectively, of which $693 and $749, respectively, is included within Cost of sales in the condensed consolidated statements of operations and comprehensive income (loss).
17

Table of Contents
13. Goodwill and intangible assets
Goodwill
The carrying amount of goodwill was $776,760 as of both September 30, 2023 and December 31, 2022.

Intangible assets
The following tables summarize the composition of intangible assets as of September 30, 2023 and December 31, 2022:
September 30, 2023
Gross Carrying
Amount
Accumulated
Amortization
Currency Translation
Adjustment
Net Carrying
Amount
Weighted
Average Life
Definite-lived intangible assets
Favorable vessel charter contracts$106,500 $(82,373)$ $24,127 3
Permits and development rights48,217 (5,020)(2,207)40,990 38
Easements1,556 (330) 1,226 30
Indefinite-lived intangible assets
Easements1,191 — (91)1,100 n/a
Total intangible assets$157,464 $(87,723)$(2,298)$67,443 
December 31, 2022
Gross Carrying
Amount
Accumulated
Amortization
Currency Translation
Adjustment
Net Carrying
Amount
Weighted
Average Life
Definite-lived intangible assets
Favorable vessel charter contracts$106,500 $(64,836)$ $41,664 3
Permits and development rights48,217 (4,115)(2,239)41,863 38
Easements1,556 (294) 1,262 30
Indefinite-lived intangible assets
Easements1,191 — (83)1,108 n/a
Total intangible assets$157,464 $(69,245)$(2,322)$