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Revenue recognition
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue recognition
6. 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. LNG cargo sales for the three and nine months ended September 30, 2024 were $174,570 and $199,072, respectively, which included $35,088 from the cargo sale from the Company's first FLNG project in the third quarter of 2024. LNG cargo sales for the three and nine months ended
September 30, 2023 were $0 and $617,138, respectively, which included $0 and $332,000 of contract settlements, respectively.

The table below summarizes the balances in Other revenue:

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Interest income and other revenue$2,600 $370 $12,276 $2,175 
Operation and maintenance revenue59,219 25,937 168,073 25,937 
Total other revenue$61,819 $26,307 $180,349 $28,112 
Operation and maintenance revenue is recognized by the Company's subsidiary, Genera PR LLC ("Genera"), under its contract for the operation and maintenance of PREPA's thermal generation assets. Under this agreement, Genera is paid a fixed annual fee and reimbursed for pass-through expenses, including payroll expenses of Genera employees, beginning when the contract commenced on July 1, 2023. Amounts recognized in the nine months ended September 30, 2024 include fixed fees, reimbursement of pass-through expenditures and an estimate of variable consideration for incentive fees to be received. Variable consideration has been estimated based on the most likely amount method, and the Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The determination of estimated amounts included in the transaction price is based largely upon an assessment of the uncertainties associated with the variable consideration, including the susceptibility of payment to factors outside of the Company’s control. The Company considers all information that is reasonably available, including historical, current and estimates of future performance.

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, 2024 and December 31, 2023, receivables related to revenue from contracts with customers totaled $429,130 and $331,108, respectively, and were included in Receivables, net on the Condensed Consolidated Balance Sheets, net of current expected credit losses of $9,859 and $1,158, respectively. During the first quarter of 2024, the Company recorded an additional allowance for uncollectible receivables of $11,595. The allowance reduces outstanding receivables for certain customers to reflect the amount that the Company expects to receive. 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, 2024 and December 31, 2023 are detailed below:
September 30, 2024December 31, 2023
Contract assets, net - current$56,996 $8,714 
Contract assets, net - non-current17,745 19,901 
Total contract assets, net$74,741 $28,615 
Contract liabilities, net - current$121,361 $65,287 
Contract liabilities, net - non-current11,750 31,698 
Total contract liabilities, net$133,111 $96,985 
Revenue recognized in the year from:
Amounts included in contract liabilities at the beginning of the year$82,062 $12,748 
Contract assets are presented net of expected credit losses of $221 and $326 as of September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, contract assets was comprised of $22,180 and
$28,536 of unbilled receivables, respectively, which represent unconditional rights to payment only subject to the passage of time.
The Company received prepayments of $150,000 for future contracted sales during the second and third quarters of 2024, which was recorded as a contract liability. The Company recognized $42,273 as revenue during the third quarter of 2024 as delivery was completed. The remaining deliveries under these contracts will occur during the fourth quarter of 2024 and through 2025. Contract liabilities decreased in the first quarter of 2024 due to the termination of the Company's contract to support the grid stabilization project in Puerto Rico (Refer to Note 5 - Asset sale). Deferred revenue at the time of termination of $43,577 was recognized as Operating revenue in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
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, 2024, the Company has capitalized $23,349 of which $2,205 of these costs is presented within Prepaid expenses and other current assets, net and $21,144 is presented within Other non-current assets, net on the Condensed Consolidated Balance Sheets. As of December 31, 2023, the Company had capitalized $25,282, of which $2,864 of these costs was presented within Prepaid expenses and other current assets, net and $22,418 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 2024
$76,690 
2025711,529 
2026709,586 
2027705,896 
2028690,665 
Thereafter9,529,656 
Total$12,424,022 
For all other sales contracts that have a term exceeding one year, the Company has elected the practical expedient in ASC 606. Under this expedient, the Company does not disclose the transaction price allocated to remaining performance obligations if the 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 in Note 14. Vessels included in the Energos Formation Transaction (defined below in Note 12), including those vessels
chartered to third parties, continue to be recognized on the Condensed Consolidated Balance Sheets. The carrying amount of these vessels that are leased to third parties under operating leases is as follows:
September 30, 2024December 31, 2023
Property, plant and equipment$686,683 $686,683 
Accumulated depreciation(89,751)(69,977)
Property, plant and equipment, net$596,932 $616,706 
The components of lease income from vessel operating leases for the three and nine months ended September 30, 2024 and 2023 are shown below. As the Company has not recognized the sale of all of the vessels included in the Energos Formation Transaction (defined below), the operating lease income shown below for the three and nine months ended September 30, 2024 includes revenue of $17,407 and $102,569 from third-party charters of vessels included in the Energos Formation Transaction. The operating lease income shown below for the three and nine months ended September 30, 2023 includes revenue of $66,557 and $208,921, respectively, from third-party charters of vessels included in the Energos Formation Transaction.
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Operating lease income$50,537 $66,557 $143,840 $208,921 
Variable lease income9,131 730 14,899 730 
Total operating lease income$59,668 $67,287 $158,739 $209,651 
Subsequent to the Energos Formation Transaction, all cash receipts on long-term vessel charters will be received by Energos. As such, future cash receipts from both operating and finance leases were not significant as of September 30, 2024.