As of December 31, 2023 and December 31, 2022, the Company’s property and equipment, net consisted of the following (in thousands):


	December 31, 2023			December 31, 2022
Vessels	$	2,487,322		$	2,225,123
Buoy and pipeline		15,568			17,130
Finance lease right-of-use assets		40,007			40,007
Other equipment		18,366			17,469
Assets in progress		93,341			77,983
Less accumulated depreciation		(1,004,825	)		(922,029	)
Property and equipment, net	$	1,649,779		$	1,455,683

For the years ended December 31, 2023, 2022 and 2021, depreciation expense was $110.8 million, $94.5 million and $103.0 million, respectively.

In March 2023, we exercised our option to purchase Sequoia for a purchase price of $265.0 million (the “Sequoia Purchase”), which at December 31, 2022, was under a bareboat charter with a third party and accounted for as an operating lease. We closed the Sequoia Purchase in April 2023 using proceeds from the Term Loan Facility (as defined herein) and cash on hand.

As part of the IPO Transaction, in exchange for (i) 7,854,167 shares of Class A Common Stock with a fair market value (based on the IPO price) of $188.5 million, (ii) a cash payment of $50.0 million and (iii) $21.5 million of estimated future payments under the TRA, EELP purchased from Maya Maritime LLC, a wholly owned subsidiary of the Foundation, all of the issued and outstanding membership interests in the Foundation Vessels. The acquisition of both Excelsior and Excellence was accounted for as asset acquisitions in accordance with ASC 805, Business Combinations (“ASC 805”). In accordance with ASC 805, the accumulated cost of the vessel acquisitions, including Class A Common Stock and contingent consideration related to the TRA, were allocated to the assets acquired based on relative fair value. In 2018, EELP entered into an agreement with a customer to lease Excellence with the vessel transferring ownership to the customer at the conclusion of the agreement for no additional consideration. Historically, EELP, as a lessor, has accounted for Excellence contract with our customer as a sales-type lease in the consolidated balance sheet in accordance with ASC 842. Excellence continues to be accounted for as a sales-type lease and thus the acquisition did not result in an adjustment to property

and equipment. The difference between the consideration given to acquire Excellence and the historical finance lease liability resulted in a $21.8 million early extinguishment of lease liability loss on our consolidated statements of income.

Effective October 4, 2022, Excelerate entered into a shipbuilding contract (“the Newbuild Agreement”) with HD Hyundai Heavy Industries Co., Ltd. (“Builder”), a company organized and existing under the laws of the Republic of Korea. The Newbuild Agreement provides for the Builder to construct a 170,000 m3 FSRU for a cost subject to adjustment and currently expected to be approximately $330.0 million. Payment is due in five installments with the final installment due concurrently with the delivery of the vessel. During the year ended December 31, 2022, we made the first installment payment of approximately $30.0 million. The Builder provided a refund guarantee to Excelerate to secure the refund of the purchase price installments prior to the delivery of the vessel if Excelerate becomes entitled to the same as a result of Builder default or other defined circumstances. The Builder is expected to deliver the vessel in 2026. Our future payment commitments related to the Newbuild Agreement are expected to be approximately $50.0 million in 2024 and $250.0 million in 2025-2026.