Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

14.Revenue

The following table presents the Company’s revenue for the three months ended March 31, 2024 and 2023 (in thousands):

	For the three months ended March 31,
	2024		2023
Revenue from leases	$	137,910	$	102,966
Revenue from contracts with customers
Time charter, regasification and other services		19,084		15,611
Gas sales		43,119		92,479
Total revenue	$	200,113	$	211,056

As a result of the Company’s adoption of the ASC 842 practical expedient discussed in Note 2 – Summary of significant accounting policies, $21.4 million in the three months ended March 31, 2023, was reclassified from Time charter, regasification and other services to Revenue from leases to conform with the current period presentation.

Lease revenue

The Company’s time charter contracts are accounted for as operating or sales-type leases. The Company’s revenue from leases is presented within revenues in the consolidated statements of income and for the three months ended March 31, 2024 and 2023 consists of the following (in thousands):

	For the three months ended March 31,
	2024		2023
Operating lease income	$	122,876	$	84,976
Sales-type lease income		15,034		17,990
Total revenue from leases	$	137,910	$	102,966

Sales-type leases

Sales-type lease income is interest income that is presented within lease revenues on the consolidated statements of income. The Company leased two vessels and a terminal under sales-type leases as it is reasonably certain that the ownership of these assets will transfer to the customer at the end of the term. For the three months ended March 31, 2024, the Company recorded lease income from the net investment in the leases within revenue from lease contracts of $15.0 million compared to $18.0 million for the three months ended March 31, 2023.

Operating leases

Revenue from time charter contracts accounted for as operating leases is recognized by the Company on a straight-line basis over the term of the contract. As of March 31, 2024, the Company is the lessor to time charter agreements with customers on eight of its vessels. The following represents the amount of property and equipment that is leased to customers as of March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024			December 31, 2023
Property and equipment	$	2,460,504		$	2,184,347
Accumulated depreciation		(950,849	)		(929,141	)
Property and equipment, net	$	1,509,655		$	1,255,206

The future minimum revenues presented in the table below should not be construed to reflect total charter hire revenues for any of the years presented. Minimum future revenues included below are based on the fixed components and do not include variable or contingent revenue. Additionally, revenue generated from short-term charters is not included as the duration of each contract is less than a year. As of March 31, 2024, the minimum contractual future revenues to be received under the time charters during the next five years and thereafter are as follows (in thousands):

Year	Sales-type			Operating
Remainder of 2024	$	66,009		$	332,850
2025		87,612			379,700
2026		87,612			354,327
2027		87,612			363,280
2028		80,848			291,975
Thereafter		411,507			1,031,014
Total undiscounted	$	821,200		$	2,753,146
Less: imputed interest		(424,982	)
Net investment in sales-type leases		396,218
Less: current portion		(18,034	)
Non-current net investment in sales-type leases	$	378,184

Revenue from contracts with customers

The following tables show disaggregated revenues from customers attributable to the region in which the party to the applicable agreement has its principal place of business (in thousands):

	For the three months ended March 31, 2024
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Asia Pacific	$	15,034	$	14,781	$	41,455	$	71,270
Latin America		55,801		—		—		55,801
Middle East (1)		39,816		—		—		39,816
Europe		27,259		—		—		27,259
Other		—		4,303		1,664		5,967
Total revenue	$	137,910	$	19,084	$	43,119	$	200,113

	For the three months ended March 31, 2023
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Asia Pacific	$	17,991	$	10,666	$	—	$	28,657
Latin America		30,055		—		70,253		100,308
Middle East (1)		36,107		—		—		36,107
Europe		18,813		—		22,226		41,039
Other		—		4,945		—		4,945
Total revenue	$	102,966	$	15,611	$	92,479	$	211,056

(1)Includes Pakistan and the UAE.

Assets and liabilities related to contracts with customers

Under most gas sales contracts, invoicing occurs once the Company’s performance obligations have been satisfied, at which point payment is unconditional. Invoicing timing for TCP, regasification and other services varies and occurs according to the contract. As of March 31, 2024 and December 31, 2023, receivables from contracts with customers were $23.8 million and $73.8 million, respectively. These amounts are presented within accounts receivable, net on the consolidated balance sheets. In addition, revenue for services recognized in excess of the invoiced amounts, or accrued revenue, outstanding at March 31, 2024 and December 31, 2023, was $0.8 million and $0.4 million, respectively. Accrued revenue represents current contract assets that will turn into accounts receivable within the next 12 months and be collected during the Company’s normal business operating cycle. Accrued revenue is presented in accounts receivable, net on the consolidated balance sheets. Other items included in accounts receivable, net represent receivables associated with leases, which are accounted for in accordance with the leasing standard. There were no write downs of trade receivables for lease or time charter services or contract assets for the three months ended March 31, 2024 and 2023.

There were no contract liabilities from advance payments in excess of revenue recognized from services as of March 31, 2024 and December 31, 2023. If the performance obligations are expected to be satisfied during the next 12 months, the contract liabilities are classified within current portion of deferred revenue on the consolidated balance sheets. Amounts to be recognized in revenue after 12 months are recorded in other long-term liabilities. The remaining portion of current deferred revenue relates to the lease component of the Company’s time charter contracts, which are accounted for in accordance with the leasing standard. Noncurrent deferred revenue presented in other long-term liabilities on the consolidated balance sheets represents payments allocated to the Company’s performance obligation for drydocking services within time charter contracts in which the lease component is accounted for as a sales-type lease, customer requested upgrades made to certain vessels, and vessel repositioning. Revenue will be recognized as the performance obligations are complete.

The following table reflects the changes in our liabilities related to long-term contracts with customers as of March 31, 2024 (in thousands):

	March 31, 2024
Deferred revenues, beginning of period	$	56,267
Cash received but not yet recognized		20,986
Revenue recognized from prior period deferral		(28,378	)
Deferred revenues, end of period	$	48,875

Some of the Company’s contracts are short-term in nature with a contract term of less than a year. The Company applied the optional exemption not to report any unfulfilled performance obligations related to these contracts.

In November 2023, Excelerate signed a 15-year LNG sale and purchase agreement (the “Petrobangla SPA”) with Bangladesh Oil, Gas & Mineral Corporation (“Petrobangla”). Under the agreement, Petrobangla has agreed to purchase LNG from Excelerate beginning in 2026. Excelerate will deliver 0.85 million tonnes per annum (“MTPA”) of LNG in 2026 and 2027 and 1.0 MTPA from 2028 to 2040. The take-or-pay LNG volumes are expected to be delivered through Excelerate’s two existing FSRUs in Bangladesh, Excellence and Summit LNG.

The Company has long-term arrangements with customers in which the Company provides regasification and other services as part of TCP contracts. The price under these agreements is typically stated in the contracts. Beginning in 2026, we will provide take-or-pay LNG volumes to Bangladesh through the Petrobangla SPA. The estimated fixed transaction price allocated to the remaining performance obligations under these arrangements is $7,874.4 million as of March 31, 2024. The Company expects to recognize revenue from contracts exceeding one year over the following time periods (in thousands):

Remainder of 2024	$	32,515
2025		43,157
2026		499,054
2027		484,105
2028		560,739
Thereafter		6,254,817
Total expected revenue	$	7,874,387