LEASES

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

LEASES

Finance Leases

The Company's finance lease liabilities consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands):

Creditor	Loan Type	March 31, 2024		December 31, 2023
Matheson Tri-Gas	Finance Lease	$	43,816	$	44,132
Plaquemines	Finance Lease	940		994
Harvey Ford	Finance Lease	36		39
DLL financial	Finance Lease	45		47
Diego	Finance Lease	139		137
Xerox	Finance Lease	16		—
Centerpoint Blakely	Finance Lease	23,081		23,292
		$	68,073	$	68,641

Future maturities of finance lease obligations, as of March 31, 2024, are summarized as follows (in thousands):

Period Ended March 31,	Amount Due
2025	$	8,459
2026	8,462
2027	8,455
2028	27,847
2029	6,588
Thereafter	56,240
Total lease payments	116,051
Less: interest	(47,978)
Present value of financing lease liabilities	68,073
Less: current portion of lease liabilities	(2,497)
Total lease liabilities, net of current portion	$	65,576

The following table summarizes the lease cost recognized in our consolidated statements of operations (in thousands):

	Three Months Ended March 31,
Lease Cost Type	2024		2023
Amortization of finance lease ROU assets	$	993	$	784
Interest on lease liabilities	1,522		1,382
Net finance lease costs	$	2,515	$	2,166

Operating Leases

Operating leases are included in operating lease right-of-use lease assets, and operating current and long-term lease liabilities on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense for equipment is included in cost of revenues and other rents are included in selling, general and administrative expense on the unaudited consolidated statements of operations.

The following table summarizes the operating lease costs recognized (in thousands):

	Three Months Ended March 31,
Lease Cost Type	2024		2023
Operating lease cost	$	7,499	$	3,070
Variable lease cost	659		260
Short-term lease cost	6,651		1,929
Net lease cost	$	14,809	$	5,259

Cash Flows

The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):

	Three Months Ended March 31,
Lease Cost Type	2024		2023
Cash paid for amounts included in the measurement of liabilities
Payments on financing lease	$	586	$	310
Payments on operating lease	$	7,499	$	3,070
Non-cash supplemental amounts
ROU assets obtained from new finance lease liabilities	$	18	$	15,024
ROU assets obtained from new operating lease liabilities	$	74	$	15,078
ROU assets terminated from release of operating lease liabilities	$	(17,666)	$	—

Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2024 (in thousands):

For the period ending March 31,	Facilities		Equipment		Plant		Railcar		Total
2025	$	975	$	12,300	$	8,009	$	687	$	21,971
2026	818		6,512		7,721		567		15,618
2027	631		5,058		7,745		246		13,680
2028	606		3,438		7,603		104		11,751
2029	545		—		6,946		—		7,491
Thereafter	1,293		—		72,072		—		73,365
Total lease payments	4,868		27,308		110,096		1,604		143,876
Less: interest	(1,391)		(4,269)		(60,455)		(135)		(66,250)
Present value of operating lease liabilities	3,477		23,039		49,641		1,469		77,626
Less: current portion of lease liabilities	(621)		(10,076)		(2,025)		(559)		(13,281)
Total lease liabilities, net of current portion	$	2,856	$	12,963	$	47,616	$	910	$	64,345

The weighted average remaining lease terms and discount rates for all of our financing lease and operating leases were as follows as of March 31, 2024:

Remaining lease term and discount rate:	March 31, 2024
	Operating lease		Financing lease
Weighted average remaining lease terms (years)
Lease facilities	4.94		—
Lease equipment	1.90		3.87
Lease plant	13.55		14.16
Lease railcar	2.21		—
Weighted average discount rate
Lease facilities	11.07	%	—	%
Lease equipment	12.11	%	9.19	%
Lease plant	12.31	%	8.89	%
Lease railcar	10.72	%	—	%

Significant Judgments

Significant judgments include the discount rates applied, the expected lease terms, lease renewal options and residual value guarantees. There are several leases with renewal options or purchase options.

The purchase options are not expected to have a material impact on the lease obligation. There are several facility and plant leases which have lease renewal options ranging from one to five years for each renewal period. The Company will reassess the lease terms and purchase options when there is a significant change in circumstances or when the Company elects to exercise an option that had previously been determined that it was not reasonably certain to do so.

LEASES

LEASES

Finance Leases

The Company's finance lease liabilities consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands):

Creditor	Loan Type	March 31, 2024		December 31, 2023
Matheson Tri-Gas	Finance Lease	$	43,816	$	44,132
Plaquemines	Finance Lease	940		994
Harvey Ford	Finance Lease	36		39
DLL financial	Finance Lease	45		47
Diego	Finance Lease	139		137
Xerox	Finance Lease	16		—
Centerpoint Blakely	Finance Lease	23,081		23,292
		$	68,073	$	68,641

Future maturities of finance lease obligations, as of March 31, 2024, are summarized as follows (in thousands):

Period Ended March 31,	Amount Due
2025	$	8,459
2026	8,462
2027	8,455
2028	27,847
2029	6,588
Thereafter	56,240
Total lease payments	116,051
Less: interest	(47,978)
Present value of financing lease liabilities	68,073
Less: current portion of lease liabilities	(2,497)
Total lease liabilities, net of current portion	$	65,576

The following table summarizes the lease cost recognized in our consolidated statements of operations (in thousands):

	Three Months Ended March 31,
Lease Cost Type	2024		2023
Amortization of finance lease ROU assets	$	993	$	784
Interest on lease liabilities	1,522		1,382
Net finance lease costs	$	2,515	$	2,166

Operating Leases

Operating leases are included in operating lease right-of-use lease assets, and operating current and long-term lease liabilities on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense for equipment is included in cost of revenues and other rents are included in selling, general and administrative expense on the unaudited consolidated statements of operations.

The following table summarizes the operating lease costs recognized (in thousands):

	Three Months Ended March 31,
Lease Cost Type	2024		2023
Operating lease cost	$	7,499	$	3,070
Variable lease cost	659		260
Short-term lease cost	6,651		1,929
Net lease cost	$	14,809	$	5,259

Cash Flows

The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):

	Three Months Ended March 31,
Lease Cost Type	2024		2023
Cash paid for amounts included in the measurement of liabilities
Payments on financing lease	$	586	$	310
Payments on operating lease	$	7,499	$	3,070
Non-cash supplemental amounts
ROU assets obtained from new finance lease liabilities	$	18	$	15,024
ROU assets obtained from new operating lease liabilities	$	74	$	15,078
ROU assets terminated from release of operating lease liabilities	$	(17,666)	$	—

Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2024 (in thousands):

For the period ending March 31,	Facilities		Equipment		Plant		Railcar		Total
2025	$	975	$	12,300	$	8,009	$	687	$	21,971
2026	818		6,512		7,721		567		15,618
2027	631		5,058		7,745		246		13,680
2028	606		3,438		7,603		104		11,751
2029	545		—		6,946		—		7,491
Thereafter	1,293		—		72,072		—		73,365
Total lease payments	4,868		27,308		110,096		1,604		143,876
Less: interest	(1,391)		(4,269)		(60,455)		(135)		(66,250)
Present value of operating lease liabilities	3,477		23,039		49,641		1,469		77,626
Less: current portion of lease liabilities	(621)		(10,076)		(2,025)		(559)		(13,281)
Total lease liabilities, net of current portion	$	2,856	$	12,963	$	47,616	$	910	$	64,345

The weighted average remaining lease terms and discount rates for all of our financing lease and operating leases were as follows as of March 31, 2024:

Remaining lease term and discount rate:	March 31, 2024
	Operating lease		Financing lease
Weighted average remaining lease terms (years)
Lease facilities	4.94		—
Lease equipment	1.90		3.87
Lease plant	13.55		14.16
Lease railcar	2.21		—
Weighted average discount rate
Lease facilities	11.07	%	—	%
Lease equipment	12.11	%	9.19	%
Lease plant	12.31	%	8.89	%
Lease railcar	10.72	%	—	%

Significant Judgments

Significant judgments include the discount rates applied, the expected lease terms, lease renewal options and residual value guarantees. There are several leases with renewal options or purchase options.

The purchase options are not expected to have a material impact on the lease obligation. There are several facility and plant leases which have lease renewal options ranging from one to five years for each renewal period. The Company will reassess the lease terms and purchase options when there is a significant change in circumstances or when the Company elects to exercise an option that had previously been determined that it was not reasonably certain to do so.