Investments (Tables)

9 Months Ended

Sep. 30, 2023

Investments, All Other Investments [Abstract]

Schedule of Equity Method Investments

The following table represents the activity in equity method investments:

	Equity Method Investments (1) (2) (3)
Balance at December 31, 2022	$	93.0
New investments (4)	25.5
Equity in earnings of unconsolidated affiliates	2.4
Dividend received from equity method investment	(1.7)
Foreign currency translation adjustments and other	(0.2)
Balance at September 30, 2023	$	119.0

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(1)Cryomotive: Our equity method investment in Cryomotive GmbH (“Cryomotive”) was $4.7 and $4.9 at September 30, 2023 and December 31, 2022, respectively. Equity in loss of unconsolidated affiliates, net of this investment was $0.2 and $0.4 for the three months ended September 30, 2023 and 2022, respectively, and $0.3 and $1.3 for the nine months ended September 30, 2023 and 2022, respectively. The equity in loss is classified in equity in loss of unconsolidated affiliates, net in the condensed consolidated statements of operations and comprehensive income (loss).

(2)HTEC: Our equity method investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”) was $81.3 and $80.8 at September 30, 2023 and December 31, 2022, respectively. Equity in earnings (loss) of unconsolidated affiliates, net of this investment was $0.3 and $0.2 for the three months ended September 30, 2023 and 2022, respectively, and $(0.1) and $(0.3) for the nine months ended September 30, 2023 and 2022, respectively.

(3)Hudson Products: Also included in our equity method investments is a 50% ownership interest in a joint venture with Hudson Products de Mexico S.A. de CV which totaled $4.5 and $4.0 at September 30, 2023 and December 31, 2022, respectively. This investment is operated and managed by our joint venture partner and as such, we do not have control over the joint venture and therefore it is not consolidated. We recognized equity in earnings of unconsolidated affiliates, net of this investment of $0.2 and $0.3 for the three months ended September 30, 2023 and 2022, respectively, and $0.7 and $0.9 for the nine months ended September 30, 2023 and 2022, respectively. We also received a dividend payment from this investee in the amount of $0.2 during the three and nine months ended September 30, 2023.

Liberty LNG: Additionally, we have a 25% ownership interest in Liberty LNG, which totaled $3.0 and $2.9 at September 30, 2023 and December 31, 2022, respectively. We recognized equity in earnings of unconsolidated affiliates, net of this investment of an immaterial amount and $0.2 for the three months ended September 30, 2023 and 2022, respectively, and $0.1 and $0.4 for the nine months ended September 30, 2023 and 2022, respectively.

Additionally, we have an investment in an unconsolidated affiliate, Lien Hwa Lox Cryogenic Equipment Corporation (Taiwan), of $0.4 for all periods presented.

(4)Hylium Industries: During the first quarter of 2023, we completed an investment for a 50% ownership interest in Hylium Industries, Inc. (“Hylium”) for $2.3. Our equity method investment in Hylium was $2.2 at September 30, 2023.

L&T Howden Private Ltd (“LTH”): In connection with the Howden Acquisition, we recorded a 49.9% ownership interest in a joint venture in L&T Howden Private Ltd at a fair value of $22.3. Our equity method investment in LTH was $21.7 at September 30, 2023. Equity in earnings, net of this investment was $1.0 for the three and nine months ended September

30, 2023, respectively. We also received a dividend payment from this investee in the amount of $1.5 during the three and nine months ended September 30, 2023.

Summary of Investments

The following table summarizes the components of our investments in equity securities:

	Investment in Equity Securities, Level 1 (1)		Investment in Equity Securities, Level 2 (1)		Investments in Equity Securities, All Others (2)		Investments Total
Balance at December 31, 2022	$	17.2	$	7.8	$	71.5	$	96.5
New investments (3)	—		—		6.0		6.0
Decrease in fair value of investments in equity securities	(10.2)		(1.6)		—		(11.8)
Foreign currency translation adjustments and other	—		—		(0.1)		(0.1)
Balance at September 30, 2023	$	7.0	$	6.2	$	77.4	$	90.6

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(1)McPhy: Investment in equity securities Level 1 includes our investment in McPhy (Euronext Paris: MCPHY - ISIN; FR001742329). McPhy’s common stock trades on the Euronext Paris stock exchange and therefore we measure our investment in McPhy using Level 1 fair value inputs. The fair value of our investment in McPhy was $7.0 and $17.2 at September 30, 2023 and December 31, 2022, respectively. We recognized an unrealized loss of $4.0 and $4.1 in our investment in McPhy for the three months ended September 30, 2023 and 2022, respectively, and an unrealized loss of $10.2 and $16.1 for the nine months ended September 30, 2023 and 2022, respectively.

Stabilis: Investment in equity securities Level 2 includes our investment in Stabilis Energy, Inc. (NasdaqCM: SLNG) (“Stabilis”). Stabilis represents an instrument with quoted prices that trades less frequently than certain of our other exchange-traded instruments and therefore we measure our investment in Stabilis using Level 2 fair value inputs. The fair value of our investment in Stabilis was $6.2 and $7.8 at September 30, 2023 and December 31, 2022, respectively. We recognized an unrealized loss of $1.2 and an unrealized gain of $5.4 for the three months ended September 30, 2023 and 2022, respectively, and an unrealized loss of $1.6 and an unrealized gain of $5.2 for the nine months ended September 30, 2023 and 2022, respectively, in our investment in Stabilis.

(2)Transform: The fair value of our investment in Transform Materials LLC (“Transform Materials”) was $25.1 at both September 30, 2023 and December 31, 2022.

Svante: The fair value of our investment in Svante Inc. (“Svante”) was $38.5 at both September 30, 2023 and December 31, 2022.

(3)Hy24: Our investment in Hy24 is measured at fair value using the net asset value (“NAV”) per share practical expedient and is not classified in the fair value hierarchy. The fair value of our investment in the Hy24 was $1.8 and $0.9 at September 30, 2023 and December 31, 2022, respectively. See “Hy24 (f/k/a FiveT Hydrogen Fund)” below for further information.

Gold Hydrogen LLC: The fair value of our investment in Gold Hydrogen was $2.0 at both September 30, 2023 and December 31, 2022, respectively.

Avina: During the fourth quarter of 2022, we completed an investment in Avina Clean Hydrogen Inc. (“Avina”) in the amount of $5.0. During the third quarter of 2023, Chart completed the purchase of additional shares of series A preferred stock of Avina in accordance with the original Avina stock purchase agreement for total consideration of $5.0. The fair value of our investment in Avina was $10.0 at September 30, 2023 and $5.0 at December 31, 2022, respectively.

Our investments in Transform Materials, Svante, Hy24, Gold Hydrogen and Avina represent equity instruments without a readily determinable fair value. These investments are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer.