v3.26.1
Leases, as lessee
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases, as lessee
7. Leases, as lessee
The Company has operating leases primarily for the use of LNG vessels, marine port space, office space, land and equipment under non-cancellable lease agreements. The Company’s leases may include multiple optional renewal periods that are exercisable solely at the Company’s discretion. Renewal periods are included in the lease term when the Company is reasonably certain that the renewal options would be exercised, and the associated lease payments for such periods are reflected in the right-of-use (“ROU”) asset and lease liability.
The Company’s leases include fixed lease payments which may include escalation terms based on a fixed percentage or may vary based on an inflation index or other market adjustments. Escalations resulting from changes in inflation indices and market adjustments, as well as other lease costs that depend on the use of the underlying asset, are not considered lease payments when calculating the lease liability or ROU asset. Instead, such payments are accounted for as variable lease cost when the condition that triggers the variable payment becomes probable. Variable lease cost includes contingent rent payments for office space based on the percentage occupied by the Company in addition to common area charges and other charges that are variable in nature. The Company also has a component of lease payments that are variable related to the LNG vessels, in which the Company may receive credits based on the performance of the LNG vessels during the period.
As of June 30, 2026 and December 31, 2025, ROU assets, current lease liabilities and non-current lease liabilities consisted of the following:
June 30, 2026December 31, 2025
Operating right-of-use-assets$198,071 $394,795 
Finance right-of-use-assets (1)
11,512 17,022 
Total right-of-use assets$209,583 $411,817 
Current lease liabilities:
Operating lease liabilities$81,216 $69,832 
Finance lease liabilities1,824 2,425 
Total current lease liabilities$83,040 $72,257 
Non-current lease liabilities:
Operating lease liabilities$171,642 $318,118 
Finance lease liabilities635 701 
Total non-current lease liabilities$172,277 $318,819 
(1) Finance lease ROU assets are recorded net of accumulated amortization of $3,119 and $4,860 as of June 30, 2026 and December 31, 2025.
During the six months ended June 30, 2026, the owner of a vessel under an operating lease repossessed the vessel after the Company failed to make certain lease payments. The lessor subsequently initiated arbitration proceedings seeking damages, fees and costs (Note 18). As the Company no longer has control of the leased asset, the Company impaired the right of use asset, recognizing an impairment charge of $60,597 within Asset impairment expense in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The associated lease liability remains in full in Current lease liabilities on the Condensed Consolidated Balance Sheets as the Company is not relieved of its obligation and further expects this matter to be resolved within the next 12 months from the balance sheet date.
For the three and six months ended June 30, 2026 and 2025, the Company’s operating lease cost recorded within the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fixed lease cost$3,577 $35,284 $13,373 $76,929 
Variable lease cost27 (749)(211)(227)
Short-term lease cost849 567 1,554 1,510 
Lease cost - Cost of sales$1,813 $31,700 $10,128 $69,866 
Lease cost - Operations and maintenance1,317 2,550 2,113 5,825 
Lease cost - Selling, general and administrative1,322 852 2,474 2,521 
For the three months ended June 30, 2026 and 2025, the Company has capitalized $5,962 and $2,479 of lease costs, respectively. For the six months ended June 30, 2026 and 2025, the Company has capitalized $17,847 and $7,137 of lease costs, respectively. Short-term lease costs for vessels chartered by the Company to transport inventory from a supplier’s facilities to the Company’s storage locations are capitalized to inventory. Capitalized costs include vessels used during the commissioning of development projects.
The Company has leases of ISO tanks and a parcel of land that are recognized as finance leases. For the three and six months ended June 30, 2026 and 2025, the Company’s finance interest expense and amortization recorded in Interest expense and Depreciation and amortization, respectively, within the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest expense related to finance leases$25 $77 $64 $167 
Amortization of right-of-use asset related to finance leases307 369 676 744 
Cash paid for operating leases is reported in operating activities in the Condensed Consolidated Statements of Cash Flows. Supplemental cash flow information related to leases was as follows for the six months ended June 30, 2026 and 2025:
Six Months Ended June 30,
20262025
Operating cash outflows for operating lease liabilities$3,999 $92,318 
Financing cash outflows for finance lease liabilities210 1,994 
Right-of-use assets obtained in exchange for new operating lease liabilities841 — 
The future payments due under operating and finance leases as of June 30, 2026 are as follows:
Operating LeasesFinancing Leases
Due remainder of 2026
$65,056 $1,770 
202797,890 89 
202837,854 89 
202936,800 89 
203036,866 89 
Thereafter143,701 674 
Total lease payments$418,167 $2,800 
Less: effects of discounting165,309 341 
Present value of lease liabilities$252,858 $2,459 
Current lease liability$81,216 $1,824 
Non-current lease liability171,642 635 
As of June 30, 2026, the weighted average remaining lease term for operating leases was 8.8 years and finance leases was 7.3 years. Because the Company generally does not have access to the rate implicit in the lease, the incremental borrowing rate is utilized as the discount rate. The weighted average discount rate associated with operating leases as of June 30, 2026 and December 31, 2025 was 13.2% and 9.7%, respectively. The weighted average discount rate associated with finance leases as of June 30, 2026 and December 31, 2025 was 6.0% and 5.5%, respectively.
Leases, as lessee
7. Leases, as lessee
The Company has operating leases primarily for the use of LNG vessels, marine port space, office space, land and equipment under non-cancellable lease agreements. The Company’s leases may include multiple optional renewal periods that are exercisable solely at the Company’s discretion. Renewal periods are included in the lease term when the Company is reasonably certain that the renewal options would be exercised, and the associated lease payments for such periods are reflected in the right-of-use (“ROU”) asset and lease liability.
The Company’s leases include fixed lease payments which may include escalation terms based on a fixed percentage or may vary based on an inflation index or other market adjustments. Escalations resulting from changes in inflation indices and market adjustments, as well as other lease costs that depend on the use of the underlying asset, are not considered lease payments when calculating the lease liability or ROU asset. Instead, such payments are accounted for as variable lease cost when the condition that triggers the variable payment becomes probable. Variable lease cost includes contingent rent payments for office space based on the percentage occupied by the Company in addition to common area charges and other charges that are variable in nature. The Company also has a component of lease payments that are variable related to the LNG vessels, in which the Company may receive credits based on the performance of the LNG vessels during the period.
As of June 30, 2026 and December 31, 2025, ROU assets, current lease liabilities and non-current lease liabilities consisted of the following:
June 30, 2026December 31, 2025
Operating right-of-use-assets$198,071 $394,795 
Finance right-of-use-assets (1)
11,512 17,022 
Total right-of-use assets$209,583 $411,817 
Current lease liabilities:
Operating lease liabilities$81,216 $69,832 
Finance lease liabilities1,824 2,425 
Total current lease liabilities$83,040 $72,257 
Non-current lease liabilities:
Operating lease liabilities$171,642 $318,118 
Finance lease liabilities635 701 
Total non-current lease liabilities$172,277 $318,819 
(1) Finance lease ROU assets are recorded net of accumulated amortization of $3,119 and $4,860 as of June 30, 2026 and December 31, 2025.
During the six months ended June 30, 2026, the owner of a vessel under an operating lease repossessed the vessel after the Company failed to make certain lease payments. The lessor subsequently initiated arbitration proceedings seeking damages, fees and costs (Note 18). As the Company no longer has control of the leased asset, the Company impaired the right of use asset, recognizing an impairment charge of $60,597 within Asset impairment expense in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The associated lease liability remains in full in Current lease liabilities on the Condensed Consolidated Balance Sheets as the Company is not relieved of its obligation and further expects this matter to be resolved within the next 12 months from the balance sheet date.
For the three and six months ended June 30, 2026 and 2025, the Company’s operating lease cost recorded within the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Fixed lease cost$3,577 $35,284 $13,373 $76,929 
Variable lease cost27 (749)(211)(227)
Short-term lease cost849 567 1,554 1,510 
Lease cost - Cost of sales$1,813 $31,700 $10,128 $69,866 
Lease cost - Operations and maintenance1,317 2,550 2,113 5,825 
Lease cost - Selling, general and administrative1,322 852 2,474 2,521 
For the three months ended June 30, 2026 and 2025, the Company has capitalized $5,962 and $2,479 of lease costs, respectively. For the six months ended June 30, 2026 and 2025, the Company has capitalized $17,847 and $7,137 of lease costs, respectively. Short-term lease costs for vessels chartered by the Company to transport inventory from a supplier’s facilities to the Company’s storage locations are capitalized to inventory. Capitalized costs include vessels used during the commissioning of development projects.
The Company has leases of ISO tanks and a parcel of land that are recognized as finance leases. For the three and six months ended June 30, 2026 and 2025, the Company’s finance interest expense and amortization recorded in Interest expense and Depreciation and amortization, respectively, within the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest expense related to finance leases$25 $77 $64 $167 
Amortization of right-of-use asset related to finance leases307 369 676 744 
Cash paid for operating leases is reported in operating activities in the Condensed Consolidated Statements of Cash Flows. Supplemental cash flow information related to leases was as follows for the six months ended June 30, 2026 and 2025:
Six Months Ended June 30,
20262025
Operating cash outflows for operating lease liabilities$3,999 $92,318 
Financing cash outflows for finance lease liabilities210 1,994 
Right-of-use assets obtained in exchange for new operating lease liabilities841 — 
The future payments due under operating and finance leases as of June 30, 2026 are as follows:
Operating LeasesFinancing Leases
Due remainder of 2026
$65,056 $1,770 
202797,890 89 
202837,854 89 
202936,800 89 
203036,866 89 
Thereafter143,701 674 
Total lease payments$418,167 $2,800 
Less: effects of discounting165,309 341 
Present value of lease liabilities$252,858 $2,459 
Current lease liability$81,216 $1,824 
Non-current lease liability171,642 635 
As of June 30, 2026, the weighted average remaining lease term for operating leases was 8.8 years and finance leases was 7.3 years. Because the Company generally does not have access to the rate implicit in the lease, the incremental borrowing rate is utilized as the discount rate. The weighted average discount rate associated with operating leases as of June 30, 2026 and December 31, 2025 was 13.2% and 9.7%, respectively. The weighted average discount rate associated with finance leases as of June 30, 2026 and December 31, 2025 was 6.0% and 5.5%, respectively.