New Fortress Energy Inc.NFE
New Fortress Energy Inc. Leases Disclosure
9. Leases, as lessee (As Restated)
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 December 31, 2025 and 2024, ROU assets, current lease liabilities and non-current lease liabilities consisted of the following:
| December 31, 2025 | December 31, 2024 (As Restated) | ||||||||||
| $ | 394,795 | $ | 599,937 | ||||||||
(1) | 17,022 | 18,796 | |||||||||
| Total right-of-use assets | $ | 411,817 | $ | 618,733 | |||||||
| Current lease liabilities: | |||||||||||
| $ | 69,832 | $ | 119,191 | ||||||||
| 2,425 | 3,971 | ||||||||||
| Total current lease liabilities | $ | 72,257 | $ | 123,162 | |||||||
| Non-current lease liabilities: | |||||||||||
| $ | 318,118 | $ | 471,961 | ||||||||
| 701 | 3,200 | ||||||||||
| Total non-current lease liabilities | $ | 318,819 | $ | 475,161 | |||||||
(1)Finance lease ROU assets are recorded net of accumulated amortization of $4,860 and $8,134 as of December 31, 2025 and 2024, respectively.
During the fourth quarter of 2025, the Company modified two vessel leases to include short‑term payment deferrals that did not change the overall lease term or the scope of the underlying leased assets. The amendments were accounted for as lease modifications under ASC 842 and as part of the remeasurement of lease liabilities, the incremental borrowing rate was reassessed as of the respective modification date.
During 2024, the Company terminated the finance lease of certain turbines and purchased the turbines. Immediately subsequent to the purchase of the turbines, the assets were sold as part of the sale of assets to PREPA in 2024 (Refer to Note 6). The termination of the lease resulted in the write-off of the right-of-use asset and lease liability of $23,431 and $29,443, respectively, which was included in the book value of the turbines and the related loss upon sale (Note 5).
In addition, the Company terminated the operating lease of three turbines during 2024. The termination of the lease resulted in the write-off of the right-of-use asset and lease liability of $21,821 and $25,762, respectively, and a loss on lease termination of $4,789 recognized within Other (income) expense, net in the Consolidated Statements of Operations and Comprehensive (Loss) Income.
For the years ended December 31, 2025, 2024, and 2023, the Company’s operating lease cost recorded within the Consolidated Statements of Operations and Comprehensive (Loss) Income was as follows:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fixed lease cost | $ | 109,916 | $ | 161,830 | $ | 109,873 | |||||||||||
| Variable lease cost | 1,174 | 2,984 | 4,601 | ||||||||||||||
| Short-term lease cost | 2,161 | 8,603 | 23,903 | ||||||||||||||
| Lease cost - Cost of sales | $ | 97,041 | $ | 147,539 | $ | 88,608 | |||||||||||
| Lease cost - Operations and maintenance | 10,338 | 17,961 | 42,520 | ||||||||||||||
| Lease cost - Selling, general and administrative | 5,872 | 7,917 | 7,249 | ||||||||||||||
For the years ended December 31, 2025, 2024 and 2023, the Company has capitalized $20,259, $36,288 and $61,320 of lease costs, respectively. Capitalized costs include vessels used during the commissioning of development projects. 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.
The Company has leases of ISO tanks and a parcel of land that are recognized as finance leases. For the years ended December 31, 2025, 2024 and 2023, the Company’s finance interest expense and amortization recorded in Interest expense and Depreciation and amortization, respectively, within the Consolidated Statements of Operations and Comprehensive (Loss) Income were as follows:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Interest expense related to finance leases | $ | 281 | $ | 981 | $ | 3,706 | |||||||||||
| Amortization of right-of-use asset related to finance leases | 1,481 | 6,132 | 19,337 | ||||||||||||||
Cash paid for operating leases is reported in operating activities in the Consolidated Statements of Cash Flows. Supplemental cash flow information related to leases was as follows for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating cash outflows for operating lease liabilities | $ | 147,694 | $ | 175,862 | $ | 133,132 | |||||||||||
| Financing cash outflows for finance lease liabilities | 4,324 | 9,500 | 21,187 | ||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | — | 206,344 | 265,537 | ||||||||||||||
| Right-of-use assets obtained in exchange for new finance lease liabilities | — | — | 47,672 | ||||||||||||||
The future payments due under operating and finance leases as of December 31, 2025 are as follows:
| Operating Leases | Financing Leases | ||||||||||
| 2026 | $ | 102,058 | $ | 2,501 | |||||||
| 2027 | 87,902 | 89 | |||||||||
| 2028 | 86,419 | 89 | |||||||||
| 2029 | 62,394 | 89 | |||||||||
| 2030 | 49,814 | 89 | |||||||||
| Thereafter | 146,325 | 674 | |||||||||
| Total Lease Payments | $ | 534,912 | $ | 3,531 | |||||||
| Less: effects of discounting | 146,962 | 405 | |||||||||
| Present value of lease liabilities | $ | 387,950 | $ | 3,126 | |||||||
| Current lease liability | $ | 69,832 | $ | 2,425 | |||||||
| Non-current lease liability | 318,118 | 701 | |||||||||
As of December 31, 2025, the weighted-average remaining lease term for operating leases was 6.9 years and finance leases was 3.6 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 December 31, 2025 and 2024 was 9.7% and 10.3%, respectively. The weighted average discount rate associated with finance leases as of December 31, 2025 and 2024 was 5.5% and 5.2%, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 13, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 4, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.