Venture Global, Inc.VG

Venture Global, Inc. PP&E Disclosure

10-KFiled Mar 2, 20261 min read
The following table presents the components of property, plant and equipment, net and their estimated useful lives (in years):

December 31,
Estimated useful life20252024
Terminal and interconnected pipeline facilities(a)
7-48
$32,651 $18,698 
Construction in progressN/A7,641 10,773 
Advanced equipment and construction paymentsN/A5,541 4,733 
LNG tankers251,780 630 
Other(b)
2-35
711 633 
Total property, plant and equipment at cost
48,324 35,467 
Accumulated depreciation(1,736)(792)
Total property, plant and equipment, net$46,588 $34,675 
____________
(a)    During the year ended December 31, 2025, the Company determined that it was reasonably certain to exercise certain options to renew various land leases thereby extending the remaining lease terms and therefore extended the estimated useful lives of the terminal assets previously constrained by the terms of the land lease to which they are affixed. This resulted in a $185 million reduction to depreciation expense, or $0.08 and $0.07 increase in basic and diluted earnings per share, respectively, for the year ended December 31, 2025. See Note 7 – Leases for further discussion.    
(b)     Includes finance lease assets, buildings, and land, which does not depreciate. See Note 7 – Leases for further discussion.
The following table presents depreciation expense recognized on the consolidated statements of operations:

Years ended December 31,
202520242023
Depreciation expense$930 $316 $273 

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValueLeasesSegmentsDebtCommitmentsNew Standards