Quarterly report pursuant to Section 13 or 15(d)

DISCLOSURE ABOUT SEGMENTS AND RELATED INFORMATION

v3.22.2
DISCLOSURE ABOUT SEGMENTS AND RELATED INFORMATION
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
DISCLOSURE ABOUT SEGMENTS AND RELATED INFORMATION
NOTE 16 — DISCLOSURE ABOUT SEGMENTS AND RELATED INFORMATION
During the quarter ended June 30, 2022, the Company commenced construction of the Driftwood terminal under the Phase 1 EPC Agreement with Bechtel while continuing to increase its natural gas presence in the Haynesville Shale basin in northern Louisiana and expanding its natural gas marketing activities. The Company’s Chief operating decision maker (“CODM”) determined to place additional emphasis and visibility on operating cash flows generated by our upstream and natural gas marketing business activities. Consequently, we identified the Upstream, Midstream and Marketing & Trading components as the Company’s operating segments.
These functions have been defined as the operating segments of the Company because (1) they are engaged in business activities from which revenues are recognized and expenses are incurred, (2) their operating results are regularly reviewed by the Company’s CODM to make decisions about resources to be allocated to the segment and to assess its performance, and (3) they are segments for which discrete financial information is available.
Factors used to identify these operating segments are based on the nature of the business activities that are undertaken by each component. The Upstream segment is organized and operates to produce natural gas. The Midstream segment is organized to develop, construct and operate LNG terminals and pipelines. The Marketing & Trading segment is organized and operates to purchase and sell natural gas, market the Driftwood terminal’s LNG production capacity and trade LNG. These operating segments represent the Company’s reportable segments. The Company’s CODM does not currently assess segment performance or allocate resources based on a measure of total assets. Accordingly, a total asset measure has not been provided for segment disclosure.
The remainder of our business is presented as “Corporate,” and consists of corporate costs and intersegment eliminations.
Three Months Ended June 30, 2022 Upstream Midstream Marketing & Trading Corporate Consolidated
Revenues from external customers (1)
$ —  $ —  $ 61,350  $ —  $ 61,350 
Intersegment revenues (purchases) (2)
61,352  (230) (59,404) (1,718) — 
Segment operating profit (loss) (3)
38,505  (20,016) (4,292) (5,845) 8,352 
Interest expense, net —  (995) —  (3,571) (4,566)
Other income (loss), net —  —  (3,746) (75) (3,821)
Consolidated loss before tax $ (35)
Three Months Ended June 30, 2021 Upstream Midstream Marketing & Trading Corporate Consolidated
Revenues from external customers (1)
$ —  $ —  $ 25,354  $ —  $ 25,354 
Intersegment revenues (purchases) (2)
5,578  —  (5,578) —  — 
Segment operating profit (loss) (3)
(6,310) (10,740) (8,876) (3,209) (29,135)
Interest expense, net (382) (456) —  9  (829)
Gain (loss) on extinguishment of debt (152) —  —  —  (152)
Other income (loss), net (548) —  —  66  (482)
Consolidated loss before tax $ (30,598)
Six Months Ended June 30, 2022 Upstream Midstream Marketing & Trading Corporate Consolidated
Revenues from external customers (1)
$ —  $ —  $ 208,290  $ —  $ 208,290 
Intersegment revenues (purchases) (2)
87,341  (230) (77,115) (9,996) — 
Segment operating profit (loss) (3)
43,101  (37,800) (16,583) (23,265) (34,547)
Interest expense, net —  (1,990) (454) (4,402) (6,846)
Other income (loss), net —  —  (25,758) 509  (25,249)
Consolidated loss before tax $ (66,642)
Six Months Ended June 30, 2021 Upstream Midstream Marketing & Trading Corporate Consolidated
Revenues from external customers (1)
$ —  $ —  $ 34,060  $ —  $ 34,060 
Intersegment revenues (purchases) (2)
14,274  —  (14,274) —  — 
Segment operating loss (3)
(8,034) (16,013) (12,712) (11,980) (48,739)
Interest expense, net (1,635) (2,730) —  (2,356) (6,721)
Gain (loss) on extinguishment of debt (665) 2,087  —  —  1,422 
Other (loss) income, net (1,202) (2,493) —  150  (3,545)
Consolidated loss before tax $ (57,583)
(1) The Company's Marketing & Trading operating segment purchases and sells all of the Company's Upstream natural gas production to third party-purchasers. Intersegment revenues are eliminated at consolidation.
(2) Intersegment revenues related to our Marketing & Trading operating segment are a result of intersegment revenues and cost allocations using a cost plus transfer pricing methodology. Intersegment revenues are eliminated at consolidation.
(3) Operating profit (loss), is defined as operating revenues less operating costs and allocated corporate costs.
Six months ended June 30,
Capital expenditures 2022 2021
Upstream $ 66,500  $ 6,139 
Midstream 86,150  611 
Marketing & Trading —  — 
Total capital expenditures for reportable segments 152,650  6,750 
Corporate capital expenditures —  — 
Consolidated capital expenditures $ 152,650  $ 6,750