Quarterly report pursuant to Section 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT

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PROPERTY, PLANT AND EQUIPMENT
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
NOTE 3 — PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following (in thousands):
September 30, 2022 December 31, 2021
Upstream natural gas assets:
Proved properties $ 299,589  $ 96,297 
Wells in progress 91,759  17,653 
Accumulated DD&A (70,997) (48,638)
Total upstream natural gas assets, net 320,351  65,312 
Driftwood Project assets:
Land and land improvements 49,086  25,222 
Driftwood terminal construction in progress 238,830  — 
Finance lease assets, net of accumulated DD&A 57,002  57,883 
Buildings and other assets, net of accumulated DD&A 348  371 
Total Driftwood Project, net 345,266  83,476 
Fixed assets and other:
Leasehold improvements and other assets 6,924  3,104 
Accumulated DD&A (1,628) (1,347)
Total fixed assets and other, net 5,296  1,757 
Total property, plant and equipment, net $ 670,913  $ 150,545 
Land
We own land in Louisiana intended for the construction of the Driftwood Project.
Driftwood Terminal Construction in Progress
During the year ended December 31, 2021, the Company initiated certain owner construction activities necessary to proceed under our LSTK EPC agreement with Bechtel Energy Inc., formerly known as Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”), for Phase 1 of the Driftwood terminal dated as of November 10, 2017 (the “Phase 1 EPC Agreement”). On March 24, 2022, the Company issued a limited notice to proceed to Bechtel under the Phase 1 EPC Agreement and commenced construction of Phase 1 of the Driftwood terminal on April 4, 2022. As the Company commenced construction activities, Deferred engineering costs and Permitting Costs of approximately $110.0 million and $13.4 million, respectively, were transferred to construction in progress as of March 31, 2022. During the nine months ended September 30, 2022, we capitalized approximately $115.4 million of directly identifiable project costs as construction in progress.
Asset Acquisition
On August 18, 2022, the Company completed the acquisition of certain natural gas assets in the Haynesville Shale basin. The purchase price of $125.0 million was subject to adjustments of approximately $9.9 million, for an adjusted purchase price at closing of approximately $134.9 million. The sellers may receive an additional cash payment of $7.5 million if the average NYMEX Henry Hub Gas Price for the contract delivery months beginning with August 2022 through March 2023 exceeds a specific threshold per MmBtu (the “Contingent Consideration”). See Note 6, Financial Instruments, for further information.