Annual report pursuant to Section 13 and 15(d)

PROPERTY, PLANT AND EQUIPMENT

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PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
NOTE 4 — PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following (in thousands):
December 31,
2022 2021
Upstream natural gas assets:
Proved properties $ 412,977  $ 96,297 
Wells in progress 55,374  17,653 
Accumulated DD&A (92,423) (48,638)
Total upstream natural gas assets, net 375,928  65,312 
Driftwood Project assets:
Land and land improvements 52,460  25,222 
Driftwood terminal construction in progress 292,734  — 
Finance lease assets, net of accumulated DD&A 56,708  57,883 
Buildings and other assets, net of accumulated DD&A 340  371 
Total Driftwood Project assets, net 402,242  83,476 
Fixed assets and other:
Leasehold improvements and other assets 12,672  3,104 
Accumulated DD&A (1,766) (1,347)
Total fixed assets and other, net 10,906  1,757 
Total property, plant and equipment, net $ 789,076  $ 150,545 
Depreciation, depletion and amortization expenses for the years ended December 31, 2022, 2021 and 2020 were approximately $44.4 million, $11.5 million and $17.2 million, respectively.
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. On March 24, 2022, the Company issued a limited notice to proceed (“LNTP”) 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 year ended December 31, 2022, we also capitalized approximately $169.3 million of directly identifiable project costs as construction in progress, inclusive of approximately $5.7 million in capitalized interest.
Asset Acquisition
On August 18, 2022, the Company completed the acquisition of certain natural gas assets in the Haynesville Shale basin (the “Asset Acquisition”). The purchase price of $125.0 million was subject to customary adjustments totaling approximately $8.8 million, for an adjusted purchase price of approximately $133.8 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 7, Financial Instruments, for further information.
Proved Properties
During the year ended December 31, 2022, we put in production 13 operated Haynesville wells and participated in four non-operated Haynesville wells that were put in production.