Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.24.3
Revenues
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenues REVENUES
The following table represents a disaggregation of revenue earned (in millions):
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Revenues from contracts with customers
LNG revenues (excluding net derivative gain (loss) below)
 $ 3,569  $ 3,941  $ 10,614  $ 14,950 
Regasification revenues 34  34  102  101 
     Other revenues (1) 80  63  231  120 
Total revenues from contracts with customers 3,683  4,038  10,947  15,171 
Net derivative gain (loss) (see Note 5)
(15) 34  19  34 
Sublease income (see Note 9)
83  87  266  366 
Other revenues 12  —  35  — 
Total revenues $ 3,763  $ 4,159  $ 11,267  $ 15,571 
(1)Includes revenues from LNG vessel subcharters that do not qualify as leases for accounting purposes.
Contract Assets and Liabilities

The following table shows our contract assets, net of current expected credit losses, which are classified as other current assets, net and other non-current assets, net on our Consolidated Balance Sheets (in millions):
September 30, December 31,
2024 2023
Contract assets, net of current expected credit losses $ 306  $ 250 

The following table reflects the changes in our contract liabilities, which are included in deferred revenue and other non-current liabilities on our Consolidated Balance Sheets (in millions):
Nine Months Ended September 30, 2024
Deferred revenue, beginning of period $ 294 
Cash received but not yet recognized in revenue 333 
Revenue recognized from prior period deferral (294)
Deferred revenue, end of period $ 333 

Transaction Price Allocated to Future Performance Obligations

Because many of our sales contracts have long-term durations, we are contractually entitled to significant future consideration which we have not yet recognized as revenue. The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied:
September 30, 2024 December 31, 2023
Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1)
LNG revenues (2) $ 106.3  9 $ 111.0  9
Regasification revenues 0.6  3 0.7  3
Total revenues $ 106.9  $ 111.7 
(1)The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price.
(2)We may enter into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching FID on a certain liquefaction Train, obtaining financing or achieving substantial completion of a Train and any related facilities. These contracts are included in the transaction price above when the conditions are considered probable of being met and consideration is not otherwise constrained from ultimate pricing and receipt.

The following potential future sources of revenue are omitted from the table above under exemptions we have elected: (1) all performance obligations that are part of a contract that has an original expected duration of one year or less and (2) substantially all variable consideration under our SPAs and TUAs as well as variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation when that performance obligation qualifies as a series. The amount of revenue from variable fees that is not included in the transaction price will vary based on the future prices of the underlying variable index, primarily Henry Hub, throughout the contract terms, to the extent customers elect to take delivery of their LNG, and adjustments to the consumer price index. Certain of our contracts contain additional variable consideration based on the outcome of contingent events and the movement of various indexes. We have not included such variable consideration in the transaction price to the extent the consideration is considered constrained due to the uncertainty of ultimate pricing and receipt. Additionally, we have excluded variable consideration related to volumes that are contractually subject to additional liquefaction capacity beyond what is currently in construction or operation.
The following table summarizes the amount of variable consideration earned under contracts with customers included in the table above:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
LNG revenues 60  % 63  % 57  % 71  %
Regasification revenues 8  % 7  % 8  % 7  %