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What changed in Stabilis Solutions, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Stabilis Solutions, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+120 added−124 removedSource: 10-K (2025-02-25) vs 10-K (2024-03-07)

Top changes in Stabilis Solutions, Inc.'s 2024 10-K

120 paragraphs added · 124 removed · 105 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

41 edited+7 added−5 removed287 unchanged
Biggest changeDuring such events LNG fueling solutions can provide flow assurance to address natural gas supply interruptions during pipeline hydrostatic testing, repairs, gas distribution system curtailments, or unplanned outages. Such solutions can also provide a bridge for large industrial or utility customers before permanent pipelines are installed.
Biggest changeNorth America has an expansive network of pipelines that, based on age and increasingly more stringent regulations, require routine testing and maintenance. During such events LNG fueling solutions can provide flow assurance to address natural gas supply interruptions during pipeline hydrostatic testing, repairs, gas distribution system curtailments, or unplanned outages.
We make the determination of LNG and transportation supply sources based on the cost of LNG, the transportation cost to deliver to regional customer locations, and the reliability of the supply source. Revenues earned from the production and sales of LNG are included within LNG Product revenue.
We make the determination of LNG supply sources based on the cost of LNG, the transportation cost to deliver to regional customer locations, and the reliability of the supply source. Revenues earned from the production and sales of LNG are included within LNG Product revenue.
We define “small-scale” LNG production to include liquefiers that produce less than 1.7 million LNG gallons per day (or approximately 1.0 million tonnes per annum ("MTPA")) and “small-scale” LNG distribution to include distribution by trailer or tank container up to 10,000 LNG gallons or marine vessels that carry less than 8.0 million LNG gallons (approximately 30,000 cubic meters).
We define “small-scale” LNG production to include liquefiers that produce less than 1.7 million LNG gallons per day (or approximately 1.0 million tonnes per annum ("MTPA")) and “small-scale” LNG distribution to include distribution by trailer or tank container of up to 10,000 LNG gallons or by marine vessels that carry less than 8.0 million LNG gallons (approximately 30,000 cubic meters).
ITEM 1. BUSINESS OVERVIEW Our Company Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas (“LNG”) to multiple end markets.
ITEM 1. BUSINESS OVERVIEW Our Company Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (“LNG”) to multiple end markets.
We have experience serving customers in multiple end markets including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utilities. We also have experience exporting LNG to Mexico and Canada. Finally, we believe our team is among the most experienced in the small-scale LNG industry.
We have experience serving customers in multiple end markets including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utilities. We also have experience exporting LNG to Mexico, Canada and Europe. Finally, we believe our team is among the most experienced in the small-scale LNG industry.
Cryogenic Equipment Rental —Stabilis operates a fleet in excess of 150 mobile LNG storage and vaporization assets, including: transportation trailers, electric and gas-fired vaporizers, ambient vaporizers, storage tanks, and mobile vehicle fuelers. We also own several stationary storage and regasification assets. We believe this is one of the largest fleets of small-scale LNG equipment in North America.
Cryogenic Equipment Rental —Stabilis operates a fleet in excess of 160 mobile LNG storage and vaporization assets, including: transportation trailers, electric and gas-fired vaporizers, ambient vaporizers, storage tanks, and mobile vehicle fuelers. We also own several stationary storage and regasification assets. We believe this is one of the largest fleets of small-scale LNG equipment in North America.
We believe these customer markets are well suited to use LNG because they consume relatively high volumes of fuel, operate in mobile, temporary or off-pipeline locations, have limited access to alternative fuel sources, and/or are facing increasingly stringent emissions or other environmental requirements. We currently serve approximately 40 customers.
We believe these customer markets are well suited to use LNG because they consume relatively high volumes of fuel, operate in mobile, temporary or off-pipeline locations, have limited access to alternative fuel sources, and/or are facing increasingly stringent emissions or other environmental requirements. We currently serve approximately 35 customers.
Transportation and Logistics Services —Stabilis offers our customers a “virtual natural gas pipeline” by providing turnkey LNG transportation and logistics services in North America. We deliver LNG to our customers’ work sites from both our own production facilities and our network of approximately 30 third-party production sources located throughout North America.
Transportation and Logistics Services —Stabilis offers our customers a “virtual natural gas pipeline” by providing turnkey LNG transportation and logistics services in North America. We deliver LNG to our customers’ work sites from both our own production facilities and our network of approximately 25 third-party production sources located throughout North America.
The Company depends on all of its employees, including its executive officers and senior management, to successfully operate its businesses and to successfully execute its strategy going forward. As of December 31, 2023, Stabilis had 104 employees, all of whom were full-time employees. We believe our relations with employees are satisfactory.
The Company depends on all of its employees, including its executive officers and senior management, to successfully operate its businesses and to successfully execute its strategy going forward. As of December 31, 2024, Stabilis had 104 employees, all of whom were full-time employees. We believe our relations with employees are satisfactory.
In addition, LNG fuel tanks and systems used in natural gas applications are subjected to a number of required federal and state safety tests, such as fire, environmental hazard, burst pressure and crash testing that ensure their safety. Established LNG Production and Distribution Technology.
In addition, LNG fuel tanks and systems used in natural gas applications are subjected to a number of required federal and state safety tests, such as fire, environmental hazard, burst pressure and crash testing that enhance their safety. Established LNG Production and Distribution Technology.
If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock, and our stock price may be more volatile. 19 Table of Contents J. Casey Crenshaw has voting control over our Company. As of December 31, 2023, J.
If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock, and our stock price may be more volatile. 19 Table of Contents J. Casey Crenshaw has voting control over our Company. As of December 31, 2024, J.
We believe that LNG will provide an important balance between environmental sustainability, security and accessibility, and economic viability when compared to both renewables and other traditional hydrocarbon-based fuels and will play a key role in the energy transition.
We believe that LNG provides an important balance between environmental sustainability, security and accessibility, and economic viability when compared to both renewables and other traditional hydrocarbon-based fuels and will play a key role in the energy transition.
The Company expects that additional marine bunkering opportunities will become available as additional marine vessels that use LNG as the primary fuel of choice are delivered to vessel fleets and commence routine operations in North America. Mining .
The Company expects that additional marine bunkering opportunities will become available as newly constructed marine vessels that use LNG as the primary fuel of choice are delivered to vessel fleets and commence routine operations in North America. Mining .
The Agriculture industry utilizes LNG to power high horsepower engines, greenhouses and also when food processing utilizes agricultural dryers for generating heat as LNG has a clean and consistent burn that makes heating operations more predictable. Energy. Energy producers use high horsepower engines and turbines to power their drilling and pressure pumping operations.
The Agriculture industry utilizes LNG to power high horsepower engines, greenhouses and also for agricultural dryers for generating heat as LNG has a clean and consistent burn that makes heating operations more predictable. Energy. Energy producers use high horsepower engines and turbines to power their drilling and pressure pumping operations.
ULSD, Propane & LNG pricing- December 31, 2012 to December 31, 2023 Better Safety than Alternative Fuels. The physical characteristics of LNG make it a safer and more environmentally friendly fuel when compared to diesel and propane because it boils and dissipates rapidly into the air when spilled instead of pooling on or near the ground.
ULSD, Propane & LNG pricing- December 31, 2014 to December 31, 2024 Better Safety than Alternative Fuels. The physical characteristics of LNG make it a safer and more environmentally friendly fuel when compared to diesel and propane because it boils and dissipates rapidly into the air when spilled instead of pooling on or near the ground.
While LNG bunkering infrastructure is more developed in other regions such as Europe, there is limited LNG bunkering infrastructure currently available in the U.S. The marine industry is expected to drive additional demand for domestically produced LNG in the coming years.
While LNG bunkering infrastructure is more developed in other regions such as Europe, there is limited LNG bunkering infrastructure currently available in North America. The marine industry is expected to drive additional demand for domestically produced LNG in the coming years.
Our insurance coverage may not be sufficient to cover all costs and damages. We are a “ smaller reporting company ” and, as a result of the reduced disclosure and governance requirements applicable to smaller reporting companies, our common stock may be less attractive to investors. We are a “smaller reporting company,” within the meaning of the Exchange Act.
Our insurance coverage may not be sufficient to cover all costs and damages. We are a “ smaller reporting company ” and, as a result of the reduced disclosure and governance requirements applicable to smaller reporting companies, our common stock may be less attractive to investors.
For the year ended December 31, 2023, Aggreko Plc accounted for more than 10% of our revenues. Any material nonpayment or nonperformance by our customers could have a materially adverse effect on our financial condition and results of operations.
For the year ended December 31, 2024, Carnival Corporation and Aggreko Plc each accounted for more than 10% of our revenues. Any material nonpayment or nonperformance by our customers could have a materially adverse effect on our financial condition and results of operations.
The DOE authorization received during the third quarter of 2022 supplements the Company's existing other export license from the DOE, which authorizes the Company to import and export LNG from and to Canada and Mexico, via truck. In 2023, we delivered LNG to Mexico.
The DOE authorization received during the third quarter of 2022 supplements the Company's other existing export license from the DOE, which authorizes the Company to import and export LNG from and to Canada and Mexico, via truck.
The balance of our investment in BOMAY at December 31, 2023 was $12.0 million accounted for using the equity method of accounting and is subject to risk. See Note 7 of the Notes to Consolidated Financial Statements for further discussion or our investment in BOMAY.
The balance of our investment in BOMAY at December 31, 2024 was $11.7 million accounted for using the equity method of accounting and is subject to risk. See Note 7 of the Notes to Consolidated Financial Statements for further discussion or our investment in BOMAY.
We have safely delivered over 470 million gallons of LNG through more than 49,000 truck deliveries during our 20 year operating history, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America.
We have safely delivered over 530 million gallons of LNG through more than 55,000 truck deliveries during our 21 year operating history, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America.
LNG also allows marine transportation providers to meet strict emission requirements that are difficult to achieve using common marine fuels, such as heavy fuel oil, but could be achieved using LNG. Large marine vessels such as containerships can take several hundred thousand gallons of LNG in a single fuel bunkering event.
LNG also allows vessel operators to meet strict emission requirements that are difficult to achieve using common marine fuels, such as heavy fuel oil, but could be achieved using LNG. Large marine vessels such as container ships can take several hundred thousand gallons of LNG in a single fuel bunkering event.
The Aerospace industry utilizes LNG as a propellant for rocket propulsion systems and LNG provides an economical, clean burning, and easily stored fuel for rocket engines. Aerospace firms may also utilize LNG for power generation at remote facilities. Consumption of LNG at aerospace facilities vary significantly by project type. Agriculture.
The Aerospace industry utilizes LNG as a propellant for rocket propulsion systems and LNG provides an economical, clean burning, and easily stored fuel for rocket engines. Aerospace firms may also utilize LNG for power generation at remote facilities. Agriculture.
Stabilis believes the biggest competition for LNG in these applications are distillate fuels and propane as they power the majority of engines and generators in our target markets. We also compete with other fuel sources including pipeline natural gas and compressed natural gas ("CNG").
Stabilis believes the biggest competition for LNG in many applications is distillate fuels, such as diesel and marine gas oil, and propane as they power the majority of engines and generators in our target markets. We also compete with other fuel sources including pipeline natural gas and compressed natural gas ("CNG").
Seasonality We did not experience significant seasonal variations in volume of LNG delivered to our customers during 2023, and we do not expect future volumes to be significantly impacted by seasonal variations. However, our revenues are susceptible to variations due to changes in the price of natural gas as we pass this cost onto our customer.
Seasonality We did not experience significant seasonal variations in volume of LNG delivered to our customers during 2024, and we do not expect future volumes to be significantly impacted by seasonal variations. However, our revenues are susceptible to variations due to changes in the price of natural gas.
See Note 7 of the Notes to Consolidated Financial Statements regarding the value of our assets in foreign countries. Risks Inherent in an Investment in Us Investment in us is speculative. We will continue to incur significant capital and operating expenditures while we develop infrastructure for our supply chain and other future projects.
See Note 7 of the Notes to Consolidated Financial Statements for additional information on our investment in the foreign joint venture. Risks Inherent in an Investment in Us Investment in us is speculative. We will continue to incur significant capital and operating expenditures while we develop infrastructure for our supply chain and other future projects.
During the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent. The authorization is for a term of 28 years, provided certain milestones of utilization are achieved.
In the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent.
Stabilis does not believe that we compete with mid-scale and world-scale LNG liquefiers that produce more than 1,700,000 LNG gallons per day (approximately 2,700 tonnes per day or 1.0 MTPA).
Within Stabilis' predominately land-based commercial and industrial (C&I) markets, Stabilis does not believe that we compete with mid-scale and world-scale LNG liquefiers that produce more than 1,700,000 LNG gallons per day (approximately 2,700 tonnes per day or 1.0 MTPA).
We believe that opportunities to provide LNG as a fuel source to the marine transportation industry represents a significant opportunity for us. As shipping and marine transportation companies expand the use of LNG as a fuel source, we believe that we are positioned to capitalize on future growth.
We believe that providing LNG as a fuel source to the marine transportation industry represents a significant opportunity for us. As vessels such as container ships, tankers and cruise ships expand the use of LNG as a fuel source, we believe that we are positioned to capitalize on future growth.
As a “smaller reporting company,” we are subject to lesser disclosure obligations in our SEC filings compared to other issuers.
We are a “smaller reporting company,” within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As a “smaller reporting company,” we are subject to lesser disclosure obligations in our SEC filings compared to other issuers.
LNG displaces some of the total diesel fuel consumption in these applications using dual-fuel engine technology. We believe that energy producers can use LNG to reduce fuel costs and to meet environmental emissions requirements.
LNG displaces some of the total diesel fuel consumption in these applications using dual-fuel engine technology. We believe that energy producers can use LNG to reduce fuel costs and to meet environmental emissions requirements. Industrial. Industrial applications for LNG include sand and aggregate producers, asphalt plants, food processers, paper mills, and general manufacturing facilities.
For the year ended December 31, 2023, Aggreko Plc accounted for more than 10% of our revenues with several project sites in operation. During such period, no other purchaser accounted for 10% or more of our revenue. Aerospace.
For the year ended December 31, 2024, Carnival Corporation and Aggreko Plc each accounted for more than 10% of our revenues. During such period, no other purchaser accounted for 10% or more of our revenue. Aerospace.
These customers often cannot justify the cost of new pipeline infrastructure and using LNG requires minimal up-front costs, regulatory approvals, and lead time requirements.
LNG often replaces propane, fuel oil, or diesel fuel in these applications. These customers often cannot justify the cost of new pipeline infrastructure and using LNG requires minimal up-front costs, regulatory approvals, and lead times.
In 2023, the Company did not deliver LNG to Canada. 9 Table of Contents Human Capital Resources Stabilis believes that one of its key assets is the collective expertise, experience and diversity of its workforce.
In 2024, we delivered LNG to Mexico under this authorization. 9 Table of Contents Human Capital Resources Stabilis believes that one of its key assets is the collective expertise, experience and diversity of its workforce.
Mines also use LNG as a fuel for their mine trucks and other high horsepower engine equipment. In addition to fuel cost benefits, LNG can help reduce emissions at mines that are often located in environmentally sensitive areas. Based on our experience, power generation and heating applications at mines can consume 10,000 to 100,000 LNG gallons per day.
Mines also use LNG as a fuel for their mine trucks and other high horsepower engine equipment. In addition to fuel cost benefits, LNG can help reduce emissions at mines that are often located in environmentally sensitive areas. Pipeline, Remote Power and Utilities . LNG usage in utility and pipeline applications varies by project type.
We believe that LNG can be delivered to customers at prices that are lower and more stable than what they would pay for distillate fuels or propane.
We believe that LNG can be delivered to customers at prices that are lower and more stable than what they would pay for distillate fuels or propane. In addition, LNG as a fuel may decrease operating costs by reducing equipment maintenance requirements and providing more consistent burn characteristics.
LNG is becoming more predominant in regions where natural gas demand is growing and utilities and pipelines are required to continue to meet critical peak gas demand. LNG can provide an economic solution to support these supply requirements during peak weather conditions, gas curtailments and/or pipeline repairs.
LNG can provide an economic solution to support these supply requirements during peak weather conditions, gas curtailments and/or pipeline repairs.
At December 31, 2023, there were 497 LNG fueled marine vessels in the global fleet with 532 more new build vessels on order for delivery in 2024 through 2027 which will more than double the number of LNG fueled vessels over the next three years. New build containership vessels represent the largest sector with 244 vessels on order.
At December 31, 2024, there were 657 LNG fueled marine vessels in the global fleet with 627 more new build vessels on order for delivery by 2033, practically doubling the number of LNG fueled vessels by 2033. New build container ships represent the largest sector with 314 vessels on order by 2033.
Large marine vessels, such as cruise vessels and containerships, can take several hundred thousand gallons of LNG in a single fuel bunkering event.
Increasingly, more stringent global carbon emission targets are also fueling the adoption of LNG as a marine fuel. Large marine vessels, such as cruise ships and container ships, can take between several hundred thousand gallons up to several million gallons of LNG in a single fuel bunkering event.
Increases in economic growth and demand have been limited by skilled labor and transportation resources within our markets resulting in a period of increasing costs. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs.
Increased inflation or periods of prolonged inflation may adversely impact the economy, our industry and results of operations. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs.
Stabilis has produced and delivered over 470 million gallons of LNG to our customers throughout our 20-year operating history.
U.S. natural gas supplies are price advantaged and face less price volatility versus natural gas from outside the U.S. 7 Table of Contents Demonstrated ability to execute LNG projects safely and cost effectively. Stabilis has produced and delivered over 530 million gallons of LNG to our customers throughout our 21-year operating history.
Removed
Based on our experience, depending upon whether the customer uses dual-fuel pressure pumping engines or turbines, energy customers can consume from 10,000 to 60,000 LNG gallons per day. Industrial. Industrial applications for LNG include sand and aggregate producers, asphalt plants, food processers, paper mills, and general manufacturing facilities. LNG often replaces propane, fuel oil, or diesel fuel in these applications.
Added
Such solutions can also provide a bridge for large industrial or utility customers before permanent pipelines are installed. LNG is becoming more predominant in regions where natural gas demand is growing and utilities and pipelines are required to continue to meet critical peak gas demand.
Removed
Pipeline, Remote Power and Utilities . LNG usage in utility and pipeline applications varies by project type. North America has an expansive network of pipelines that, based on age and increasingly more stringent regulations, require routine testing and maintenance.
Added
Within Stabilis' growing marine market, given the volumes of LNG that are needed to be bunkered via marine bunker vessel and long standing market for the shipment and trading of LNG globally, mid-scale and world-scale LNG liquefiers currently provide LNG to support early market demand and should be expected to continue to play a role fueling future market growth.
Removed
In addition, several of our customers have reported that LNG as a fuel decreases their operating costs by reducing equipment maintenance requirements and providing more consistent burn characteristics. 7 Table of Contents Demonstrated ability to execute LNG projects safely and cost effectively.
Added
The authorization is for shipments of LNG for a term of 28 years with approximately 26 years remaining under this authorization. As of December 31, 2024, the Company has met the initial time requirement to initiate exports to non-FTA countries. In 2024, we delivered LNG to Europe under this authorization.
Removed
As of December 31, 2023, the Company has not made any exports under this approval and has not expended material funds nor entered into any sales commitments. For exports to non-FTA countries, the Company has two years from the date it received authorization with which to initiate exportation of LNG.
Added
The impact of potential tariffs proposed by the Trump administration is uncertain. The Trump administration has proposed tariffs on goods imported from other countries including Mexico. The extent, duration and impact of such tariffs are uncertain at this time.
Removed
Increased inflation or periods of prolonged inflation may adversely impact the economy, our industry and results of operations. The Company experienced higher than normal inflationary pressure during 2022 and 2023 and such inflationary pressure may continue into 2024. Specifically, costs for fuel, repairs, maintenance, electricity, wages for skilled labor and insurance continue to increase.
Added
It is also possible that tariffs imposed by the U.S. on foreign imports may potentially be reciprocated with tariffs imposed by other countries on exports of U.S. goods and services into that country.
Added
The Company sources all of its natural gas used as feedstock in its liquefaction facilities and purchases most of its LNG acquired from third parties from U.S. sources.
Added
Deliveries of LNG within Mexico can be sourced from both U.S. and from third parties within Mexico; however, increased tariffs could also limit foreign opportunities and decrease economic viability of sources of natural gas as well as have more general economic impacts of increasing costs, weakening demand and inflation.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+0 added−0 removed7 unchanged
Biggest changeA 3-2-1 backup strategy is used, resulting in a copy of all backup data offsite in the unlikely event that the disaster recovery plan is required. Our backup system is regularly confirmed through occasional data recoveries, test recoveries and monitoring that alert to any unexpected errors or failures with the system.
Biggest changeA 3-2-1 backup strategy is used, resulting in a copy of all backup data offsite in the unlikely event that the disaster recovery plan is required. Our backup system is regularly confirmed through routine data recoveries, test recoveries and monitoring that alert to any unexpected errors or failures with the system.
Our management, represented by senior management, leads the cybersecurity risk assessment and mitigation processes, along with information technology management staff and our third-party business technology partner. Our third-party business technology partner has over 20 years of experience in cybersecurity and information technology.
Our management, represented by senior management, leads the cybersecurity risk assessment and mitigation processes, along with information technology management staff and our third-party business technology partner. Our third-party business technology partner has over 21 years of experience in cybersecurity and information technology.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed2 unchanged
Biggest changeLeased August 14, 2024 George West, TX LNG Plant 3,400 sq. ft. on 31.04 acres Owned N/A Port Allen, LA LNG Plant 2,400 sq. ft. on 18.98 acres Owned N/A The Company also leases marine bunkering staging sites in Texas and has various trailer storage sites in California and Colorado on a short term basis to support operations.
Biggest changeLeased August 14, 2027 George West, TX LNG Plant 3,400 sq. ft. on 31.04 acres Owned N/A Port Allen, LA LNG Plant 2,400 sq. ft. on 18.98 acres Owned N/A The Company also leases marine bunkering staging sites in Texas on a short term basis to support operations.
In management’s opinion, the ultimate resolution of these matters will not have a material effect on our financial position or results of operations. See Note 14 of the Notes to Consolidated Financial Statements for a discussion of our commitments and contingencies and any outstanding legal matters.
In management’s opinion, the ultimate resolution of these matters will not have a material effect on our financial position or results of operations. See Note 13 of the Notes to Consolidated Financial Statements for a discussion of our commitments and contingencies and any outstanding legal matters.
Stabilis or its subsidiaries currently own or lease the following principal properties: Facility Location Use Size Leased or Owned Expiration of Lease Houston, TX Office 13,000 sq. ft. Leased Month to month Monterrey, Mexico Office 1,888 sq. ft.
Stabilis or its subsidiaries currently own or lease the following principal properties: Facility Location Use Size Leased or Owned Expiration of Lease Houston, TX Office 8,583 sq. ft. Leased Month to month Monterrey, Mexico Office 1,888 sq. ft.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

2 edited+0 added−0 removed1 unchanged
Biggest changeThe Company anticipates that, for the foreseeable future, it will retain any earnings for use in the operations of its business. Holders As of March 5, 2024, we had 26 holders of record of our common stock and 18,585,014 shares of common stock outstanding, based on information provided by our transfer agent.
Biggest changeThe Company anticipates that, for the foreseeable future, it will retain any earnings for use in the operations of its business. Holders As of February 25, 2025, we had 26 holders of record of our common stock and 18,596,301 shares of common stock outstanding, based on information provided by our transfer agent.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Information Our common stock trades under the symbol “SLNG” on The Nasdaq Stock Market LLC. The Company did not declare or pay cash dividends on common shares in either fiscal year 2023 or 2022.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Information Our common stock trades under the symbol “SLNG” on The Nasdaq Stock Market LLC. The Company did not declare or pay cash dividends on common shares in either fiscal year 2024 and 2023.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

57 edited+8 added−14 removed79 unchanged
Biggest changeConsolidated Results Year Ended December 31, 2023 2022 $ Change % Change Revenues: LNG Product $ 58,517 $ 83,095 $ (24,578 ) (29.6 )% Increase / (decrease) in gallons delivered (12,705 ) Rental 6,210 7,344 (1,134 ) (15.4 ) Service 6,886 7,703 (817 ) (10.6 ) Other 1,501 681 820 120.4 Total revenues 73,114 98,823 (25,709 ) (26.0 ) Operating expenses: Costs of revenues 54,919 77,694 (22,775 ) (29.3 ) Change in unrealized loss (gain) on natural gas derivatives (541 ) 878 (1,419 ) (161.6 ) Selling, general and administrative expenses 12,893 13,191 (298 ) (2.3 ) Gain from disposal of fixed assets (1,223 ) (34 ) (1,189 ) n/a Depreciation expense 7,878 8,664 (786 ) (9.1 ) Total operating expenses 73,926 100,393 (26,467 ) (26.4 ) Loss from operations before equity income (812 ) (1,570 ) 758 (48.3 ) Net equity income from foreign joint venture operations 1,691 1,598 93 5.8 Income from operations 879 28 851 n/a Other income (expense): Interest expense, net (256 ) (591 ) 335 (56.7 ) Interest expense, net - related parties (78 ) (179 ) 101 (56.4 ) Other income (expense) (176 ) (185 ) 9 (4.9 ) Total other income (expense) (510 ) (955 ) 445 (46.6 ) Income (loss) from continuing operations before income tax expense 369 (927 ) 1,296 (139.8 ) Income tax expense 244 265 (21 ) (7.9 ) Net income (loss) from continuing operations 125 (1,192 ) 1,317 (110.5 ) Loss from discontinued operations, net of income taxes of $0 and $149, respectively — (1,994 ) 1,994 (100.0 ) Net income (loss) $ 125 $ (3,186 ) $ 3,311 (103.9 )% Revenue During the Current Year revenues decreased $25.7 million, or 26%, compared to the Prior Year.
Biggest changeConsolidated Results Year Ended December 31, 2024 2023 $ Change % Change Revenues: LNG Product $ 57,351 $ 58,517 $ (1,166 ) (2.0 )% Increase / (decrease) in gallons delivered 8,165 Rental 7,273 6,210 1,063 17.1 Service 7,436 6,886 550 8.0 Other 1,233 1,501 (268 ) (17.9 ) Total revenues 73,293 73,114 179 0.2 Operating expenses: Costs of revenues 52,069 54,919 (2,850 ) (5.2 ) Change in unrealized loss (gain) on natural gas derivatives (310 ) (541 ) 231 (42.7 ) Selling, general and administrative expenses 11,763 12,893 (1,130 ) (8.8 ) Gain from disposal of fixed assets (761 ) (1,223 ) 462 (37.8 ) Depreciation expense 7,146 7,878 (732 ) (9.3 ) Total operating expenses 69,907 73,926 (4,019 ) (5.4 ) Income (loss) from operations before equity income 3,386 (812 ) 4,198 (517.0 ) Net equity income from foreign joint venture operations 1,564 1,691 (127 ) (7.5 ) Income from operations 4,950 879 4,071 463.1 Other income (expense): Interest income (expense), net 112 (256 ) 368 (143.8 ) Interest expense, net - related parties — (78 ) 78 (100.0 ) Other income (expense) 22 (176 ) 198 (112.5 ) Total other income (expense) 134 (510 ) 644 (126.3 ) Net income before income tax expense 5,084 369 4,715 1,277.8 Income tax expense 485 244 241 98.8 Net income $ 4,599 $ 125 $ 4,474 3579.2 % Revenue During the Current Year revenues increased $0.2 million, or 0.2%, compared to the Prior Year.
Such an effort, if pursued, would require additional liquidity from other sources either from the sales of equity securities, additional capital investment from new owners or joint venture partners, debt, or any combination of the above. The Company has made no expansion commitments to date.
Such an effort, if pursued, would require additional liquidity from other sources either from the sales of debt or equity securities, additional capital investment from new owners or joint venture partners, or any combination of the above. The Company has made no expansion commitments to date.
All borrowings under the Revolving Credit Facility are secured by the Company's accounts receivable and deposit accounts, subject to a borrowing base of 80% of eligible accounts receivable. The revolving credit facility provides additional sources of liquidity, if needed, to fund additional growth capital expenditures and/or bridge short-term liquidity needs for new contracts.
All borrowings under the Revolving Credit Facility are secured by the Company's accounts receivable and deposit accounts, subject to a borrowing base of 80% of eligible accounts receivable. The revolving credit facility provides additional sources of liquidity, if needed, to fund additional capital expenditures and/or bridge short-term liquidity needs for new contracts.
Level 3 Inputs—Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby, allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. 32 Table of Contents Derivatives The Company had certain natural gas derivative instruments as of December 31, 2023.
Level 3 Inputs—Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby, allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. 32 Table of Contents Derivatives The Company had certain natural gas derivative instruments as of December 31, 2024.
An adverse change of 10% in the underlying foreign currency exchange rate would reduce our working capital balance by approximately $7 thousand. We do not currently have or intend to enter into any derivative arrangements to protect against such fluctuations. Market Risk The volatility in customer demand is greatly driven by the change in the price of oil and gas.
An adverse change of 10% in the underlying foreign currency exchange rate would reduce our working capital balance by approximately $28 thousand. We do not currently have or intend to enter into any derivative arrangements to protect against such fluctuations. Market Risk The volatility in customer demand is greatly driven by the change in the price of oil and gas.
It is possible that a change in estimate related to these exposures could occur, but we do not expect such changes in the estimated costs would have a material effect on our business, consolidated financial position or results of operations. See Note 14 to the Notes to Consolidated Financial Statements for further discussion of our contingencies.
It is possible that a change in estimate related to these exposures could occur, but we do not expect such changes in the estimated costs would have a material effect on our business, consolidated financial position or results of operations. See Note 13 to the Notes to Consolidated Financial Statements for further discussion of our contingencies.
Department of Energy ("DOE") Approval to Export LNG During the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent.
Department of Energy ("DOE") Approval to Export LNG In the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent.
Off-Balance Sheet Arrangements As of December 31, 2023, we had no transactions that met the definition of off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, cash requirements or capital resources.
Off-Balance Sheet Arrangements As of December 31, 2024, we had no transactions that met the definition of off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, cash requirements or capital resources.
The Company determined the fair value of its natural gas derivatives at December 31, 2023 predominantly from broker quotes and are considered a level 2 fair value measurement. The Company did not enter into any derivative transactions for speculative purposes. The Company enters into forward sales contracts for the delivery of LNG to its customers.
The Company determined the fair value of its natural gas derivatives at December 31, 2024 predominantly from broker quotes and are considered a level 2 fair value measurement. The Company did not enter into any derivative transactions for speculative purposes. The Company enters into forward sales contracts for the delivery of LNG to its customers.
The Company had certain natural gas derivative instruments as of December 31, 2023 to manage commodity price risk. The Company has not designated its derivative instruments as hedges under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within the Consolidated Statements of Operations.
The Company had certain natural gas derivative instruments as of December 31, 2024 to manage commodity price risk. The Company has not designated its derivative instruments as hedges under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within the Consolidated Statements of Operations.
As of December 31, 2023, no amounts have been drawn under the Revolving Credit Facility. The Revolving Credit Facility matures on June 9, 2026. The Revolving Credit Facility contains various restrictions and covenants. As of December 31, 2023, the Company was in compliance with all its covenants related to the Revolving Credit Facility.
As of December 31, 2024, no amounts have been drawn under the Revolving Credit Facility. The Revolving Credit Facility matures on June 9, 2026. The Revolving Credit Facility contains various restrictions and covenants. As of December 31, 2024, the Company was in compliance with all its covenants related to the Revolving Credit Facility.
Interest expense, net decreased by $0.3 million in the Current Year primarily due to the Company's interest income on its cash balances and capitalized interest in the Current Year compared to the Prior Year. Additionally, lower debt service was incurred on lower debt balances in the Current Year. Interest expense, net - related parties.
Interest expense, net decreased by $0.4 million in the Current Year primarily due to the Company's interest income on its cash balances and capitalized interest in the Current Year compared to the Prior Year. Additionally, lower debt service was incurred on lower debt balances in the Current Year. Interest expense, net - related parties.
As of December 31, 2023, we were in compliance with all of these covenants. 29 Table of Contents CONTRACTUAL OBLIGATIONS We are committed to make cash payments in the future pursuant to certain of our contracts.
As of December 31, 2024, we were in compliance with all of these covenants. 29 Table of Contents CONTRACTUAL OBLIGATIONS We are committed to make cash payments in the future pursuant to certain of our contracts.
Depreciation . Depreciation expense in the Current Year decreased $0.8 million compared to the Prior Year due to assets reaching the end of their depreciable lives. Net Equity Income From Foreign Joint Ventures' Operations.
Depreciation expense in the Current Year decreased $0.7 million compared to the Prior Year due to assets reaching the end of their depreciable lives. Net Equity Income From Foreign Joint Ventures' Operations.
In the event, the Company does pursue expansion in the near term, there is no assurance that the Company will be able to secure additional liquidity on favorable terms or at all. Capital Expenditures Future capital expenditures will be dependent upon accretive investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict.
In the event, the Company does pursue expansion in the near term, there is no assurance that the Company will be able to secure additional liquidity on favorable terms or at all. Capital Expenditures Future capital expenditures will be dependent upon value-adding investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict.
Change in unrealized loss (gain) on natural gas derivatives. The Company incurred a gain of $0.5 million on the change in unrealized losses associated with the Company's natural gas derivatives in the Current Year compared to a loss of $0.9 million in the Prior Year.
Change in unrealized loss (gain) on natural gas derivatives. The Company incurred a gain of $0.3 million on the change in unrealized losses associated with the Company's natural gas derivatives in the Current Year compared to a gain of $0.5 million in the Prior Year.
For exports to non-FTA countries, the Company has two years from the date it received authorization with which to initiate exportation of LNG. For exports to FTA countries, the Company has five years from the date it received the authorization with which to initiate exportation of LNG.
For exports to FTA countries, the Company has five years from the date it received the authorization with which to initiate exportation of LNG.
LNG can be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. LNG can also be used to replace a variety of alternative fuels, including distillate fuel oil and propane, among others, to provide environmental and economic benefits.
LNG can be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. LNG can also be used to replace a variety of fuels, including distillate fuel oil, such as diesel and marine gas oil, and propane, among others, to provide environmental and economic benefits.
The resulting cumulative translation adjustment totaling $0.1 million has been recorded as Accumulated Other Comprehensive Income (Loss), net of taxes, in our Consolidated Balance Sheet at December 31, 2023. As of December 31, 2023, we had a non-U.S. dollar denominated working capital balance of approximately $0.1 million.
The resulting cumulative translation adjustment totaling $0.6 million has been recorded as Accumulated Other Comprehensive Income (Loss), net of taxes, in our Consolidated Balance Sheet at December 31, 2024. As of December 31, 2024, we had a non-U.S. dollar denominated negative working capital balance of approximately $0.3 million.
The Company has identified the following critical accounting policies as they require significant judgments, estimates or are inherently complex. 30 Table of Contents Revenue Recognition The Company recognizes revenue from our contracts in accordance with Accounting Standards Update (“ASU”) 2014-09, Topic 606 “Revenue from Contracts with Customers” (“Topic 606”).
The Company has identified the following critical accounting policies as they require significant judgments, estimates or are inherently complex. 30 Table of Contents Revenue Recognition The Company recognizes revenue from our contracts in accordance with Accounting Standards Codification (“ASC”), Topic 606 “Revenue from Contracts with Customers” (“Topic 606”).
The Company incurred state and foreign income tax expense of $0.2 million during the Current Year primarily related to foreign taxes paid in connection with the cash dividend received from our BOMAY joint venture and foreign taxes incurred from our operations in Mexico. The Company incurred state income and foreign tax expense of $0.3 million in the Prior Year.
The Company incurred state and foreign income tax expense of $0.5 million during the Current Year primarily related to state income taxes owed from operating income and foreign taxes paid in connection with the cash dividend received from our BOMAY joint venture. The Company incurred state income and foreign tax expense of $0.2 million in the Prior Year.
At December 31, 2023, we had open purchase orders with approximately $2.3 million related to capital expenditures. Debt Level and Debt Compliance We had total indebtedness of $9.0 million ($8.7 million, net of debt issuance costs of $0.3 million) as of December 31, 2023.
At December 31, 2024, we had open purchase orders with approximately $1.0 million related to capital expenditures. Debt Level and Debt Compliance We had total indebtedness, excluding leases, of $9.2 million ($8.9 million, net of debt issuance costs of $0.3 million) as of December 31, 2024.
The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $5.6 million at December 31, 2023. The Company had no draw downs on the Revolving Credit Facility during the year ended December 31, 2023.
The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $4.3 million at December 31, 2024. The Company had no draw downs on the Revolving Credit Facility during the year ended December 31, 2024.
In prior years, the Company also obtained debt financing from MG Finance, a related party, which debt financing has been paid in full as of December 31, 2023. During 2023, our principal sources of liquidity were cash provided from our operations and our existing cash balances.
In prior years, the Company also obtained debt financing from MG Finance, a related party, which was paid in full as of December 31, 2023. During 2024, our principal sources of liquidity were cash provided from our operations, our existing cash balances and distributions from our BOMAY joint venture.
The DOE authorization received during the third quarter of 2022 supplements the Company's existing other export license from the DOE, which authorizes the Company to import and export LNG from and to Canada and Mexico, via truck. In 2023, we delivered LNG to Mexico. In 2023, the Company did not deliver LNG to Canada.
The DOE authorization received during the third quarter of 2022 supplements the Company's other existing export license from the DOE, which authorizes the Company to import and export LNG from and to Canada and Mexico, via truck. In 2024, we delivered LNG to Mexico under this authorization.
There is no assurance that we will be able to raise capital pursuant to the Shelf Registration on acceptable terms or at all. We made no issuances under the Shelf Registration during the year ended December 31, 2023.
There is no assurance that we will be able to raise capital pursuant to the Shelf Registration on acceptable terms or at all. We made no issuances under the Shelf Registration during the year ended December 31, 2024. The current Shelf Registration expires April 25, 2025.
The gain in the Current Year was due to offsetting amortization of realized losses as call option volumes expired unexercised during the Current Year. See Note 4 in the Notes to the Consolidated Financial Statements for a further discussion of our derivatives. Selling, general and administrative .
The gains in both periods were due to offsetting amortization of realized losses as call option volumes expired unexercised. See Note 4 in the Notes to the Consolidated Financial Statements for a further discussion of our derivatives. Selling, general and administrative .
Other expense was lower in the Current Year compared to the Prior Year. Prior Year related to foreign exchange transactions and the revaluation of the Mexican peso. Income tax expense.
Other expense was lower in the Current Year compared to the Prior Year, related to foreign exchange transactions. Income tax expense.
Financing Activities Net cash used in financing activities totaled $3.9 million for the twelve months ended December 31, 2023 compared to $2.3 million for 2022. Cash used by financing activities in both years was primarily attributable to the pay down of debt.
Financing Activities Net cash used in financing activities totaled $1.9 million for the twelve months ended December 31, 2024 compared to $3.9 million for 2023. Cash used in financing activities in both years was primarily attributable to the repayment of debt.
Cash Flows Cash flows provided by (used in) our operating, investing and financing activities are summarized below (in thousands): Year Ended December 31, 2023 2022 Net cash provided by (used in): Operating activities $ 6,712 $ 14,697 Investing activities (8,910 ) (1,917 ) Financing activities (3,884 ) (2,253 ) Effect of exchange rate changes on cash 5 14 Net increase (decrease) in cash and cash equivalents (6,077 ) 10,541 Cash and cash equivalents, beginning of year 11,451 910 Cash and cash equivalents, end of year $ 5,374 $ 11,451 Operating Activities Net cash provided by operating activities totaled $6.7 million and $14.7 million for the twelve months ended December 31, 2023 and 2022, respectively.
Cash Flows Cash flows provided by (used in) our operating, investing and financing activities are summarized below (in thousands): Year Ended December 31, 2024 2023 Net cash provided by (used in): Operating activities $ 13,693 $ 6,712 Investing activities (8,120 ) (8,910 ) Financing activities (1,914 ) (3,884 ) Effect of exchange rate changes on cash (46 ) 5 Net increase (decrease) in cash and cash equivalents 3,613 (6,077 ) Cash and cash equivalents, beginning of year 5,374 11,451 Cash and cash equivalents, end of year $ 8,987 $ 5,374 Operating Activities Net cash provided by operating activities totaled $13.7 million and $6.7 million for the twelve months ended December 31, 2024 and 2023, respectively.
Income from investments in foreign joint ventures increased by $0.1 million, or 5.8%, in the Current Year compared to the Prior Year primarily due to improved business in China. Other Income (Expense) Interest income (expense), net.
Income from investments in foreign joint ventures decreased by $0.1 million, or 7.5%, in the Current Year compared to the Prior Year primarily due to lower earnings in China. Other Income (Expense) Interest income (expense), net.
The Company is currently evaluating the best alternatives for installation of these assets into its operations. Customer Contracts within our New and Expanding Markets for LNG The Company expects that LNG demand for marine fuel will increase as additional marine vessels that use LNG as the primary fuel of choice are delivered to vessel fleets and commence routine operations.
Customer Contracts within our New and Expanding Markets for LNG The Company expects that LNG demand for marine fuel will increase as marine vessels that use LNG as the primary fuel of choice are delivered to vessel fleets and commence routine operations.
As of December 31, 2023, we had $5.4 million in cash and cash equivalents on hand and $9.6 million in outstanding debt (net of debt issuance costs), and in lease obligations, (of which $1.8 million is due in 2024).
As of December 31, 2024, we had $9.0 million in cash and cash equivalents on hand and $9.3 million in outstanding debt (net of debt issuance costs) and lease obligations (of which $2.4 million is due in 2025).
Revolving Credit Facility During the second quarter of 2023, the Company entered into a three-year revolving credit facility with Cadence Bank for a maximum aggregate amount of $10 million. The Company may request an increase in the maximum aggregate amount by up to $5 million, subject to the approval by Cadence Bank.
Revolving Credit Facility The Company maintains a three-year revolving credit facility with Cadence Bank for a maximum aggregate amount of $10 million, which expires in June 2026. The Company may request an increase in the maximum aggregate amount by up to $5 million, subject to the approval by Cadence Bank.
Expected maturities excluding debt issuance costs at December 31, 2023 are as follows (in thousands). 2024 $ 857 2025 1,285 2026 1,285 2027 1,285 2028 1,285 Thereafter 3,001 Total long-term debt, including current maturities and excluding debt issuance costs $ 8,998 We expect our total interest payment obligations relating to our indebtedness to be approximately $0.5 million for the year ending December 31, 2024.
Expected maturities excluding debt issuance costs at December 31, 2024 are as follows (in thousands). 2025 $ 2,010 2026 1,188 2027 1,258 2028 1,332 2029 1,411 Thereafter 1,969 Total long-term debt, including current maturities and excluding debt issuance costs $ 9,168 We expect our total interest payment obligations relating to the above indebtedness to be approximately $0.5 million for the year ending December 31, 2025.
Cost of revenues decreased $22.8 million, or 29%, in the Current Year compared to the Prior Year. As a percentage of revenue, these costs were 75% and 79% in the Current Year and the Prior Year, respectively.
Cost of revenues decreased $2.9 million, or 5.2%, in the Current Year compared to the Prior Year. As a percentage of revenue, these costs were 71.0% and 75.1% in the Current Year and the Prior Year, respectively.
The decrease in net cash provided by operating activities of $8.0 million as compared to the Prior Year was primarily attributable to the increase in working capital resulting from increased payments of accounts payable and lower dividends from our joint venture, BOMAY. 28 Table of Contents Investing Activities Net cash used in investing activities totaled $8.9 million and $1.9 million for the twelve months ended December 31, 2023 and 2022, respectively.
The increase in net cash provided by operating activities of $7.0 million as compared to the Prior Year was primarily attributable to the increase in net income, improved collections and reduced payments of accounts payable and accrued liabilities compared to the Prior Year. 28 Table of Contents Investing Activities Net cash used in investing activities totaled $8.1 million and $8.9 million for the twelve months ended December 31, 2024 and 2023, respectively.
The decrease in revenues primarily related to: • Decreased LNG delivered to customers of 12.7 million gallons during the Current Year compared to the Prior Year, resulting in a reduction in revenue of $16.5 million; • Decreased natural gas prices during the Current Year compared to the Prior Year, resulting in a reduction in revenue of $11.7 million; • Decreased rental revenue of $1.1 million related to a short-term marine bunkering project in the Prior Year; and • Decreases in our LNG Product revenue and our rental revenue were partially offset by increased revenues from minimum take-or-pay contracts of $3.9 million. 26 Table of Contents Operating Expenses Costs of revenues.
The increase in revenues primarily related to: • Increased LNG delivered to customers of 8.2 million gallons during the Current Year compared to the Prior Year, resulting in an increase in revenue of $8.7 million; • Increased customer pricing during the Current Year compared to the Prior Year, resulting in an increase in revenue of $2.3 million; • Increased rental and service revenues during the Current Year compared to the Prior Year, resulting in an increase in revenue of $1.6 million; • The above increases were offset by a decrease in natural gas prices during the Current Year compared to the Prior Year, resulting in a reduction in revenue of $7.2 million; and • Decreased revenues from minimum take-or-pay contracts of $5.0 million and a decrease in other revenues of $0.2 million. 26 Table of Contents Operating Expenses Costs of revenues.
The comparative tables below reflect our consolidated operating results for the year ended December 31, 2023 (the “Current Year”) as compared to the year ended December 31, 2022 (the “Prior Year”) (amounts in thousands, except for percentages).
Ballard's departure and Mr. Crenshaw's expanded role. 25 Table of Contents RESULTS OF OPERATIONS The comparative tables below reflect our consolidated operating results for the year ended December 31, 2024 (the “Current Year”) as compared to the year ended December 31, 2023 (the “Prior Year”) (amounts in thousands, except for percentages).
Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. We believe that these fuel markets are large and provide significant opportunities for LNG usage.
Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. We believe that these fuel markets are large and provide significant opportunities for LNG usage. The Company generates revenue by selling and delivering LNG to our customers, renting cryogenic equipment and providing engineering and field support services.
The price of natural gas can fluctuate at any time during the year due to isolated factors, but generally, natural gas prices tend to be higher in peak winter and peak summer months when heating and cooling demand is seasonally higher. Inflation The Company continued to experience inflationary pressure during 2023 which began to slow, toward the end of 2023.
However, our revenues are susceptible to variations due to changes in the price of natural gas. The price of natural gas can fluctuate at any time during the year due to isolated factors, but generally, natural gas prices tend to be higher in peak winter and peak summer months when heating and cooling demand is seasonally higher.
The Company recorded a gain on the disposal of fixed assets of $1.2 million in the Current Year related to proceeds received on an insurance settlement pertaining to certain assets damaged in a fire in June of 2023 (See Note 6 to the Consolidated Financial Statements for a further discussion of this gain) and on a settlement received for a damaged trailer.
Gain on the disposal of fixed assets of $1.2 million was recognized in the Prior Year related to proceeds received on an insurance settlement pertaining to certain assets damaged in a fire in June of 2023 and from a settlement received for a damaged trailer. Depreciation .
The decrease in cost of revenues was attributable to: • Decreased LNG delivered to customers of 12.7 million gallons during the Current Year compared to the Prior Year, resulting in decreased costs of revenues of $12.5 million; • Decreased natural gas prices during the Current Year compared to the Prior Year, resulting in decreased costs of revenues of $11.5 million; • Decreased transportation pricing and the mix of geographic proximity of our customers during the Current Year compared to the Prior Year, resulting in decreased costs of revenues of $1.8 million; and • Decreases in these costs were partially offset by increased minimum take-or-pay costs of $0.6 million, increased liquefaction costs of $0.7 million and increased service and other costs incurred during the Current Year compared to the Prior Year related to additional projects with higher labor costs.
The decrease in cost of revenues was attributable to: • Decreased natural gas prices during the Current Year compared to the Prior Year, resulting in decreased costs of revenues of $8.5 million; • Decreased minimum take-or-pay costs of $1.4 million; • A decrease in service and rental costs of $0.9 million during the Current Year compared to the Prior Year related to reduced travel and labor costs; • The above decreases were partially offset by increased LNG delivered to customers of 8.2 million gallons during the Current Year compared to the Prior Year, resulting in increased costs of revenues of $6.5 million; and • Increased liquefaction and transportation costs from increased third party purchases, resulting in higher costs and further transport distances during the Current Year compared to the Prior Year, resulting in increased costs of revenues of $1.4 million.
Selling, general and administrative expense decreased $0.3 million, or 2.3%, during the Current Year as compared to the Prior Year primarily due to lower incentive compensation, partially offset by increased professional services, and salaries. Gain on the disposal of fixed assets .
Selling, general and administrative expense decreased $1.1 million, or 8.8%, during the Current Year as compared to the Prior Year primarily due to decreased incentive compensation and personnel costs, including lower stock-based compensation expense. Gain on the disposal of fixed assets .
The term loan facility matures on April 8, 2031 and bears interest at 5.75% per annum through April 8, 2026, and the U.S. prime lending rate plus 2.5% per annum thereafter. (2) The operating lease obligation relates to the former headquarters office space.
The term loan facility matures on April 8, 2031 and bears interest at 5.75% per annum through April 8, 2026, and the U.S. prime lending rate plus 2.5% per annum thereafter. See additional discussion of our debt and lease obligations in Notes 9 and 10 of the Notes to Consolidated Financial Statements.
Specifically, costs for fuel, repairs, maintenance, electricity, wages for skilled labor and insurance continue to increase. We have responded with increasing our pricing to our customers. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs.
While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs.
The following table summarizes certain contractual obligations in place as of December 31, 2023 (in thousands): Payments Due By Period Total 2024 2025 2026 2027 2028 Thereafter Term Loan to AmeriState Bank (1) $ 8,998 $ 857 $ 1,285 $ 1,285 $ 1,285 $ 1,285 $ 3,001 Interest - AmeriState Bank (1) 2,551 511 440 540 429 319 312 Finance Lease Obligations 44 44 — — — — — Operating Lease Obligations (2) 141 120 21 — — — — Insurance note payable 825 825 — — — — — Total $ 12,559 $ 2,357 $ 1,746 $ 1,825 $ 1,714 $ 1,604 $ 3,313 (1) Obligation with AmeriState Bank to provide for an advancing term loan facility for working capital needs for our LNG liquefaction plant in Texas in the aggregate principal amount of up to $10.0 million.
The following table summarizes certain contractual obligations in place as of December 31, 2024 (in thousands): Payments Due By Period Total 2025 2026 2027 2028 2029 Thereafter Term Loan to AmeriState Bank (1) $ 8,285 $ 1,127 $ 1,188 $ 1,258 $ 1,332 $ 1,411 $ 1,969 Interest - AmeriState Bank (1) 1,614 447 381 311 237 158 80 Finance Lease Obligations 314 314 — — — — — Operating Lease Obligations 171 70 61 40 — — — Insurance note payable 883 883 — — — — — Total $ 11,267 $ 2,841 $ 1,630 $ 1,609 $ 1,569 $ 1,569 $ 2,049 (1) Obligation with AmeriState Bank to provide for an advancing term loan facility for working capital needs for our LNG liquefaction plant in Texas in the aggregate principal amount of up to $10.0 million.
The resale of electrical and instrumentation equipment is billed upon delivery and were generally due within thirty days from the receipt of the invoice. Impairment of Long-Lived Assets and Goodwill The determination and calculation of impairment requires significant judgment regarding estimates of fair value and the projection of future cash flows.
Impairment of Long-Lived Assets and Goodwill The determination and calculation of impairment requires significant judgment regarding estimates of fair value and the projection of future cash flows.
We completed our annual assessment of goodwill during 2023 and 2022, and determined no additional impairment of goodwill was warranted. Income Taxes The calculation of income taxes is inherently complex. Additionally, the determination of the adequacy of any needed valuation allowance requires significant judgment. Deferred income taxes are accounted for under the asset-and-liability method.
Additionally, the determination of the adequacy of any needed valuation allowance requires significant judgment. Deferred income taxes are accounted for under the asset-and-liability method.
See additional discussion of our debt and lease obligations in Notes 9 and 10 of the Notes to Consolidated Financial Statements. Contingencies In the normal course of our business, we become involved in various litigation matters. In addition, from time to time we are involved in tax and other disputes with various government agencies.
Contingencies In the normal course of our business, we become involved in various litigation matters. In addition, from time to time we are involved in tax and other disputes with various government agencies. Management has used estimates in determining our potential exposure to these matters and has recorded reserves in our financial statements related thereto as appropriate.
As of December 31, 2023, a Secured Promissory Note to MG Finance Co., Ltd. in the principal amount of $5.0 million, was paid in full. No draws on the AmeriState Bank or Revolving Credit Facility were made in the Current Year.
The decrease in cash used by financing activities compared to the Prior Year is due to a secured promissory note to MG Finance that was paid in full in the Prior Year. No draws on the AmeriState Bank or Revolving Credit Facility were made in the Current Year.
The Company implemented corrective actions and completed installation of additional gas pretreatment equipment that allowed our George West facility to resume LNG production at full rates. Acquisition of Additional Liquefaction Assets During the second quarter of 2023, the Company acquired the key components of a 100,000 LNG gallon per day liquefaction train for $6.0 million.
See also Note 9 in the Notes to Consolidated Financial Statements for further discussion of our revolving credit facility. Acquisition of Additional Liquefaction Assets During the second quarter of 2023, the Company acquired the key components of a 100,000 LNG gallon per day liquefaction train for $6.0 million.
Related party interest expense decreased by $0.1 million during the Current Year as compared to the Prior Year primarily due to amendments to the MG Finance debt which lowered the interest rate from 12% to 6%, as well as lower debt balance from payments made on related-party debt. Other income (expense).
Related party interest expense decreased $0.1 million during the Current Year as compared to the Prior Year due to the pay off of the debt owed to MG Finance Co., Ltd. ("MG Finance"), a related party, in December of the Prior Year. Other income (expense).
We currently test goodwill for impairment annually in the third quarter unless we determine that a triggering event has occurred requiring an earlier test. During 2022, the Company recorded $0.1 million of goodwill impairment related to the sale of the Brazil Operations which is included within loss from discontinued operations.
We currently test goodwill for impairment annually in the third quarter unless we determine that a triggering event has occurred requiring an earlier test. We completed our annual assessment of goodwill during 2024 and 2023, and determined no additional impairment of goodwill was warranted. Income Taxes The calculation of income taxes is inherently complex.
No U.S. federal income tax benefit was recorded for the Current Year or Prior Year as any net U.S. deferred tax assets generated from operating losses were offset by a change in the Company's valuation allowance on net deferred tax assets. Discontinued Operations . Loss from discontinued operations, net of tax was $2.0 million in the Prior Year.
No U.S. federal income tax expense was recorded for the Current Year or Prior Year as the Company had sufficient deferred tax assets to offset any U.S. federal taxes which were fully offset by a change in the Company's valuation allowance on utilized deferred tax assets. 27 Table of Contents SEASONALITY AND INFLATION Seasonality We did not experience significant variations in volume of LNG delivered to our customers resulting from seasonal variations during 2024.
During the fourth quarter of 2023, the Company entered into a two-year marine bunkering contract with a cruise industry customer to deliver an estimated 22 million gallons of LNG per year. 25 Table of Contents RESULTS OF OPERATIONS Stabilis supplies LNG to multiple end markets in North America and provides turnkey fuel solutions to help users of propane, diesel and other crude-based fuel products convert to LNG.
During the fourth quarter of 2023, the Company entered into a marine bunkering contract with a cruise industry customer to deliver an estimated 22 million gallons of LNG per year. Additionally, the Company expects that LNG demand will increase to support anticipated increased commercial rocket launch activity.
The increase in net cash used in the Current Year was primarily due to the acquisition of liquefaction assets in the Current Year and lower proceeds received from the disposal of assets.
In both the Current Year and the Prior Year, cash used in investing was primarily for the acquisition of liquefaction assets and their subsequent deployment. During the years ended December 31, 2024 and 2023, proceeds received from the disposal of assets were $0.8 million and $1.3 million, respectively.
Removed
We believe that LNG will provide an important balance between environmental sustainability, security and accessibility, and economic viability when compared to both renewables and other traditional hydrocarbon-based fuels and will play a key role in the energy transition. The Company generates revenue by selling and delivering LNG to our customers, renting cryogenic equipment and providing engineering and field support services.
Added
The authorization is for shipments of LNG and is for a term of 28 years with a remaining term of approximately 26 years under this authorization. As of December 31, 2024, the Company has met the initial time requirement to initiate exports to non-FTA countries. In 2024, we delivered LNG to Europe under this authorization.
Removed
The authorization is for a term of 28 years, provided certain milestones of utilization are achieved. As of December 31, 2023, the Company has not made any exports under this approval and has not expended material funds nor entered into any sales commitments.
Added
During 2024, the Company installed four storage tanks acquired in this transaction at its liquefaction facility in George West, Texas. The Company is currently evaluating the best alternatives for installation of the remaining assets into its operations.
Removed
See also Note 9 in the Notes to Consolidated Financial Statements for further discussion of our revolving credit facility.
Added
Stabilis is positioned to remain a key supplier of LNG as propellant and has contracts to supply high-purity propellant to two commercial space exploration companies. Customer Contracts – Supporting Energy Grid Resiliency The Company continues to provide LNG for peak load, intermittent, and emergency relief power across multiple industries.
Removed
Gas Pretreatment Upgrades at our George West, Texas Liquification Facility During the second and third quarter of 2023, the Company was adversely impacted by natural gas feedstock composition changes, which reduced production from our George West, Texas liquefaction facility (our "George West facility") as well as overall profitability.
Added
During 2024, the Company secured the extension of its LNG supply agreement with a leading global provider of on-demand industrial power solutions to provide turnkey production and last mile delivery of up to 9.5 million gallons of LNG to generate roughly 23 megawatt-hours of grid resiliency power in support of communities along the Gulf Coast through May 2025.
Removed
The sale of the Brazil Operations in 2022 consists of all of the revenues and expenses formerly reported within the Company's Power Delivery segment with the exception of the Company's equity method investment in BOMAY. Further, the decision to exit the Brazil Operations met the criteria to be reported as discontinued operations.
Added
Management Transition Effective January 31, 2025, the Company entered into a release and consulting agreement with Westervelt T. Ballard, Jr. (formerly the Company's President and Chief Executive Officer) pursuant to which the Company and Mr. Ballard mutually agreed to terminate his employment as President and Chief Executive Officer and Mr. Ballard transitioned to a consultant of the Company. Additionally, Mr.
Removed
As a result, the Company has one reporting segment and the results presented in the table below separately presents the revenues and expenses for the Brazil Operations as discontinued operations.
Added
Ballard voluntarily resigned as a member of the Company’s Board of Directors. Concurrent with Mr. Ballard's departure, the Company appointed the Company’s Chairman of the Board, J. Casey Crenshaw, as its Executive Chairman, and interim President and Chief Executive Officer. See Notes to the Consolidated Financial Statements, Note 17 - Subsequent Events, for additional discussion related to Mr.
Removed
The Company sold its Brazil Operations on October 31, 2022. There was no activity from discontinued operations during the Current Year.
Added
The Company recorded a gain on the disposal of fixed assets of $0.8 million in the Current Year from the sale of various assets which included vaporizers and storage tanks primarily to customers on their sites.
Removed
See Note 12 in the Notes to Consolidated Financial Statements for further discussion of the Company's discontinued operations. 27 Table of Contents SEASONALITY AND INFLATION Seasonality We did not experience significant variations in volume of LNG delivered to our customers resulting from seasonal variations during 2023.
Added
Inflation The Company continued to experience inflationary pressure during 2024. Specifically, costs for fuel, repairs, maintenance, electricity, wages for skilled labor and insurance continue to increase. We have responded with increasing our pricing to our customers.
Removed
However, our revenues are susceptible to variations due to changes in the price of natural gas as we pass this cost onto our customer.
Removed
During the Current Year, proceeds received from the disposal of assets were $1.3 million compared to proceeds received of $2.0 million from the sale of certain CNG assets in Mexico and $0.2 million from the sale of the Brazil Operations in the Prior Year.
Removed
The increase in cash used by financing activities compared to the Prior Year is due to proceeds received from the AmeriState Bank loan facility of $1.0 million during the Prior Year. In addition, debt payments increased $0.6 million over the Prior Year.
Removed
Management has used estimates in determining our potential exposure to these matters and has recorded reserves in our financial statements related thereto as appropriate.
Removed
Power Delivery revenue prior to the sale of the Brazil Operations was generated from time and material projects, consulting services, and the resale of electrical and instrumentation equipment. Revenue was billed based on contractual terms that can be based on an event or an hourly rate. Revenue was recognized as the event was completed or work was done.
Removed
Payment terms for service contracts were generally within thirty days from the receipt of the invoice. Performance obligations for service revenue were considered to be satisfied as the event was completed or work was done per the terms of the related contract.

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