Nextdecade Stock Price, News & Analysis

NextDecade (NASDAQ: NEXT) provided a Q2 2024 business update, highlighting progress on its Rio Grande LNG Facility. Key developments include:

1. Phase 1 construction (Trains 1-3) is 24.1% complete for Trains 1-2 and common facilities, and 7.8% complete for Train 3.

2. A 20-year LNG sale and purchase agreement with ADNOC for 1.9 MTPA from Train 4.

3. A non-binding heads of agreement with Aramco for 1.2 MTPA from Train 4.

4. An EPC contract with Bechtel for Train 4 at approximately $4.3 billion.

5. Issuance of $1.115 billion in senior secured notes to refinance existing term loan facilities.

However, the company faces challenges due to a U.S. Court of Appeals decision vacating FERC's remand authorization of the Rio Grande LNG Facility.

The U.S. Court of Appeals for the D.C. Circuit has vacated the Federal Energy Regulatory Commission's (FERC) remand authorization of NextDecade 's (Nasdaq: NEXT) Rio Grande LNG Facility. The Court ruled that FERC should have issued a supplemental Environmental Impact Statement (EIS) during its remand process. NextDecade expressed disappointment and disagreement with the decision, stating it is reviewing the Court's decision and assessing options.

Despite the setback, construction continues on Phase 1 of the Rio Grande LNG Facility, which includes the first three liquefaction trains and related infrastructure. However, the company is evaluating the impact of the Court's decision on the timing of a positive final investment decision (FID) on Train 4.

NextDecade (NASDAQ: NEXT) has announced that its subsidiary, Rio Grande LNG Train 4, , has signed a lump sum turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy Inc. for the construction of Train 4 and related infrastructure at the Rio Grande LNG Facility. The contract is valued at approximately $4.3 billion, with price validity extending through December 31, 2024.

NextDecade estimates additional costs, including owner's costs, contingencies, financing fees, and interest during construction, to total approximately $1.7-1.9 billion. The total estimated project costs for Train 4 and related infrastructure are expected to be $6.0-$6.2 billion, aligning with the per-train cost of the three-train Phase 1 currently under construction. The company is targeting a positive Final Investment Decision for Train 4 in the second half of 2024, subject to commercial support and adequate financing.

NextDecade (NASDAQ: NEXT) has appointed Tarik Skeik as its new Chief Operating Officer (COO). Skeik, 44, brings over 20 years of experience in delivering complex mega projects in the LNG, oil, and petrochemical sectors across North America, the Middle East, and Asia. He previously worked as a global project executive at ExxonMobil since 2011.

Skeik's expertise includes leading the completion and start-up of six greenfield assets exceeding $50 billion in investments. He will report to Chairman and CEO Matt Schatzman, focusing on delivering Phase 1 of Rio Grande LNG (RGLNG) safely and on budget, reaching final investment decisions on RGLNG Trains 4 and 5, and advancing the Next Carbon Solutions business.

NextDecade 's subsidiary Rio Grande LNG has announced the issuance of $1.115 billion in senior secured notes due 2047. These notes will accrue interest at a fixed rate of 6.58% and will be amortized over 18 years starting in September 2029. The proceeds will be used to reduce borrowings and commitments under existing term loan facilities for Phase 1 at the Rio Grande LNG Facility. This transaction brings the total refinanced amount to over $1.85 billion out of the original $11.1 billion Rio Grande LNG term loan facilities since a positive final investment decision was made in July 2023.

Aramco and NextDecade have signed a non-binding Heads of Agreement (HoA) for a 20-year LNG sale and purchase agreement from Train 4 at the Rio Grande LNG Facility in Texas. Aramco plans to buy 1.2 MTPA of LNG indexed to Henry Hub, contingent on a Final Investment Decision (FID) on Train 4. This agreement will potentially expand Aramco's presence in international energy markets. NextDecade aims to achieve FID in the second half of 2024, pending an EPC contract, commercial support, and financing.

ADNOC has acquired an 11.7% equity stake in Phase 1 (Trains 1-3) of NextDecade's Rio Grande LNG project in Texas, marking its first strategic US investment. The acquisition was made through Global Infrastructure Partners. ADNOC and NextDecade have also entered a 20-year LNG offtake agreement for 1.9 million tons per annum from RGLNG Train 4. This project aims to produce lower-carbon LNG, with expected carbon dioxide reductions of over 90% through a carbon capture and storage project. NextDecade retains its expected economic interest in Phase 1 and its expansion capacity for Trains 4 and 5. The final investment decision for Train 4 is expected in the second half of 2024, pending necessary contracts and financing.

NextDecade provided an update on the first quarter 2024 and early second quarter 2024 activities, focusing on the progress of Phase 1 construction at the Rio Grande LNG Facility. The Company is on track with construction plans, expects to achieve a positive FID on Train 4 in the second half of the year, and is engaging in commercial discussions with potential counterparties. Financially, NextDecade secured a $50 million revolving credit facility and issued $190 million in senior secured notes to support Phase 1 development. The Company aims to become a leading LNG owner and operator while maximizing value for shareholders.