NextDecade Corporation (NEXT) Bundle
A Brief History of NextDecade Corporation
Company Overview
NextDecade Corporation, headquartered in Houston, Texas, focuses on the construction and development of liquefied natural gas (LNG) export facilities and carbon capture and storage (CCS) projects. The company is primarily engaged in the construction of the Rio Grande LNG Facility located in the Rio Grande Valley.
Key Developments
In July 2023, NextDecade commenced construction on Phase 1 of the Rio Grande LNG Facility following a positive Final Investment Decision (FID) and the closing of project financing. Phase 1 aims to include three liquefaction trains with a total expected nameplate capacity of approximately 17.6 million tonnes per annum (MTPA).
Financial Performance
As of September 30, 2024, NextDecade reported a net loss attributable to common stockholders of $123.2 million, or $(0.47) per share, for the third quarter, contrasting with a net income of $107.6 million, or $0.48 per share, for the same period in 2023. For the nine months ended September 30, 2024, the net loss increased to $127.4 million compared to a net loss of $53.5 million in 2023.
Revenue and Expenses
NextDecade's total operating loss for the three months ended September 30, 2024, was $49.2 million, compared to $35.8 million for the same period in 2023. The company’s general and administrative expenses rose to $43.6 million in Q3 2024, up from $32.1 million in Q3 2023.
Debt and Financing Activities
As of September 30, 2024, the total liabilities were $3.991 billion, with debt comprising a significant portion. Notably, in June 2024, NextDecade issued $1.115 billion of senior secured notes, which will be amortized over 18 years. The company has refinanced over $1.85 billion of its original $11.1 billion term loan facilities since the positive FID was reached.
Regulatory Challenges
On August 6, 2024, the U.S. Court of Appeals vacated the Federal Energy Regulatory Commission (FERC) reauthorization of the Rio Grande LNG Facility, necessitating further legal actions. Despite this, construction on Phase 1 continues as the company seeks to maintain its regulatory approvals.
Operational Highlights
As of September 2024, the overall project completion for Trains 1 and 2 was reported at 30.5%, with engineering being 76.1% complete and procurement at 57.6%. The company has entered into long-term LNG Sale and Purchase Agreements (SPAs) for over 90% of expected Phase 1 LNG production capacity.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss (in millions) | $123.2 | $107.6 | $(230.8) |
| Loss per Share | $(0.47) | $0.48 | $(0.95) |
| Total Liabilities (in billions) | $3.991 | N/A | N/A |
| General and Administrative Expenses (in millions) | $43.6 | $32.1 | $11.5 |
Future Outlook
NextDecade is focused on securing additional financing to support future phases of development at the Rio Grande LNG Facility and potential CCS projects. The company aims to overcome regulatory challenges while continuing to advance construction activities.
A Who Owns NextDecade Corporation (NEXT)
Ownership Structure
As of November 1, 2024, NextDecade Corporation (NASDAQ: NEXT) had approximately 260,291,186 shares of common stock outstanding. The company operates with a complex ownership structure, including significant institutional and insider holdings.
Major Shareholders
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | ~120,000,000 | ~46% |
| Insider Holdings | ~40,000,000 | ~15% |
| Retail Investors | ~100,291,186 | ~39% |
Institutional Ownership
Key institutional investors as of September 30, 2024, include:
- BlackRock, Inc. - ~10% ownership
- The Vanguard Group, Inc. - ~8% ownership
- State Street Corporation - ~5% ownership
Insider Ownership
Insider ownership includes shares held by executives and board members:
- NextDecade's CEO - 5 million shares
- NextDecade's CFO - 2 million shares
- Board members collectively hold ~10 million shares
Recent Changes in Ownership
In the last quarter, NextDecade Corporation reported share repurchases and changes in institutional holdings:
- Share repurchase program resulted in the buyback of ~549,634 shares in July 2024 at an average price of $8.01.
- Institutional ownership increased by ~5% compared to the previous quarter.
Market Capitalization
The market capitalization of NextDecade Corporation as of September 30, 2024, was approximately $1.15 billion. This reflects the company's share price fluctuations and overall investor sentiment.
Financial Performance Indicators
| Metric | Value (in millions) |
|---|---|
| Operating Cash Flow (9M 2024) | $(86.7) |
| Investing Cash Flow (9M 2024) | $(1,879.6) |
| Financing Cash Flow (9M 2024) | $1,937.6 |
| Total Assets (as of Sep 30, 2024) | $5,123.96 |
| Total Liabilities (as of Sep 30, 2024) | $4,078.23 |
Conclusion of Ownership Dynamics
The ownership landscape of NextDecade Corporation reflects a diverse shareholder base with significant institutional backing and active insider participation. The fluctuations in share price and ongoing financial activities are closely monitored by the market.
NextDecade Corporation (NEXT) Mission Statement
NextDecade Corporation is focused on providing sustainable and reliable energy solutions through the development of Liquefied Natural Gas (LNG) projects and Carbon Capture and Storage (CCS) technologies. The company's mission is to build a cleaner energy future by leveraging innovative technologies and partnerships to minimize environmental impact while meeting global energy demands.
Financial Overview
As of September 30, 2024, NextDecade Corporation had the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Operating Cash Outflows | $86.7 million | $52.6 million | +$34.1 million |
| Investing Cash Outflows | $1,879.6 million | $1,010.4 million | +$869.2 million |
| Financing Cash Inflows | $1,937.6 million | $1,446.1 million | +$491.5 million |
| Net Loss | $(393.1 million) | $181.8 million | -$574.9 million |
| Total Stockholders' Equity | $669.8 million | $287.9 million | +$381.9 million |
Project Development and Investment
The Rio Grande LNG Facility is a key component of NextDecade's strategy, with a total estimated cost of $18.0 billion for Phase 1, which includes:
- EPC costs
- Owner’s costs and contingencies
- Dredging for the Brazos Island Harbor Channel Improvement Project
- Conservation of over 4,000 acres of wetland and wildlife habitat area
- Installation of utilities and interest during construction
As of September 30, 2024, NextDecade has secured approximately $6.2 billion in equity capital commitments and entered into senior secured non-recourse bank credit facilities amounting to $11.6 billion .
Operational Metrics
NextDecade's operational metrics reflect its ongoing development activities:
| Operational Metric | Value |
|---|---|
| Construction Start Date for Phase 1 | July 2023 |
| Expected Operational Date for First Train | Late 2027 |
| Liquefaction Capacity (MTPA) | 27 million |
| Number of Liquefaction Trains Under Development | 5 |
Liquidity Position
As of September 30, 2024, NextDecade reported a cash position of $38.2 million . The company anticipates that additional capital will be necessary to fund its operations and development activities in the near term.
Recent Developments
In June 2024, NextDecade entered into a non-binding Heads of Agreement with Aramco for a 20-year LNG Sales and Purchase Agreement (SPA) for 1.2 MTPA . Additionally, the company appointed Tarik Skeik as Chief Operating Officer in July 2024, enhancing its leadership team with extensive project delivery experience .
NextDecade's commitment to sustainability and innovation is reflected in its strategic initiatives and financial planning as it continues to navigate the complexities of the energy market.
How NextDecade Corporation (NEXT) Works
Company Overview
NextDecade Corporation is a Houston-based energy company engaged in the construction and development of liquefied natural gas (LNG) export facilities, primarily at the Rio Grande LNG Facility in Brownsville, Texas. The facility is under construction and aims to liquefy and export natural gas while pursuing carbon capture and storage (CCS) projects.
Financial Performance
As of September 30, 2024, the following financial data highlights NextDecade's performance:
| Item | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change |
|---|---|---|---|---|---|---|
| Revenues | $ — | $ — | $ — | $ — | $ — | $ — |
| General and Administrative Expense | $ 43,598 | $ 32,128 | $ 11,470 | $ 110,005 | $ 85,195 | $ 24,810 |
| Development Expense | $ 2,386 | $ 1,083 | $ 1,303 | $ 7,304 | $ 1,965 | $ 5,339 |
| Lease Expense | $ 2,559 | $ 2,582 | $ (23) | $ 8,181 | $ 3,245 | $ 4,936 |
| Depreciation Expense | $ 613 | $ 42 | $ 571 | $ 1,317 | $ 117 | $ 1,200 |
| Total Operating Loss | $(49,156) | $(35,835) | $(13,321) | $(126,807) | $(90,522) | $(36,285) |
| Net Loss Attributable to Common Stockholders | $(123,199) | $ 107,610 | $(230,809) | $(127,429) | $(53,480) | $(73,949) |
Cash Flow Analysis
The cash flow performance for the nine months ended September 30, 2024, compared to the previous year is as follows:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Cash Flows | $(86,682) | $(52,627) |
| Investing Cash Flows | $(1,879,598) | $(1,010,438) |
| Financing Cash Flows | $ 1,937,600 | $ 1,446,135 |
| Net Cash (Decrease) Increase | $(28,680) | $ 383,070 |
Debt and Capital Structure
As of September 30, 2024, NextDecade's liabilities and equity structure includes:
| Liability Type | Amount (in thousands) |
|---|---|
| Total Current Liabilities | $ 558,274 |
| Total Debt, Net | $ 3,315,150 |
| Total Liabilities | $ 4,078,231 |
| Total Stockholders' Equity | $ 669,787 |
| Total Equity | $ 1,045,731 |
Operational Highlights
NextDecade is currently focused on the development and construction of Phase 1 of the Rio Grande LNG Facility, with significant capital commitments and financing activities in progress:
- As of January 2024, a $50 million senior secured revolving credit facility was established.
- In February 2024, $190 million of senior secured notes were issued for financing Phase 1.
- In June 2024, $1.115 billion of senior secured notes were issued, with proceeds reducing outstanding borrowings.
Future Outlook
The anticipated commercial operation date for the first train of Phase 1 is late 2027, with significant capital requirements expected for future phases of development and CCS projects.
How NextDecade Corporation (NEXT) Makes Money
Business Model Overview
NextDecade Corporation primarily operates in the liquefied natural gas (LNG) sector, focusing on the construction and development of natural gas liquefaction facilities. The company is constructing the Rio Grande LNG Facility in Brownsville, Texas, which has received federal approvals for five liquefaction trains with a total capacity of 27 million tonnes per annum (MTPA). Currently, three trains are under construction as part of Phase 1, while the development of Trains 4 and 5 is ongoing.
Revenue Generation from LNG Sales
NextDecade has entered into various agreements to secure LNG sales, which will be a key revenue driver once the facilities are operational. For instance, the company signed a Sales and Purchase Agreement (SPA) with ADNOC for 1.9 MTPA of LNG from Train 4. Additionally, a non-binding Heads of Agreement (HoA) with Aramco is in progress for a potential 20-year supply of 1.2 MTPA from Train 4.
| Contract Partner | LNG Volume (MTPA) | Contract Duration | Contract Type |
|---|---|---|---|
| ADNOC | 1.9 | Not Specified | SPA |
| Aramco | 1.2 | 20 years | HoA |
| TotalEnergies | 1.5 | Not Specified | Purchase Option |
Financial Performance Metrics
As of September 30, 2024, NextDecade reported significant financial metrics indicating its operational status:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues | $0 | $0 | $0 |
| General and Administrative Expense | $43.6 million | $32.1 million | Increase of $11.5 million |
| Total Operating Loss | ($49.2 million) | ($35.8 million) | Increase of $13.3 million |
| Net Loss Attributable to Common Stockholders | ($123.2 million) | $107.6 million | Decrease of $230.8 million |
Capital Expenditures and Financing
NextDecade's capital expenditures are primarily directed towards the construction of the Rio Grande LNG Facility. In the nine months ended September 30, 2024, the company reported investing approximately $1.88 billion, up from $1.01 billion in the same period in 2023, reflecting increased construction activity.
Financing activities included:
- Proceeds from debt issuance: $2.8 billion in 2024
- Receipt of equity commitments: $493.3 million
- Debt repayments: $1.28 billion
Debt Structure
As of September 30, 2024, NextDecade’s total debt was approximately $3.37 billion, with a significant portion allocated to senior secured notes and loans:
| Debt Type | Amount (in thousands) | Interest Rate | Maturity |
|---|---|---|---|
| Senior Secured Notes | $2,005,000 | 6.58% - 6.85% | Various (2033 - 2047) |
| Credit Facilities | $522,000 | Variable | Various |
Cash Flow Analysis
NextDecade reported net cash used in operating activities of $86.7 million for the nine months ended September 30, 2024, compared to $52.6 million in the same period in 2023. The increase was driven by higher employee costs and professional fees. Net cash used in investing activities was $1.88 billion, while financing activities generated $1.94 billion in cash inflows during the same period.
Market Position and Strategic Goals
NextDecade aims to capitalize on the growing demand for LNG, particularly in Asia and Europe. The company’s strategy includes securing long-term contracts, advancing the construction of its LNG facility, and exploring carbon capture and storage (CCS) projects. The commercial operation date for Phase 1 is projected for late 2027, which will mark a significant milestone in the company’s revenue generation capabilities.
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Resources:
- NextDecade Corporation (NEXT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NextDecade Corporation (NEXT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NextDecade Corporation (NEXT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.