NextDecade (NEXT) Q1 2025 earnings summary

Executive summary

• Construction of the Rio Grande LNG Facility Phase 1 (Trains 1–3) is on schedule and on budget, with Trains 4–5 progressing toward FID and Trains 6–8 in early development and permitting stages.

• Commercialization of Train 4 completed with 20-year SPAs totaling 4.6 MTPA signed with ADNOC, Aramco, and TotalEnergies; Train 5 commercialization ongoing.

• Expansion plans for Trains 6–8 announced, increasing total expected LNG capacity under construction or development to 48 MTPA.

• Positive D.C. Circuit Court outcome allows uninterrupted construction while FERC completes supplemental environmental review; final SEIS expected July 2025.

• Committed to sustainability, community engagement, and developing CCS solutions at the Rio Grande LNG Facility.

Financial highlights

• Over 90% of Phase 1 nameplate capacity contracted, with Henry Hub-linked SPAs providing $1.8 billion in expected annual fixed fees.

• Q1 2025 revenue was $44.9 million, up from $32.5 million in Q1 2024; net loss attributable to common stockholders was $88.8 million, mainly due to a $427.6 million decrease in unrealized derivative gains.

• Cash and cash equivalents as of March 31, 2025, were $130.9 million; restricted cash was $255.2 million.

• Projected distributable cash flow for Trains 1–3: $0.2–$0.3 billion/year; Trains 4–5: $0.7–$1.0 billion/year; Trains 1–5 combined: $0.9–$1.3 billion/year (20-year average, non-GAAP measure).

• Net cash used in operating activities was $68.8 million; net cash used in investing activities was $779.4 million; net cash provided by financing activities was $841.6 million.

Outlook and guidance

• First LNG from Phase 1 expected in 2027; commercial operation of the first train anticipated in late 2027.

• Train 4 FID targeted after EPC pricing refresh and financing in Q2 2025; Train 5 EPC contract expected in 2025.

• Pre-filing with FERC for Train 6 expected in 2025; full application in early 2026; permitting for Trains 7 and 8 to be provided later in 2025.

• The company expects to fund future phases and CCS projects primarily through additional debt and equity offerings.

• Global LNG demand projected to grow, supporting long-term expansion and commercialization.