NextDecade (NEXT) Q2 2025 earnings summary

Executive summary

• Construction of the Rio Grande LNG Facility in Texas is advancing, with Phase 1 (Trains 1-3) on schedule and on budget; Trains 1 and 2 are 48.3% complete, Train 3 is 22.7% complete as of June 2025.

• Commercialization of Train 4 is complete with 4.6 MTPA contracted for 20 years; Train 5 has 2.0 MTPA contracted and is targeting an additional 2.5 MTPA, with 20-year SPAs signed with Aramco, TotalEnergies, and JERA.

• Signed a 20-year SPA with JERA for 2.0 MTPA from Train 5; EPC contracts for Trains 4 and 5 executed with pricing valid through September 15, 2025.

• Financing processes for Trains 4 and 5 are underway, targeting FIDs by mid-September 2025.

• Expansion plans for Trains 6-8 initiated, with Train 6 pre-filing expected in 2025 and full application in early 2026.

Financial highlights

• Total estimated capital project costs for Phase 1 are $18 billion, fully funded with $18.4 billion in project financing.

• $6.1 billion in equity commitments and $12.3 billion in project debt financing secured.

• 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).

• Senior secured loan increased by $50 million to $225 million, with warrants for 2 million shares at $9.30/share issued to lender.

• $250 million of working capital facility commitments terminated, reducing annual commitment fees by $2 million.

Outlook and guidance

• First LNG production expected in 2027.

• FIDs for Trains 4 and 5 targeted by mid-September 2025, contingent on financing and commercial support.

• Trains 6-8 in early development and permitting, with Train 6 pre-filing expected in 2025 and full application in early 2026.

• Global LNG demand expected to grow, supporting long-term commercial momentum.