NextDecade (NEXT) Q3 2025 earnings summary

Executive summary

• The company secured $800 million in construction/term loan financing for Train 4 of the Rio Grande LNG project from a syndicate of international banks, with MUFG Bank as administrative agent.

• Achieved positive Final Investment Decisions and financing for Trains 4 and 5, each with $6.7 billion in project costs and 6 MTPA capacity, contributing to a projected total of 30 MTPA from Trains 1-5.

• Proceeds from the Train 4 facility fund design, engineering, procurement, construction, and related costs, secured by project assets and cross-collateralization among project entities.

• Construction on Trains 1-3 is ahead of schedule, with significant progress on engineering, procurement, and construction milestones.

• Long-term LNG sale and purchase agreements have been signed for Train 5.

Loan structure and financial highlights

• The $800 million facility for Train 4 is split into Tranche A ($250 million) and Tranche B ($550 million), both ranking pari passu.

• Interest is based on Daily Compounded SOFR plus a 2.25% margin for SOFR loans, or Base Rate plus 1.25% for Base Rate loans.

• Commitment fees of 0.675% per annum are charged on undrawn amounts.

• The loan matures on the seventh anniversary of the closing date, with scheduled amortization and a final balloon payment.

• Prepayments are permitted without penalty, subject to certain notice and minimum amount requirements.

Financial highlights and capital allocation

• Closed $6.7 billion project financing for both Train 4 and Train 5, including joint venture equity, company equity, and senior secured non-recourse bank credit facilities.

• Additional funding secured through delayed draw term loans, private placement notes, and a $100 million exchangeable loan convertible into common stock at $9.50 per share.