NextDecade (NEXT) Q4 2024 earnings summary

Executive summary

• Construction of the Rio Grande LNG Facility Phase 1 (Trains 1–3) is on schedule and on budget, with Trains 1 and 2 at 38.1% and Train 3 at 15.3% completion as of January 2025.

• Over 90% of Phase 1 capacity is contracted via long-term SPAs with major global LNG buyers; first LNG expected in 2027.

• Announced development plans for up to 18 MTPA of additional liquefaction capacity, with Trains 6–8 in early permitting and development.

• Actively progressing commercialization and financing for Trains 4 and 5, including SPAs and equity options with major partners.

• Committed to sustainability, community engagement, and development of carbon capture and storage (CCS) solutions.

Financial highlights

• Phase 1 project cost is $18 billion, fully funded through $6.1 billion equity and $12.3 billion debt.

• $175 million senior secured loan secured in December 2024 to refinance debt and fund expansion development.

• Over $1.85 billion of term loan facilities refinanced into senior secured notes and loans since FID.

• Issued warrants for approximately 7.2 million shares to the lender, exercisable at $7.15 and $9.30 per share.

• Projected distributable cash flow for Trains 1–5: $0.9–$1.3 billion/year (20-year average, non-GAAP).

Outlook and guidance

• Targeting positive FID on Train 4, with EPC contract finalized and commercial support in place; financing process ongoing.

• Train 5 EPC contract expected in 2025; commercialization and partner discussions underway.

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

• Exploring options for up to two additional trains beyond Train 8.

• LNG demand growth and robust market fundamentals expected to support continued expansion.