NextDecade Reports No Revenue and $88.8 Million Net Loss in Latest Quarter

NextDecade Corporation (NASDAQ: NEXT) reported significant financial challenges in its latest quarterly filing for the period ending March 31, 2025. The company recorded no revenues for the quarter, resulting in an operating loss of $51.9 million, compared to a loss of $38.1 million in the same period last year. The net loss attributable to common stockholders was approximately $88.8 million, a stark contrast to a net income of $28.3 million in the first quarter of 2024. This decline was primarily driven by a $427.6 million decrease in unrealized derivative gains, reflecting changes in forward SOFR rates.

In terms of financial position, NextDecade's total assets increased to $6.89 billion from $6.40 billion at the end of 2024, largely due to a rise in property, plant, and equipment, which reached $5.70 billion. However, total liabilities also rose to $5.17 billion, up from $4.66 billion, primarily due to increased debt levels, which now stand at $4.55 billion. The company's stockholders' equity decreased to $302.5 million from $377.6 million, reflecting the substantial net loss during the quarter.

Strategically, NextDecade is advancing its Rio Grande LNG Facility project in Texas, which has received necessary regulatory approvals for the construction of up to five liquefaction trains. As of March 2025, construction on Phase 1, which includes three liquefaction trains, is progressing, with an overall project completion percentage of 42.8% for Trains 1 and 2. The company is also in the process of commercializing Train 4 and has entered into long-term LNG Sale and Purchase Agreements with major players like Saudi Aramco and TotalEnergies, securing a total of 2.7 million tonnes per annum (MTPA) of LNG sales.

Operationally, NextDecade is focused on expanding its liquefaction capacity, with plans for additional trains (6 through 8) that are expected to increase total capacity by approximately 18 MTPA. The company is also developing a potential carbon capture and storage project at the facility. As of the end of March 2025, NextDecade had approximately 130.9 million in cash and cash equivalents, which it plans to utilize for ongoing development activities. The company anticipates that the commercial operation date for the first train of Phase 1 will occur in late 2027, and it is actively seeking financing options to support the construction of Trains 4 and 5.

Looking ahead, NextDecade's management remains optimistic about securing the necessary financing to support its ambitious growth plans, despite the current financial losses. The company is navigating a complex landscape of regulatory approvals and market conditions, with a focus on delivering sustainable energy solutions through its LNG and carbon capture initiatives.