NextDecade Reports Improved Financial Losses and Progress on Rio Grande LNG Facility

NextDecade Corporation reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2024. The company recorded a net loss attributable to common stockholders of approximately $61.8 million, or $(0.24) per share, a notable improvement from a net loss of $182.7 million, or $(0.94) per share, in the previous year. This reduction in losses was primarily driven by a substantial increase in derivative gains, which rose by approximately $631.3 million, reflecting favorable movements in interest rates. Operating expenses also increased, with general and administrative expenses rising to $150.1 million from $111.5 million in 2023, largely due to higher professional fees and employee costs.

In terms of operational progress, NextDecade is advancing its Rio Grande LNG Facility, which is currently under construction in Texas. As of January 2025, the overall project completion for the first three liquefaction trains was reported at 38.1%, with engineering and procurement phases nearing completion. The company is also in the process of commercializing Trains 4 and 5, with plans to develop additional liquefaction capacity through Trains 6 to 8, which are expected to add approximately 18 million tonnes per annum (MTPA) to the facility's output.

Strategically, NextDecade has made significant strides in securing long-term contracts, entering into Sale and Purchase Agreements (SPAs) with nine counterparties for a total of approximately 16.15 MTPA of LNG, which represents over 90% of the expected production capacity for Phase 1. The company has also appointed Tarik Skeik as Chief Operating Officer, bringing over 20 years of experience in managing large-scale LNG projects, which is expected to enhance operational efficiency.

Financially, the company has undertaken substantial refinancing efforts, raising over $1.85 billion in debt since the positive final investment decision (FID) for Phase 1 in July 2023. This includes a $175 million senior secured loan issued in December 2024, which will support ongoing development and operational costs. Despite these advancements, NextDecade faces challenges, including a recent ruling from the D.C. Circuit Court that vacated the Federal Energy Regulatory Commission's (FERC) reauthorization for the facility, necessitating further regulatory approvals that could impact project timelines and costs.

Looking ahead, NextDecade remains focused on securing additional financing to support future phases of development and is actively pursuing legal avenues to maintain necessary regulatory approvals for the Rio Grande LNG Facility. The company anticipates that the commercial operation date for the first train of Phase 1 will occur in late 2027, contingent upon the successful resolution of ongoing regulatory processes and the completion of construction activities.