NextDecade(NEXT) - 2025 Q1 - Quarterly Report

Part I. Financial Information Consolidated Financial Statements The company reported a significant increase in total assets to $6.89 billion, primarily driven by the construction of the Rio Grande LNG Facility, with a net loss of $88.8 million for Q1 2025, a sharp contrast to the $28.3 million net income in Q1 2024, mainly due to a $168.7 million unrealized loss on derivative instruments, while cash used in operations increased and investing activities remained high due to continued capital expenditures on the facility, with financing activities providing necessary capital through debt issuance and equity commitments Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $130,938 | $148,137 | | Property, plant and equipment, net | $5,702,709 | $5,020,003 | | Total Assets | $6,893,670 | $6,404,059 | | Debt, net | $4,549,202 | $3,920,425 | | Total Liabilities | $5,170,132 | $4,659,673 | | Total Equity | $1,723,538 | $1,744,386 | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenues | $— | $— | | Total operating loss | $(51,916) | $(38,117) | | Derivative (loss) gain | $(168,700) | $258,872 | | Net (loss) income attributable to common stockholders | $(88,805) | $28,346 | | Net (loss) income per common share — basic and diluted | $(0.34) | $0.11 | Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(68,826) | $(28,825) | | Net cash used in investing activities | $(779,409) | $(780,648) | | Net cash provided by financing activities | $841,621 | $766,393 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(6,614) | $(43,080) | Management's Discussion and Analysis of Financial Condition and Results of Operations Management's discussion focuses on the ongoing construction of the Rio Grande LNG Facility, which is proceeding on schedule, with key recent developments including securing new 20-year SPAs with Saudi Aramco and TotalEnergies for Train 4, providing sufficient commercial support for a positive FID, while the company also advances development of Trains 5 through 8, and financially, reported a net loss of $88.8 million for Q1 2025, primarily due to unrealized derivative losses, compared to a net income in the prior year, with liquidity maintained through separate capital structures for NextDecade and the Rio Grande project, and Phase 1 construction funded by dedicated debt and equity, though future development will require additional financing - As of March 2025, construction progress for Trains 1 and 2 was 42.8% complete, and Train 3 was 17.8% complete, both in line with the EPC contract schedule with Bechtel[68] - The company secured significant commercial agreements for Train 4, including a 1.2 MTPA SPA with a subsidiary of Saudi Aramco and a 1.5 MTPA SPA with TotalEnergies, both for 20-year terms, believed to be sufficient support for a positive FID on Train 4[68] - In March 2025, the D.C. Circuit Court issued a remand without vacatur of the FERC order for the first five liquefaction trains, requiring FERC to consider a supplemental Environmental Impact Statement (SEIS), with a final SEIS expected in July 2025[67][69][91] Results of Operations Comparison (in thousands) | Description | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | General and administrative expense | $44,942 | $32,505 | $12,437 | | Total operating loss | $(51,916) | $(38,117) | $(13,799) | | Derivative (loss) gain | $(168,700) | $258,872 | $(427,572) | | Net (loss) income attributable to common stockholders | $(88,805) | $28,346 | $(117,151) | - The $117.2 million decrease in net income attributable to common stockholders was primarily driven by a $427.6 million increase in unrealized derivative losses due to a decrease in forward SOFR rates[103][108] - The company's liquidity consists of approximately $130.9 million in cash and cash equivalents as of March 31, 2025, with future development dependent on securing additional debt and equity financing[97][99] Quantitative and Qualitative Disclosures About Market Risk The company, as a smaller reporting entity, is not required to provide market risk disclosures until the first quarter following its Annual Report for the year ending December 31, 2025 - As a smaller reporting company, NextDecade is exempt from providing quantitative and qualitative disclosures about market risk for this reporting period[105] Controls and Procedures Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[106] - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[107] Part II. Other Information Legal Proceedings The company reported no material legal proceedings during the period - As of March 31, 2025, there are no material legal proceedings against the company[54][110] Risk Factors No material changes to risk factors were reported from those previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to risk factors were reported for the quarter[111] Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased a small number of common stock shares during the quarter, primarily related to shares surrendered by participants in the 2017 Omnibus Incentive Plan to cover personal tax liabilities from vested awards Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 2025 | 989 | $8.23 | | February 2025 | 1,241 | $8.17 | | March 2025 | 23,320 | $7.78 | - The repurchased shares were surrendered by employees to settle tax liabilities resulting from the vesting of stock awards under the 2017 Plan[112] Defaults Upon Senior Securities The company reported no defaults upon senior securities - None[113] Mine Safety Disclosures This item is not applicable to the company - Not applicable[114] Other Information During the first quarter of 2025, no directors or executive officers adopted or terminated any Rule 10b5-1 trading plan or non-Rule 10b5-1 trading arrangement - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended March 31, 2025[115] Exhibits This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications required by the Sarbanes-Oxley Act and various change orders related to EPC agreements for the Rio Grande LNG Facility - Exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[116] - Multiple change orders to the EPC agreements with Bechtel for Trains 1, 2, and 3 were filed as exhibits[116]