NextDecade(NEXT) - 2025 Q2 - Quarterly Report

Part I. Financial Information Item 1. Consolidated Financial Statements The company reported a $149.7 million net loss for H1 2025, driven by derivative losses, alongside increased assets and liabilities from LNG facility construction Consolidated Balance Sheets Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $158,537 | $148,137 | | Property, plant and equipment, net | $6,589,331 | $5,020,003 | | Total assets | $7,864,850 | $6,404,059 | | Liabilities & Equity | | | | Total current liabilities | $683,884 | $595,084 | | Debt, net | $5,170,547 | $3,920,425 | | Total liabilities | $5,999,326 | $4,659,673 | | Total stockholders' equity | $260,480 | $377,641 | | Non-controlling interest | $1,605,044 | $1,366,745 | | Total equity | $1,865,524 | $1,744,386 | Consolidated Statements of Operations - The company is in a pre-revenue stage, reporting no revenues for the periods presented[16] Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total operating loss | $(56,268) | $(39,534) | $(108,184) | $(77,651) | | Derivative gain (loss) | $25,157 | $109,067 | $(143,543) | $367,939 | | Interest expense, net | $(28,833) | $(26,030) | $(56,038) | $(51,509) | | Net loss attributable to common stockholders | $(60,867) | $(32,576) | $(149,672) | $(4,230) | | Net loss per common share — basic and diluted | $(0.23) | $(0.13) | $(0.57) | $(0.02) | Consolidated Statements of Cash Flows Consolidated Cash Flow Summary (in thousands) | Cash Flow Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(72,722) | $(22,838) | | Net cash used in investing activities | $(1,531,338) | $(1,374,290) | | Net cash provided by financing activities | $1,668,337 | $1,305,729 | | Net increase (decrease) in cash | $64,277 | $(91,399) | | Cash, cash equivalents and restricted cash – end of period | $457,039 | $203,079 | - Investing activities primarily consisted of $1.5 billion in acquisitions for property, plant, and equipment related to the Rio Grande LNG Facility construction. Financing activities were driven by $1.29 billion in proceeds from debt issuance and $412.7 million from equity commitments[21] Notes to Consolidated Financial Statements - The company is constructing the Rio Grande LNG Facility, with Phase 1 (three trains) under construction. Train 4 is commercialized and progressing toward a Final Investment Decision (FID), and Train 5 is also being commercialized[23] - Total net property, plant, and equipment increased to $6.59 billion as of June 30, 2025, from $5.02 billion at year-end 2024, reflecting the ongoing construction of the Rio Grande LNG Facility[27] - Total debt, net of unamortized costs, increased to $5.17 billion from $3.92 billion at year-end 2024, primarily due to draws on credit facilities to fund construction[34] - In July 2025, a subsidiary began entering into contingent interest rate swaps to hedge expected floating-rate payments for the financing of Train 4 construction[61] Management's Discussion and Analysis of Financial Condition and Results of Operations Significant progress on Rio Grande LNG facility construction and commercial agreements for future trains, with a widened net loss of $149.7 million due to derivative impacts Overview of Business and Significant Developments - As of June 2025, construction progress for the Rio Grande LNG Facility was on schedule: - Trains 1 & 2 and common facilities: 48.3% complete - Train 3: 22.7% complete[73] - The company is expanding beyond the first five trains, developing Trains 6-8 which are expected to add approximately 18 MTPA of liquefaction capacity. A FERC pre-filing for Train 6 is expected in 2025[73] - Key commercial agreements were signed to support future trains: - Train 4: A 20-year, 1.2 MTPA SPA with Saudi Aramco and a 20-year, 1.5 MTPA SPA with TotalEnergies - Train 5: A 20-year, 2.0 MTPA SPA with JERA[73] - In May 2025, the company amended its senior secured loan to increase the principal by $50 million to a total of $225 million, with proceeds used for working capital and pre-FID expenses for Trains 4 and 5[73][74] Rio Grande LNG Facility Activity - Total expected capital costs for Phase 1 (Trains 1-3) are estimated to be approximately $18.0 billion, covering EPC, owner's costs, contingencies, and financing[87] - For Phase 1, Rio Grande has secured long-term SPAs for approximately 16.2 MTPA of LNG with a weighted average term of 19.2 years, expected to generate approximately $1.8 billion in average annual fixed fees[83][84] - The company is targeting a positive FID on Train 4 by mid-September 2025, subject to obtaining adequate financing. The financing process was launched in June 2025[92][95] - Train 5 is also progressing toward an FID targeted by mid-September 2025, contingent on securing sufficient commercial support and financing[96][99] Liquidity and Capital Resources - NextDecade and its subsidiary Rio Grande operate with independent capital structures. Cash at the Rio Grande level is restricted to funding Phase 1 obligations and is not available for NextDecade's corporate obligations[106] - Phase 1 is funded by approximately $6.2 billion in equity capital commitments and $11.6 billion in senior secured non-recourse bank credit facilities[107] - As of June 30, 2025, NextDecade Corporation's capital resources consist of approximately $158.5 million in cash and cash equivalents[111] - The company does not expect to generate significant cash flow from operations until the first train of Phase 1 becomes operational, which is anticipated in late 2027[110][112] Results of Operations Comparison of Results of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | General and administrative expense | $52,049 | $33,902 | $96,991 | $66,407 | | Total operating loss | $(56,268) | $(39,534) | $(108,184) | $(77,651) | | Derivative gain (loss) | $25,157 | $109,067 | $(143,543) | $367,939 | | Net loss attributable to common stockholders | $(60,867) | $(32,576) | $(149,672) | $(4,230) | - The net loss for the six months ended June 30, 2025, increased by $145.4 million compared to the same period in 2024. This was primarily driven by a $511.5 million decrease in unrealized derivative gains and a $30.6 million increase in G&A expenses due to increased headcount[119][123] Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, the company is exempt from providing quantitative and qualitative market risk disclosures for this period - As a smaller reporting company, NextDecade is exempt from providing quantitative and qualitative disclosures about market risk for this reporting period[120] Controls and Procedures Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[121] - No material changes were made to the internal control over financial reporting during the most recent fiscal quarter[122] Part II. Other Information Legal Proceedings The company reported no legal proceedings during the period - As of the reporting date, there were no legal proceedings to disclose[125] Risk Factors No material changes to risk factors were reported since the last Annual Report on Form 10-K - No material changes to risk factors were reported since the last Annual Report on Form 10-K[126] Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased shares for employee tax liabilities on vested stock awards, not as part of a publicly announced plan - During the three months ended June 30, 2025, the company repurchased 6,839 shares of common stock. These were shares surrendered by employees to settle tax liabilities on vested restricted stock awards[127] Other Information No Rule 10b5-1 trading plans were adopted or terminated by directors or executive officers during the quarter - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter[130] Exhibits Key exhibits filed include EPC agreements for Trains 4 and 5, credit agreement amendments, and CEO/CFO certifications - Key exhibits filed include: - EPC agreement for Train 4 and Train 5 with Bechtel Energy Inc. - First Amendment to the Credit Agreement with Rio Grande LNG Super Holdings, LLC. - CEO and CFO certifications pursuant to the Sarbanes-Oxley Act[131]