NextDecade(NEXT) - 2023 Q3 - Quarterly Report

Project Costs and Financing - The final EPC cost for Phase 1 of the Rio Grande LNG Facility is approximately $12.0 billion, with additional estimated costs totaling around $6.0 billion[98]. - The total expected capital costs for Phase 1 are estimated to be approximately $18.0 billion, including estimated owner's costs and contingencies[112]. - On July 12, 2023, Rio Grande closed approximately $18.4 billion in project financing for Phase 1, including $11.6 billion in senior secured non-recourse bank credit facilities[104][112]. - The company raised $6.2 billion in equity capital commitments for Phase 1, including contributions from TotalEnergies and other financial investors[134]. - The company committed to fund approximately $283 million for the construction of Phase 1 of the Rio Grande LNG Facility, with $125 million contributed before the Final Investment Decision (FID)[141]. Project Progress and Operations - As of September 2023, the project completion percentage for Trains 1 and 2 is approximately 8.1%, with engineering 35.7% complete and procurement 14.1% complete[98]. - The construction site spans 984 acres and includes 15,000 feet of frontage on the Brownsville Ship Channel, strategically located near abundant natural gas resources[90]. - Construction of the first three liquefaction trains commenced in July 2023 following a positive final investment decision (FID)[91]. - The commercial operation date for the first train of Phase 1 is expected in late 2027, indicating a long-term capital requirement for future phases[146]. Sales and Agreements - The Rio Grande LNG Facility has been permitted to export up to 27 million tonnes per annum (MTPA) of LNG from up to five liquefaction trains[90]. - Rio Grande has entered into long-term LNG Sales and Purchase Agreements (SPAs) for over 90% of the expected nameplate capacity of Phase 1, providing stable cash flows[93]. - In January 2023, Rio Grande entered into a 15-year LNG SPA with Itochu Corporation for the supply of 1.0 MTPA of LNG, and in June 2023, a 20-year LNG SPA with TotalEnergies for 5.4 MTPA of LNG[104][106]. - Rio Grande has entered into long-term LNG SPAs with nine counterparties for aggregate volumes of approximately 16.2 MTPA of LNG, representing over 90% of the expected Phase 1 LNG nameplate capacity[107][108]. Environmental Initiatives - The planned carbon capture and storage (CCS) project aims to reduce greenhouse gas emissions at the Rio Grande LNG Facility and other industrial facilities[95]. - The company is focused on providing a less carbon-intensive and more sustainable LNG through project design and responsibly sourced gas[95]. Financial Performance - Operating cash outflows for the nine months ended September 30, 2023, were $52.6 million, an increase from $28.0 million in the same period in 2022, primarily due to higher employee costs and professional fees[149]. - Investing cash outflows for the nine months ended September 30, 2023, were $1,010.4 million, significantly higher than $11.0 million in the same period in 2022, driven by the mobilization of the Bechtel workforce[150]. - Financing cash inflows for the nine months ended September 30, 2023, totaled $1,446.1 million, compared to $122.6 million in the same period in 2022, mainly from debt issuance and equity sales[151]. - As of September 30, 2023, the company had cash and cash equivalents of $445.9 million, up from $62.8 million at the beginning of the period[148]. Income and Expenses - Net income attributable to common stockholders for the three months ended September 30, 2023 was $107.6 million, compared to a net loss of $25.0 million for the same period in 2022, representing a $132.7 million increase[153]. - Net loss attributable to common stockholders for the nine months ended September 30, 2023 was $53.5 million, a decrease from a net loss of $58.9 million for the same period in 2022, reflecting a $5.4 million improvement[154]. - General and administrative expenses for the three months ended September 30, 2023 increased by approximately $17.5 million, primarily due to higher professional fees, employee costs, and share-based compensation[157]. - General and administrative expenses for the nine months ended September 30, 2023 increased by approximately $56.0 million compared to the same period in 2022, driven by professional fees and share-based compensation[158]. - Interest expense, net of capitalized interest, for the three and nine months ended September 30, 2023 was $28.5 million, representing total interest cost on debt of $32.5 million[160]. Derivative Gains - Derivative gain for the three months ended September 30, 2023 was $240.3 million, attributed to the reversal of derivative liabilities and an increase in forward SOFR rates[155]. - The company recognized a derivative gain of $152.8 million for the nine months ended September 30, 2023, due to an increase in forward SOFR rates[156]. - The increase in share-based compensation expense for the three months ended September 30, 2023 was $6.7 million, linked to restricted stock awards and units that vested at FID of Phase 1[157].