NextDecade(US:NEXT)2024-03-11 20:21Project Costs and Financing - The total expected capital project costs for Phase 1 of the Rio Grande LNG Facility are estimated at $18.0 billion, which includes EPC costs, owner's costs, and contingencies[191]. - The company closed approximately $18.4 billion in project financing for Phase 1, which includes commitments from Global Infrastructure Partners, GIC, Mubadala Investment Company, and TotalEnergies[191]. - The company raised approximately $6.2 billion in equity capital commitments and entered into $11.6 billion in senior secured non-recourse bank credit facilities for Phase 1, with total costs estimated at $18.0 billion[214]. - Rio Grande secured $356 million in senior secured loans on September 15, 2023, with a fixed interest rate of 6.72% and a maturity date in July 2033[210]. - An additional $251 million in senior secured loans was obtained on December 28, 2023, with a fixed interest rate of 7.11% and a final maturity in September 2047[211]. - The company has entered into a credit agreement for a $50 million senior secured revolving credit facility to cover general corporate purposes, including development costs related to Train 4[200]. Project Progress and Capacity - As of January 2024, the overall project completion percentage for Trains 1 and 2 is 14.3%, with engineering at 47.9% complete, procurement at 26.8% complete, and construction at 1.0% complete[191]. - The Rio Grande LNG Facility is being constructed on a 984-acre site with a total expected nameplate capacity of approximately 17.6 MTPA of LNG production[197]. - The company has initiated front-end engineering and design (FEED) and EPC contract processes for Train 4, while progressing discussions with potential LNG buyers[194]. Sales Agreements - A 15-year LNG Sale and Purchase Agreement (SPA) was signed with Itochu Corporation for the supply of 1.0 MTPA of LNG, and a 20-year SPA with TotalEnergies for 5.4 MTPA of LNG, both indexed to Henry Hub[194][199]. Share Transactions - The company sold approximately 44.9 million shares of common stock for an aggregate purchase price of $219.4 million in three private placements in June, July, and September 2023[194]. - The company converted approximately 59.5 million shares of convertible preferred stock into common stock on July 26, 2023[209]. Financial Performance - Operating cash outflows increased to $73.6 million in 2023 from $40.1 million in 2022, primarily due to higher employee costs and professional fees[223]. - Investing cash outflows surged to $1,752.8 million in 2023 compared to $40.9 million in 2022, mainly for the construction of Phase 1 of the Rio Grande LNG Facility[224]. - Financing cash inflows for 2023 totaled $2,058.1 million, significantly up from $118.2 million in 2022, driven by debt issuance and equity sales[225]. - The consolidated net loss for 2023 was $182.7 million, or $(0.94) per common share, compared to a net loss of $84.4 million, or $(0.65) per common share, in 2022[227]. - General and administrative expenses rose by $62.4 million in 2023, largely due to increased share-based compensation and professional fees[228]. Derivative and Accounting Estimates - The company reported a derivative loss of $44.8 million in 2023, attributed to a decrease in forward SOFR rates[229]. - Management regularly evaluates critical accounting estimates, including those related to properties, share-based compensation, and income taxes, which may lead to revised estimates and actual results differing from projections[231]. - Long-lived assets are assessed for impairment by comparing carrying value to expected undiscounted future cash flows, with significant judgment involved in determining recoverability[232]. - Derivative instruments, including interest rate swaps, are recorded at fair value, with changes recognized in earnings; fair value estimates may vary significantly based on market conditions[233][234]. - Share-based compensation expenses are subject to inherent uncertainties and may differ materially based on changes in assumptions used for fair value calculations[235]. - The fair value of Common Stock Warrant liabilities is determined using a Monte Carlo valuation model, which requires considerable judgment and may lead to significant differences in reported values[237][238]. - Provisions for income taxes are based on current year taxes payable and deferred taxes, with significant judgment required in assessing the realization of deferred tax assets[240][241]. Regulatory and Reporting - The company does not anticipate that recently issued accounting standards will materially affect its Consolidated Financial Statements or disclosures[242]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[243].