Loading...
NextDecade Q1 2025 Earnings Report
NextDecade reported a net loss in Q1 2025, primarily due to unrealized derivative losses, despite progress in its LNG facility construction.
Key Takeaways
NextDecade Corporation experienced a net loss of $88.8 million in the first quarter of 2025, a significant decrease from a net income of $28.3 million in the same period last year. This was largely driven by a $427.6 million decrease in unrealized derivative gains. Despite the financial loss, the company made substantial progress in the construction of its Rio Grande LNG Facility, with Trains 1 and 2 reaching 42.8% overall completion and Train 3 at 17.8%.
Net loss attributable to common stockholders was $88.8 million, a decrease of $117.2 million compared to a net income of $28.3 million in Q1 2024.
The decrease in net income was primarily due to a $427.6 million decrease in unrealized derivative gains.
Trains 1 and 2 and common facilities of the Rio Grande LNG Facility achieved 42.8% overall project completion.
Train 3 of the Rio Grande LNG Facility reached 17.8% overall project completion.
NextDecade
NextDecade
Forward Guidance
NextDecade anticipates continued progress on its Rio Grande LNG Facility, with key milestones including the completion of pricing refresh for Train 4, final investment decision for Train 4, and further commercialization of Train 5. The company also expects to advance permitting for additional liquefaction trains and a CCS project.
Positive Outlook
- Pricing refresh for Train 4 EPC contract expected to be completed in Q2 2025.
- Sufficient long-term commercial support is in place to support a positive FID on Train 4.
- Financing process for Train 4 expected to launch in Q2 2025.
- Pre-filing application with FERC for Train 6 expected in 2025, with a full application in early 2026.
- Final SEIS for the first five liquefaction trains at the Rio Grande LNG Facility expected in July 2025.
Challenges Ahead
- 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.
- The company will not receive significant cash flows from Phase 1 of the Rio Grande LNG Facility until it is operational, expected in late 2027.
- Future phases of development will require significant capital deployment.
- There is no assurance that the company will succeed in securing additional debt and/or equity financing for future phases.
- If financing is not available on acceptable terms, alternative sources will be required, which may not be available.