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HOUSTON - NextDecade Corporation (NASDAQ:NEXT) announced positive Final Investment Decisions (FIDs) for Rio Grande LNG Trains 4 and 5, securing approximately $13.4 billion in total project financing for both trains, according to a company press release. This ambitious expansion comes as the company's stock trades at $5.77, down nearly 24% year-to-date, with InvestingPro analysis indicating the company is currently overvalued relative to its fundamentals.
Train 4 received its FID on September 9, with project costs estimated at $6.7 billion and expected LNG production capacity of 6 million tonnes per annum (MTPA). Train 5 followed with its FID on October 16, also with $6.7 billion in projected costs and 6 MTPA capacity. Substantial completion is expected in the second half of 2030 for Train 4 and first half of 2031 for Train 5.
The financing packages for both trains include joint venture agreements with partners including Global Infrastructure Partners, GIC, Mubadala Investment Company, and TotalEnergies for Train 4. NextDecade committed approximately $1.13 billion for Train 4 and $1.29 billion for Train 5, funded through a combination of cash and loan facilities. These commitments add to the company's already substantial debt burden of $5.3 billion and debt-to-equity ratio of 20.4, as reported in InvestingPro data.
Construction on the first three trains (Phase 1) of the facility, which began in July 2023, is currently ahead of schedule with 55.9% overall project completion for Trains 1 and 2 and common facilities. Train 3 has reached 33.4% completion. This rapid development pace comes as NextDecade continues to burn through cash, with negative levered free cash flow of nearly $2.85 billion in the last twelve months.
NextDecade secured two 20-year LNG Sale and Purchase Agreements in September for Train 5, including 1.5 MTPA with EQT Corporation and 1.0 MTPA with ConocoPhillips, both on a free on board basis indexed to Henry Hub.
The company is also advancing development of Trains 6 through 8, which would add approximately 18 MTPA of liquefaction capacity. NextDecade expects to pre-file an application with the Federal Energy Regulatory Commission for Train 6 in 2025. Despite these ambitious expansion plans, InvestingPro data reveals the company remains unprofitable with a negative EBITDA of $199.4 million and analysts do not expect profitability this year. InvestingPro subscribers can access 11 more key insights about NextDecade's financial health and prospects.
When completed, the five trains currently under construction will have a combined LNG production capacity of approximately 30 MTPA, representing about 5% of projected global liquefaction supply in the early 2030s, according to the company.
In other recent news, NextDecade Corporation has made a positive final investment decision (FID) on Train 5 at its Rio Grande LNG project. The company has secured approximately $6.7 billion in committed financing to fully fund Train 5 and related infrastructure, marking the second positive FID for NextDecade in just over a month. Additionally, the company has issued a full notice to proceed with construction to Bechtel Energy Inc. In another development, NextDecade announced the resignation of its Chief Financial Officer, Brent Wahl, effective October 20, 2025. Wahl will transition to a digital infrastructure company but will remain as a consultant through the end of the year to ensure a smooth handover. Mike Mott, currently the Senior Vice President of Enterprise Transformation, has been appointed as Interim CFO. Meanwhile, Dynagas LNG Partners LP has filed a Form 6-K with the Securities and Exchange Commission, providing management’s discussion and analysis of financial condition and results of operations for the first half of 2025. This filing is incorporated by reference into its registration statement on Form F-3, which became effective in November 2024.
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