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HOUSTON - NextDecade Corporation (NASDAQ:NEXT) has secured a 20-year liquefied natural gas (LNG) sale and purchase agreement with EQT Corporation (NYSE:EQT) for 1.5 million tonnes per annum from Train 5 of its Rio Grande LNG facility, the company announced Wednesday. EQT, currently trading near Fair Value according to InvestingPro analysis, has demonstrated strong financial performance with a 61% return over the past year and maintains a healthy $7.1 billion in revenue.
The agreement is contingent on NextDecade making a positive final investment decision (FID) on Train 5, which the company expects to reach in the fourth quarter of 2025. The LNG will be sold on a free on board basis at a price indexed to Henry Hub. According to InvestingPro data, EQT has raised its dividend for three consecutive years and maintains a moderate debt level, suggesting strong financial stability. Discover 10+ additional exclusive insights about EQT with an InvestingPro subscription.
NextDecade has also extended the price validity period for its engineering, procurement, and construction contract with Bechtel Energy Inc. for Train 5 until November 15, 2025. The total costs for Rio Grande LNG Train 5 and related infrastructure are expected to be approximately $6.7 billion.
"We have made great strides in the commercialization of Rio Grande LNG Train 5," said Matt Schatzman, NextDecade Chairman and Chief Executive Officer, in a press release statement. EQT, rated as having "GOOD" financial health by InvestingPro, brings strong fundamentals to this partnership with a robust gross profit margin of 75% and positive analyst growth forecasts for the current year.
The company has now secured sales agreements totaling 3.5 million tonnes per annum for Train 5 and aims to sell an additional 1.0 million tonnes per annum under a long-term agreement to support a positive FID. NextDecade expects to complete commercialization of Train 5 in the third quarter of 2025.
Additionally, the company continues to expect a positive FID on Rio Grande LNG Train 4 by September 15, 2025, subject to obtaining adequate financing.
The Rio Grande LNG facility near Brownsville, Texas, has approximately 48 million tonnes per annum of potential liquefaction capacity currently under construction or in development.
In other recent news, EQT Corporation reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share of $0.45, compared to the forecasted $0.42. Revenue also exceeded projections, reaching $2.56 billion, a significant increase over the anticipated $1.76 billion. Despite these strong financial results, the company’s stock experienced a decline in after-hours trading. Additionally, BofA Securities raised its price target for EQT to $80, maintaining a Buy rating, citing the company’s capability to meet the supply demands of large datacenters. Melius Research also initiated coverage on EQT with a Buy rating and a price target of $64, highlighting its dominance in the Appalachian Basin. Meanwhile, EQT announced that its Chief Information Officer, Richard A. Duran, will take an unpaid sabbatical from September 2025 to February 2026. During this period, he will remain an employee and be available for consultation on critical matters. In other industry developments, Endurance Investment Partners launched with a focus on providing strategic liquidity solutions for energy and infrastructure sectors.
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