Nextdecade stock rises after positive FID on Rio Grande LNG Train 5

Investing.com -- Nextdecade Corp (NASDAQ:NEXT) stock rose 2% in after-hours trading Thursday after the company announced it made a positive final investment decision (FID) on Train 5 at its Rio Grande LNG project and secured full funding for the expansion.

The company has closed approximately $6.7 billion in committed financing to fully fund Train 5 and related infrastructure. This marks the second FID for Nextdecade in just over a month, according to Matt Schatzman, the company’s Chairman and Chief Executive Officer.

Train 5 will add approximately 6 million tonnes per annum (MTPA) of LNG production capacity, bringing the total expected capacity under construction at Rio Grande LNG to approximately 30 MTPA. The new train is commercially supported by 20-year LNG Sale and Purchase Agreements with JERA, EQT Corporation, and ConocoPhillips, totaling 4.5 MTPA.

The company issued full notice to proceed to Bechtel Energy Inc. under its lump-sum, turnkey engineering, procurement, and construction contract for Train 5. The guaranteed substantial completion date and first commercial delivery are anticipated in the first half of 2031.

Nextdecade financed its equity commitment for Train 5 through $233 million of cash on hand and $1.33 billion in term loans, avoiding material dilution to existing shareholders. The company will initially hold a 50% economic interest in Train 5, which will increase to 70% after its financial partners achieve certain returns on their investments.

The financing package includes a $3.59 billion term loan facility, $500 million in private placement notes, and $2.58 billion in equity commitments from Nextdecade and partners including Global Infrastructure Partners, GIC, and Mubadala Investment Company.

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