NextDecade Corporation

What they do

NextDecade is constructing and developing a natural gas liquefaction and LNG export facility on approximately 1,000 acres leased long-term on the north shore of the Brownsville Ship Channel in south Texas. Trains 1 through 5 (Phase 1, Train 4, and Train 5) are under construction by Bechtel Energy Inc. under fully wrapped, lump-sum turnkey EPC contracts, using Honeywell AP-C3MR liquefaction technology. The combined five-train scope is expected to have about 30 MTPA of LNG production capacity, four 180,000 cubic meter storage tanks, two jetties, and associated infrastructure. The company is also advancing permitting for expansion Trains 6 through 8 and exploring a potential carbon capture and storage project.

Revenue drivers

• LNG sale and purchase agreements (Trains 1-5) — Long-term SPAs with 14 counterparties for approximately 25.3 MTPA, weighted average term of 19.5 years; pricing includes a fixed fee per MMBtu plus a variable fee structured to cover expected natural gas, fuel, and sourcing costs.
• Fixed-fee take-or-pay structure — Customers that cancel or suspend cargo deliveries remain obligated to pay the fixed fee on undelivered cargoes, providing contracted cash flow before and during operations.
• Expansion capacity (Trains 6-8) and CCS — Permitting is being advanced for Trains 6 through 8, and the site has space for up to 10 trains; a potential CCS project at the facility is being explored. Neither is currently under construction or contracted.
• Joint venture distributions — Revenue to the parent is expected via cash distributions from the Joint Ventures (Phase 1 Holdings, Train 4 Holdings, Train 5 Holdings) that own the project entities.

Recent performance

NextDecade has reported $0.00 in annual revenue for 2021 through 2025 and $0.00 in each recent quarter through 2026-06-30, as the facility remains under construction. Annual net losses widened to $306.4 million in 2025 from $61.8 million in 2024, with diluted EPS of -$1.17 in 2025 versus -$0.24 in 2024. Operating cash flow was -$169.4 million in 2025, compared with -$95.6 million in 2024. At 2026-06-30, total assets were $15.21 billion and total liabilities were $12.39 billion, producing shareholder equity of -$57.3 million; cash and equivalents were $83.7 million and long-term debt was $10.42 billion.

Strategy

The company states it is focused on constructing and operating the Rio Grande LNG Facility safely, efficiently, on schedule, and on budget. Construction began on Phase 1 in July 2023, Train 4 in September 2025, and Train 5 in October 2025, each following a positive final investment decision and the closing of project financing by subsidiaries. NextDecade is advancing the permitting process for expansion Trains 6 through 8 and exploring a CCS project at the site. Stated priorities include delivering secure, affordable, and cleaner energy through development and operation of liquefaction capacity.

Risks

• Substantial subsidiary indebtedness — Long-term debt of $10.42 billion at 2026-06-30 creates risk that subsidiaries cannot generate sufficient cash to service obligations or refinance ahead of maturity.
• No revenue and continuing losses — Revenue has been $0.00 through 2026-06-30 while net losses reached $306.4 million in 2025 and operating cash flow was -$169.4 million.
• Negative shareholder equity — Shareholder equity was -$57.3 million at 2026-06-30, with total liabilities of $12.39 billion against total assets of $15.21 billion.
• Construction and counterparty reliance — The company relies on third parties including Bechtel to complete the facility and related infrastructure, and on a single site with five trains under construction to begin generating cash flow.

Outlook

Management's stated focus is completing construction of Trains 1 through 5 on schedule and on budget and advancing permitting for Trains 6 through 8. The company also cites the availability and frequency of cash distributions from the Joint Ventures as a key factor for future results. It lists securing additional debt and equity financing on commercially acceptable terms and refinancing outstanding indebtedness among the risks facing future operations. No revenue is expected to be recognized until the facility is operational.