NextDecade’s Investment Decision Leads to Stock Decline

Shares of NextDecade have taken a hit following the company’s recent investment decision to develop phase-one of the Rio Grande liquefied natural gas project in South Texas. The stock is currently down by 20% in early trading, sitting at $6.80. Despite this setback, NextDecade shares have seen an impressive 37% increase over the course of this year.

NextDecade has teamed up with major players in the industry for this project. French oil-and-gas leader, TotalEnergies, along with NextDecade, Global Infrastructure Partners, GIC, and Mubadala, are committed to driving forward the development of the project. The financing for this ambitious endeavor will primarily come from equity contributions by the partners and a debt contribution secured through an international banks’ consortium.

As part of this collaboration, TotalEnergies will hold a significant 17.5% stake in NextDecade. This ownership stake is valued at $219 million. Additionally, TotalEnergies has secured a 20-year agreement to offtake 5.4 million metric tons per year of liquefied natural gas from the first-phase production.

Overall, despite the current decline in stock value, NextDecade’s partnership and investment decision present promising opportunities for the future. It is an exciting time for the company as it embarks on this transformative project.