NextDecade (NEXT) Obtains $356M to Advance Rio Grande LNG
U.S.-based LNG developer NextDecade Corporation NEXT recently secured a $356 million loan to fund a portion of its Rio Grande Phase 1 facility, signaling progress in a project that has faced delays in the past. This can also be viewed as a significant milestone in its quest to become a major player in the LNG market.
This financial support comes after NextDecade's positive final investment decision in July for the first three liquefaction trains (Phase 1) at the LNG export facility located in Brownsville, TX. The company's commitment to this project has attracted notable attention, with Bechtel Energy onboard to oversee its development.
The Rio Grande project, sprawling over 984 acres, is designed to produce lower carbon-intensive LNG for global markets. Through various emission-reduction measures, including carbon capture and storage and the use of responsibly sourced gas, NextDecade aims to produce LNG with reduced carbon emissions, aligning with the growing global demand for cleaner energy solutions and environmental sustainability.
One noteworthy aspect of Phase 1 of the Rio Grande project is its long-term sale and purchase agreements, which cover the sale of 16.2 million tons per annum (MTPA) of LNG, representing an impressive 92% of the project's nameplate capacity of 17.6 MTPA. Such robust commitments from buyers have garnered support from leading lenders globally.
The Rio Grande LNG project's full completion will enable NextDecade to export up to 27 MTPA of low carbon-intensive LNG annually, addressing the increasing demand for cleaner energy sources worldwide.
Zacks Rank & Stock Picks
NextDecade carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy sector might consider the operators mentioned below. These companies currently sport a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Solaris Oilfield Infrastructure SOI: It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters at an average of 18.8%.
SOI is valued at around $442.8 million. Solaris Oilfield Infrastructure has seen its shares move up 14.2% in a year.
CVR Energy CVI: It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Over the past 60 days, CVR Energy saw the Zacks Consensus Estimate for 2023 move up 38.8%.
CVR Energy is valued at around $3.4 billion. CVI has seen its shares gain 32.2% in a year.
Helix Energy Solutions Group HLX: Over the past 60 days, Helix Energy Solutions Group saw the Zacks Consensus Estimate for 2023 move up 4.3%. The 2023 Zacks Consensus Estimate for HLX indicates 200% year-over-year earnings per share growth.
Helix Energy Solutions Group is valued at around $1.7 billion. HLX has seen its shares surge 201.6% in a year.
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CVR Energy Inc. (CVI) : Free Stock Analysis Report
Helix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis Report
Solaris Oilfield Infrastructure, Inc. (SOI) : Free Stock Analysis Report
NextDecade Corporation (NEXT) : Free Stock Analysis Report
