NextDecade (NEXT) Progresses With Rio Grande LNG, Sets FID
U.S.-based LNG developer NextDecade Corporation NEXT has reached a significant milestone with its Rio Grande project as it received binding commitments from a syndicate of lenders. The pledges, in conjunction with expected equity financing for the project, provide the necessary financial support to proceed with a positive final investment decision (“FID”) for the first three liquefaction trains (Phase 1) at the Rio Grande LNG export facility in Brownsville, TX. Further, this achievement brings the company closer to its goal of becoming a prominent player in the LNG market.
Rio Grande LNG — a strategic undertaking by NextDecade — is poised to make a significant impact on the energy landscape. The project combines various elements to create a lower carbon-intensive LNG for global markets. Through the integration of emission-reduction measures, such as carbon capture and storage, the utilization of responsibly sourced gas, and NextDecade's commitment to employing net-zero electricity, Rio Grande aims to produce fuel with reduced carbon emissions. This approach aligns with the growing global demand for cleaner energy solutions and highlights NEXT’s dedication to environmental sustainability.
Phase 1 of the Rio Grande LNG project has already secured long-term sale and purchase agreements for the sale of 16.2 million tonnes per annum (“MTPA”) of LNG, which represents an impressive 92% of the nameplate capacity. This strong commitment from buyers has played a crucial role in attracting the support of leading lenders from across Asia, Europe, the Middle East and North America. The lender group's involvement also underscores the confidence in NextDecade's project and its potential for success.
The company targets reaching FID for Phase 1 in early July, following which NextDecade plans to proceed with the development of additional liquefaction trains. The completion of the Rio Grande LNG project will enable NextDecade to export up to 27 MTPA of low carbon-intensive LNG annually, catering to the growing demand for cleaner energy sources worldwide.
Zacks Rank & Stock Picks
NextDecade carries a Zacks Rank #4 (Sell) at present. Meanwhile, investors interested in the energy space might look at operators like Profire Energy PFIE, Civitas Resources CIVI and Archrock AROC, each carrying a Zacks Rank #2 (Buy) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Profire Energy’s 2023 earnings per share indicates 125% year-over-year growth. PFIE has a trailing four-quarter earnings surprise of 11.1%, on average.
Profire Energy is valued at around $58.2 million. PFIE has seen its shares drop 12.1% in a year.
Civitas Resources has a market capitalization of some $5.6 billion. The Zacks Consensus Estimate for CIVI’s 2023 earnings has been revised 19% upward over the past 60 days.
Civitas Resources, headquartered in Denver, CO, has a trailing four-quarter earnings surprise of roughly 4.5%, on average. CIVI shares have increased 30.8% in a year.
The Zacks Consensus Estimate for Archrock’s 2023 earnings per share indicates 110.7% year-over-year growth. AROC has a trailing four-quarter earnings surprise of 8.3%, on average.
Archrock is valued at around $1.6 billion. AROC has seen its shares gain 22.2% in a year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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