NextDecade Corp Secures 20-Year LNG Deal in Texas With Portugal’s Galp Energy Company
December 22, 2022
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NEXTDECADE ($NASDAQ:NEXT): NextDecade Corporation is a leading energy infrastructure firm that specializes in the development and construction of Liquefied Natural Gas (LNG) projects. It is based in Houston, Texas and has offices in the United Kingdom, Japan, and Thailand. The company has recently announced that it has secured a 20-year deal with Portugal’s Galp Energy Company to purchase LNG from the Rio Grande LNG project in Brownsville, Texas. The agreement was signed in order to further strengthen the partnership between NextDecade and Galp Energy. This is expected to provide a reliable source of energy for Galp’s operations throughout Europe. The Rio Grande LNG project is one of the largest LNG projects in the United States and is expected to produce up to 10 million tonnes of LNG per year. The project will be built in two phases, with the first phase involving the construction of three liquefaction units.
The second phase will involve the construction of four additional units. The project is expected to create thousands of jobs in the state of Texas and generate millions of dollars in economic activity. It will also provide an important source of revenue for local governments and businesses, as well as providing an important source of energy for Europe. NextDecade Corporation is expected to make a final investment decision on the first three liquefaction units of the Rio Grande LNG project in the near future. This deal with Galp Energy ensures that the project will be completed on schedule, bringing much needed jobs and economic activity to the state of Texas.
Share Price
This news caused the stock to open at $4.5 and close at $4.7, a rise of 7.3% from its last closing price of $4.4. The deal will involve the construction of a new liquefied natural gas (LNG) facility in the port of Corpus Christi, Texas. The facility will have a production capacity of up to 5 million tons per annum (mtpa) of LNG, with the potential to expand up to 10 mtpa.
Additionally, the deal includes an offtake agreement for Galp to purchase up to two mtpa of LNG over a period of 20 years. It is also a significant growth opportunity for both NEXTDECADE CORPORATION and Galp Energy Company, as it will enable them to expand their presence in the growing U.S. LNG market. Furthermore, it will create jobs and economic opportunities for the local community in Corpus Christi. NEXTDECADE CORPORATION is confident that this deal will help them further strengthen their position in the global energy market and provide them with a secure platform to facilitate future growth. The company is expected to benefit from this agreement in the long-term, as it will provide them with a reliable source of income from the sale of LNG for the next two decades. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nextdecade Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 0 | -72.24 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nextdecade Corporation. More…
| Operations | Investing | Financing |
| -33.67 | -16.49 | 122.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nextdecade Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 320.72 | 48.4 | 1.9 |
Key Ratios Snapshot
Some of the financial key ratios for Nextdecade Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | – |
| FCF Margin | ROE | ROA |
| – | -10.9% | -8.2% |
VI Analysis
Investors looking for long-term potential should consider NEXTDECADE CORPORATION as an option. The company’s fundamentals are rated well in the VI Star Chart, with a strong rating for its assets and weak ratings for dividend, growth, and profitability. NEXTDECADE CORPORATION’s cashflows and debt present an intermediate health score of 5/10, indicating that the company is likely to pay off debt and fund future operations. Additionally, NEXTDECADE CORPORATION is classified as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. For investors interested in a long-term investment, NEXTDECADE CORPORATION is a good option due to its strong fundamentals and potential for future growth. The company’s assets are well regarded and its cashflows and debt are stable enough to suggest that it will be able to fund future operations. Additionally, its classification as an ‘elephant’ means that it has a large asset base to draw upon. The weak ratings for dividend, growth, and profitability may be concerning to some investors, but the company’s strong assets suggest it has a good foundation upon which to build. In conclusion, NEXTDECADE CORPORATION is a good option for long-term investors. Its strong fundamentals and large asset base make it a solid choice for those seeking a reliable investment. Its weak ratings for dividend, growth, and profitability may be concerning, but the company’s overall stability gives it potential for future growth. More…
VI Peers
The competition between NextDecade Corp and its competitors is fierce. Each company is striving to be the best in the industry and to win market share. The competition is intense, and each company is fighting for every advantage.
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– Trillion Energy Inc ($OTCPK:TRLEF)
Trillion Energy Inc is a Canadian oil and gas company with a focus on exploration, development, and production of natural gas and crude oil in North America. The company has a market cap of 132.39M as of 2022 and a Return on Equity of 14.89%. Trillion Energy’s operations are primarily located in the Montney and Duvernay formations in Alberta and British Columbia. The company also has operations in the United States.
Summary
Investing in NextDecade Corporation can be a smart move for investors who are looking to capitalize on the growing demand for liquefied natural gas (LNG) in the United States. The company is an independent energy company focused on developing, constructing, owning, and operating integrated LNG projects, and recently secured a 20-year LNG deal in Texas with Portugal’s Galp Energy Company. This long-term agreement provides the company with a steady and reliable supply of LNG for the foreseeable future, which will give them a competitive advantage over other companies in the industry. Investing in NextDecade Corporation also provides investors with access to a variety of important benefits.
First, the company has an experienced management team that is well-versed in the development and operations of large-scale energy projects. This team is capable of navigating the complexities associated with the energy industry and can help investors maximize their returns.
Additionally, NextDecade Corporation has access to a portfolio of world-class resources that are essential for their continued success. These resources provide them with a secure and reliable source of LNG that can be used to meet customer needs efficiently. Finally, NextDecade Corporation is well positioned to benefit from the rapidly growing demand for LNG in the United States. With the recent deal between Portugal’s Galp Energy Company and NextDecade, the company is poised to become a leading supplier of LNG to the US market. As such, investing in NextDecade Corporation could be a great way to capitalize on this booming market. In conclusion, investing in NextDecade Corporation could be a smart move for investors who are looking to capitalize on the growing demand for LNG in the United States. The company has an experienced management team, access to world-class resources, and a long-term agreement with Portugal’s Galp Energy Company, all of which position them to benefit from the increasing demand for LNG in the US market.
