We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NextDecade (NEXT) Obtains $62.5M to Advance Rio Grande LNG
Read MoreHide Full Article
NextDecade Corporation (NEXT - Free Report) , the U.S. based LNG exporter, recently secured a $62.5-million loan to fund a portion of its Rio Grande Phase facility. The credit agreement with MUFG Bank includes a $50-million senior secured revolving credit facility and a $12.5-million interest term loan.
According to NextDecade, the funding secured under the revolving credit facility would be utilized for general corporate purposes, such as the development costs associated with Train 4 at the Rio Grande LNG facility. The funds borrowed under the interest term loan might be utilized to cover fees, interest expenses and other expenses associated with the Revolving Credit Facility.
The agreement also mentions the maturity date for the revolving credit facility and the interest term loan, which is set at the earlier of two years from the closing date or 10 business days after the final investment decision (FID) on Train 4.
The company believes that the revolving credit facility will provide substantial liquidity and capital resources, as it advances toward securing a positive FID for Train 4, striving to achieve this milestone within the second half of 2024.
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.
NEXT is in the talks with Bechtel Energy Inc. for Train 4 and has proceeded with front-end engineering and design and engineering, procurement and construction (EPC) contract processes, scheduled to be finalized in the first half of 2024.
The LNG exporter is already engaging in discussions with several potential LNG buyers to gain commercial support for Train 4.
In July last year, the company had moved forward with an FID of three liquefaction trains (Phase 1) with a capacity of 27 million tons per annum (MMtpa) at its Rio Grande LNG facility in Brownsville, TX. The Rio Grande LNG project's full completion will enable NextDecade to export up to 27 MMtpa of low carbon-intensive LNG annually, addressing the increasing demand for cleaner energy sources worldwide.
Phase 1 has a nameplate liquefaction capacity of 17.6 MMtpa. It is involved in a long-term binding sale for 16.2 MMtpa. Additionally, this phase has made purchase agreements with several well-known energy companies like TotalEnergies, Shell NA LNG LLC, ExxonMobil CNG Asia Pacific and Itochu Corp., among others.
Zacks Rank & Key Picks
Currently, NEXT holds a Zacks Rank #5 (Strong Sell).
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Sunoco is one of the largest independent distributors of motor fuels to customers across the United States. Its current annual dividend yield is 5.5% compared with the industry’s average of 4.7%.
Enbridge is an energy infrastructure company with a diversified portfolio of midstream assets. With a huge network of transportation and storage assets, the company derives stable fee-based revenues.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
NextDecade (NEXT) Obtains $62.5M to Advance Rio Grande LNG
NextDecade Corporation (NEXT - Free Report) , the U.S. based LNG exporter, recently secured a $62.5-million loan to fund a portion of its Rio Grande Phase facility. The credit agreement with MUFG Bank includes a $50-million senior secured revolving credit facility and a $12.5-million interest term loan.
According to NextDecade, the funding secured under the revolving credit facility would be utilized for general corporate purposes, such as the development costs associated with Train 4 at the Rio Grande LNG facility. The funds borrowed under the interest term loan might be utilized to cover fees, interest expenses and other expenses associated with the Revolving Credit Facility.
The agreement also mentions the maturity date for the revolving credit facility and the interest term loan, which is set at the earlier of two years from the closing date or 10 business days after the final investment decision (FID) on Train 4.
The company believes that the revolving credit facility will provide substantial liquidity and capital resources, as it advances toward securing a positive FID for Train 4, striving to achieve this milestone within the second half of 2024.
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.
NEXT is in the talks with Bechtel Energy Inc. for Train 4 and has proceeded with front-end engineering and design and engineering, procurement and construction (EPC) contract processes, scheduled to be finalized in the first half of 2024.
The LNG exporter is already engaging in discussions with several potential LNG buyers to gain commercial support for Train 4.
In July last year, the company had moved forward with an FID of three liquefaction trains (Phase 1) with a capacity of 27 million tons per annum (MMtpa) at its Rio Grande LNG facility in Brownsville, TX. The Rio Grande LNG project's full completion will enable NextDecade to export up to 27 MMtpa of low carbon-intensive LNG annually, addressing the increasing demand for cleaner energy sources worldwide.
Phase 1 has a nameplate liquefaction capacity of 17.6 MMtpa. It is involved in a long-term binding sale for 16.2 MMtpa. Additionally, this phase has made purchase agreements with several well-known energy companies like TotalEnergies, Shell NA LNG LLC, ExxonMobil CNG Asia Pacific and Itochu Corp., among others.
Zacks Rank & Key Picks
Currently, NEXT holds a Zacks Rank #5 (Strong Sell).
Investors can look at some better-ranked stocks in the energy sector, such as Vaalco Energy (EGY - Free Report) , Sunoco LP (SUN - Free Report) and Enbridge Inc. (ENB - Free Report) . While both Vaalco Energy and Sunoco sport a Zacks Rank #1 (Strong Buy), Enbridge carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Sunoco is one of the largest independent distributors of motor fuels to customers across the United States. Its current annual dividend yield is 5.5% compared with the industry’s average of 4.7%.
Enbridge is an energy infrastructure company with a diversified portfolio of midstream assets. With a huge network of transportation and storage assets, the company derives stable fee-based revenues.