NextDecade Provides First Quarter 2024 Business Update

NextDecade Corporation (NextDecade or the Company) (NASDAQ: NEXT) today provided an update on developmental and strategic activities for the first quarter 2024 and early second quarter 2024.

CEO Commentary

“Construction of Phase 1 at the Rio Grande LNG Facility continues to progress according to plan, as we work alongside Bechtel to construct Trains 1 through 3 and their supporting infrastructure safely, efficiently, on schedule, and within budget,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “The Rio Grande LNG Facility has truly begun to take shape recently, as concrete foundation pours for Train 1 are ongoing, key materials such as piping and structural steel have been delivered to the site, and shoreline work and levee construction are underway. Proactive project and risk management remain key priorities as construction of Phase 1 continues to progress.”

“We are currently at a unique point in the Company’s history as we develop and expect to FID highly attractive expansion capacity this year and next year, while safely constructing Phase 1 capacity, and preparing our organization to achieve our long-term objective of becoming a leading LNG owner and operator. We are confident that delivering on our plans will create long-term value for our stakeholders.”

“We are focused on achieving a positive FID on Train 4 in the second half of this year. We expect TotalEnergies to exercise its option to purchase 1.5 million tonnes per annum of LNG from Train 4, and commercial discussions are progressing well with numerous additional counterparties for the remainder of the LNG necessary to support a positive FID on Train 4 this year. Additionally, we are continuing to work with Bechtel on the EPC contracting process, which we expect will enable us to finalize the EPC contract for Train 4 by the end of the second quarter of 2024. We are determined to capitalize on the robust market opportunity to unlock the value of our fully permitted, brownfield expansion capacity, and we are strongly committed to do so in a way that maximizes value to our shareholders.”

Significant Recent Developments

Construction

Under the EPC contracts with Bechtel Energy Inc. (Bechtel), Phase 1 progress is tracked for Train 1, Train 2, and the common facilities on a combined basis and Train 3 on a separate basis. As of March 2024:

• The overall project completion percentage for Trains 1 and 2 and the common facilities of the Rio Grande LNG Facility was 18.2%, which is in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 54.9% complete, procurement was 34.4% complete, and construction was 1.9% complete.
• The overall project completion percentage for Train 3 of the Rio Grande LNG Facility was 6.9%, based on preliminary schedules, which is also in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 5.2% complete, procurement was 16.7% complete, and construction was 0.0% complete.

Financial