NextDecade Corporation Q1 FY2026 earnings call

1. Construction at the Rio Grande LNG Facility: Progressing safely, on budget, and ahead of schedule. Trains 1 - 5 at different completion stages. Train 1 early electrical commissioning underway, and work on other trains in civil works, piping, etc. 2. Preparation for commissioning: Advancing hiring, system implementations, and process development. Over 400 employees with majority in Brownsville. Core enterprise platforms starting to go live. 3. Managing LNG market margins: Sold over 175 TBtu of early LNG cargoes in February, reducing exposure to market price fluctuations. Expect to sell additional early volumes to further reduce market exposure. 4. Development of Trains 6 - 8: Bechtel performing FEED study for Train 6, plan to file FERC application for Train 6 before end of quarter. Strong demand for Train 6. Global LNG market dynamics shifted due to Iran conflict, increasing attractiveness of U.S. LNG long-term volumes.

No specific product segment financial performance details provided, but construction at the Rio Grande LNG facility is progressing safely, on budget, and ahead of schedule. As of March 2026, Trains 1 and 2 are 67.8% complete, Train 3 is 44.2% complete, and Trains 4 and 5 are 10.6% and 6.8% complete respectively. Early electrical commissioning of Train 1 is underway, and progress is being made on various components of the facility.

Reaffirmed early volume and cash flow guidance. Project total LNG production of approx. 3,800 TBtu from early cargoes. Early cash flow outlook unchanged, with potential upside. Steady-state leverage target of 3 to 3.5x NextDecade level debt to adjusted EBITDA. Steady-state distributable cash flow projections based on different margin scenarios, with potential upsides from schedule improvement, etc.

Potential impact of market price fluctuations on LNG sales, inflation and interest rate effects on project costs and financing, uncertainties regarding timing of production return from Ras Laffan, and potential delays in permitting and commercialization of future trains.

Q: On request for additional work hours at the site, is it baked into base schedule or accelerates?

A: 24/7 was an option in the original EPC. It's not an incremental cost to us, baked into EPC. Bechtel can utilize it, and it's a positive sign showing ahead of schedule.

Q: Extent of cost inflation influencing long-term SPA pricing?

A: Market for LNG is between $2.50 and $3 on fixed fee basis, 150% Henry Hub in that range. Greenfield projects need higher contracting prices to get off the ground.

Q: Nat gas sourcing team and purchase side updates?

A: Gas supply team in place, building trading and optimization team. Expect to provide update later this year on long-term gas purchase.

Q: 24/7 construction and Bechtel incentives?

A: Bechtel incented to deliver prior to guaranteed substantial completion date, with value to compensate for increased labor cost if used.

Q: Path to maintaining Phase 1 construction momentum and accelerating schedule?

A: Execution is key. Commissioning phase important. Expect updates on startup timing of facility, etc.