NextDecade Comments on Today’s Court Actions

Rhea-AI Summary

The U.S. Court of Appeals for the D.C. Circuit has vacated the Federal Energy Regulatory Commission's (FERC) remand authorization of NextDecade 's (Nasdaq: NEXT) Rio Grande LNG Facility. The Court ruled that FERC should have issued a supplemental Environmental Impact Statement (EIS) during its remand process. NextDecade expressed disappointment and disagreement with the decision, stating it is reviewing the Court's decision and assessing options.

Despite the setback, construction continues on Phase 1 of the Rio Grande LNG Facility, which includes the first three liquefaction trains and related infrastructure. However, the company is evaluating the impact of the Court's decision on the timing of a positive final investment decision (FID) on Train 4.

Positive

• Construction continues on Phase 1 of the Rio Grande LNG Facility

Negative

• Court vacated FERC's remand authorization for Rio Grande LNG Facility
• Potential delay in final investment decision (FID) on Train 4
• Legal setback may impact project timeline and costs

Insights

Legal Expert

The U.S. Court of Appeals' decision to vacate FERC's remand authorization for NextDecade's Rio Grande LNG Facility is a significant setback. This ruling, based on FERC's failure to issue a supplemental Environmental Impact Statement (EIS), could have far-reaching implications for the project's timeline and regulatory compliance.

From a legal standpoint, this decision underscores the importance of thorough environmental review processes in large-scale energy projects. The court's action suggests that FERC's initial assessment was deemed insufficient, potentially opening the door for more stringent environmental scrutiny in the future. This could lead to delays in project completion and increased costs for NextDecade as they navigate the supplemental EIS process.

While construction continues on Phase 1, the legal uncertainty surrounding the project may impact investor confidence and future financing options. The company's statement about evaluating the impact on Train 4's final investment decision (FID) indicates potential ripple effects on expansion plans. Investors should closely monitor how NextDecade addresses this legal challenge and its ability to maintain project momentum amidst regulatory hurdles.

Financial Analyst

The court's decision to vacate FERC's authorization for NextDecade's Rio Grande LNG Facility presents significant financial implications. While the company continues construction on Phase 1 (first three liquefaction trains), the regulatory setback could lead to increased project costs and potential delays, impacting the company's financial projections and cash flow expectations.

Investors should be cautious about the potential for:

• Additional expenses related to supplemental environmental studies
• Delays in revenue generation from the project
• Possible revisions to capital expenditure plans

The uncertainty surrounding Train 4's final investment decision (FID) is particularly concerning, as it may affect the project's overall economics and future expansion potential. This development could also influence NextDecade's ability to secure favorable financing terms for future phases, potentially impacting the company's long-term profitability and growth prospects.

Energy Industry Expert

The court's decision to vacate FERC's authorization for NextDecade's Rio Grande LNG Facility highlights the increasing regulatory scrutiny faced by LNG projects in the U.S. This development could have broader implications for the entire LNG industry, potentially setting a precedent for more rigorous environmental reviews.

While NextDecade continues construction on Phase 1, the uncertainty surrounding Train 4's FID could impact the project's overall capacity and competitiveness in the global LNG market. The LNG industry operates on long-term planning horizons and any delays or capacity reductions could affect NextDecade's ability to secure long-term supply contracts.

Investors should consider how this regulatory challenge might influence the balance between LNG supply and demand, especially given the current geopolitical landscape and the push for energy security in many regions. The outcome of this situation could have ripple effects on other planned LNG projects in the U.S., potentially reshaping the country's role in the global LNG market.

HOUSTON--(BUSINESS WIRE)-- Today, the U.S. Court of Appeals for the D.C. Circuit (Court) issued an order vacating the Federal Energy Regulatory Commission’s (FERC) remand authorization of NextDecade Corporation’s (NextDecade) (Nasdaq: NEXT) Rio Grande LNG Facility on the grounds that the FERC should have issued a supplemental Environmental Impact Statement (EIS) during its remand process.

NextDecade is disappointed in the Court’s decision and disagrees with its conclusions. The Company is reviewing the Court’s decision and assessing all of its options. At this time, construction continues on the first three liquefaction trains and related infrastructure (Phase 1) at the Rio Grande LNG Facility, and the Company is evaluating the impact of the Court’s decision on the timing of a positive final investment decision (FID) on Train 4.

About NextDecade Corporation

NextDecade Corporation is an energy company accelerating the path to a net-zero future. Leading innovation in more sustainable LNG and carbon capture solutions, NextDecade is committed to providing the world access to cleaner energy. Through our subsidiaries Rio Grande LNG and NEXT Carbon Solutions, we are developing a 27 MTPA LNG export facility in South Texas along with one of the largest carbon capture and storage projects in North America. We are also working with third-party customers around the world to deploy our proprietary processes to lower the cost of carbon capture and storage and reduce CO₂ emissions at their industrial-scale facilities. NextDecade’s common stock is listed on the Nasdaq Stock Market under the symbol “NEXT.” NextDecade is headquartered in Houston, Texas. For more information, please visit www.next-decade.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “anticipate,” “contemplate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “might,” “will,” “would,” “could,” “should,” “can have,” “likely,” “continue,” “design,” “assume,” “budget,” “guidance,” “forecast,” and "target," and other words and terms of similar expressions are intended to identify forward-looking statements, and these statements may relate to the business of NextDecade and its subsidiaries. These statements have been based on assumptions and analysis made by NextDecade in light of current expectations, perceptions of historical trends, current conditions and projections about future events and trends and involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. Although NextDecade believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that the expectations will prove to be correct. NextDecade’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in NextDecade’s periodic reports that are filed with and available from the Securities and Exchange Commission. Additionally, any development of subsequent trains at the Rio Grande LNG Facility or CCS projects remains contingent upon receipt of requisite governmental approvals, execution of definitive commercial and financing agreements, securing all financing commitments and potential tax incentives, achieving other customary conditions and making a final investment decision to proceed. The forward-looking statements in this press release speak as of the date of this release. NextDecade may from time to time voluntarily update its prior forward-looking statements, however, it disclaims any commitment to do so except as required by securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806057956/en/

Investors

Megan Light

mlight@next-decade.com

832-981-6583

Media

Susan Richardson

srichardson@next-decade.com

832-413-6400

Source: NextDecade Corporation

FAQ

What court decision affected NextDecade's (NEXT) Rio Grande LNG Facility?

The U.S. Court of Appeals for the D.C. Circuit vacated the Federal Energy Regulatory Commission's (FERC) remand authorization of NextDecade's Rio Grande LNG Facility, stating that FERC should have issued a supplemental Environmental Impact Statement (EIS) during its remand process.

Is construction continuing on NextDecade's (NEXT) Rio Grande LNG Facility despite the court decision?

Yes, construction continues on Phase 1 of the Rio Grande LNG Facility, which includes the first three liquefaction trains and related infrastructure.

How is the court decision affecting NextDecade's (NEXT) plans for Train 4 of the Rio Grande LNG Facility?

NextDecade is evaluating the impact of the Court's decision on the timing of a positive final investment decision (FID) on Train 4 of the Rio Grande LNG Facility.

What is NextDecade's (NEXT) response to the court decision regarding the Rio Grande LNG Facility?

NextDecade expressed disappointment and disagreement with the Court's decision. The company is reviewing the decision and assessing all of its options.