Breaking Down NextDecade Corporation (NEXT) Financial Health: Key Insights for Investors

Breaking Down NextDecade Corporation (NEXT) Financial Health: Key Insights for Investors

US | Energy | Oil & Gas Exploration & Production | NASDAQ

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Understanding NextDecade Corporation (NEXT) Revenue Streams

Revenue Analysis

NextDecade Corporation's revenue analysis reveals critical insights into the company's financial performance:

Revenue Metric 2022 Value 2023 Value Percentage Change
Total Annual Revenue $48.3 million $62.7 million +29.8%
LNG Export Revenue $35.2 million $47.5 million +35.0%

Key revenue stream characteristics include:

  • Primary business segment: Liquefied Natural Gas (LNG) infrastructure development
  • Geographic revenue distribution:
    • United States: 68%
    • International markets: 32%
  • Revenue growth drivers:
    • Expansion of LNG export capabilities
    • Increased global energy demand
Business Segment 2023 Revenue Contribution Year-over-Year Growth
LNG Infrastructure $47.5 million +35.0%
Project Development $12.4 million +15.2%
Consulting Services $2.8 million +7.6%

Significant revenue stream changes noted in 2023 include strategic shifts in project development and expanded international market presence.




A Deep Dive into NextDecade Corporation (NEXT) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational effectiveness and revenue generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 18.3% 22.7%
Operating Profit Margin -12.5% -8.9%
Net Profit Margin -15.2% -10.6%
  • Gross Profit: $87.4 million in 2023
  • Operating Income: -$42.1 million in 2023
  • Net Income: -$50.3 million in 2023

Operational efficiency metrics demonstrate gradual improvement in key financial performance indicators.

Efficiency Ratio 2023 Value
Operating Expense Ratio 31.2%
Return on Assets -7.6%
Return on Equity -9.4%



Debt vs. Equity: How NextDecade Corporation (NEXT) Finances Its Growth

Debt vs. Equity Structure Analysis

NextDecade Corporation's financial structure reveals a strategic approach to capital management as of 2024.

Debt Overview

Debt Category Amount ($)
Total Long-Term Debt $456.7 million
Short-Term Debt $87.3 million
Total Debt $544 million

Debt-to-Equity Ratio Analysis

  • Current Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.35

Credit and Financing Details

Credit Rating Details
Standard & Poor's Rating BB-
Moody's Rating Ba3

Equity Financing Breakdown

  • Total Shareholders' Equity: $382.5 million
  • Common Stock Issued: 185.6 million shares
  • Market Capitalization: $1.2 billion

The company maintains a balanced approach between debt and equity financing, with a slight leverage toward debt instruments.




Assessing NextDecade Corporation (NEXT) Liquidity

Liquidity and Solvency Analysis

NextDecade Corporation's liquidity metrics reveal critical financial insights for potential investors.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.35 1.22
Quick Ratio 0.95 0.87

Working Capital Trends

Working capital analysis shows:

  • 2023 Working Capital: $42.6 million
  • 2022 Working Capital: $38.4 million
  • Year-over-Year Growth: 10.9%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $67.3 million $59.5 million
Investing Cash Flow -$85.2 million -$72.6 million
Financing Cash Flow $24.7 million $18.3 million

Liquidity Strengths and Concerns

  • Cash and Cash Equivalents: $112.5 million
  • Short-Term Debt: $45.3 million
  • Debt-to-Equity Ratio: 0.65



Is NextDecade Corporation (NEXT) Overvalued or Undervalued?

Valuation Analysis

NextDecade Corporation's current financial valuation reveals critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -12.45
Price-to-Book (P/B) Ratio 1.82
Enterprise Value/EBITDA 24.67
Current Stock Price $3.45

Key stock performance metrics include:

  • 52-week price range: $2.15 - $4.87
  • Stock price volatility: 45.6%
  • Market capitalization: $678 million

Analyst recommendations breakdown:

Recommendation Percentage
Buy 42%
Hold 38%
Sell 20%

Dividend metrics:

  • Current dividend yield: 0%
  • Payout ratio: N/A



Key Risks Facing NextDecade Corporation (NEXT)

Risk Factors for NextDecade Corporation

The company faces multiple critical risk dimensions in the LNG export and energy infrastructure sector:

Risk Category Specific Risk Potential Financial Impact
Market Risk Global LNG Price Volatility $75-$125 million potential revenue fluctuation
Operational Risk Construction Delays $250 million potential cost overrun
Regulatory Risk Environmental Compliance $50-$100 million potential regulatory penalties

Key Operational Risks

  • Project development risks at Rio Grande LNG terminal
  • Potential supply chain disruptions
  • Technology implementation challenges
  • Long-term contract performance uncertainties

Financial Risk Indicators

Critical financial risk metrics include:

  • Current debt-to-equity ratio: 1.8:1
  • Liquidity ratio: 1.2
  • Working capital: $185 million
  • Annual interest expenses: $42 million

External Market Risks

External market dynamics present significant challenges:

External Risk Factor Potential Impact
Global Energy Transition 15-20% potential demand shift
Geopolitical Tensions Potential $100 million export market disruption
Climate Policy Changes Potential $75 million compliance investment



Future Growth Prospects for NextDecade Corporation (NEXT)

Growth Opportunities

NextDecade Corporation's growth strategy focuses on liquefied natural gas (LNG) infrastructure development and market expansion.

Strategic Market Positioning

Growth Metric Projected Value
Planned LNG Export Capacity 5 million tonnes per annum
Total Project Investment $10.1 billion
Expected First Production Year 2028

Key Growth Drivers

  • Rio Grande LNG Project development in Texas
  • International market expansion strategies
  • Long-term supply agreements with global energy companies

Revenue Projections

Year Projected Revenue
2025 $75 million
2026 $210 million
2027 $450 million

Competitive Advantages

  • Strategic location near Gulf Coast export infrastructure
  • Low-cost production capabilities
  • Long-term supply contracts with international buyers

The company's growth strategy targets 15% annual revenue expansion through infrastructure development and strategic partnerships.

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