Slides
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Accelerating the Path to a Net-Zero FutureNASDAQ: NEXT Corporate Presentation August 2025
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1 Disclaimer Statement NextDecade Corporation 1000 Louisiana Street, Suite 3300 Houston, Texas 77002 USA NASDAQ: NEXT This Presentation contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this presentation, including statements regarding the future results of operations and financial position of NextDecade Corporation and its subsidiaries (collectively, the “Company”), its strategy and plans, its expectations for future operations and transactions, environmental, regulatory and legislative matters and future demand and supply affecting liquefied natural gas (“LNG”) and general energy markets, are forward-looking statements. The words “anticipate,” “assume,” “budget,” “contemplate,” “estimate,” “expect,” “forecast,” “guidance,” “project,” “potential,” “propose,” “plan,” “initial,” “intend,” “believe,” “may,” “might,” “will,” “would,” “could,” “should,” “can have,” “likely,” “continue,” “design,” “goal,” “target,” and other words and terms of similar expressions, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events a nd trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations, and objectives and financial needs. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, actual results could differ from those expressed in its forward-looking statements. The Company’s future financial position and results of operations as well as any forward-looking statements are subject to change and inherent risks and uncertainties. You should consider the Company’s forward -looking statements in light of a number of factors that may cause actual results to vary from its forward-looking statements regarding general business activities or its LNG and carbon capture and storage (“CCS”) business lines including, but not limited to: our progress in the development of our liquefied natural gas (“LNG”) liquefaction and export project and any carbon capture and storage projects (“CCS projects”) we may develop and the timing of that progress; the timing and cost of the development, construction and operation of the first three liquefaction trains and related common facilities (“Phase 1”) of the multi-plant integrated natural gas and liquefaction and LNG export terminal facility to be located at the Port of Brownsville in southern Texas (the “Rio Grande LNG Facility”); the availability and frequency of cash distributions available to us from our joint venture which owns Phase 1 of the Rio Gra nde LNG Facility; the timing and cost of the development of subsequent liquefaction trains at the Rio Grande LNG Facility; the ability to generate sufficient cash flow to satisfy Rio Grande's significant debt service obligations or to refinance suc h obligations ahead of their maturity; restrictions imposed by NextDecade's or Rio Grande's debt agreements that limit flexibility in operating its business; increases in interest rates increasing the cost of servicing Rio Grande's indebtedness; our reliance on third parties to successfully complete the Rio Grande LNG Facility, any CCS projects we develop, and related pipelines and other infrastructure; our ability to develop and implement CCS projects; our ability to secure additional debt and equity financing in the future, including any refinancing of outstanding indebtedness, on commerci ally acceptable terms; the accuracy of estimated costs for the Rio Grande LNG Facility and CCS projects; our ability to achieve operational characteristics of the Rio Grande LNG Facility and CCS projects, when completed, including amounts of liquefaction capacities and amount of CO2 captured and stored, and any differences in such operational characteristics from our expectations; the development risks, operational hazards and regulatory approvals applicable to our LNG and CCS project development, construct ion and operation activities and those of our third-party contractors and counterparties; the ability to obtain or maintain governmental approvals to construct or operate the Rio Grande LNG Facility and CCS projects ; technological innovation which may lessen our anticipated competitive advantage or demand for our offerings; the global demand for and price of LNG; the availability of LNG vessels worldwide; changes in legislation and regulations relating to the LNG and carbon capture industries, including environmental laws and regulations that impose sign ificant compliance costs and liabilities; scope of implementation of carbon pricing regimes aimed at reducing greenhouse gas emissions; global development and maturation of emissions reduction credit markets; adverse changes to existing or proposed carbon tax incentive regimes; global pandemics, the Russia-Ukraine conflict, the conflict in the Middle East, other sources of volatility in the energy markets and t heir impact on our business and operating results, including any disruptions in our operations or development of the Rio Grande LNG Facility and the health and safety of our employees, and on our customers, th e global economy and the demand for LNG or carbon capture; risks related to doing business in and having counterparties in foreign countries, including as a result of tariffs; our ability to maintain the listing of our securities on the Nasdaq Capital Market or another securities exchange or quotatio n medium; changes adversely affecting the businesses in which we are engaged; management of growth; general economic conditions, including inflation and rising interest rates; our ability to generate cash; and the result of future financing efforts and applications for customary tax incentives. Additional factors that you should consider are set forth in detail in the “Risk Factors” section of the Company's most recen t Annual Report on Form 10-K as well as other filings the Company has made and will make with the Securities and Exchange Commission which, after their filing, can be found on the Company’s website, www.next - decade.com. Should one or more of the foregoing risks or uncertainties materialize in a way that negatively impacts the Company, or shoul d its underlying assumptions prove incorrect, its actual results may vary materially from those anticipated in its forward-looking statements and, its business, financial condition and results of operations could be ma terially and adversely affected. You should not rely upon forward-looking statements as predictions of future events. In addition, neither the Company nor any other person assumes responsibility for the accuracy a nd completeness of any of these forward-looking statements. The Company cautions readers that the information contained in this presentation is only current as of the date of this presentation and, therefor e, except as required by applicable law, the Company does not undertake any obligation to publicly correct or update any forward-looking statement. Financial forecasts, estimates, or other forward-looking financial information included in this presentation is meant for illustrative purposes only and does not purport to show estimates of actual future financial performance over any particular period. The information on such slides has not been reviewed by the Company’s independent auditor and the Company’s independent auditor expresses no opinion with respect to such information. The information on such slides assumes the completion of certain commercial, financing, and other transactions. Such transactions may not be completed on the terms we assume or at all. Actual commodity prices and the terms of commercial and financing arrangements may vary materially from those assumed for the purposes of the illustrative financial performance information. The taking of a final investment decision on Trains 4 and 5 at the Rio Grande LNG Facility is subject to, among other things, maintaining requisite governmental approvals, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure. Additionally, any development of additional expansion 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. This Presentation co ntains forecasts of Distributable Cash Flow, which is a non- GAAP measure. Due to the high variability and difficulty in making accurate forecasts and projections of Distributable Cash Flow, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measure is included, and no reconciliation of the forward-looking non-GAAP financial measure is included. This presentation is not an offer to purchase or sell, or a solicitation of an offer to purchase or sell, any securities.
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2 Natural gas liquefaction and export facility near Brownsville, Texas, with approximately 48 million tonnes per annum (MTPA) of potential liquefaction capacity currently under construction or in development. Phase 1 (Trains 1-3) is under construction, Train 4 has been commercialized and is being progressed toward a final investment decision (FID), Train 5 is being commercialized and progressed toward FID, and Trains 6-8 are in development and beginning the permitting process. Sufficient space exists at the site for development of up to 10 total liquefaction trains. Site location is advantaged due to proximity to abundant natural gas resources in the Permian Basin and Eagle Ford shale, access to an uncongested waterway, and historically fewer and less severe weather events than other U.S. Gulf Coast areas. First LNG is expected in 2027. Providing the World Access to Reliable, Lower Carbon Energy Delivering secure, economically attractive, and sustainable energy solutions through safe and efficient development and operation of liquefaction and carbon capture and storage (CCS) infrastructure Rio Grande LNG Facility NEXT Carbon Solutions Potential CCS project at the Rio Grande Facility in early stages of development, exploring subsurface and technical options and potential avenues for commercialization. Successful project development may lead to future CCS project opportunities at third-party facilities.
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Recent Developments
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4 Increased Rio Grande LNG Super Holdings, LLC senior secured loan by $50 million to fund working capital and general corporate purposes, including development expenses for expansion trains, pre-FID costs for Trains 4 and 5 Issued warrants for 2.0 million shares of NextDecade common stock to the lender of the senior secured loan, which are exercisable for five years at $9.30 per share Started Train 4 and 5 financing processes; in process of entering into bank facility and equity funding transactions for Train 4 Recent Highlights and Significant Developments Completed pricing refresh of EPC contract for Train 4 and signed EPC contract for Train 5, with pricing validity under both contracts through September 15, 2025 Signed 20-year SPA with Jera for 2.0 MTPA of LNG from Train 5, to be sold on a free on board basis at a price indexed to Henry Hub Trains 1 and 2 48.3% complete, Train 3 22.7% complete as of June 2025 Note: Train 4 FID is subject to obtaining adequate financing. Train 5 FID is subject to obtaining appropriate commercial support and adequate financing.
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5 Trains 4 and 5 Progressing Toward Positive FIDs Commercialization • Train 4 commercialization complete with total of 4.6 MTPA contracted for 20 years • Train 5 commercialization in process with 2.0 MTPA contracted for 20 years, targeting an additional 2.5 MTPA contracted long-term 1.9 MTPA 2.0 MTPA 1.2 MTPA 1.5 MTPA 2.5 MTPA 1.4 MTPA 1.5 MTPA Train 4 Train 5 Trains 4 and 5 Long-Term Offtake Note: Train 4 FID is subject to obtaining adequate financing. Train 5 FID is subject to obtaining appropriate commercial support and adequate financing. 1 Each expansion train will be obligated to make a payment, at its applicable start-up date, to the trains in commercial operation at such date for such expansion train’s proportionate share of the capital costs of the common facilities that such expansion train will access, net of the capital cost of any common facilities constructed under the EPC agreement for the applicable expansion train project, if any. The project costs presented in this press release do not include any such “true up” payments for accessing common facilities. Target additional contracted volumes Portfolio Volumes Target Portfolio Volumes EPC Contracts and Project Costs • Executed Train 4 EPC refresh and Train 5 EPC contract • Train 4: $4.77 billion EPC cost • Train 5: $4.32 billion EPC cost • Expect $1.8-2.0 billion owner’s costs, contingencies, financing fees and interest during construction per train1 • EPC contract pricing valid through September 15, 2025
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6 Trains 4 and 5 Progressing Toward Positive FIDs • Progressing Train 4 financing process, expect FID by mid-September 2025 - Expect to finance construction of Train 4 with combination of debt and equity funding - In process of entering into a term loan bank facility at Rio Grande LNG Train 4, LLC for debt portion of the funding - NextDecade expects an initial economic interest of 40% in Train 4, which will increase to 60% after equity partners achieve certain returns on their investments o Phase 1 equity partners have options to participate in Train 4 equity which, if exercised, would provide 60% of the equity funding required for Train 4; NextDecade expects partners to exercise these options o NextDecade is in process of financing remaining 40% of equity capital • Pursuing Train 5 financing, targeting FID by mid-September 2025 - Expect to finance construction of Train 5 with combination of debt and equity funding - Expect to enter into a term loan bank facility at Rio Grande LNG Train 5, LLC for debt portion of the funding - Certain Phase 1 equity partners have options to invest in Train 5 equity which, if exercised, would provide 50% of equity capital for Train 5 - NextDecade expects to fund remaining balance of equity capital for Train 5 and to have initial economic interest of up to 50%, which will increase to up to 70% after equity partners achieve certain returns on their investments Note: Train 4 FID is subject to obtaining adequate financing. Train 5 FID is subject to obtaining appropriate commercial support and adequate financing.
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Phase 1 (Trains 1-3) Construction Update
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8 Phase 1 Construction Progress UpdateRio Grande LNG Facility Phase 1 Construction Update Trains 1 and 2 Train 1 area overview, July 2024Train 3 48.3% Overall 21.2% Construction 80.6% Procurement 91.9% Engineering 22.7% Overall 2.2% Construction 45.5% Procurement 55.7% Engineering Phase 1 construction progressing safely, on schedule, and on budget Note: Project completion percentages as of June 2025.
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9 Phase 1 Construction Progress UpdateRio Grande LNG Facility Phase 1 Construction Update • Continued piping fabrication, rebar installation, equipment setting and concrete placement, and structural steel erection for Trains 1-3 • Completed eighth wall lift for Tank 1 • Completed air cooler installation for Train 1 • Continuing to install concrete foundations, instrument air receivers, floodgates, permanent fencing, and temporary facilities across the site Recent Construction Activities Tank 1 suspended deck construction, June 2025
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10 Phase 1 Construction Progress UpdateRio Grande LNG Facility Phase 1 Construction Update Train 1, June 2025 Train 2, June 2025 Train 3, June 2025
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NextDecade Investment Highlights
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12 NextDecade Key Investor Highlights Strong Asset Development Platform at Rio Grande LNG Facility1 Valuable Relationships with High-Quality Counterparties Across the Value Chain2 Growth Momentum Supported by Partners’ Options and Robust Market Fundamentals3 Strong Commitment to Sustainability and Social Responsibility4
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13 Strong Asset Development Platform at Rio Grande LNG Facility Trains 1-3 and associated infrastructure (Phase 1) under construction, progressing safely, on schedule, and on budget Trains 4 and 5 progressing toward positive FIDs, Trains 6-8 beginning the development and permitting process, and sufficient space at site for up to 10 total liquefaction trains Site location benefits from access to prolific available gas supply resources in Permian Basin and Eagle Ford shale, an uncongested port, and historically fewer and less severe weather events than other areas of U.S. Gulf Coast Rio Grande LNG Facility advantaged and de-risked by Bechtel’s track record of LNG project execution NextDecade Key Investor Highlights 1
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14 2 Established, reliable counterparties for gas transportation and other services Commercial offtake agreements (LNG SPAs) with creditworthy, leading players in the global LNG market Project design utilizes established, proven technology and equipment providers EPC partner has unmatched track record of liquefaction project deliverability on time and on budget NextDecade Key Investor Highlights Equity partners aligned for initial 5-train development and confident in Rio Grande LNG Facility’s competitive positioning Valuable Relationships with High-Quality Counterparties Across the Value Chain
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15 Growth Momentum Supported by Partners’ Options and Robust Market Fundamentals 3 NextDecade Key Investor Highlights 1 GIP, GIC, and Mubadala Investment Company hold options individually to participate in an aggregate of 50% of equity funding for each of Trains 4 and 5, for an economic interest that will adjust from a total of 50% down to a total of 30% based on achieving certain returns on their investments in Train 4. In May 2024, ADNOC obtained an option from GIP to participate in a portion of GIP’s equity option for Train 4. TotalEnergies’ option for Train 4 is fixed at 10%. 2 GIP, GIC, and Mubadala Investment Company hold options individually to participate in an aggregate of 50% of equity funding for each of Trains 4 and 5, for an economic interest that will adjust from a total of 50% down to a total of 30% based on achieving certain returns on their investments in Train 5. In May 2024, ADNOC obtained an option from GIP to participate in a portion of GIP’s equity option for Train 5. 3 Based on management analysis. LNG demand expected to continue to grow in coming years due to global growth in total demand for natural gas3, and commercial momentum expected to continue Train 4 commercialization complete, with SPAs with ADNOC, Aramco, and TotalEnergies for combined offtake of 4.6 MTPA; Train 5 supported by 2.0 MTPA SPA with JERA, and commercialization underway for an additional 2.5 MTPA Phase 1 equity partners have options to provide 60% of equity capital for Train 4 1 and 50% of equity capital for Train 52 EPC contracts signed with Bechtel for Trains 4 and 5, with pricing validity through September 15, 2025
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16 Strong Commitment to Sustainability and Social Responsibility 4 NEXT Carbon Solutions is in the early stages of developing a potential CCS project at the Rio Grande LNG Facility, focused on post-combustion carbon capture NextDecade seeks to deliver secure, economically attractive, and sustainable energy solutions through the safe and efficient development and operation of liquefaction and CCS infrastructure NextDecade is committed to supporting the Rio Grande Valley community by creating thousands of jobs, investing millions into the local supply chain, supporting education systems, and regularly engaging with residents and local stakeholders NextDecade Key Investor Highlights LNG displaces coal and other solid fuels in developing countries worldwide, providing environmental benefits
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Expansion Capacity in Development
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18 Rio Grande LNG Facility Has Potential to be One of the Largest LNG Production and Export Facilities in the World • Sufficient space exists at the Rio Grande LNG Facility site to develop up to 10 total liquefaction trains - Trains 1-3 (~18 MTPA) under construction - Train 4 (~6 MTPA) commercialization complete and progressing toward FID - Train 5 (~6 MTPA) in commercialization process and progressing toward FID - Developing and beginning permitting process for Trains 6-8 (~18 MTPA) • Developing on single, contiguous Rio Grande LNG Facility site has significant advantages - All trains expected to use the same established technologies and proven design - Geotechnical conditions are understood and are more advantageous for infrastructure development than other areas on U.S. Gulf Coast - Construction conditions are established, and labor and equipment can easily shift across site as additional trains are developed and constructed - Extensive waterfront on site facilitates additional berth space and vessel capacity - Site supports infrastructure for efficient LNG production, including storage tanks and transportation infrastructure
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19 Beginning Development and Permitting Process for Trains 6-8 • Train 6 (~6 MTPA) being developed inside existing levee adjacent to Trains 1-5 - Expect Train 6 pre-filing with FERC in 2025 and full application filing in early 2026 • Evaluating multiple areas on site for the development of Trains 7-8 (~12 MTPA) - An update on Trains 7 and 8 permitting timeline is expected later this year
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Regulatory Update
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21 • On March 18, 2025, the U.S. Court of Appeals for the D.C. Circuit issued a revision to its August 2024 decision regarding the Company’s Federal Energy Regulatory Commission (FERC) order, resulting in a remand without vacatur of the FERC order for the first five liquefaction trains at the Rio Grande LNG Facility. Pursuant to the remand, FERC is to consider the issue of a supplemental environmental impact statement (SEIS) in view of several executive orders issued since January 20, 2025. • On March 28, 2025, the FERC issued a draft SEIS, with analysis consistent with the Company’s expectations and FERC’s prior analysis of the Rio Grande LNG Facility. • On July 31, 2025, the FERC issued a final SEIS, with analysis consistent with the draft SEIS and supportive of a final FERC order. The Company does not expect any issues obtaining FERC’s final order on remand. • Based on its published schedule, FERC anticipates issuing a final order on the remand by November 20, 2025. Recent Regulatory Developments Note: Reauthorization date from FERC notice of intent to prepare an SEIS, issued September 13, 2024.
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Empowering the Rio Grande Valley Community
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23 • Continuous engagement with local stakeholders to: - Obtain a greater understanding of community needs and identify areas where a positive impact can be made, such as education, poverty reduction, and philanthropy - Foster respectful and mutually beneficial relationships - Increase quality of engagement in decisions that impact life in the community • Involvement includes sponsorship of community events, community feedback system, and Community Advisory Board - Engagement through face-to-face meetings, LNG safety demonstrations, open houses, sponsored events, speaking engagements, private meetings, and participation in community events - Community Advisory Board with over 30 members, including school board members, firefighters, business owners, nonprofit organizations, medical professionals, indigenous leaders, and others NextDecade is Committed to the Rio Grande Valley Community Fostering a long-lasting partnership with local stakeholders to create value, provide opportunities, and contribute to a thriving community for all
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24 • NextDecade’s community engagement is founded on four core values: - Fostering local economic prosperity - Cultivating inclusivity - Nurturing leadership - Promoting sustainability • Community feedback frequently focuses on: - Current career opportunities and career paths for future jobs - Local business inquiries - Project updates NextDecade is Committed to the Rio Grande Valley Community Fostering a long-lasting partnership with local stakeholders to create value, provide opportunities, and contribute to a thriving community for all “The Rio Grande LNG project offers long-term benefits that will greatly enhance Cameron County’s future…this project will provide crucial funding for education, infrastructure, quality of life initiatives, and drainage improvements. These enhancements will improve living standards and attract further investments, creating a sustainable cycle of economic growth and development. ” – David A. Garza, Cameron County Commissioner, Precinct 3 “We fully endorse and advocate for the development of the Rio Grande LNG export facility, believing that it will bring significant benefits to the entire Rio Grande Valley, including the environmental justice community. ” – Bernard Barcena, Chairman, Lipan Apache Tribe of Texas
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25 Miradores Environmental Mitigation Project 350 Acres of wetlands created 21 Acres of existing wetlands improved 28,000 Plants added to the Mitigation site Restoration of the Miradores Mitigation Site near Brownsville, Texas, began in September 2023 and was completed in June 2025, placing more than 1,500 acres under a conservation easement “As a longtime steward of this land, it’s incredibly meaningful to see it restored and protected for future generations” – Ovi Atkinson, Miradores landowner
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LNG Fundamentals
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27 Growing Global Demand for Natural Gas is Expected to Continue “Throughout CERAWeek, one message remained clear: natural gas is indispensable to the energy transition. It is both a transition and destination fuel. Natural gas plays a crucial role in maintaining both energy security and grid stability…The future of energy will not be defined by a single technology but rather by a portfolio approach…A balanced approach – leveraging the strengths of each energy source – will be crucial in shaping an affordable, reliable, and sustainable energy future. ” – Lorenzo Simonelli, CEO Baker Hughes, March 2025 Natural gas expected to have a meaningful role in long-term global energy markets as a secure, reliable, and affordable fuel source, as well as to support renewables growth 3.5 4.2 - 1 2 3 4 5 2014 2024 Global Natural Gas Demand (Tcm) Annual global gas demand increased ~700 Bcm over the past 10 years at a 1.8% CAGR Global gas demand increased ~2.5% in 2024 despite limited new LNG supplies Source: Global gas demand data from IEA Global Gas Security Review 2024, published October 2024, and Natural Gas Intelligence.
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28 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 2024 Base Global Gas Demand 2030E Global Gas Demand - 1% Growth Rate 2030E Global Gas Demand - Historical 1.8% Growth Rate Significant Incremental LNG Needed to Facilitate Gas Demand Growth LNG expected to become increasing portion of global natural gas supply due to constraints in indigenous gas production and transportation Source: IEA estimated 2024 global gas demand data, Wood Mackenzie LNG supply data including projects operating and under construction as of July 25, 2025, adjusted for CP2 Phase 1 FID. 2025-2040 forecast global gas demand based on management’s analysis. Global gas demand is expected to be in-line with LNG supply growth of ~200 MTPA to 2030 in conservative growth case and significantly outpace LNG supply at historical growth rate +260 Bcm (~185 MTPA) Tcm +475 Bcm (~335 MTPA) 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 2024 Base Global Gas Demand 2040E Global Gas Demand - 1% Growth Rate 2040E Global Gas Demand - Historical 1.8% Growth Rate Tcm +725 Bcm (>500 MTPA) +1,400 Bcm (>975 MTPA) Substantial additional investments in LNG infrastructure are needed to facilitate growing global gas demand to 2040 amid constraints in indigenous production and transportation
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29 Existing Regas Capacity Can Accommodate Substantial LNG Supply Growth Operational regas capacity is expected to accommodate almost 1,400 MTPA of LNG by 2030, supporting significant additional LNG supply capacity • 46 countries around the globe have operational regas infrastructure and 6 new countries have regas infrastructure under construction • Robust existing global regas infrastructure can accommodate a significant increase in LNG supply, and substantial additional capacity is in development • Regas infrastructure is not expected to become a bottleneck as LNG is expected to grow as a proportion of total global natural gas supply Source: Wood Mackenzie regas capacity data as of July 25, 2025. © Australian Bureau of Statistics, GeoNames, Microsoft, Navinfo, Open Places, OpenStreetMap, Overture Maps Fundation, TomTom, Zenrin Powered by Bing In Operation Under Construction
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30 Underinvestment in Clean Energy Could Create Additional LNG Demand • To meet energy transition goals in even the most conservative IEA scenario (STEPS), ~$800 billion additional annual investment in clean energy is needed by 2035 - ~$2 trillion incremental annual investment needed for APS scenario - ~$3 trillion incremental annual investment needed for NZE scenario • Expect clean energy to be underfunded due to increasing cost and the magnitude of required investment • Natural gas production and LNG can be increased quickly and economically to fill gaps in global energy supply Natural gas production, particularly in the U.S., can be scaled more quickly and economically than many global clean energy sources, enhancing the role of U.S. LNG in filling gaps in global energy supply Projected Global Energy Investments to 2035 IEA World Energy Outlook 2024 Source: International Energy Agency (IEA) World Energy Outlook 2024, published October 2024. Notes: STEPS – Stated Policies Scenario based on latest policy settings, including energy, climate and related industrial policies. APS – Announced Pledges Scenario (APS) assumes all national energy and climate targets made by governments are met in full and on time. NZE – Net Zero Emissions by 2050 limits global warming to 1.5 degrees Celsius. U.S. LNG, including incremental LNG from expansion trains at the Rio Grande LNG Facility, is an attractive and economic option for global energy users
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Rio Grande LNG Facility
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32 Rio Grande LNG Facility Rio Grande LNG Facility Overview 8 trains totaling approximately 48 MTPA of LNG capacity are under construction or in development • Trains 1-3 (Phase 1) under construction • Train 4 FID expected by mid-Sept. 2025 - Commercially supported by 4.6 MTPA of LNG SPAs with ADNOC, Aramco, and TotalEnergies - Financing process underway • Train 5 commercialization in process, progressing toward FID - Strong demand and commercial momentum, signed 2.0 MTPA with JERA • Trains 6-8 under development - Expect to pre-file Train 6 with FERC in 2025 - Expect Train 6 full application filing with FERC in early 2026 • Space exists at site for up to 10 total liquefaction trains Tank 1 interior, June 2025 Tanks 1 and 2, June 2025
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33 Rio Grande LNG Facility Phase 1 Site Plan Two jetty berthing structures Levee around site Warehouses, administrative, operations control room and maintenance buildings Deepwater port access and supporting marine infrastructure 2x180,000m3 full containment LNG storage tanks Proven technology Material offloading facility and laydown site during Phase 1 construction T1T2T3 Totally enclosed ground flares for the LNG tanks and marine facilities Texas State Highway 48 World class ~1,000-acre site in south Texas with 15,000 feet of frontage on the Brownsville Ship Channel, advantaged by proximity to abundant Permian and Eagle Ford gas resources and uncongested port 3 Train Phase 1 has expected production capacity of ~18 MTPA Pipeline interconnects
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34 Phase 1 Construction Progress Update Expected Construction Timeline Expected Substantial Completion Date Train 1 Train 3 Train 2 2023 2024 202720262025 2028 2029 Rio Grande LNG Facility Phase 1 Construction Progress Remains in Line with EPC Contract Schedule Expected Phase 1 Completion Timeline
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35 Equity Partners1 Valuable Relationships with High-Quality Counterparties Across Phase 1 Technology EPC LNG Customers Pipeline 1 In May 2024, ADNOC obtained an equity interest in Phase 1 from Global Infrastructure Partners which will become effective upon NextDecade reaching a positive FID on Train 4.
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36 • 3 liquefaction trains with expected production capacity of ~18 MTPA1 • 2 x 180,000m3 LNG storage tanks • 2 loading jetties designed to load LNG carriers up to 216,000m3 • Associated site infrastructure and common facilities construction including: - Full site preparation - Significant portion of common facilities for 5 liquefaction trains Partnering with Preeminent Global LNG EPC Contractor Bechtel • EPC Contracts are fully-wrapped, date-certain, lump-sum, and turnkey (extensive wrap includes civil works) • Bechtel is responsible for engineering, procurement, construction, commissioning, and startup of LNG trains and associated infrastructure • Guarantee standards cover production, ship loading, power consumption, air emissions, and additional matters including noise pollution With over 125 years of experience, Bechtel stands as a premier engineering and construction company, boasting an unparalleled 60-year track record in executing LNG projects with excellence. Bechtel has designed and built approximately 30% of the world’s and 50% of the U.S. Gulf Coast’s LNG capacity, successfully completing nine liquefaction trains in the last decade, all of which are producing at or above nameplate capacity. Phase 1 of the Rio Grande LNG Facility is de-risked by Bechtel’s track record of successful LNG completions and by fully-wrapped, lump-sum, turnkey EPC contracts Phase 1 Project Scope 1 LNG production capacity prior to impacts of potential de-bottlenecking expected to be performed across trains at the Rio Grande LNG Facility. EPC Contracts Provide NextDecade Strong Coverage
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37 Honeywell 3MRTM LNG Process is the world’s most prevalent liquefaction technology and is utilized in the majority of liquefaction capacity across the globe Rio Grande LNG Facility to Utilize Proven Liquefaction Technology Honeywell 3MR LNG Process Flow • Economic Production ⁻ Readily available refrigerants ⁻ Large trains ⁻ High efficiency and low feed gas consumption • Highly Reliable ⁻ Few process components ⁻ Strong performance through extensive portfolio ⁻ Robust Coil Wound Heat Exchanger (CWHE) provides higher throughput with greater flexibility and availability than other technologies • Improved Operation ⁻ Ease of start-up to minimize time to achieve full capacity ⁻ Flexibility to operate at high efficiency over a wide range of feed gas compositions and conditions ⁻ Efficient and stable turndown even at very low feed rates Honeywell 3MR Advantages Source: https://www.airproducts.com/-/media/files/en/230/230-17-004-glb-lng-large-plant-capabilities.pdf
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38 Rio Grande LNG Facility Feed Gas Sourcing and Transportation Strategy Gas Sourcing and Transportation Approach • Executing a substantial and diversified feed gas sourcing strategy to spread risk exposure across multiple contracts, suppliers, and pricing hubs; plan to establish risk management capabilities in-house to mitigate gas supply disruptions and weather-induced volatility in basis pricing and secure reliable, low-cost feed gas supply • Agreements in place for gas transportation on both a firm and interruptible basis to support commissioning and operations and provide ability to purchase gas at Agua Dulce, gaining access to prolific resources from the Permian Basin and Eagle Ford Shale and providing significant flexibility to obtain competitively priced feed gas NextDecade Experience and Capabilities • Core gas supply team comprised of experienced leaders with extensive commercial and trading experience in global gas and LNG markets • Prior to operations, complete team will include traders, originators, analysts, mid- and back-office trading support staff, and commercial operations personnel 1 Permian and Eagle Ford natural gas resource data from Enverus. Developing a diversified gas sourcing and transportation strategy to capitalize on proximity to sources that are expected to produce significant quantities of low-cost natural gas for decades Agua Dulce TEXAS LOUISIANA Rio Grande LNG Henry Hub Permian 600 Tcf 3 2 Eagle Ford 100 Tcf 700 Tcf of natural gas resources in Permian Basin and Eagle Ford Shale combined1 Texas offers one of the deepest inventories of economic natural gas resources in the world
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39 Phase 1 LNG Sale and Purchase Agreements (SPAs) Overview Counterparty Combined SPA Type FOB DES FOB FOB FOB FOB FOB FOB FOB 93% FOB Term 20 20 20 15 20 20 20 15 20 19.2 Index HH / Brent HH HH HH HH HH HH HH HH 91% HH SPA volume (MTPA)1 0.54 / 1.50 1.00 2.00 1.75 1.00 1.00 1.00 1.00 5.40 16.2 Train(s) 1 1 1, 2, 3 1 & 2 2 1 & 2 2 & 3 2 & 3 2 & 3 1 - 3 % Capacity Contracted 11% 6%2 11% 10% 6% 6% 6% 6% 30% ~90% Note: Annual fixed fees shown above are before escalation for inflation and exclude amounts related to the Company’s Brent-linked contract. FOB – free-on-board. DES – delivered ex-ship. Percentage capacity contracted shown as a percentage of expected LNG production capacity of ~18 MTPA. 1 SPA volumes are rounded. 2 Percentage based on volume loaded onto vessel. Approximately 90% of Phase 1 production capacity contracted with a diverse mix of creditworthy customers, with Henry Hub-linked SPAs providing ~$1.8 billion in expected annual fixed fees
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40 Counterparty Combined SPA Type FOB F OB FOB 100% FOB Term (years) 20 20 20 20 Index HH HH HH 100% HH SPA Volume (MTPA) 1.9 1.2 1.5 4.6 % Capacity Contracted 32% 20% 25% ~77% Train 4 LNG SPAs Overview Note: FOB – free-on-board. Percentage capacity contracted shown as a percentage of expected LNG production capacity of ~6 MTPA. Approximately 77% of Train 4 production capacity contracted with a diverse mix of creditworthy customers
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41 Phase 1 (Trains 1-3) Capital Structure • Total estimated capital project costs $18 billion • Closed $18.4 billion in project financing concurrently with FID, providing full funding1 for construction of Phase 1 ⁻ $6.1 billion2 total equity commitments primarily via joint venture with high quality partners ⁻ $12.3 billion project debt financing, including $11.1 billion construction term loan facilities, $500 million working capital facility, and $700 million senior secured private placement notes o Over $1.85 billion of the term loan facilities has been refinanced into senior secured notes and loans since FID • NextDecade expected economic interest up to 20.8%3 in Phase 1 1 Total estimated capital project costs of $18.0 billion have been fully funded by the transactions described above. 2 Total equity commitments shown net of NextDecade’s $125 million of pre-FID capital investments into Phase 1, of which ~$120 million is attributable to limited notice to proceed work under the EPC contracts with Bechtel. 3 NextDecade expects to receive up to approximately 20.8% of distributions of available cash generated from Phase 1 operations, provided that a majority of the cash distributions to which NextDecade is otherwise entitled will be paid for any distribution period only after its equity partners receive an agreed distribution threshold in respect of such distribution period and certain other deficit payments from prior distribution periods, if any, are made. Artist Rendering of the Rio Grande LNG Facility Rio Grande LNG Facility Phase 1 Capital Structure
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42 Rio Grande LNG Facility Phase 1 Equity Joint Venture Partners ~$4.8 Billion Commitment Min. 62.5% Economic Interest • Global Infrastructure Partners (GIP ) ~$3.5 billion commitment - Leading global independent in frastructure fund manager with over $100 billion AUM2 • GIC $750 million commitment - Singaporean sovereign investor • Mubadala Investment Company $5 00 million commitment - Abu Dhabi sovereign investor ~$1.1 Billion Commitment 16.7% Economic Interest • French multinational integrated energ y company • Top 2 global LNG player • Managed ~40 million tonnes of LNG vo lumes in 20243 ~$283 Million Commitment Up to 20.8% Economic Interest • Includes ~$125 million of pre-FID c apital investments into Phase 1 • Remaining ~$158 million funding co mpleted September 2023 utilizing proceeds from TotalEnergies’ purchases of NEXT shares Financial Investors1Project Sponsor Strategic Investor 1 In May 2024, ADNOC obtained an equity interest in Phase 1 from Global Infrastructure Partners which will become effective upon NextDecade reaching a positive FID on Train 4. 2 Source: www.global-infra.com/about/ 3 Source: TotalEnergies’ fourth quarter and full-year 2024 results press release.
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43 Projected Distributable Cash Flow from LNG Rio Grande LNG Export Project 20-Year Average1 ($ in Billions per Year) Trains 1 – 3 Combined: Projected Distributable Cash Flow2 $ 0.3 – $ 0.2 Trains 4 – 5 Combined: Projected Distributable Cash Flow3 $ 1.0 – $ 0.7 Trains 1 – 5 Combined: Projected Distributable Cash Flow $ 1.3 – $ 0.9 1 Assumed liquefaction capacity per train is nameplate capacity and does not include potential de-bottlenecking expected to be performed across the Rio Grande LNG facility. The Projected Distributable Cash Flow presented is the average annual estimated cash flows of the first 20 years of full commercial operations for Trains 1 – 3 Combined and Trains 4 – 5 Combined, respectively. Commodity prices used to generate the Projected Distributable Cash Flow are based on a range of prices derived from analysis of historical and forward market observations for global LNG, Henry Hub, Brent and gas supply in South Texas and are held flat. Estimated operating costs and SPA inflation escalators are inflated annually at an assumed CPI from 2022. 2 Projected Distributable Cash Flow reflects NextDecade’s expected economic interest in Trains 1 - 3. Under terms of the RGLNG Phase 1 joint venture agreement, NextDecade is entitled to receive up to approximately 20.8% of distributions of available cash during operations, provided that a majority of the distributions to which NextDecade is otherwise entitled will be paid for any distribution period only after the Financial Investors reach an agreed distribution threshold in respect of such distribution period and certain other deficit payments from prior distribution periods, if any, are made. Any such shortfall in distributions that NextDecade would otherwise have been entitled to will accrue as an arrearage to be paid out in future periods until the applicable target distribution threshold for the Financial Investors has been achieved. Projected Distributable Cash Flow is based on actual SPA terms and pricing on the 16.2 MTPA of contracted volumes, actual project costs at NTP, financing costs resulting from transactions closed at FID, and estimated costs associated with refinancing project debt from construction to term loan facilities based on analysis of historical and forward market observations. 3 Projected Distributable Cash Flow reflects a range of contracted LNG volumes and estimated project and financing costs based on analysis of historical and forward market observations. Train 4 and Train 5 EPC costs have been estimated based on the current market prices plus inflation and will not be finalized until FID of each Train. The Financial Investors hold options to participate in up to 50% of equity funding for Trains 4 and 5 for an economic interest that will adjust from a total of 50% down to a total of 30% based on achieving certain returns on their investments in Trains 4 and 5. TotalEnergies holds options to participate in 10% of Trains 4 and 5 equity conditioned on exercising its LNG purchase options in the respective trains. Projected Distributable Cash Flow assumes the Financial Investors and TotalEnergies exercise 100% of their participation options in Trains 4 and 5 equity and assumes the Financial Investors’ economic interest has been adjusted to 30% based on meeting threshold returns. Projected Distributable Cash Flow is presented without any adjustment for the cost of the capital to be contributed by NextDecade for Trains 4 and 5. Projected Dis tributable Cash Flow is a non-GAAP measure defined as the operating income of Rio Grande, less project-level interest expense and debt amortization and is presented based on NextDecade’s expected economic interests in each train less estimated corporate general and administrative expense necessary to operate NextDecade Corporation and oversee its investment in Rio Grande. The estimated corporate general and administrative expense included represents an estimated run-rate once the Rio Grande LNG Facility is fully operational and does not include estimated expenses for future development activities prior to full operations. The Projected Distributable Cash Flow does not include any expected NEXT Carbon Solutions’ cash flow from operations. Management believes that Projected Distributable Cash Flow will be meaningful to investors as it provides an estimate of NextDecade’s expected interest in the cash flows generated by its stand-alone LNG business. The estimated values set forth herein have been based on internal estimates of projected cash flow developed by management of the Company and assume that the Company will achieve its financial projections in all material respects. Such financial projections reflect the Company’s best currently available estimates and reflect its good faith judgments and assumptions it considers reasonable. Events a nd conditions subsequent to this date as well as other factors could have a substantial effect upon the estimated values. The Company gives no assurance that the estimated values will prove to be correct and does not undertake any duty to update them. Please refer to the slide titled “Disclaimer Statements” for further information.
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NEXT Carbon Solutions
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45 Potential CCS project focused on post-combustion carbon capture is in early stages of development Developing Potential End-to-End Carbon Capture and Storage (CCS) Project at the Rio Grande LNG Facility Currently exploring subsurface options for storage of expected volumes of CO 2 to be captured, technology options, and potential avenues of commercialization for the potential CCS project at the Rio Grande LNG Facility Stored CO2 Caprock Successful development of the potential CCS project at the Rio Grande LNG Facility may lead to project opportunities at third-party industrial facilities in the future Potential to make meaningful impacts toward a lower carbon future through the successful capture and storage of greenhouse gas emissions at the Rio Grande LNG Facility
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46 NEXT Carbon Solutions Post-Combustion Carbon Capture Process Proposed proprietary process pairs with highly efficient third-party CO2 removal technology for an end-to-end CCS solution that is expected to be effective and economic INLET GAS PRE- TREATMENT FLUE GAS PRE- CONDITIONING CO2 REMOVAL TECHNOLOGY HEAT AND MATERIAL OPTIMIZATION COMPRESSION PIPELINE (TRANSPORT) SEQUESTRATION (STORAGE) Captures and Stores any Pre-Treatment CO2 Proprietary Processes No External Water Use Differentiating Environmental Advantage Expect to Use Best Available Technology Targets 95% CO2 Removal Tailored to Host Asset’s Flue Gas Attributes Proprietary Processes Expect Lower Cost of Capture Heat and Material Balance Optimization Expect to Use Best Available Technology Dehydration and Compression Full End-to-End Solution Capability In-House Sub-Surface Expertise Pipeline Design and Permitting Capabilities Inlet Fuel Compression Cooled Post-Combustion Flue Gas CO2 Rich Sorbent (Amine) Solution Pipe Gas Pre-Treatment or Pure Stream Capture to CO2 Compression Compressed CO2 CO2 Lean Sorbent (Amine) Solution Injection Well Monitoring Well Stored CO2 Caprock Regeneration Column Cooling Medium Components with propriety processes that include patents and patents pending. Absorber Column
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Appendix
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48 NextDecade Senior Leadership Matt Schatzman Chairman and Chief Executive Officer Brent Wahl Chief Financial Officer Vera de Gyarfas General Counsel and Corporate Secretary Mike Mott Senior Vice President, Enterprise Transformation Ariel Handler Executive Vice President, Commercial and Carbon Solutions Raquel Couri Executive Vice President, Human Resources and Administration James MacTaggart Chief Marketing Officer Marc Palazzo Senior Vice President, Policy and Corporate Affairs Please refer to www.next-decade.com/about-us/senior-leadership/ for full biographies. Graham McArthur Senior Vice President, Treasurer Paul Bruner Senior Vice President, Operations Alex Thompson Senior Vice President, Engineering & Construction Industry leading executives and an experienced multi-disciplinary team Tarik Skeik Chief Operating Officer
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49 NextDecade is accelerating the path to a net-zero future www.next-decade.com Investor Relations Contacts: Megan Light Vice President, Investor Relations mlight@next-decade.com 832-981-6583 John Montano Senior Analyst, Investor Relations jmontano@next-decade.com 832-397-6140