NEXT - NextDecade soars as TotalEnergies GIP to help develop Rio Grande LNG project

2023-06-14 07:25:11 ET

NextDecade ( NASDAQ: NEXT ) +31.5% pre-market Wednesday after TotalEnergies ( NYSE: TTE ) agreed to buy a 17.5% stake in the company for $219.4M and signed a framework agreement with NextDecade and Global Infrastructure Partners to jointly develop the Rio Grande liquefied natural gas project in Texas.

TotalEnergies ( TTE ) will take a 16.7% stake in the first phase of Rio Grande LNG, which consists of three liquefaction trains with total annual capacity of 17.5M metric tons/year; GIP will be the majority shareholder and NextDecade ( NEXT ) will be the operator of the project.

The French company also said it will take 5.4M tons/year from Phase 1 for 20 years, with options to purchase LNG from Rio Grande LNG Train 4 and Train 5.

TotalEnergies ( TTE ) will buy the 17.5% stake in NextDecade ( NEXT ) in three steps; the first tranche of $40M of common stock already has been issued and sold at $4.9837/share, and the second tranche of $110M will be issued and sold at the same price after final investment decision on Phase 1, which is expected in the coming weeks for start-up in 2027.

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