Stocks

NextDecade Corporation (NEXT) surges on analyst upgrade

NextDecade Corporation (NEXT) shares are trading higher by 28.3% at $3.13 in Monday’s pre-market session after Morgan Stanley upgraded the stock from Equal-Weight to Overweight and announced a $6 price target.

NextDecade is a development and management company. It primarily focuses on land-based and floating LNG projects, creating opportunities in the global integrated natural gas industry.

NextDecade provides a number of services, including supply and trade of LNG volumes, the creation of new natural gas infrastructure including pipeline and natural gas liquefaction facilities, treatment and processing of natural gas into LNG as well as technical engineering and design services related to the development and execution of natural gas infrastructure, transporting, shipping and storage of LNG.

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    John Young

    Morgan Stanley probably didn’t know that:

    On 06-04-2016 NextDecade was deleted from the Russell 3000 list (https://content.ftserussell.com/sites/default/files/russell_3000_index_deletions_-_2021.pdf). It first got on the list in June 2018.

    “DC Circ. Told FERC Can’t OK Changes To Contested [Rio Grande] LNG Plan,” 360Law, 06-02-2021, https://www.law360.com/energy/articles/1390202/dc-circ-told-ferc-can-t-ok-changes-to-contested-lng-plan. QUOTE: “The Federal Energy Regulatory Commission unlawfully approved design changes to NextDecade’s proposed liquefied natural gas export terminal in South Texas while a fight over the project’s final approval is still playing out in court, project challengers told the D.C. Circuit.” [USCA Case #20-1491]

    “County tables LNG project after community pressure,” Gaige Davila, 05-28-2021, Port Isabel South Padre Press, https://www.portisabelsouthpadre.com/2021/05/28/county-tables-lng-project-after-community-pressure/. [Cameron County TX tabling a Resolution in support of NextDecade’s NEXT Carbon Solutions project, the county where NextDecade’s Rio Grande LNG project is to be built.]

    Stockholders 05-19-2021 class action suit against NextDecade: According to NextDecade’s 05-27-2021 SEC Form DEFA14A, stockholders filed a class action suit against NextDecade in the state of Delaware on 05-19-2021. The stockholders claim that NextDecade illegally withheld information from them needed for them to make informed votes at the annual stockholders meeting that’s to be held on or before 06-31-2021. In the Form DEFA1A, NextDecade denies withholding relevant information and provides additional information on the matter in question to satisfy the stockholders’ complaints. [https://www.sec.gov/Archives/edgar/data/1612720/000143774921013538/0001437749-21-013538-index.htm]

    NextDecade sold its Rio Bravo Pipeline project to Enbridge in February 2020 and ditched its dead in the water Inisfree FSRU and Galveston Bay LNG projects in January 2021 — leaving it with only its behind schedule and undersubscribed Rio Grande LNG project until it created its new NEXT Carbon Solutions project and partnered it with Oxy Low Carbon Ventures, Project Canary, and Mitsubishi Heavy Industries America to make its Rio Grande LNG a net-zero operation.

    NextDecade was incorporated in November 2010 but has yet to put shovel to ground on any of its projects anywhere. It’s Rio Grande LNG project is behind schedule and undersubscribed. What are the chances that now NextDecade will get its Rio Grande LNG and new NEXT Carbon Solutions up and running before it burns up all its money?