NextDecade Corp. (NEXT)·Q2 2017 Earnings Summary

Executive Summary

• No 8-K 2.02 earnings press release or earnings call transcript was filed for Q2 2017; financials are from the Q2 10-Q and show a typical SPAC stage: zero revenue, modest operating expenses, and a small net loss as Harmony Merger Corp. completed its business combination with NextDecade on July 24, 2017 .
• Key strategic milestones this quarter and around the reporting date: appointed Société Générale and Macquarie Capital as financing advisors (May 2) , selected GE Oil & Gas as exclusive supplier and shareholder (Apr 25) , and closed the merger to become NextDecade Corporation (Jul 24) .
• Management reiterated project timing: expects full regulatory approvals and to commence construction in 2018 with commercial operations targeted for 2022; a $150M pre‑FID bridge financing term sheet was negotiated to fund development activities .
• Liquidity remained robust given the pre‑revenue stage: $113.9M held in the Trust Account at 6/30/17; after closing, ~7.85M public shares were redeemed for ~$81.35M, with ~$26.77M released for working capital and ~$5.87M for transaction costs .

What Went Well and What Went Wrong

• What Went Well

  • Financing runway and syndication positioning: Appointed Société Générale and Macquarie Capital as joint financial advisors for anticipated debt and equity financing of Rio Grande LNG and Rio Bravo Pipeline .
  • Strategic technology partner with capital alignment: GE Oil & Gas named exclusive supplier of gas turbines and compressors and took equity, with rights to invest at FID; bundled LT service and performance guarantees lower execution risk .
  • Corporate milestone achieved: Business combination closed; trading as NEXT on NASDAQ, enhancing capital markets access and investor visibility .

• What Went Wrong

  • No operating revenue; results reflect SPAC stage with expenses outpacing interest income, producing a net loss of $(0.11) million for Q2 2017 .
  • Administrative and professional costs ticked up vs. prior year; Q2 operating loss grew to $(0.31) million vs. $(0.12) million in Q2 2016 given higher public company and professional fees .
  • Shareholder redemptions at closing reduced cash from Trust by ~$81.35M, tightening the post‑close cash cushion (though ~$26.77M was released for working capital) .

Financial Results

Income statement snapshot (USD):

Liquidity and capital (period-end):

Post‑close capital flows (dated July 24, 2017):

• Public share redemptions: 7,853,996 shares at ~$10.36 = ~$81.35M .
• From remaining Trust: ~$5.87M transaction expenses; ~$26.77M released to company for working capital .

Segment breakdown: Not applicable (development-stage; no operating segments with revenue) .

KPIs (project development)

• Regulatory path: anticipates full authorizations in 2018 .
• Commercial and execution readiness: GE equipment selection; financing advisors mandated; $150M pre‑FID bridge term sheet negotiated .

Guidance Changes

Earnings Call Themes & Trends

(No earnings call transcript was filed for Q2 2017.)

Management Commentary

• “NextDecade is delighted to welcome GE Oil & Gas as both a shareholder and exclusive supplier to its Rio Grande LNG and Rio Bravo Pipeline projects… [GE] will add significant value as we work to make Rio Grande LNG one of the most competitive liquefaction projects in the world.” — Kathleen Eisbrenner, CEO .
• “Today marks an important milestone for NextDecade. As a public company, NextDecade will be able to better serve its stakeholders and realize its goal of providing competitively‑priced LNG to the global marketplace.” — Kathleen Eisbrenner, CEO (on merger close) .

Q&A Highlights

No Q2 2017 earnings call transcript or Q&A was filed or available in company documents during the period reviewed [List: earnings-call-transcript not found].

Estimates Context

• Wall Street consensus EPS and revenue estimates for Q2 2017 were not available via S&P Global for this SPAC-to-operator transition period; we attempted retrieval and no usable estimates were returned (SPGI rate-limited) [GetEstimates error]. Where applicable, results should be interpreted vs. a “no estimate” baseline given the development stage and absence of operating revenue.

Key Takeaways for Investors

• The story is execution and permitting, not quarterly P&L: zero revenue and small losses are typical; focus on 2018 approvals/FID and 2022 operations targets .
• Strategic partners in place: GE provides critical turbomachinery, services, and aligned capital; advisors (Société Générale, Macquarie) bolster financing readiness for project‑level debt/equity .
• Liquidity is adequate for development; post‑close, redemptions reduced gross Trust cash, but ~$26.8M was released for working capital to fund near‑term milestones .
• Near‑term catalysts: FERC process progression and environmental authorizations in 2018; pre‑FID financing bridge execution; EPC and offtake milestones underpinning FID .
• Risk frame: regulatory timing, offtake contracting, financing market conditions, and construction execution remain key variables (as acknowledged in filings) .
• Investment implication: shares are levered to milestone delivery; news on permits, offtake/EPC, and financing will likely drive stock reaction more than reported quarterly losses in this stage .

Sources

• Q2 2017 Form 10‑Q (filed Aug 9, 2017): financials, liquidity, MD&A .
• 8‑K (Jul 28, 2017): Business combination completion, redemptions, funds released .
• Press release (Jul 24, 2017): Business combination close, 2018 approvals/FID expectation .
• Press release (May 2, 2017): Appointed Société Générale and Macquarie .
• Press release (Apr 25, 2017): GE Oil & Gas exclusive supplier and equity investor .
• Q1 2017 Form 10‑Q: prior‑quarter P&L and DEIS timeline .
• Q2 2016 Form 10‑Q: prior‑year comparables .
• Dividend policy disclosure .