10 Best Oil and Gas Penny Stocks To Buy

06. NextDecade Corporation (NASDAQ:NEXT)

Number of Hedge Fund Holders: 21

Share Price: $4.80

NextDecade Corporation (NASDAQ:NEXT) is a Houston, Texas-based energy company specializing in the development and construction of liquefaction facilities for natural gas in the United States. The company’s flagship project is the Rio Grande LNG terminal located in the Port of Brownsville, Texas, which is being developed alongside a comprehensive carbon capture and storage (CCS) project. The company’s strategic focus on both LNG production and carbon emission reductions reflects a broader industry shift towards cleaner energy solutions.

NextDecade Corporation (NASDAQ:NEXT) has made significant strides in securing long-term partnerships, as evidenced by the recent signing of multiple agreements. In May 2024, the company inked a 20-year LNG Sale and Purchase Agreement (SPA) with ADNOC, which will purchase 1.9 million tons per annum (MTPA) of LNG from Train 4 at the Rio Grande facility. The deal, priced at Henry Hub index rates, is contingent on a positive Final Investment Decision (FID) for Train 4. Further enhancing its project pipeline, NextDecade signed a Heads of Agreement (HoA) with Aramco in June 2024 for an additional 1.2 MTPA of LNG over a similar 20-year period. The agreement is expected to be finalized into a binding SPA following a successful FID.

In terms of financial performance, the company is well-positioned, supported by robust capital arrangements. In early 2024, NextDecade Corporation (NASDAQ:NEXT) secured a $50 million senior secured revolving credit facility through its subsidiary NextDecade LLC, which will support Train 4 development at Rio Grande. Additionally, Rio Grande issued $1.115 billion in senior secured notes in June 2024 to refinance existing commitments, lowering overall costs and extending the amortization schedule. These notes, bearing a fixed interest rate of 6.58%, will mature in 2047.

As of Q2 2024, 21 hedge funds hold positions in NextDecade Corporation (NASDAQ:NEXT), up from 17 in the previous quarter, signaling increased institutional interest in the stock. With strategic partnerships, strengthened financial standing, and growing institutional support, NextDecade Corporation (NASDAQ:NEXT) is poised for long-term growth and remains an attractive investment in the energy sector’s transition to sustainable practices.