Nextdecade Corporation · NASDAQ:NEXT
Nextdecade — Investor Presentation (May 2021)
34 slides from Nextdecade's investor presentation, May 12, 2021
Slide 1: Corporate Presentation May 2021
Corporate Presentation May 2021
Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements 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
Slide 3: NextDecade is a clean energy company accelerating the path to a net-zero future
NextDecade is a clean energy company accelerating the path to a net-zero future 2
Slide 4: Vision Mission Values
Vision Mission Providing the world access to cleaner energy Delivering sustainable energy solutions by decarbonizing natural gas and accelerating the path to a net-zero future Values Safety Integrity Honesty Respect Transparency Diversity 3
Slide 5: Overview
Overview Nasdaq-listed parent (NASDAQ: NEXT) Rio Grande LNG, LLC is a wholly owned subsidiary of NextDecade LNG, LLC, which itself is a wholly owned subsidiary of NextDecade Corporation that sits in between the Nasdaq- listed entity and the project-level entity. NEXT Carbon Solutions, LLC is a wholl
Slide 6: Investment rationale
Investment rationale Rio Grande LNG and NEXT Carbon Solutions are expected to generate substantial cash flow to NEXT NextDecade signed LSTK EPC contracts with Bechtel Rio Grande LNG Rio Grande LNG Rio Grande LNG NEXT Carbon Total confirming construction costs for Trains 1-3 Trains 1-3 Trains 4-5 Tra
Slide 7: NEXT Carbon Solutions
NEXT Carbon Solutions 6
Slide 8: Committed to reducing global CO2 emissions
Committed to reducing global CO2 emissions On March 18, 2021, NextDecade announced the formation of NEXT Carbon Solutions NEXT Carbon Solutions is: • Developing one of the largest carbon capture and storage (CCS) projects in North America to reduce CO2 emissions at Rio Grande LNG • Advancing proprie
Slide 9: Key advantages for CCS project at Rio Grande LNG
Key advantages for CCS project at Rio Grande LNG 2 Proprietary Lowering the cost of utilizing CCS technology processes Greenfield Simultaneous development of the CCS project and Rio Grande LNG Lower unit costs due to the size of the CCS project at Rio Grande LNG (more Scale than 5 million metric ton
Slide 10: Proprietary CCS feasibility confirmed with significant emissions reduction
Proprietary CCS feasibility confirmed with significant emissions reduction processes The CCS project at Rio Grande LNG is expected to capture and store more than 5 million metric tonnes of CO 2 per year • While other LNG-related CCS projects have focused only on CO2 emissions from gas pre-treatment
Slide 11: Substantial capex savings from greenfield co-development
Substantial capex savings from greenfield co-development Greenfield NextDecade believes that installing CCS as part of a greenfield project is 60-80 percent less capital intensive than retrofitting an operating facility Greenfield • Less ducting, piping, electrical, and steel supports • EPC contract
Slide 12: All-in cost estimate of CCS project at Rio Grande LNG
All-in cost estimate of CCS project at Rio Grande LNG1 Scale $80 • All-in costs of the CCS $74 (High Case) $70 project are expected to be: $60 $63 (Low Case) • $63 to $74 per MT CO2 prior to Section $50 $50 45Q tax credits • $13 to $24 per MT $/MT CO2 $40 CO2 net of Section $30 45Q tax credits $24 (
Slide 13: Estimated incremental carbon costs, U.S. LNG projects
synergy between Rio Grande LNG and NEXT Carbon Solutions Estimated incremental carbon costs, U.S. LNG projects Verifiable emissions • Rio Grande LNG is the only U.S. LNG project offering global customers CO2 emissions reduction via CCS reduction at • NextDecade’s customers benefit from verifiably lo
Slide 14: Post-combustion CO2 capture technology
Post-combustion CO2 capture technology • NextDecade and Mitsubishi Heavy Industries (MHI) signed an engineering services agreement for the design, license, and performance guarantee of post-combustion carbon capture technology • MHI developed the KM CDR Process™ over three decades • MHI has deployed
Slide 15: CO2 transportation and permanent geologic storage
CO2 transportation and permanent geologic storage • NextDecade and Oxy Low Carbon Ventures (OLCV) executed a term sheet for the offtake and permanent geologic storage of CO2 captured from NextDecade’s Rio Grande LNG project • OLCV is a subsidiary of Occidental (NYSE: OXY) and global leader in CO2 ma
Slide 16: Experienced Engineering, Construction, and Operations team
Experienced Engineering, Construction, and Operations team NextDecade’s engineering and construction team is comprised of industry-leading professionals with significant experience working to advance CCS technology and develop some of the world’s leading LNG facilities 2 > 20 years of CCS design, co
Slide 17: Rio Grande LNG
Targeting Proven World-class Abundant Shovel Carbon- 2 Technology 2 Partners 2 Gas Supply 2 Ready 2 Neutrality Rio Grande LNG Artist rendering 16
Slide 18: Strategy
Strategy Overview Our strategy is to develop the largest and greenest LNG export solution linking Permian Basin and Eagle Ford Shale natural gas to the global LNG market Texas Global LNG 2 Producers Customers • Provide natural gas flow assurance by • Provide long-term, reliable LNG • Provide the wor
Slide 19: Rio Grande LNG Overview
Rio Grande LNG Targeting Overview Proven World-class Abundant Shovel Carbon- 2 Technology 2 Partners 2 Gas Supply 2 Ready 2 Neutrality Location Capacity Storage Marine Facilities Technology EPC Pipeline 984-acre site Deepwater port 27 million metric 4 x 180,000m3 full leased from the access with ton
Slide 20: Our commitments to the Rio Grande Valley
Our commitments to the Rio Grande Valley ESG Protect the environment and minimize visual impacts • Expect to be the greenest LNG project in the world with the use of CCS and proprietary processes 2 • Work with sustainable producers seeking to supply responsibly sourced natural gas and help to elimin
Slide 21: EPC Agreements
Project Cost Fully wrapped lump-sum turnkey (LSTK) EPC agreements NextDecade’s LSTK EPC agreements with Bechtel enhance certainty of project execution and feature cost, schedule, and performance guarantees for the first three trains – with no provisional sums • On March 8, 2021, NextDecade and Becht
Slide 22: EPC costs expected to be below $500/ton
synergy between Rio Grande LNG and NEXT Carbon Solutions Project Cost EPC costs expected to be below $500/ton Rio Grande LNG is expected to be the lowest cost per ton greenfield LNG project built on the U.S. Gulf Coast under a LSTK EPC contract Once the CCS project costs are added, Rio Grande LNG is
Slide 23: Permian and Eagle Ford: superior resource and economics
Gas Supply Permian and Eagle Ford: superior resource and economics The State of Texas offers the deepest inventory of economic natural gas resource in the world • 700 Tcf of remaining natural gas resource in the Permian Basin and Eagle Ford Shale combined Permian 600 Tcf Haynesville Marcellus • Asso
Slide 24: Incremental gas supply and demand in Texas
Gas Supply Incremental gas supply and demand in Texas Texas may need upwards of 71 mtpa of incremental LNG export capacity, 38.0 Why LNG? equivalent to 9.3 Bcf/d, to support expected natural gas production growth by 2030 36.0 Supply1 34.0 NEXT High Case • Despite disruption caused NEXT Base Case by
Slide 25: Lowest lifecycle GHG LNG on an FOB basis
synergy between Rio Grande LNG and NEXT Carbon Solutions Gas Supply Lowest lifecycle GHG LNG on an FOB basis Rio Grande LNG Responsibly sourced gas (RSG) must meet certain criteria that have been independently verified: expects to produce the • Reduce CO2 emissions by eliminating routine flaring low
Slide 26: GHG measurement and certification framework
Gas Supply GHG measurement and certification framework • On April 19, 2021, NextDecade and Project Canary announced the formation of a joint pilot project for monitoring, reporting, and independent third-party measurement and certification of the GHG intensity of LNG to be sold from Rio Grande LNG •
Slide 27: LNG pricing indexation offerings
synergy between Rio Grande LNG and NEXT Carbon Solutions LNG Marketing Rio Grande LNG commercial offerings Rio Grande LNG’s ability to offer the Rio Grande LNG offers multiple LNG pricing indexes from the lowest lifecycle GHG LNG on an FOB basis is greenest LNG project in the world, meeting the evol
Slide 28: 2 mtpa, 20-year SPA with Shell
LNG Marketing 2 mtpa, 20-year SPA with Shell On March 28, 2019, NextDecade executed a long-term SPA with Shell • Shell, a recognized pioneer in the global LNG business, is the largest portfolio LNG company in the world • SPA for the supply of 2 mtpa of LNG from NextDecade’s Rio Grande LNG export pro
Slide 29: Reduction in new LNG supply tightens global LNG market
Fundamentals Reduction in new LNG supply tightens global LNG market Supply shortfall is increasingly likely now that projects – including some that have already achieved FID – are being “pushed to the right” due to COVID-19 or other disruptions • Global LNG demand is expected to exceed supply beginn
Slide 30: Global LNG market needs more FIDs
synergy between Rio Grande LNG and NEXT Carbon Solutions Fundamentals Global LNG market needs more FIDs NEXT Carbon Solutions can support Global LNG demand is expected to exceed available supply by at least 83 mtpa by 2025 LNG demand growth by helping other energy companies • From 2000 to 2019, the
Slide 31: What's NEXT
What’s NEXT 30
Slide 32: Sustained momentum to expected FID in 2021
Sustained momentum to expected FID in 2021 2021 Remaining commercial agreements to support FID at Rio Grande LNG 2021 FID on a minimum of two trains at Rio Grande LNG Soon After RGLNG FID on the CCS project at Rio Grande LNG FID 31
Slide 33: Sources of capital
Sources of capital NextDecade has raised more than $350 million to-date 3Q 2018 and October 2014 June 20151 February 20172 July 2017 October 2019 October 2019 March 20214 2Q 20193 $5 million $85 million $25 million $38 million $100 million $15 million $50 million $34.5 million Harmony Merger Corp. P
Slide 34: www.next-decade.com
All) NEXTDECADE RS Taking energy to the NEXT level www.next-decade.com 33