Bardin Hill Investment Partners LP has significantly increased its holdings in NextDecade Corp. (NASDAQ:NEXT). According to a recent SEC filing, Bardin Hill acquired a total of 334,012 shares of NextDecade's common stock over three consecutive days. These purchases took place on November 13, 14, and 15, 2024.
The acquisition was made through multiple transactions, with shares purchased at prices ranging from $6.985 to $7.45. Following these transactions, Bardin Hill now holds a total of 8,917,873 shares in NextDecade.
Bardin Hill's increased stake in the liquefied natural gas company reflects its continued interest in the energy and transportation sector. This move aligns with Bardin Hill's strategy, as the firm serves as a director by deputization on NextDecade's board.
In other recent news, NextDecade Corporation has been making substantial progress on its Rio Grande LNG project. The company has announced a consistent advancement in the construction of Phase 1, with overall project completion for Trains 1 and 2 reaching 30.5%. Furthermore, NextDecade has secured a hefty $4.3 billion contract with Bechtel Energy for the addition of a fourth liquefaction train at the facility, expected to significantly enhance its liquefaction capabilities.
The company has also seen changes in its leadership, with the appointment of Tarik Skeik as Chief Operating Officer and Arnaud Lenail-Chouteau, a seasoned professional from TotalEnergies (EPA:TTEF), as a Class A director. On the analyst front, Stifel maintains a Buy rating for NextDecade, while TD Cowen retains a Hold rating.
In commercial developments, the company has entered into an LNG sales and purchase agreement with ADNOC and a heads of agreement with Aramco (TADAWUL:2222) for Train 4. However, NextDecade has withdrawn its application for a carbon capture and storage (CCS) project at the Rio Grande LNG facility due to insufficient development, while reaffirming its commitment to advancing CCS technology. These are recent developments in the company's operations.
InvestingPro Insights
Bardin Hill's increased stake in NextDecade Corp. (NASDAQ:NEXT) comes at a time when the company's stock has shown strong performance, with InvestingPro data revealing a 33.7% price return over the past month and an impressive 50.31% return over the last three months. This recent surge has brought the stock to 85.21% of its 52-week high, potentially reflecting growing investor confidence in the liquefied natural gas sector.
However, investors should be aware of some challenges facing NextDecade. InvestingPro Tips highlight that the company is quickly burning through cash and operates with a significant debt burden. These factors may explain why analysts do not anticipate the company will be profitable this year, with a negative adjusted operating income of $158.95 million for the last twelve months as of Q3 2023.
Despite these financial hurdles, the market seems optimistic about NextDecade's prospects. The company's market capitalization stands at $1.89 billion, and analysts have set a fair value target of $10 per share, suggesting potential upside from the previous closing price of $7.27.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for NextDecade, providing a more comprehensive view of the company's financial health and market position.
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