Item 1. Financial Statements
Item 1. Financial Statements.
NextDecade Corporation
Consolidated Balance Sheets
(in thousands, except per share data, unaudited)
March 31,
2024 December 31,
2023
Assets
Current assets:
Cash and cash equivalents $ 45,753 $ 38,241
Restricted cash 205,645 256,237
Derivatives 29,327 17,958
Prepaid expenses and other current assets 3,193 2,089
Total current assets 283,918 314,525
Property, plant and equipment, net 3,158,242 2,437,733
Operating lease right-of-use assets 169,504 170,827
Debt issuance costs 371,466 389,695
Derivatives 175,699 —
Other non-current assets 17,054 11,021
Total assets $ 4,175,883 $ 3,323,801
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 175,384 $ 243,129
Accrued and other current liabilities 321,997 299,264
Common stock warrants 5,297 6,851
Operating leases 2,972 3,143
Total current liabilities 505,650 552,387
Common stock warrants — 1,818
Operating leases 145,466 145,962
Derivative liability — 66,899
Debt, net 2,393,730 1,816,301
Total liabilities 3,044,846 2,583,367
Commitments and contingencies (Note 12)
Stockholders’ equity
Common stock, $ 0.0001 par value, 480.0 million authorized: 257.5 million and 256.5 million outstanding, respectively
26 26
Treasury stock: 2.2 million shares and 2.2 million respectively, at cost
( 14,308 ) ( 14,214 )
Preferred stock, $ 0.0001 par value, 0.5 million authorized after designation of the convertible preferred stock: none outstanding
— —
Additional paid-in-capital 897,805 693,883
Accumulated deficit ( 363,426 ) ( 391,772 )
Total stockholders’ equity 520,097 287,923
Non-controlling interest 610,940 452,511
Total equity 1,131,037 740,434
Total liabilities and equity $ 4,175,883 $ 3,323,801
The accompanying notes are an integral part of these unaudited consolidated financial statements.
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NextDecade Corporation
Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
Three Months Ended
March 31,
2024 2023
Revenues $ — $ —
Operating expenses:
General and administrative expense 32,505 26,271
Development expense 2,509 464
Lease expense 3,019 337
Depreciation expense 84 38
Total operating expenses 38,117 27,110
Total operating loss ( 38,117 ) ( 27,110 )
Other income (expense):
Loss on common stock warrant liabilities ( 1,516 ) ( 367 )
Derivative gain 258,872 —
Interest expense, net of capitalized interest ( 25,479 ) —
Loss on debt extinguishment ( 7,440 ) —
Other, net 455 130
Total other income (expense) 224,892 ( 237 )
Net income (loss) attributable to NextDecade Corporation 186,775 ( 27,347 )
Less: net income attributable to non-controlling interest 158,429 —
Less: preferred stock dividends — ( 6,700 )
Net income (loss) attributable to common stockholders $ 28,346 $ ( 34,047 )
Net income (loss) per common share - basic and diluted $ 0.11 $ ( 0.23 )
Weighted average shares outstanding - basic 256,707 146,931
Weighted average shares outstanding - diluted 266,886 146,931
The accompanying notes are an integral part of these unaudited consolidated financial statements.
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NextDecade Corporation
Consolidated Statement of Stockholders’ Equity and Convertible Preferred Stock
(in thousands, unaudited)
Three Months Ended March 31,
2024 2023
Total stockholders' equity, beginning balances $ 740,434 $ 54,371
Common stock:
Beginning balance 26 14
Issuance of common stock — 1
Ending balance 26 15
Treasury Stock:
Beginning balance ( 14,214 ) ( 4,587 )
Shares repurchased related to share-based compensation ( 94 ) ( 47 )
Ending balance ( 14,308 ) ( 4,634 )
Additional paid-in-capital:
Beginning balance 693,883 289,084
Share-based compensation 4,409 1,559
Issuance of common stock, net — 34,999
Receipt of equity commitments 194,627 —
Exercise of common stock warrants 4,886 —
Preferred stock dividends — ( 6,700 )
Ending balance 897,805 318,942
Accumulated deficit:
Beginning balance ( 391,772 ) ( 230,140 )
Net income (loss) 28,346 ( 27,347 )
Ending balance ( 363,426 ) ( 257,487 )
Total stockholders' equity 520,097 56,836
Non-controlling interest:
Beginning balance 452,511 —
Net income 158,429 —
Ending balance 610,940 —
Total equity, ending balances $ 1,131,037 $ 54,371
Preferred Stock, Series A-C:
Beginning balance $ — $ 202,443
Preferred stock dividends — 6,686
Ending balance $ — $ 209,129
The accompanying notes are an integral part of these unaudited consolidated financial statements.
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NextDecade Corporation
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended
March 31,
2024 2023
Operating activities:
Net income (loss) attributable to NextDecade Corporation $ 186,775 $ ( 27,347 )
Adjustment to reconcile net income (loss) to net cash used in operating activities
Depreciation 84 38
Share-based compensation expense 4,439 1,559
Loss on common stock warrant liabilities 1,516 367
Derivative gain ( 258,872 ) —
Derivative settlements 4,905 —
Amortization of right-of-use assets 1,324 258
Loss on extinguishment of debt 7,440 —
Amortization of debt issuance costs 16,388 —
Other 98 —
Changes in operating assets and liabilities:
Prepaid expenses and other current assets ( 1,104 ) ( 421 )
Accounts payable 3,466 815
Operating lease liabilities ( 668 ) ( 290 )
Accrued expenses and other liabilities 5,384 1,836
Net cash used in operating activities ( 28,825 ) ( 23,185 )
Investing activities:
Acquisition of property, plant and equipment ( 774,615 ) ( 21,528 )
Acquisition of other non-current assets ( 6,033 ) ( 1,875 )
Net cash used in investing activities ( 780,648 ) ( 23,403 )
Financing activities:
Proceeds from debt issuance 768,881 —
Receipt of equity commitments 194,627 —
Repayment of debt ( 176,000 ) —
Costs associated with repayment of debt ( 995 ) —
Proceeds from sale of common stock — 35,000
Debt and equity issuance costs ( 20,026 ) —
Preferred stock dividends — ( 13 )
Shares repurchased related to share-based compensation ( 94 ) ( 47 )
Net cash provided by financing activities 766,393 34,940
Net decrease in cash, cash equivalents and restricted cash ( 43,080 ) ( 11,648 )
Cash, cash equivalents and restricted cash – beginning of period 294,478 62,789
Cash, cash equivalents and restricted cash – end of period $ 251,398 $ 51,141
Balance per Consolidated Balance Sheets:
March 31, 2024
Cash and cash equivalents $ 45,753
Restricted cash 205,645
Total cash, cash equivalents and restricted cash $ 251,398
The accompanying notes are an integral part of these unaudited consolidated financial statements.
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NextDecade Corporation
Notes to Consolidated Financial Statements
(unaudited)
Note 1 — Background and Basis of Presentation
NextDecade Corporation, a Delaware corporation, is a Houston-based energy company primarily engaged in construction and development activities related to the liquefaction of natural gas and sale of LNG and the capture and storage of CO 2 emissions. We are constructing a natural gas liquefaction and export facility located in the Rio Grande Valley in Brownsville, Texas (the “Rio Grande LNG Facility”), which currently has three liquefaction trains and related infrastructure under construction. The Rio Grande LNG Facility has received Federal Energy Regulatory Commission ("FERC") approval and Department of Energy ("DOE") FTA and non-FTA authorizations for the construction of five liquefaction trains and LNG exports totaling 27 million tonnes per annum ("MTPA"). Liquefaction trains 1 through 3 and related infrastructure are currently under construction and liquefaction trains 4 and 5 at the Rio Grande LNG Facility are currently in development. We are also developing a planned carbon capture and storage ("CCS") project at the Rio Grande LNG Facility and other potential CCS projects that would be located at third-party industrial facilities.
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023. In our opinion, all adjustments, consisting only of normal recurring items, which are considered necessary for a fair presentation of the unaudited consolidated financial statements, have been included. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the operating results for the full year.
Certain reclassifications have been made to conform prior period information to the current presentation. The reclassifications did not have a material effect on the Company's financial position, results of operations or cash flows.
The Company has incurred operating losses since its inception and management expects operating losses and negative cash flows to continue until the commencement of operations at the Rio Grande LNG Facility and, as a result, the Company will require additional capital to fund its operations and execute its business plan. As of March 31, 2024, the Company had $ 45.8 million in cash and cash equivalents and available commitments of $ 26.2 million under a revolving loan facility, which may not be sufficient to fund the Company's planned operations and development activities for future phases of the Rio Grande LNG Facility, including expected pre-FID spending for Train 4, and CCS projects through one year after the date the consolidated financial statements are issued. Accordingly, there is substantial doubt about the Company's ability to continue as a going concern. The analysis used to determine the Company's ability to continue as a going concern does not include cash sources outside of the Company's direct control that management expects to be available within the next twelve months.
The Company plans to alleviate the going concern issue by obtaining sufficient funding through additional equity, equity-based or debt instruments or any other means and by managing certain operating and overhead costs. The Company's ability to raise additional capital in the equity and debt markets, should the Company choose to do so, is dependent on a number of factors, including, but not limited to, the market demand for the Company's equity or debt securities, which itself is subject to a number of business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are satisfactory to the Company. In the event the Company is unable to obtain sufficient additional funding, there can be no assurance that it will be able to continue as a going concern.
These consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary in the event the Company can no longer continue as a going concern.
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Note 2 — Property, Plant and Equipment
Property, plant and equipment consisted of the following (in thousands):
March 31,
2024 December 31,
2023
Rio Grande LNG Facility under construction $ 3,150,790 $ 2,431,389
Corporate and other 7,711 7,518
Total property, plant and equipment, at cost 3,158,501 $ 2,438,907
Less: accumulated depreciation ( 259 ) ( 1,174 )
Total property, plant and equipment, net $ 3,158,242 $ 2,437,733
Note 3 — Derivatives
In July 2023, Rio Grande entered into interest rate swaps agreements (the “Swaps”) to protect against interest rate volatility by hedging a portion of the floating-rate interest payments associated with the credit facilities described in Note 6 — Debt . As of March 31, 2024, Rio Grande has the following Swaps outstanding (in thousands):
Initial Notional Amount Maximum Notional Amount Maturity (1)
Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received
$ 123,000 $ 8,500,000 2048 3.4 % USD - SOFR
(1) Swaps have an early mandatory termination date in July 2030.
The Company values the Swaps using an income-based approach based on observable inputs to the valuation model including interest rate curves, risk adjusted discount rates, credit spreads and other relevant data. The fair value of the Swaps is approximately $ 205.0 million as of March 31, 2024, and is classified as Level 2 in the fair value hierarchy.
Note 4 — Leases
The Company commenced the Rio Grande LNG Facility site lease on July 12, 2023 and it has an initial term of 30 years. The Company has the option to renew and extend the term of the lease for up to two consecutive renewal periods of ten years each, but as the Company is not reasonably certain that those options will be exercised, none are recognized as part of our right of use assets and lease liabilities. The Company has also entered into an office space lease which expires on December 31, 2035, and does not include any options for renewal.
For the three months ended March 31, 2024 and 2023, our operating lease costs were $ 3.0 million and $ 0.3 million, respectively.
Maturity of operating lease liabilities as of March 31, 2024 are as follows (in thousands, except lease term and discount rate):
2024 (remaining) $ 5,568
2025 7,610
2026 9,522
2027 9,565
2028 9,609
Thereafter 199,241
Total undiscounted lease payments 241,115
Discount to present value ( 92,676 )
Present value of lease liabilities $ 148,438
Weighted average remaining lease term - years 27.6
Weighted average discount rate - percent 4.0
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Other information related to our operating leases is as follows (in thousands):
Three Months Ended March 31,
2024 2023
Operating cash flows for amounts paid included in the measurement of operating lease liabilities $ 2,143 $ 290
Note 5 — Accrued Liabilities and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
March 31,
2024 December 31,
2023
Rio Grande LNG Facility costs $ 270,393 $ 268,821
Accrued interest 44,716 20,392
Employee compensation expense 2,944 9,270
Other accrued liabilities 3,944 781
Total accrued and other current liabilities $ 321,997 $ 299,264
Note 6 — Debt
Debt consisted of the following (in thousands):
March 31, 2024 December 31, 2023
Senior Secured Notes and Loans:
6.67 % Senior Secured Notes due 2033
$ 700,000 $ 700,000
6.72 % Senior Secured Loans due 2033
356,000 356,000
7.11 % Senior Secured Loans due 2047
251,000 251,000
6.85 % Senior Secured Notes due 2047
190,000 —
Total Senior Secured Notes and Loans 1,497,000 1,307,000
Credit Facilities:
CD Senior Working Capital Facility — —
CD Credit Facility 817,000 484,000
TCF Credit Facility 102,000 59,000
Corporate Credit Facility 26,881 —
Total debt 2,442,881 1,850,000
Unamortized debt issuance costs ( 49,151 ) ( 33,699 )
Total debt, net $ 2,393,730 $ 1,816,301
Senior Secured Notes and Loans
The 6.67 % Senior Secured Notes and 6.85 % Senior Secured Notes (collectively, the “Senior Secured Notes”) as well as the 6.72 % Senior Secured Loans and 7.11 % Senior Secured Loans (collectively, the “Senior Secured Loans”) are senior secured obligations of Rio Grande, ranking senior in right of payment to any and all of Rio Grande’s future indebtedness that is subordinated to the Senior Secured Notes and the Senior Secured Loans, and equal in right of payment with Rio Grande’s other existing and future indebtedness that is senior and secured by the same collateral securing the Senior Secured Notes and Senior Secured Loans. The Senior Secured Notes and Senior Secured Loans are secured on a first-priority basis by a security interest in all of the membership interests in Rio Grande and substantially all of Rio Grande’s assets, on a pari passu basis with the CD Credit Agreement and the TCF Credit Facility.
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Credit Facilities
Below is a summary of our committed credit facilities outstanding as of March 31, 2024 (in thousands):
CD Senior Working Capital Facility CD Credit Facility TCF Credit Facility Corporate Credit
Facility
Total Facility Size $ 500,000 $ 9,554,000 $ 800,000 $ 62,500
Less:
Outstanding balance — 817,000 102,000 26,881
Letters of credit issued 120,625 — — —
Available commitment $ 379,375 $ 8,737,000 $ 698,000 $ 35,619
Priority ranking Senior secured Senior secured Senior secured Senior secured
Interest rate on outstanding balance SOFR + 2.25 %
SOFR + 2.25 %
SOFR + 2.25 %
SOFR + 4.50 %
Commitment fees on undrawn balance 0.68 % 0.68 % 0.68 % 1.35 %
Maturity Date 2030 2030 2030 2026
The obligations of Rio Grande under the CD Senior Working Capital Facility and CD Credit Facility are secured by substantially all of the assets of Rio Grande as well as a pledge of all of the membership interests in Rio Grande on a first-priority, pari passu basis with the Senior Secured Notes, the Senior Secured Loans and the loans made under the TCF Credit Facility.
The obligations of Rio Grande under the TCF Credit Agreement are secured by substantially all of the assets of Rio Grande as well as a pledge of all of the membership interests in Rio Grande on a first-priority, pari passu basis with the Senior Secured Notes, the Senior Secured Loans and the loans made under the CD Credit Agreement. Total Energies Holdings SAS (“Total Holdings”) provides contingent credit support to the lenders under the TCF Credit Agreement to pay past due amounts owing from Rio Grande under the agreement upon demand.
The obligations of NextDecade LLC under the Corporate Credit Facility are guaranteed by Rio Grande LNG Super Holdings, LLC, a wholly owned subsidiary of NextDecade LLC, and Rio Grande LNG Intermediate Super Holdings, LLC, a partially owned subsidiary of NextDecade LLC. The Corporate Credit Facility matures at the earlier of two years from the closing date or 10 business days after a positive Final Investment Decision (FID) on Train 4 at the Rio Grande LNG facility.
Restrictive Debt Covenants
The CD Credit Facility and the TCF Credit Facility (collectively, the “Rio Grande Facilities”) include certain covenants and events of default that are supplemental to the covenants and events of default set forth in the P1 Common Terms Agreement and that are customary for project financing facilities of this type, including a requirement that interest rates for a minimum of 75 % of the projected principal amount of Senior Secured Debt outstanding be hedged or have fixed interest rates. In addition, certain covenants and events of default in the Rio Grande Facilities are more restrictive than the corresponding covenants and events of default in the P1 Common Terms Agreement, including covenants limiting Rio Grande’s ability to incur additional indebtedness, make certain investments or pay dividends (which are subject to customary conditions set out in the Facilities and certain related financing documents) or distributions on equity interests or subordinated indebtedness or purchase, redeem, or retire equity interests, sell or transfer assets, incur liens, dissolve, liquidate, consolidate, merge, sell, or lease all or substantially all of Rio Grande’s assets or enter into certain LNG sales contracts. The Rio Grande Facilities include a requirement for Rio Grande to maintain a historical debt service coverage ratio of at least 1.10 :1.00 at the end of each fiscal quarter starting from the Initial Principal Payment Date, a default of which may be cured with equity contributions.
The Senior Secured Notes also contain customary terms and events of default and certain covenants that, among other things, limit Rio Grande’s ability to incur additional indebtedness, make certain investments or pay dividends or distributions on equity interests or subordinated indebtedness or purchase, redeem, or retire equity interests, sell or transfer assets, incur liens, dissolve, liquidate, consolidate, merge, or sell or lease all or substantially all of Rio Grande’s assets. The Senior Secured Notes further require Rio Grande to submit certain reports and information to the trustee and holders of the Senior Secured Notes, maintain certain LNG offtake agreements, and maintain a debt service coverage ratio of at least 1.10 :1.00 at the end of each fiscal quarter starting from the Initial Principal Payment Date. With respect to certain events,
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including a change of control event and receipt of certain proceeds from asset sales, events of loss or liquidated damages, the indenture governing the Senior Secured Notes requires Rio Grande to make an offer to repurchase the Senior Secured Notes at 101 % (with respect to a change of control event) or par (with respect to each other event), in each case on the terms specified in the Indenture. The Senior Secured Notes covenants are subject to a number of important limitations and exceptions, including the terms and covenants contained in the P1 Common Terms Agreement.
The Senior Secured Loan Agreement contains customary terms and events of default and certain covenants that, among other things, limit Rio Grande’s ability to incur additional indebtedness, make certain investments or pay dividends or distributions on equity interests or subordinated indebtedness or purchase, redeem, or retire equity interests, sell or transfer assets, incur liens, dissolve, liquidate, consolidate, merge, or sell or lease all or substantially all of Rio Grande’s assets. The Senior Secured Loan Agreement further requires Rio Grande to submit certain reports and information to the Administrative Agent and the lenders, maintain certain LNG offtake agreements, and maintain a debt service coverage ratio of at least 1.10 :1.00 at the end of each fiscal quarter starting from the first quarterly payment date to occur on or after the date that is ninety days following the project completion date. With respect to certain events, including a change of control event and receipt of certain proceeds from asset sales, events of loss or liquidated damages, the Senior Secured Loan Agreement requires Rio Grande to make an offer to the lenders to have their Senior Secured Loans prepaid at 101 % (with respect to a change of control event) or par (with respect to each other event), in each case, on the terms specified in the Senior Secured Loan Agreement. The Senior Secured Loan Agreement covenants are subject to a number of important limitations and exceptions, including the terms and covenants contained in the P1 Common Terms Agreement.
As of March 31, 2024, the Company was in compliance with all covenants related to its respective debt agreements.
Debt Extinguishment
During the three months ended March 31, 2024, Rio Grande repaid $ 176.0 million of the outstanding principal balance of the CD Credit Facility. As a result of the repayment, Rio Grande recognized an approximate $ 7.4 million loss on extinguishment.
Debt Maturities
Principal Payments
2024 - 2025 $ —
2026 26,881
2027 - 2028 —
Thereafter 2,416,000
Total $ 2,442,881
Interest Expense
Total interest expense, net of capitalized interest, consisted of the following (in thousands):
Three Months Ended
March 31,
2024 2023
Interest per contractual rate $ 36,591 $ —
Amortization of debt issuance costs 16,388 —
Other interest costs 551 —
Total interest cost 53,530 —
Capitalized interest ( 28,051 ) —
Total interest expense, net of capitalized interest $ 25,479 $ —
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Fair Value Disclosures
The following table shows the carrying amount and estimated fair value of our debt (in thousands):
March 31, 2024 December 31, 2023
Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value
Senior Notes - Level 2 $ 890,000 $ 912,108 $ 700,000 $ 743,593
Senior Loans - Level 2 607,000 621,969 607,000 632,998
The fair value of the Senior Secured Notes and Senior Secured Loans was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including interest rates on debt issued by parties with comparable credit ratings.
The fair value of the CD Credit Facility, TCF Credit Facility and Corporate Credit Facility approximates its respective carrying amount due to its variable interest rate, which approximates a market interest rate.
Note 7 – Common Stock Warrants
The Company issued warrants exercisable to purchase Company common stock in connection with its issuances of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock (collectively, the “Common Stock Warrants”). The Company revalues the Common Stock Warrants at each balance sheet date and recognized a loss of $ 1.5 million and a loss of $ 0.4 million during the three months ended March 31, 2024 and 2023, respectively. The Common Stock Warrant liabilities are included in Level 3 of the fair value hierarchy.
The assumptions used in the Monte Carlo simulation model to estimate the fair value of the Common Stock Warrants are as follows:
March 31,
2024 December 31,
2023
Stock price $ 5.68 $ 4.77
Exercise price $ 0.01 $ 0.01
Risk-free rate 5.1 % 4.7 %
Volatility 68.3 % 78.4 %
Weighted average term (years) 0.5 0.5
Note 8 — Variable Interest Entity
Intermediate Holdings and its wholly owned subsidiaries, including Rio Grande, have been formed to undertake Phase 1 of the construction and operation of the Rio Grande LNG Facility. The Company is not obligated to fund losses of Intermediate Holdings, however, the Company's capital account, which would be considered in allocating the net assets of Intermediate Holdings were it to be liquidated, continues to share in losses of Intermediate Holdings. Further, Rio Grande has granted the Company decision-making rights regarding the construction of Phase 1 of the Rio Grande LNG Facility and key aspects of its operation, which may only be terminated by equity holders for cause, via agreements with NextDecade LLC. Due to the foregoing, the Company determined that it holds a variable interest in Rio Grande through Intermediate Holdings and is its primary beneficiary, and therefore consolidates Intermediate Holdings in these Consolidated Financial Statements.
The following table presents the summarized assets and liabilities (in thousands) of Intermediate Holdings, which are included in the Company's Consolidated Balance Sheets. The assets in the table below may only be used to settle the obligations of Intermediate Holdings. In addition, there is no recourse to us for the consolidated VIE’s liabilities. The assets and liabilities in the table below include assets and liabilities of Intermediate Holdings only and exclude intercompany
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balances between Intermediate Holdings and NextDecade, which are eliminated in the Consolidated Financial Statements of NextDecade.
March 31,
2024 December 31,
2023
Assets
Current assets
Cash $ 205,644 $ 256,237
Derivatives 29,327 17,958
Prepaid expenses and other current assets 77 108
Total current assets 235,048 274,303
Property, plant and equipment, net 3,147,946 2,428,583
Operating lease right-of-use assets, net 156,218 157,053
Debt issuance costs 370,064 389,695
Derivatives 175,699 —
Other non-current assets 15,407 9,374
Total assets $ 4,100,382 $ 3,259,008
Liabilities
Current liabilities
Accounts payable $ 171,667 $ 238,582
Accrued liabilities and other current liabilities 314,464 288,779
Operating lease 2,577 2,554
Total current liabilities 488,708 529,915
Operating lease 131,248 131,901
Non-current derivative liability — 66,899
Debt, net 2,368,124 1,816,301
Total liabilities $ 2,988,080 $ 2,545,016
Note 9 — Net Loss Per Share
Potentially dilutive securities not included in the diluted net income (loss) per share computations because their effect would have been anti-dilutive were as follows (in thousands):
Three Months Ended
March 31,
2024 2023
Unvested stock and stock units (1)
— 2,053
Convertible preferred stock — 52,622
Common Stock Warrants — 1,380
Total potentially dilutive common shares — 56,055
____________________________
(1) Includes the impact of unvested shares containing performance conditions to the extent that the underlying performance conditions are satisfied based on actual results as of the respective dates.
Note 10 — Share-based Compensation
We have granted shares of Company common stock, restricted Company common stock and restricted stock units to employees, consultants and non-employee directors under our 2017 Omnibus Incentive Plan, as amended (the “2017 Plan”).
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Total share-based compensation expense consisted of the following (in thousands):
Three Months Ended
March 31,
2024 2023
Equity awards $ 4,409 $ 1,559
Liability awards 30 —
Total share-based compensation expense $ 4,439 $ 1,559
Note 11 — Income Taxes
Due to our cumulative loss position, we have established a full valuation allowance against our deferred tax assets at March 31, 2024 and December 31, 2023. Due to our full valuation allowance, we have not recorded a provision for federal or state income taxes during either of the three months ended March 31, 2024 or 2023.
Note 12 — Commitments and Contingencies
Legal Proceedings
From time to time the Company may be subject to various claims and legal actions that arise in the ordinary course of business. As of March 31, 2024, management is not aware of any claims or legal actions that, separately or in the aggregate, are likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows, although the Company cannot guarantee that a material adverse effect will not occur.
Note 13 — Supplemental Cash Flows
The following table provides supplemental disclosure of cash flow information (in thousands):
Three Months Ended
March 31,
2024 2023
Accounts payable for acquisition of property, plant and equipment $ 166,893 $ 72
Accruals for acquisition of property, plant and equipment $ 270,393 $ 15,826
Non-cash settlement of warrant liabilities $ 4,886 $ —
Corporate fixed asset retirements $ 1,000 $ —
Accrued liabilities for acquisition of other non-current assets $ — $ 140
Non-cash settlement of paid-in-kind dividends on convertible preferred stock $ — $ 6,686
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