NextDecade Corporation (NEXT): A Bull Case Theory

We came crossed a bullish thesis on NextDecade Corporation connected Nishant Chandra’s Substack. In this article, we volition summarize the bulls’ thesis connected NEXT. NextDecade Corporation's stock was trading astatine $5.25 arsenic of January 13th. NEXT’s trailing P/E was 40.83 according to Yahoo Finance.

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NextDecade (NEXT) is uniquely positioned to capitalize connected Europe’s imperishable exit from Russian earthy gas, a displacement driven by Brussels’ propulsion for “energy sovereignty” and expected to afloat instrumentality effect by the extremity of 2027.

As Russian pipeline and LNG supplies are phased out, European markets look dramatically higher vigor costs, creating a important arbitrage accidental for producers similar NEXT. The company’s Rio Grande LNG task successful South Texas is perfectly timed to commencement operations conscionable arsenic Russian state disappears from the continent, providing an contiguous foothold successful a highly lucrative market. Major vigor players TotalEnergies and Exxon person already secured astir of the project’s output, with pricing tied straight to European state hubs, ensuring strong, predictable currency flows.

With a marketplace capitalization of lone $500 cardinal today, NEXT is connected way to make $2–3 cardinal successful yearly currency travel wrong 5 years, highlighting an bonzer upside imaginable for investors consenting to tolerate volatility. The operation of timing, contractual security, and a marketplace supply-demand imbalance positions NEXT arsenic a imaginable 5–10x maturation communicative implicit the coming decade.

While headlines absorption connected Europe’s vigor situation and the governmental theatre surrounding sanctions connected Russia, NEXT is softly poised to payment from a structural displacement that volition spot Europe wage importantly higher prices portion the institution captures overmuch of the margin. For investors, this represents not conscionable vulnerability to a booming LNG market, but a uncommon accidental to enactment successful a transformational vigor play with exceptional risk-reward characteristics.

Previously we covered a bullish thesis connected Golar LNG Limited (GLNG) by Value Science successful February 2025, which highlighted the company’s imaginable upside from commodity-linked tariffs, newbuild MkII vessels, and securing cardinal contracts with YPF. The company's banal terms has depreciated by astir 2.65% since our coverage. This is due to the fact that the thesis didn’t afloat play retired successful the abbreviated word owed to timing and marketplace volatility. Nishant Chandra shares a akin bullish outlook connected NextDecade Corporation (NEXT) but emphasizes timing its Rio Grande LNG task to seizure Europe’s exit from Russian gas, creating a unsocial structural maturation opportunity.