NextDecade Stock Has Lagged the Market, so Why Did One Investor Buy Up More?
Key Points
Ripple Effect bought 739,723 shares of NextDecade last quarter, with an estimated transaction value of $4.21 million based on average first-quarter 2026 prices.
The quarter-end position value increased by $7.10 million, reflecting both the additional shares and stock price movement.
The post-trade stake stood at 1,339,723 shares, worth $10.26 million as of March 31, 2026.
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On May 14, 2026, Ripple Effect Asset Management disclosed a first-quarter purchase of 739,723 shares of NextDecade (NASDAQ:NEXT), an estimated $4.21 million trade based on quarterly average pricing.
What happened
In a SEC filing dated May 14, 2026, Ripple Effect Asset Management LP reported buying 739,723 additional shares of NextDecade (NASDAQ:NEXT) during the first quarter. The estimated transaction value was $4.21 million, calculated using the period’s average share price. The fund’s quarter-end position in NextDecade rose to 1,339,723 shares, with the value increasing by $7.10 million due to both the purchase and stock price changes.
What else to know
- Top five holdings after the filing:
- NYSE: XIFR: $26.96 million (18.8% of AUM)
- NYSE: KGS: $26.71 million (18.6% of AUM)
- NYSE: VST: $15.03 million (10.5% of AUM)
- NYSEMKT: IE: $14.66 million (10.2% of AUM)
- NYSE: WMB: $11.79 million (8.2% of AUM)
- As of May 13, 2026, NextDecade shares were priced at $8.54, up 3% over the past year and well underperforming the S&P 500, which is up 28% in the same period.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $2 billion |
| Net income (TTM) | ($354.04 million) |
| Price (as of market close May 13, 2026) | $8.54 |
Company snapshot
- NextDecade develops liquefied natural gas (LNG) export terminals and carbon capture and storage (CCS) projects, with the flagship Rio Grande LNG facility in Texas.
- The firm engages in development, liquefaction, and sale of LNG, and in providing CO2 capture and storage solutions for industrial customers, but reported $0 in LTM revenue as of March 31, 2026.
- It serves international LNG buyers and industrial clients seeking decarbonization, with operations focused on the U.S. Gulf Coast.
NextDecade is an energy infrastructure developer focused on LNG export and carbon capture projects, based in Houston, Texas. The company is active in the U.S. Gulf Coast and focuses on the development of the Rio Grande LNG terminal and CCS projects with third-party industrial facilities.
What this transaction means for investors
Though it’s important to note Ripple Effect also holds some put options for NextDecade, it appears the fund might believe the market hasn’t fully priced in the firm’s potential.
NextDecade's Rio Grande LNG project continues moving steadily toward commercialization. As of March, Trains 1 and 2 were nearly 68% complete, while management said the broader Phase 1 project remains ahead of schedule. CEO Matt Schatzman expects the first gas to enter the facility during the second half of 2026 and the first LNG production in the first half of 2027.
Just as important, NextDecade has already started monetizing future production. Earlier this year, the company signed agreements covering more than 175 TBtu of LNG expected to be delivered in 2027 and 2028. Management said those cargoes are projected to generate margins exceeding $3.00 per one million British Thermal Units (MMBtu), providing an early glimpse of the earnings power the facility could eventually produce.
The longer-term opportunity may be even larger. Trains 1 through 5 are under construction, while the company is advancing development plans for Trains 6 through 8, which could add roughly 18 million tonnes per annum of additional liquefaction capacity. And ultimately, if NextDecade delivers Rio Grande LNG on schedule and secures additional long-term contracts, today's valuation could look very different once the project begins generating meaningful cash flow.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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