Note 11 - Variable Interest Entity

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Variable Interest Entity Disclosure [Text Block]

Note 11 — Variable Interest Entity

The Company consolidates Variable Interest Entities ("VIEs") where it has been determined that the Company is the primary beneficiary of the applicable entities’ operations. For each VIE, the primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to such VIE. In evaluating whether the Company is the primary beneficiary of each entity, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of each entity and the risks each entity was designed to create and pass through to its respective variable interest holders. The Company also evaluates its economic interests in each of the VIEs.

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 Rio Grande, however, the Company's capital account, which would be considered in allocating the net assets of Rio Grande were it to be liquidated, continues to share in losses of Rio Grande. 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 and is its primary beneficiary and therefore consolidates Rio Grande in these Consolidated Financial Statements.

The following table presents the summarized assets and liabilities (in thousands) of Rio Grande, 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 Rio Grande. 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 Rio Grande only and exclude intercompany balances between Rio Grande and NextDecade, which are eliminated in the Consolidated Financial Statements of NextDecade.

	September 30,		December 31,
	2023		2022
Assets
Current assets
Cash	$	395,012	$	—
Current derivative asset		21,047		—
Prepaid expenses and other current assets		188		24
Total current assets		416,247		24
Property, plant and equipment, net		1,707,530		194,289
Operating lease right-of-use assets, net		157,883		—
Debt issuance costs, net of amortization		401,668		—
Non-current derivative assets		130,609		—
Other non-current assets		9,374		28,187
Total assets	$	2,823,311	$	222,500
Liabilities
Current liabilities
Accounts payable	$	320,277	$	108
Accrued liabilities and other current liabilities		204,304		15,457
Current operating lease liabilities		2,531		—
Total current liabilities		527,112		15,565
Non-current operating lease liabilities		132,549		—
Non-current debt, net of unamortized debt issuance costs		1,381,825		—
Total liabilities	$	2,041,486	$	15,565