Note 3 - Sale of Equity Interests in Rio Bravo

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Note 3 — Sale of Equity Interests in Rio Bravo

On March 2, 2020, NextDecade LLC closed the sale of the equity interests (the “Equity Interests”) in Rio Bravo Pipeline Company, LLC (“Rio Bravo”) to Spectra Energy Transmission II, LLC, a wholly owned subsidiary of Enbridge Inc. (“Buyer”), for consideration of approximately $19.4 million.

If Rio Grande or its affiliate failed to issue a full notice to proceed to the Bechtel Energy, Inc. (“Bechtel”) under the EPC agreements for Phase 1 on or prior to December 31, 2024, Buyer had the right to sell the Equity Interests back to NextDecade LLC and NextDecade LLC had the right to repurchase the Equity Interests from Buyer. Rio Grande issued a full notice to proceed to Bechtel on July 12, 2023.  Accordingly, the assets of Rio Bravo have been de-recognized in the consolidated balance sheet at September 30, 2023.

Buyer paid $15.0 million of the purchase price to NextDecade LLC at the closing of the transaction and the remainder of approximately $4.4 million was paid in July 2023 upon Rio Grande’s issuance of the full notice to proceed to Bechtel.