NextDecade CorpNEXT

NextDecade Corp Leases Disclosure

10-KFiled Feb 28, 20251 min read
Note 5 — 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 years ended December 31, 2024 and 2023, our operating lease costs were $10.8 million and $6.1 million, respectively.
Maturity of operating lease liabilities as of December 31, 2024 are as follows (in thousands, except lease term and discount rate):
2025$7,608 
20269,522 
20279,565 
20289,609 
20299,654 
Thereafter189,589 
Total undiscounted lease payments235,547 
Discount to present value(88,502)
Present value of lease liabilities$147,045 
Weighted average remaining lease term - years26.8
Weighted average discount rate - percent4.1 
Other information related to our operating leases is as follows (in thousands):
Year Ended December 31,
20242023
Operating cash flows for amounts paid included in the measurement of operating lease liabilities$8,022 $3,122 
Noncash right-of-use assets recorded for new operating lease liabilities during the period— 147,727 

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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