Ripple Effect Asset Management Increases NextDecade Stake Ahead of LNG Milestones
NextDecade shares have underperformed the broader market, yet Ripple Effect Asset Management LP has significantly expanded its position, citing progress on the Rio Grande LNG terminal and secured future contracts.
Ripple Effect Asset Management LP disclosed on May 14, 2026, that it purchased 739,723 shares of NextDecade (NASDAQ:NEXT) during the first quarter, a transaction valued at approximately $4.21 million. The acquisition increased the fund’s total holding to 1,339,723 shares by the end of the quarter. The increase in the position’s value was driven by both the new purchases and fluctuations in the share price, resulting in a total value increase of $7.10 million for the period.
NextDecade, a Houston-based energy infrastructure developer, is currently constructing the Rio Grande LNG terminal and associated carbon capture projects on the U.S. Gulf Coast. As of March 31, 2026, the company reported zero trailing twelve-month revenue. Despite the lack of current earnings, management projects that the first gas will enter the facility in the second half of 2026, with first LNG production expected in the first half of 2027.
Construction progress on the flagship project has been steady. Trains 1 and 2 were nearly 68% complete as of March, with management stating that Phase 1 remains ahead of schedule. The company has also secured agreements for more than 175 TBtu of LNG expected to be delivered in 2027 and 2028. Management indicated that these cargoes are projected to generate margins exceeding $3.00 per MMBtu, providing an early indication of the facility’s potential earnings power.
The longer-term development plans include Trains 1 through 5 currently under construction, with advanced planning for Trains 6 through 8. These additional trains could add roughly 18 million tonnes per annum of liquefaction capacity. Ripple Effect Asset Management also holds put options for NextDecade, suggesting a hedged approach to the stock’s potential volatility.
As of May 13, 2026, NextDecade shares were priced at $8.54. The stock has risen 3% over the past year but significantly underperformed the S&P 500, which gained 28% in the same period. While Ripple Effect appears to believe the market has not fully priced in the firm’s potential, other analysts remain cautious; The Motley Fool’s Stock Advisor analyst team did not include NextDecade in their current list of 10 best stocks to buy.
