NextDecade secures permit for Rio Grande LNG Train 6 expansion. USACE authorized the Rio Grande LNG Train 6 expansion, while NextDecade maintains its 2027 investment target. The U.S. company NextDecade obtained a permit from the U.S. Army Corps of Engineers (USACE) to proceed with the expansion of Rio Grande LNG Train 6, located in Texas. This authorization represents a new regulatory step for the project and allows the company to maintain its goal of reaching a Final Investment Decision during the second half of 2027. With this approval, NextDecade continues to develop its plans to increase liquefied natural gas (LNG) production capacity and strengthen U.S. infrastructure aimed at supplying international markets. Train 6 permit nears new Investment Decision. The authorization granted by USACE constitutes a step forward for the development of the sixth Rio Grande LNG liquefaction train. This facility is part of NextDecade's expansion plans to increase its liquefied natural gas processing and export capacity. Following receipt of the permit, the company maintains its forecast to reach a favorable Final Investment Decision (FID) during the second half of 2027. This step will be crucial for establishing the execution conditions of the new unit and moving towards its construction. However, regulatory approval does not imply confirmed investment; NextDecade must still complete the necessary evaluations and preparations before making a definitive decision on the development of Train 6. USACE highlights importance of Texas maritime infrastructure. Colonel David W. Dake, Commander and Engineer of the USACE Galveston District, emphasized the importance of having maritime infrastructure prepared to support U.S. commercial and energy activities. The official linked the Train 6 authorization to recent improvement works on the Brazos Island port channel, another initiative aimed at strengthening navigation and maritime transport conditions on the Texas coast. He also noted that the agency remains committed to collaborating with the industry while fulfilling its regulatory responsibilities and applying appropriate environmental protection measures. This approach seeks to facilitate the development of strategic infrastructure while addressing the demands associated with natural resource management and maritime operations. NextDecade aims to boost U.S. LNG exports. For his part, Tarik Skeik, NextDecade's Chief Operating Officer, highlighted that the authorization represents a significant advance for Rio Grande LNG's growth plans. The executive acknowledged the work carried out by the Corps of Engineers during the project evaluation and expressed gratitude for the collaboration maintained throughout the regulatory process. According to Skeik, the expansion would contribute to increasing U.S. LNG export capacity and supporting the economic activity of the Rio Grande Valley, where the facility is being developed. The company believes that expanding its liquefaction infrastructure will strengthen its participation in the international supply of liquefied natural gas. Thus, Train 6 is incorporated into NextDecade's growth plans to meet LNG demand in different markets. Rio Grande LNG maintains 2027 expansion schedule. With the new permit, NextDecade maintains its objective of moving towards a potential Final Investment Decision during the second half of 2027. During this period, the company will continue with planning work and necessary evaluations to determine the development conditions for the sixth liquefaction train. If the investment receives definitive approval, Rio Grande LNG could expand its production and export capacity, strengthening its image within U.S. energy infrastructure. For now, the USACE authorization represents a regulatory advance for the expansion, as NextDecade continues preparing the next stage of growth for the LNG complex in Texas. Verified Author Analyst and writer of news specialized in industrial technology, with a solid background in engineering. My work focuses on curating and synthesizing complex information, transforming technical advances and regulatory changes into journalistic reports.

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Kinder Morgan vs. NextDecade: which energy stock is a better buy in 2026? One is a steady cash generator, dividend-paying company, while the other is a massive bet on LNG exports. Should you go for growth, or dividend? By Neha Chamaria - Jun 19, 2026 at 12:56PM EST Key points. * Kinder Morgan is an energy infrastructure giant that generates steady cash flows from natural gas and petroleum transportation. * NextDecade is a high-growth development-stage company focused on becoming a significant player in the global LNG export market. * Which energy stock is the better choice for your portfolio as the industry transitions toward cleaner fuel sources? * Motley Fool Issues Rare "Highest Conviction" Buy Alert" The energy sector offers various ways to invest, from established pipeline giants to emerging export players. Kinder Morgan (KMI +0.81%) operates as the backbone of North American energy infrastructure through its vast pipeline network. NextDecade (NEXT 5.77%) is building its future on the Rio Grande liquefied natural gas (LNG) export terminal in Texas. Investors often compare these two energy companies because they both provide critical links in the natural gas value chain, albeit at different stages of maturity. Deciding which one to invest in depends on your personal appetite for risk and income. The case for Kinder Morgan. Kinder Morgan is among the largest midstream energy companies, managing nearly 78,000 miles of pipelines and 136 terminals. The company transports nearly 40% of the natural gas consumed in the U.S., providing essential services to power plants, local distribution companies, and industrial users. Because no single customer accounts for more than 10% of total revenue, the business avoids heavy concentration risk and maintains a diversified stream of service-based income. In FY 2025, Kinder Morgan's revenue grew 12% to $16.9 billion, and net income came in at $3.1 billion. That's a healthy net margin of 18%. The upward trend in revenue and net income suggests that this energy dividend stock is effectively capturing demand as it expands its natural gas and renewable operations. The debt-to-equity ratio was approximately 1.0x as of the December 2025 balance sheet. This metric, which compares total debt to shareholder equity, suggests a balanced financing mix for its capital-intensive operations. During FY 2025, Kinder Morgan generated free cash flow of nearly $3.2 billion, which is the cash remaining after the company pays for its operations and capital expenditures, highlighting its ability to generate consistent cash. The case for NextDecade. NextDecade is a development-stage company focused on the Rio Grande LNG facility in South Texas, which aims to become a major hub for global natural gas exports. The project currently has eight liquefaction trains in various stages of construction or development, targeting a total capacity of approximately 48 million tonnes per annum. The company has already secured long-term purchase agreements with 14 creditworthy customers, providing a foundation for future cash flows once the facility begins commercial operations. Since the Rio Grande facility hasn't commenced its primary shipping operations, NextDecade isn't generating any meaningful commercial revenue yet. It reported a net loss of $306.4 million in FY 2025, reflecting the high overhead and development costs required to bring a massive export terminal online in a competitive global market. The balance sheet as of December 2025 showed a debt-to-equity ratio of roughly 90.8x. This value indicates that the company's total liabilities, including both short-term and long-term debt, significantly exceed its total shareholder equity. Free cash flow for FY 2025 was a negative $5 billion, a figure that reflects the intensive capital spending required to build out the liquefaction trains before any revenue is generated. Risk profile comparison. Kinder Morgan earns fees under long-term contracts and therefore faces little risk from commodity price volatility. But building these pipelines requires massive amounts of money and can saddle the company with debt. Kinder Mirgan must also navigate complex regulatory environments, where decisions by the Federal Energy Regulatory Commission could result in lower tariff rates or forced refunds. Where to invest $1,000 right now. When its analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 936% - a market-crushing outperformance compared to 207% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now... *Stock Advisor returns as of June 9, 2026 NextDecade faces a different set of challenges, chiefly the risk that its Rio Grande LNG facility could incur cost overruns or construction delays. The project is also subject to ongoing litigation in the D.C. Circuit, where legal challenges to its authorizations could potentially halt progress. Furthermore, the company relies on U.S.-sourced natural gas remaining cheaper than international alternatives to stay competitive against rivals like Cheniere Energy (LNG 1.82%). Valuation comparison. Kinder Morgan appears more attractively valued for conservative investors based on its Forward P/E, whereas NextDecade lacks a traditional P/S ratio. | Metric | Kinder Morgan | NextDecade | Sector Benchmark | | Forward P/E | 21.6x | 23.6x | 21.4x | | P/S ratio | 4.1x | n/a | / | Sector benchmark uses the SPDR XLE sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers. Which stock would I buy in 2026? Comparing Kinder Morgan and NextDecade is a choice between a stable, recession-proof income machine and a high-stakes, hyper-growth energy infrastructure play. Kinder Morgan is a $70 billion midstream giant controlling a significant portion of all U.S. natural gas movement. It operates as a toll booth, signing long-term, fee-based take-or-pay contracts with oil and gas producers. Earnings continue to flow even when oil and gas prices fluctuate, making Kinder Morgan fairly resilient to commodity cycles. That also explains why the company can regularly increase dividends - it has done so for nine consecutive years now. KMI & NEXT: performance comparison. KMI (Kinder Morgan) NEXT (NextDecade) Key Financial metrics. KMI - Kinder Morgan + 0.81 % (+ $ 0.26) NEXT - NextDecade - 5.77 % (- $ 0.45) Market Cap 52wk Range $ 25.60 - $ 34.80 Gross Margin Dividend & Yield $1.18 (3.72%) Market Cap 52wk Range $ 4.75 - $ 12.12 Dividend & Yield NextDecade is a more speculative stock, although the upside could be massive. Demand for LNG is projected to rise exponentially in the coming years. Rio Grande is expected to be one of the world's largest LNG export terminals. Although the first LNG shipments aren't expected before 2027, NextDecade has already locked in big energy companies as customers for the bulk of the estimated LNG production from the first few units. That shows the demand for LNG, and the kind of opportunities ahead for NextDecade. If I had the option to buy only one stock today, I'd pick NextDecade simply because of the growth optionality. The LNG stock certainly carries a much higher risk than Kinder Morgan, but both are eventually natural gas plays in the long run. Where things stand now, demand for LNG is expected to skyrocket, especially from markets such as the Asia-Pacific. Is Kinder Morgan a long-term buy right now? Before you buy stock in Kinder Morgan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Kinder Morgan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of its recommendation, you'd have $417,305!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of its recommendation, you'd have $1,293,148!* Now, it's worth noting Stock Advisor's total average return is 936% - a market-crushing outperformance compared to 207% for the S&P 500. 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