VG and NEXT

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Hello Dan,
What are your thoughts on NEXT and VG? I’ve been seeing a few articles suggesting that LNG demand may increase over the next few years, and I’d like to hear your insight on how these companies might be positioned.
Also, are there any alternative companies in the LNG sector that you believe are better positioned to benefit from this trend?

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Asked on October 8, 2025 7:25 pm
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LNG project economics are pretty tough. They're capital intensive, pose a lot of regulatory risk, and just in general are uncertain. This is why I've primarily avoided a lot of these names.

I’d view a position in NEXT more as a tactical or “development-stage” bet rather than a core LNG holding at this point. The company generates zero revenue, and is mostly priced on agreements made with companies for future delivery. Highly speculative.

VG already has operational facilities, so it does have some revenue. However, it looks like its going through a spat with some of its clients and just lost an arbitration case. This kind of highlights some of the counterparty risk and contractual risk in the space. Now that this arbitration case was rewarded to BP, do other customers come forward with more cases against the company?

I'm not a fan of either of these at this point in time to be honest.

If I was forced to choose one, I’d lean NEXT. But this is if I was forced to. I probably wouldn't own either. Happy to watch this from the sidelines.

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Posted by Dan Kent
Answered on October 13, 2025 12:25 pm