New Era Helium Provides Operational Update on Facility Development and Strategic Progress
New Era Helium, Inc. (NASDAQ:NEHC) ("NEH" or the "Company"), an exploration and production (E&P) company sourcing helium from natural gas reserves in the Permian Basin, today announced it has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with the SEC on March 31, 2025 and provided a comprehensive update on its operational progress and development strategy.
Facility Construction Update
NEH is actively working with its Pecos Slope Field midstream gatherer and processor following a recent change in both its ownership and management. Discussions are ongoing and constructive, with NEH focused on securing the most efficient and economically advantageous outcome for the Company.
As a result of ongoing negotiations and delays in securing project financing during the de-SPAC process, the construction timeline for the Pecos Slope Plant has been extended. Completion of the Pecos Slope Plant is now expected to coincide with the commencement of plant operations in Q4 2025, in line with NEH's updated development and financing milestones. NEH's goal is to have the plant operational and project financing secured within the next 90 days, subject to the successful conclusion of ongoing discussions and approvals. Management continues to evaluate all options to accelerate this timeline should an expedited agreement be reached with its midstream gatherer and processor or should an alternative development path emerge.
Helium Offtake Agreement Contingencies
To ensure a seamless path to monetization, NEH has initiated contingency planning for helium offtake agreements in parallel with ongoing construction efforts and timing. The Company remains in active communication with its existing counterparties, while pursuing additional commercial flexibility to secure long-term value for future production.
In the helium sector, NEH is only one of only two companies trading on a major U.S. exchange with both proved and probable helium reserves positioning NEH as a uniquely de-risked opportunity within the helium investment landscape. While NEH properties are currently producing helium, the Company does not receive payment under its existing marketing agreement. That agreement has reached the end of its primary term and is now continuing on a month-to-month basis.
As previously mentioned, NEH is actively engaged in discussions with the midstream gatherer and processor for the Pecos Slope Field and remains optimistic that a resolution can be reached to enable access to its existing helium production. Securing access to the Company's current helium production would generate additional revenues to complement its current natural gas revenues. While there is no guarantee that NEH will reach an acceptable agreement with its current midstream operator and processor, the Company remains fully committed to executing its planned vertical integration model to unlocking the value of its helium production.
Data Center Development on Track
In parallel with the Company's helium and natural gas operations, NEH's data center activities with joint venture partner Sharon AI, Inc. remain on track, with progress continuing. The Company's joint venture, Texas Critical Data Centers, LLC (TCDC), recently signed a Letter of Intent (LOI) [read here] to acquire 200 acres in Ector County, Texas, for the development of the 250MW net-zero AI/HPC data center.
The data center initiative is part of the Company's broader strategy to diversify revenue sources beyond traditional commodity-based sales and pursue an integrated energy solutions strategy that leverages both its helium and natural gas reserves to support AI, semiconductor manufacturing, and next-generation computing. Reliable power is key to unlocking data center growth and NEH is strategically positioned at various critical points in the AI ecosystem, including:
- Upstream (Creation of AI): Supplying helium for semiconductor fabrication, GPU cooling, and quantum computing, which are essential for developing AI hardware.
- Midstream (AI Processing & Infrastructure): Providing natural gas-based power solutions for AI data centers and high-performance computing (HPC) workloads.
- Downstream (AI Deployment & End-Use Applications): Supporting the scaling of AI-driven industries by ensuring stable, sustainable energy solutions.
E. Will Gray II, CEO of New Era Helium, Inc. commented: "We continue to advance a vertically integrated strategy that will strengthen New Era Helium's position across multiple high-growth sectors. Right now, we're at a pivotal stage where our helium production plans, and energy infrastructure strategy are beginning to converge. We remain focused on hitting key production milestones while building a resilient business capable of meeting the energy needs of today with the infrastructure and scale to support the accelerating demands of tomorrow. Although we remain optimistic about ongoing conversations with our midstream gatherer and processor, there is no assurance the outcome will result in an economically viable solution that aligns with the interests of both the Company and its shareholders. With this in mind, we remain diligent in our efforts to secure a vertically integrated operational model within the Pecos Slope so that we may maintain certain production milestones. That is where long-term value will be created, and we are pursuing this objective with diligence and urgency."
About New Era Helium, Inc.
New Era Helium, Inc. is an exploration and production company that sources helium produced in association with the production of natural gas reserves in North America. The company currently owns and operates over 137,000 acres in Southeast New Mexico and has over 1.5 billion cubic feet of proved and probable helium reserves. For more information, visit www.newerahelium.com. Follow New Era Helium on LinkedIn and X.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan" or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: (a) our ability to effectively operate our business segments; (b) our ability to manage our research, development, expansion, growth and operating expenses; (c) our ability to evaluate and measure our business, prospects and performance metrics; (d) our ability to compete, directly and indirectly, and succeed in a highly competitive and evolving industry; (e) our ability to respond and adapt to changes in technology and customer behavior; (f) our ability to protect our intellectual property and to develop, maintain and enhance a strong brand; and (g) other factors (including the risks contained in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
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