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MIDLAND, Texas - New Era Helium, Inc. (NASDAQ: NEHC), a company engaged in helium exploration and production, has announced an extension to the construction timeline of its Pecos Slope Plant, now expected to be operational in Q4 2025. The delay is attributed to prolonged negotiations and financing challenges during the de-SPAC process. Trading at $0.80 per share with a market capitalization of $11.15 million, the company's stock has declined 86.68% year-to-date. According to InvestingPro data, NEHC is quickly burning through cash, with a concerning current ratio of 0.65. The company aims to secure project financing within the next 90 days, contingent on the successful resolution of ongoing discussions.
In response to the construction delay, New Era Helium has begun contingency planning for helium offtake agreements to ensure continuous monetization of its production. With last twelve months revenue of just $0.53 million and EBITDA of -$11.84 million, the company faces significant financial challenges. Despite the current month-to-month status of its marketing agreement, NEH is actively seeking to secure access to its existing helium production, which would provide additional revenue streams alongside natural gas sales. InvestingPro subscribers can access 10 additional key financial insights about NEHC's performance and outlook.
Parallel to its helium and natural gas operations, NEH's joint venture, Texas Critical Data Centers, LLC (TCDC), has made progress in its data center development. TCDC has signed a Letter of Intent to acquire land in Ector County, Texas, for a 250MW net-zero AI/HPC data center, aligning with NEH's strategy to diversify revenue and support AI and semiconductor manufacturing industries.
E. Will Gray II, CEO of New Era Helium, emphasized the company's commitment to executing a vertically integrated strategy that spans multiple high-growth sectors. He acknowledged the uncertainty surrounding the outcome of discussions with the midstream gatherer and processor but reaffirmed NEH's dedication to achieving its production goals and creating long-term value.
New Era Helium, Inc. is known for its extensive acreage in Southeast New Mexico and its significant proved and probable helium reserves. The company continues to navigate the complexities of the helium market while positioning itself as a key player in the energy solutions sector. The stock currently trades near its 52-week low of $0.68, significantly below its high of $12.29, reflecting the market's concerns about its financial health and operational challenges.
This article is based on a press release statement from New Era Helium, Inc.
In other recent news, New Era Helium, Inc. announced a joint venture with Sharon AI, Inc. to develop a 250MW net-zero energy data center in Ector County, Texas. This project, named Texas Critical Data Centers, LLC, involves acquiring 200 acres of land, with planning already underway. The data center will utilize Carbon Capture Utilization Storage technologies, with the first phase expected to be operational by late 2026. In a separate development, New Era Helium revised its Equity Purchase Facility Agreement with an institutional investor. The amended agreement allows the company to sell up to $75 million of its common stock, with new terms for the sale and purchase of shares. The purchase price is set at 95% of the market price, with a floor price of $0.7176 per share, subject to adjustments. This move is intended to provide financial flexibility and potential capital for New Era Helium's operations. These recent developments highlight the company's strategic initiatives and financial maneuvers.
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