New Era Helium ends supply agreement with Matheson Tri-Gas after plant delay

New Era Helium Inc. (NASDAQ:NEHC), currently trading at $0.48 with a market capitalization of $6.69 million, announced the termination of a key supply agreement with Matheson Tri-Gas, Inc. after its Pecos Slope Plant did not begin operations by the required deadline. According to a statement released in a Securities and Exchange Commission filing, Matheson Tri-Gas exercised its right to terminate the contract effective July 2, 2025.

The original agreement, signed on September 1, 2023, required New Era Helium to supply 50% of the helium produced from its Pecos Slope Plant to Matheson Tri-Gas. The contract was contingent on the plant commencing operations by July 1, 2025. As the facility did not meet this condition, Matheson Tri-Gas ended the agreement as permitted under its terms. InvestingPro analysis indicates the company faces significant challenges with cash burn and debt management, with a weak financial health score of 0.48.

New Era Helium, incorporated in Nevada and based in Midland, Texas, is listed on The Nasdaq Stock Market LLC under the ticker NEHC. The company also has warrants trading under the symbol NEHCW.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, New Era Helium, Inc. announced significant developments involving its joint venture with Sharon AI, Texas Critical Data Centers LLC (TCDC). The company signed a non-binding Letter of Intent with a global provider of high-performance cloud services for AI workloads, aiming to acquire land and secure a power purchase agreement for 250 megawatts of electricity in Ector County, Texas. This initiative is part of a larger strategy to develop an AI and high-performance computing campus to meet the growing demand for AI infrastructure. In a related move, New Era Helium partnered with PowerForward Energy Solutions to provide the necessary generation capacity for the campus, with plans to deliver the initial 100 megawatts within 12 months.

Furthermore, the company is in discussions with large enterprise customers to anchor its planned AI infrastructure, although no formal agreements have been signed yet. In governance news, New Era Helium appointed three new board members to fill recent vacancies, bringing expertise in renewable energy, digital infrastructure, and resource development. The board changes coincide with the company’s focus on developing its assets in the Permian Basin. The company also announced ongoing site due diligence and environmental assessments for its data center project, with final closing expected by July 2025. These recent developments highlight New Era Helium’s strategic efforts to integrate energy resources with data infrastructure growth.

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