New Era Helium, Inc.

New Era did not report revenue, EPS, or gross margin on this business update call. The company said it ended June 30 with $84.8 million of cash, cash equivalents, and restricted cash, up despite burn and significant CAPEX, mainly because of cash-paid $2-strike warrant exercises in Q2. Management also said $270 million remains undrawn on the Macquarie project facility, which is an up to $290 million facility with a 3-year maturity; $20 million is drawn under Term Loan A1, and $30 million under A2 is available pre-lease at Macquarie’s discretion. On operations, Phase 1 is 207 MW, Phase 2 is now approximately 550 MW, and the two phases total roughly 757 MW of gross capacity, up from about 650 MW previously contemplated. The company said it expects to begin site grading in the coming weeks and still targets initial Phase 1 timing in 4Q 2027. For funding, management said parent liquidity plus the Macquarie facility more than covers the expected TCDC Phase 1 equity contribution, while larger project capital is intended to be raised at the asset/JV level after lease execution, targeting roughly 80% debt.

Charlie Nelson framed the quarter as a de-risking milestone and emphasized that the company is focusing on items it can control: permits, land, site works, and power structure. He stressed that TCDC was designed from the start to fit Texas policy priorities by relying on behind-the-meter and dedicated generation, not grid-dependent load, and by using closed-loop cooling and reclaimed water. His tone was confident and strategic, with repeated emphasis that the team, site, and design now position New Era to execute rather than just plan.

Ted Warner highlighted liquidity and capital structure, saying the company had $84.8 million of cash, cash equivalents, and restricted cash at June 30 and that this was an increase from the prior reported number due to warrant exercises. He walked through the Macquarie facility as an up to $290 million, 3-year staged project facility, with $20 million drawn, $30 million available pre-lease at Macquarie’s discretion, and $270 million remaining undrawn. He said parent liquidity funds operating costs and early development, together with the facility more than covering expected Phase 1 equity, while project capital for the larger build is expected to be financed at the asset level after lease execution, targeting roughly 80% debt. He also said the company is staying disciplined at the parent level and focusing capital on TCDC unless an opportunity is truly accretive and does not materially compete for near-term capital.

Analysts focused heavily on the PPA, asking how likely it is and when it could close. Management said the contract is materially drafted and substantially in final form, with approvals remaining, and described the process as a normal contracting exercise. Questions also centered on Phase 1 timing and management reaffirmed the 4Q 2027 target, saying permits and power should make it achievable. Analysts pressed on why Phase 2 capacity increased from 450 MW to 550 MW; management said the change simply reflected what could be fit under a standard air permit using the revised equipment package. They also asked about competition and the governor’s directive, and management said TCDC is advantaged because it avoids Batch Zero/grid exposure and already aligns with the new standards.