What to know before you buy the stock - NEHC 'What to know before you buy the stock' - New Era Helium (NEHC): https://x.com/zacharygilula/status/1876518279977501099
Focused on helium extraction from natural gas reserves in New Mexico's Permian Basin, New Era Helium (NEHC) has over 137,000 acres of leasehold and 1.5 BCF of proven and probable helium reserves. Operating 200 wells with plans to drill 540 more to expand capacity, NEHC is constructing a helium recovery plant to oversee production, processing, and midstream operations as part of its vertical integration strategy by Q2 2025.
Revenue Streams:
- Two 10-year take-or-pay offtake agreements worth $113 million.
- Diversification through natural gas monetization for a sustainable AI data center partnership.
- Target Market: Aims to capture 2% of the North American helium market.
Joint Venture with Sharon AI:
- Developing a 90MW net-zero energy data center in the Permian Basin, Texas.
- Sharon AI to handle data center operations, using Nvidia and Lenovo technologies.
- New Era Helium to provide and build energy infrastructure, including CO2 carbon capture systems.
- Monetizes dry natural gas by-product into power.
- Expands income streams and vertically integrates energy infrastructure.
End Markets for Helium:
- Technology: Semiconductors, quantum computing, fiber optics.
- Healthcare: MRI scanners, cryogenics.
- Aerospace: Space exploration, rocket systems.
- Industrial: Welding, gas detection, nuclear coolant.
Supply Challenges:
- Geopolitical risks and logistical issues, particularly linked to Russia’s helium production disruptions.
- U.S. Shift: Increased focus on domestic helium production to reduce dependency on adversaries.
Leveraging vertical integration, strategic partnerships, and a critical industry position, NEHC is a promising player in the North American helium market with an innovative approach presenting significant upside potential amid growing demand for helium.
Posted on Behalf of New Era Helium Inc.