New Era Helium, Inc. (NEH) has announced a revised timeline for the commencement of operations at its highly anticipated Pecos Slope Plant, Texas, now expected in Q4 2025. This delay, revealed in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 31, 2025, is attributed to ongoing negotiations with a newly transitioned midstream gatherer and processor and adjustments stemming from the de-SPAC process financing.

NEH is actively engaged in constructive discussions with the new ownership and management of its Pecos Slope Field midstream partner. The company is prioritizing an outcome that is both efficient and economically advantageous. However, these continued negotiations, coupled with previous delays in securing project financing during the de-SPAC transition, have necessitated an extension of the Pecos Slope Plant’s construction timeline.

The company now anticipates the completion of the plant to coincide with the start of operations in the fourth quarter of 2025, aligning with its updated development and financing milestones. Management’s immediate goal is to finalize project financing and achieve operational readiness within the next 90 days, contingent upon the successful conclusion of the ongoing discussions and necessary approvals. While optimistic about reaching a resolution, NEH is also evaluating all possible avenues to potentially accelerate this timeline should an expedited agreement be reached with its midstream partner or if an alternative development strategy emerges.

The delay in bringing the Pecos Slope Plant online also impacts NEH’s immediate ability to monetize its existing helium production. The company’s current marketing agreement has concluded its primary term and is now on a month-to-month basis, with NEH not currently receiving payment for produced helium.

E. Will Gray II, CEO of New Era Helium, Inc., acknowledged the delay, stating, “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.”