New Era Energy & Digital Q1 Earnings Call Highlights

Key Points

• New Era Energy & Digital is shifting its focus to the Texas Critical Data Centers (TCDC) project, which management called the company’s flagship priority. Leaders said the business is moving from “platform formation” to execution, with the market valuation now largely tied to the data center opportunity rather than legacy natural gas and helium assets.
• The company outlined a phased power and expansion plan for TCDC: 200 MW in Phase 1, 450 MW in Phase 2, and up to 1.4 GW in Phase 3. Management said the site’s proximity to existing generation in West Texas should help speed access to power and reduce reliance on a traditional grid queue.
• New Era said it has improved liquidity and project financing capacity, including $120 million of equity raised, a $290 million Macquarie credit facility, and more than $80 million in cash at the end of April. Management expects most project capital to be raised at the asset or JV level and said Phase 1 could be funded without material near-term dilution.

New Era Energy & Digital NASDAQ: NUAI used its fiscal first-quarter 2026 earnings call to emphasize that investors should focus less on legacy natural gas and helium results and more on the company’s Texas Critical Data Centers project, known as TCDC.

Chairman and CEO Will Gray said the company has moved “from platform formation into a much more execution-focused phase,” citing a simplified structure around TCDC, new capital, a new development partner, team additions and progress on multiple project work streams.

Management said the company’s current valuation is largely tied to the data center project because its Form 10-Q still “largely reflect[s] the legacy natural gas and helium business.” Gray also said New Era’s financial position, combined with helium and hydrocarbon market conditions, gives the company a better position from which to evaluate strategic alternatives for legacy assets.

TCDC remains the central priority

Gray said TCDC is New Era’s “flagship execution priority.” The company owns 438 acres in Ector County, Texas, in the Permian Basin, and has entered into definitive agreements to acquire an additional 54-acre corridor. Management said that corridor is important not simply as added acreage, but because it provides flexibility around direct power solutions, interconnection and infrastructure design.

The site is located near generation assets operated by Vistra and Calpine. Gray said New Era’s thesis is that “the easiest place to build power is where it already exists,” adding that the location supports speed to power, direct power options and phased expansion over time.

Management described a phased power plan for TCDC:

• Phase 1: 200 megawatts, expected to be supported through adjacent generation.
• Phase 2: An additional 450 megawatts behind the meter, supported by physically diverse gas supply across three pipelines. Management said turbines and reciprocating engines are on order.
• Phase 3: Longer-dated expansion toward 1.4 gigawatts, including additional behind-the-meter power and bi-directional grid interconnects.

Management said the company is trying to avoid depending on a traditional grid queue to begin development, instead using site control, power relationships and a phased buildout model.

Stream partnership and execution model

President and COO Charlie Nelson said New Era is using a partner-led model rather than building every component internally. He said the company is working with specialist partners across development, capital, power, engineering and manufacturing.

At the development level, Nelson highlighted Stream Data Centers, which he described as a leading U.S. data center development and operating platform backed by Apollo. Nelson said Stream’s experience developing and delivering large-scale data center campuses for hyperscalers across North America helps reduce execution risk and means New Era is not viewed as a first-time developer by prospective tenants.

Nelson said the company’s approach is to advance design, power, financing and site readiness in parallel rather than sequentially. Near-term commercial milestones include a definitive joint venture with Stream, a hyperscaler lease and finalizing a power contract. Development milestones include pipeline removal, reclamation work, earthworks, site clearing, an industrial district designation and key permits.

Liquidity and project funding

Chief Financial Officer Ted Warner said New Era does not intend to fund the multi-billion-dollar project capital expenditures at the holding-company level. Instead, the company expects to raise most project capital at the asset or joint venture level, targeting a capital structure of roughly 80% debt and 20% equity.

Warner said New Era expects to contribute site control, development work, local execution and relationships, along with a maximum co-investment, in exchange for long-term material equity ownership in the asset.

The company said it has raised $120 million in equity, repaid the Sharon AI note and removed related liens. Warner said those steps improved the financability of both the asset and the company. New Era also closed a $290 million credit facility with Macquarie, and Warner noted that Macquarie made an additional $5 million equity investment at a premium.

Warner said New Era ended April with more than $80 million of cash on hand and has access to up to $270 million more from the Macquarie facility over time, subject to milestones. He said the company believes it can fund more than its expected share of Phase 1 development “without material near-term dilution.”

Using an illustrative assumption of a 50/50 joint venture, an 80% debt and 20% equity project-level capital structure, a 1.5 power usage effectiveness ratio and $13 million per megawatt of critical IT capital expenditures, Warner said New Era’s cash need for Phase 1 would be roughly $180 million before credit for land contribution.

Permits, schedule and local support

In response to a question from Northland analyst Mike Grondahl, management said the lease remains the key commercial priority but that permitting and other work streams are advancing in parallel. Nelson said permits and approvals include an industrial district designation, stormwater pollution prevention plan, early grading permit, final site plan, full grading permit, plat approvals, building permit and fire protection review.

Gray said the TCDC site sits in an extraterritorial jurisdiction near Odessa, Texas, and that an industrial district structure could allow access to municipal services such as water, wastewater and fire services while avoiding annexation into the city in exchange for a payment-in-lieu-of-tax arrangement.

Gray said New Era expects to submit a preliminary site plan in the June-July timeframe and described early grading-related items as the near-term focus. He also said the company has remediated more than 13,000 feet of old flow line and reclaimed old pipelines at the former oilfield site.

Asked about local resistance to data centers, Gray said Ector County officials are “100% on board” with TCDC. He cited discussions with county and city officials and said the region is power-friendly because of its role in the Permian Basin.

Texas Capital analyst Derrick Whitfield asked about the project schedule, including earlier references to Phase 1 construction by the end of the second quarter and first power by year-end 2027. Management said the schedule is largely driven by power availability in the second half of 2027, and said the company still feels good about a second-half 2027 in-service date for the first phases.

Management addresses Sharon AI comments

Warner also addressed recent comments from former partner Sharon AI regarding a prior non-binding letter of intent. He said investors may have been confused by Sharon AI’s characterization of the LOI and emphasized that it was not a lease and was not with a hyperscaler.

Warner said the LOI referenced in New Era’s July 1, 2025, press release was related to a potential sale and possible behind-the-meter power provision. He said it was separate from a later exclusivity arrangement with a hyperscaler, which he described as the same party New Era hopes will become its tenant.

“No one has walked away from anything,” Warner said, adding that the company is happy to retain full control of the opportunity as it pursues ownership of the land, infrastructure and net operating income tied to investment-grade tenants.

Gray closed the call by acknowledging recent share price volatility but said management’s focus remains on execution. He said the company has strengthened its foundation by simplifying TCDC’s structure, improving liquidity, aligning with institutional counterparties and advancing commercial, development and financing work streams.

About New Era Energy & Digital NASDAQ: NUAI

New Era Energy & Digital, Inc, operates as an exploration and production platform, engages in the exploration, development, and production of helium, oil and natural gas, and natural gas liquids in the United States. The company owns and operates a portfolio of approximately 137,000 acres in Southeast New Mexico. Its flagship Pecos Slope Field covering an area of 1893 square kilometers located 20 miles north of Roswell, New Mexico. It serves Tier 2 gas companies and balloon gas distributors. The company was formerly known as New Era Helium, Inc and changed its name to New Era Energy & Digital, Inc in August 2025.

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