New Era Helium Reports $3.32 Million Net Loss in Q1 2025 Amid Revenue Decline

New Era Helium Inc. reported a net loss of $3.32 million for the first quarter of 2025, a significant increase from the $859,032 loss recorded in the same period of 2024. The company's total revenues for the quarter were $326,455, slightly down from $329,211 year-over-year. The decline in revenue was primarily attributed to a decrease in oil sales, which fell to zero compared to $55,562 in the previous year, while natural gas revenues increased by 34.9% to $280,064, reflecting a rise in gas prices despite a decrease in volumes.

The company's total costs and expenses surged by 60.5% to $2.40 million, driven largely by a 159.9% increase in general and administrative expenses, which rose to $1.94 million. This increase was influenced by higher public relations, marketing, and legal costs, as well as increased compensation for directors and officers. Lease operating expenses decreased by 48.3% to $260,480, and depletion, depreciation, amortization, and accretion costs also fell by 18.7% to $198,409.

In terms of operational developments, New Era Helium has been transitioning from a hydrocarbon-focused model to a helium-centric business strategy. The company currently holds approximately 422 million cubic feet of net proved undeveloped helium reserves and 788 million cubic feet of net probable undeveloped helium reserves. The company is also in the process of constructing a natural gas processing facility through its subsidiary, NEH Midstream LLC, which is expected to enhance its operational capabilities.

As of March 31, 2025, New Era Helium had total assets of $9.93 million, up from $9.18 million at the end of 2024. However, the company reported a working capital deficit of $4.23 million and a cash balance of $1.03 million. The company is actively seeking project financing to support its operations and has entered into an Equity Purchase Agreement that allows it to raise up to $75 million. However, management expressed concerns about the company's ability to sell shares at sufficient prices to meet its obligations, raising doubts about its ability to continue as a going concern.

Looking ahead, New Era Helium is focused on regaining compliance with Nasdaq listing requirements after receiving a notice regarding its market value of listed securities falling below the required threshold. The company has until September 2, 2025, to meet the compliance criteria. Additionally, the company is exploring options to enhance its capital structure and operational efficiency as it navigates the challenges of the energy market.