New Era {Q2} {2026} Earnings Call - Behind-the-Meter Power Strategy and Team Overhaul De-Risk TCDC Project

Operator: Good day, and thank you for standing by. Welcome to the New Era second quarter 2026 earnings conference call. At this time, all participants are in listen only mode. After the speaker’s presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today’s conference is being recorded. I would now like to hand the conference to your first speaker today, Lincoln Tan, Investor Relations for New Era. Please go ahead.

Lincoln Tan, Investor Relations, New Era: Thank you, operator, and good afternoon. My name is Lincoln Tan, Investor Relations for New Era. Thank you for joining New Era’s second quarter business update call. Joining me today are Charlie Nelson, Chairman and CEO, Ted Warner, President and CFO, José Rodriguez, COO, and Evan Pierce, Chief Development Officer. Before we begin, I would like to remind everyone that today’s call is being recorded and will be available on the investor relations section of our website. Please note that during the course of this call, we may make forward-looking statements. These statements reflect our current views and expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Please refer to slide 2 of the accompanying presentation and our SEC filing, including our Form 10-Q filed on Friday for more information.

With that, I will now turn the call over to Charlie Nelson.

Charlie Nelson, Chairman and CEO, New Era: Thanks, Lincoln. Thanks everyone for making the time. I want to start with the headline because I think it is a simple one this quarter. Our focus has been on the parts of this project where the outcome sits with us rather than with the counterparty. That means permitting, land, and site works. This quarter, we delivered on those. We now have our construction permits in hand, and we believe that that meaningfully reduces the development risk at the site. We expect to begin site grading in the coming weeks. Our phase 2 power partner has also filed a standard air permit supporting approximately 550 megawatts. This takes TCDC phases 1 and 2 together to roughly 757 megawatts of gross capacity. On the commercial side, end tenant negotiations in the joint venture with Stream continue to advance, along with phase 1 power arrangements.

The one I would highlight today is power. In early July, we were given the opportunity to step in and negotiate a PPA in our own name, and we are currently finalizing that PPA after a period of negotiation. On the balance sheet, we finished the quarter with $84.8 million of cash, and we have $270 million undrawn in the Macquarie facility. This more than covers our expected TCDC phase one equity contribution, and Ted can cover this more in detail later. There’s the team, which I want to spend a minute on because I think it’s the one thing that’s changed the most about this company in the last quarter. When you look at this page, what I’d ask you to notice isn’t the number of names, it’s where they’ve come from.

First, we have José Rodriguez, our Chief Operating Officer, who has run data center engineering and critical environment operations at Microsoft, AWS, and TikTok. Earlier in his career, he led engineering teams across gas turbine and nuclear power at GE and Tennessee Valley Authority. He’s built and operated the kind of facility that we’re building. Then we have Evan Pierce, who joined as Chief Development Officer in June. 20 years in hyperscale data centers and energy infrastructure, most recently running site and energy development for the Americas at EdgeConneX. He also comes from AWS and TikTok as well. He’s helped us plan and deliver more than 5 gigawatts of capacity. We’ve got Michael Johnson, who joined at the same time as Evan, and he joined as General Counsel and Chief Compliance Officer. He’s got 30 years of legal and commercial work under his belt, and it’s in this asset class.

Most recently, he was at CoreWeave, and before that Switch, covering leasing, powered land acquisition, and construction contracting. Ted Warner, you know. Ted took on the expanded role of President and Chief Financial Officer in June and recently joined our board. We’ve got Darin Rovell, who’s our Chief Accounting Officer, and Andy Casazza is our Chief Corporate Officer. Finally, Will Gray, who founded this business, as you know, and took it from an idea to a listed company and is now the President of the Permian, where his relationships with landowners, operators, and the local community here are invaluable. Beyond our C-suite hires, we’ve also expanded capability across management, and that includes the additions of James Sheppard, our VP of site selection, and Morgan O’Connor, our VP of construction.

James joins us from HDR, a global engineering firm in the data center space, and Morgan joins us from AWS, where she was the Senior Manager of construction. A project like TCDC is won or lost on execution, and you need people who have done it before. Six months ago, we were a company with a very good site. Today, we’re a company with a very good site and a team that’s built this before. I’ll say plainly, it’s a privilege to lead them. Turning to the next page, I want to address the Texas backdrop entirely. Governor Abbott has recently issued a directive calling for stronger oversight of data center development in Texas. More transparency on power and water requirements, on infrastructure costs, on ownership, and on community impact.

The principle behind this is that large field development should bring additional energy to Texas rather than push costs and burden onto Texans. We put out a release this week supporting it. I’d like to make the point plainly. We’re not supporting this because we’ve been asked to. TCDC and our entire business was designed this way from the start. On power, our strategy is built around dedicated generation, including behind-the-meter. We are not competing for constrained grid capacity. We’re supplementing Texas power, not drawing it away from anyone. On water, the design prioritizes closed-loop liquid cooling and reclaimed water, and we’re evaluating independent and wastewater solutions to keep produced water in productive use. In the Permian, that matters.

On community, we’ve got jobs, training, local programs, and community impact programs. Evan can cover this more in detail. On transparency, we’re committed to engaging openly as the state’s process move forwards. We think clearer and higher standards are good for the industry, and frankly good for us, because we’re already building to them. Finally, one related point, phases one and two are islanded and behind-the-meter, so they are not dependent on ERCOT Batch Zero processes. The broader point here is that behind-the-meter designs answer the concerns behind Governor Abbott’s directive structurally, rather than through mitigation. That was a design choice made long before this directive, and it is increasingly what large customers are looking at. With that, I’ll hand it over to José to take you through the power positions across phases one and two.

José Rodriguez, Chief Operating Officer, New Era: Thanks, Charlie. Our flagship TCDC site is situated on 492 acres of owned land outside Odessa in Ector County. That puts us in the middle of the Permian Basin energy corridor. We sit adjacent to generation assets operated by Vistra and Calpine, with access to existing energy, water, and fiber infrastructure. We have a phased development plan that scales towards 1.4 gigawatts over time. The important word there is phased. We are not trying to build 1.4 gigawatts at once, and we’re not funding it that way either. Power is the constraint of this industry right now. So let me be specific about how we structure ours across phases one and two. Phase one is 207 megawatts. Power comes from existing generation adjacent to the campus, islanded and behind-the-meter gas.

What that means practically: no ERCOT interconnection required and no air permit required for phase one, because there is no onsite generation. We are not standing in an interconnection queue for power. That is the single biggest reason we can move on the timeline we’re talking about. What has changed this quarter is that we’re working on finalizing the phase one PPA in New Era’s own name. Structuring in our name provides a direct path to power land and further de-risks the project. Phase two adds approximately 550 megawatts, up from the 450 megawatts previously contemplated. The increase reflects different generation equipment and more effective emission controls, which lowers emissions per megawatt and allow more capacity within the same emission ceiling. That’s behind-the-meter gas again, this time on the TCDC site, with physically diverse gas supplies across three pipelines.

We have partnered with Thunderhead Energy Solutions to deliver this power solution. A subsidiary of Thunderhead has filed for the standard air permit applications with the TCEQ. Turbines are on order through TURBINE-X. Taken together, that is approximately 757 megawatts of gross capacity across phases one and two, against the roughly 650 megawatts previously contemplated. The campus remains master-planned to scale towards 1.4 gigawatts over time. With that, I will hand over to Evan to take you through what actually moved on the ground this quarter.

Evan Pierce, Chief Development Officer, New Era: Thanks, Jose. Starting with permitting. This has been a core focus for the team this quarter, and we are pleased to confirm the receipt of two key permits from Ector County, the development structure permit, and the driver approach permit. The phase one plat has also been submitted to both Ector County and the City of Odessa, and we have now received approval of the Notice of Intent to TCEQ to commence grading. We are looking forward to crews being on site in the coming weeks to begin erosion control and site grading. Touching briefly on the land and title. We flagged the 54-acre corridor acquisition at our previous update, and we are pleased to report that that is now successfully closed. That corridor matters more than the acreage suggests because it is what lets us structure power directly and optimize the site layout.

This takes us to 492 acres, which is all the land we need for the planned development now secured. We note that phase one and phase two will require less than half of our current acreage. On the air permit, the only thing I would like to add to Jose’s point is timing. Because our application has followed the standard Texas state guidelines, we expect an expedited review process. In our experience, this has typically involved a one to two-month review process as opposed to an 18-month timeline for major source review. Moving to the operator surface waivers. We have been progressing this in the background, and we are now awaiting a final surface waiver from a single leasehold operator. Finally, pipeline removal. We have removed 22 abandoned pipes across 12 rights of way, clearing legacy oil field infrastructure across the site. We continue to progress further removals with the operators.

To summarize, these are the work streams that sit with us rather than a counterparty, and we have made solid progress. Land secured, site development permits in hand, key documentation filed, and moving towards the beginning of construction. Now we have to push through it. The people running this have built at this scale before, so we are not figuring it out as we go. It is heads down from here. Turning to the next page, I want to spend a moment on the community because I know it is in the front of the mind of many of our investors. There are counties and municipalities across the country putting moratoriums on data center development, and the fair question is whether we are exposed to that here. First, I would like to start with where we are located. Ector County is an energy-producing county. This is a working industrial region.

We are not dropping our campus in a residential suburb. I would like to personally thank Ector County, including the Ector County Judge and commissioners, for being such great partners in this project. If not for their guidance and support, this project would not be possible. Then there is the design approach we are taking. Most of the opposition you read about data centers rely on 2 key issues. One, residential concern about their power bills, and 2, residential concerns about their water. Our power is dedicated and behind-the-meter. We are supplementing Texas power rather than competing for grid capacity, and we are not putting pressure on residential rates. Our cooling is closed loop and prioritizes reclaimed water. Once the initial system is charged, water losses to ongoing evaporation are minimal. We are also evaluating independent and wastewater solutions to keep reduced water in productive use.

Are we seeing organized opposition? Not really. We are getting questions rather than opposition, and they are mostly people wanting to understand exactly what is being built. We would much rather answer those questions early than late, and that is why the engagement here is done in person by our senior team rather than delegated out. That means the mayor, the county judge, the rotary club, and local business owners. If you are asking a community to trust a project size, turning up yourself is the least you can do. Our approach to development TCDC is with the community, not around it. On the economic opportunity, this project is expected to create jobs and training opportunities through construction and operation. We are using local procurement and local companies. Once complete, TCDC will be a meaningful contributor to the local tax base. That is what any development of this scale should deliver.

Taken alone, I do not think that earns you an endearing place in the community. We have also committed to supporting broader community initiatives. These include library programs in Odessa and funding after-school childcare for working families. They will serve people irrespective of whether they work for us or not. As we have said publicly, we intend to be part of the community and not just an investor in it. I will now hand over to Ted to talk through the commercialization pathway and our approach to funding.

Ted Warner, President and Chief Financial Officer, New Era: Thanks, Evan. Tying it all together, we are pushing forward on 4 parallel work streams to commercialize TCDC and progress towards construction commencement. Power, as we spoke about earlier, underpins any data center development, and we are working towards finalizing the PPA in our own name. Permitting, as Evan covered, is progressing to plan and significant progress has been made this quarter. On the joint venture with Stream, we are continuing to finalize definitive documentation. This encompasses the development, financing, and ongoing operation of the campus. Finally, on the leasing work stream, recent events have highlighted the strategic value of behind-the-meter assets such as TCDC, and we continue to have constructive engagement with potential intent. I want to walk through the funding structure carefully because it continues to be an area where we receive a lot of questions. Understandable given the capital intensity of data center developments.

Let’s start with liquidity. At June 30, we had $84.8 million of cash equivalents, and restricted cash. This is actually an increase from our last reported number, despite our burn and significant CapEx at TCDC. This is mainly due to the exercise of a significant amount of cash pay, $2 struck warrants during Q2. The Macquarie facility is an up to $290 million project facility with a three-year maturity, and it is staged. Term loan A1, $20 million, is drawn. That was at our close on April 7. Term loan A2, $30 million, is available pre-lease at Macquarie’s discretion. Term loan A3, $40 million, and the $200 million delay in draw both sit behind conditions precedent, the main one being a final lease making those two chunks of capital available. So that is $270 million remaining undrawn on that facility. Two things I would stress about the facility.

It is not balance sheet cash, and it is not an obligation to draw. We see this as the right structure for a project at this stage where tranches unlock as we hit milestones. It gives us maximum flexibility if we have needs for immediate capital, especially post-lease. Moving on to what funds what. Parent level liquidity funds operating costs and early development. Together with Macquarie facility, it more than covers our expected TCDC phase one equity contribution. Our current cash position covers multiple years of burn at our current rate. Project capital, the larger number, gets raised at the asset level after lease execution, targeting roughly 80% debt, which will be funding at the JV level. We are not funding multi-billion dollar CapEx at the parent level. Beyond that, we continue to develop non-dilutive funding paths.

We have strong relationships with leading credit funds that could support both pre- and post-lease development, power contracts, land, and long lead time procurement. There are also equipment finance options where lending is secured against hard assets like electrical and data center infrastructure. The last point I would make about discipline and capital allocation. We have assembled a strong team that is clearly capable of growing New Era beyond just a single site, and the pipeline of opportunities in front of us keeps building given their networks. However, our default position is to stay focused on TCDC and be disciplined with our capital until the key milestones there are executed. Something genuinely compelling came to us, and it could be structured so it would not materially compete with TCDC for our near-term capital. Of course, we would do the work and look hard at it.

To us, an accretive deal on top of TCDC would be defined as something that would require an immaterial amount of cash in the near term and would result in NOI far sooner than TCDC, likely from smaller inference sites, which we want to be a big part of our future growth profile. The point here is the bar is high, and right now, the team remains firmly in TCDC execution mode. With that, let’s open the lines for some Q&A.

Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mike Randall of Northland. Your line is now open.

Mike Randall, Analyst, Northland: Hey, thanks guys, and congratulations on all the progress. Busy summer, obviously. Can you talk a little bit about the process to get the PPA, and the likelihood you can get it, and give us some sense for timing?

Charlie Nelson, Chairman and CEO, New Era: Yeah, we can talk about the process there. Basically, it just comes down to contracting. As far as the progress there, the contracts are materially drafted, things agreed to, and then it is just coming down to approvals at this point. Obviously, it is sensitive commercial undertaking right now, so I cannot exactly tell you all the details on that. But PPA is a contract like anything else, so we have just been going through the contracting process.

Mike Randall, Analyst, Northland: Okay.

Ted Warner, President and Chief Financial Officer, New Era: Yeah, Mike, we have been working on that for a long time, and it is substantially in its final form, in our opinion. So we feel like we are in a good place there.

Mike Randall, Analyst, Northland: Great. Okay. Given that you guys own the land, you are in this process of getting that PPA as well. It feels like you are going to have some leverage in negotiations. Has there been other tenants or development partners that have shown interest in the site, or is it still just kind of that original IG hyperscaler?

Ted Warner, President and Chief Financial Officer, New Era: They are still there, but we have had interest from pretty much every potential major tenant you could want. Especially with the recent announcement from the governor’s office, our site has become even more attractive due to the fact that we pretty much already meet all those standards. That has been great. The PPA in our name is a great thing for leverage, but honestly, our plan is still to try to move forward with the guys that we have been rowing this boat with for the last four months.

Mike Randall, Analyst, Northland: Got it. I think lastly, you guys called out in the press release that the 757 megawatts growth in phase 1 and 2 align with Governor Abbott’s data center directive. The project is designed to move forward unimpeded by ERCOT Batch Zero delays. Can you just clarify that and help us understand why that is and the strategic value of TCDC’s power strategy?

Charlie Nelson, Chairman and CEO, New Era: Yeah. Plain and simple, that directive was aimed at new parasitic load being requested from the grid, which in the state of Texas is referred to as the Batch Zero process. We are not exposed to the Batch Zero process. Ours is either existing power that is in a PUN or new power that we are building. Therefore, it is just not exposed to the Batch Zero process whatsoever. The reason why they are doing these audits, et cetera, is to kind of untangle that process and ensure that the data centers that are being built, especially if they are requesting parasitic load that would otherwise go to everyday Texans, et cetera, is being used responsibly. Again, this has been built into the plan, built into the DNA. It is something that we have been planning on since the onset of this. That is why.

Mike Randall, Analyst, Northland: Okay.

Ted Warner, President and Chief Financial Officer, New Era: The other half of that, Mike, is water, right?

Charlie Nelson, Chairman and CEO, New Era: Yeah.

Ted Warner, President and Chief Financial Officer, New Era: Water usage is the other concern there. What we have done here is we have built and permitted this data center site in the heart of the Permian Basin, where we have ample opportunity to, as Evan said earlier in his remarks, to keep produced water there in the basin. Not injecting it down a hole and using it to have a data center that really does not add to any water needs from the basin.

Mike Randall, Analyst, Northland: Got it. Okay. Hey, thanks, guys.

Charlie Nelson, Chairman and CEO, New Era: Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Nick Giles of B. Riley Securities. Your line is now open.

Nick Giles, Analyst, B. Riley Securities: Yeah. Thanks, operator. Hey, good afternoon, guys. I think Mike asked the right questions there initially, but just wanted to clarify. From what you know today, should we still think about initial timing at phase one in the 4Q 2027 timeframe?

Ted Warner, President and Chief Financial Officer, New Era: Yeah, that’s definitely still what we’re shooting for. I don’t know the rest of the team, if you’d care to comment on there, but that’s part of the value here, is the power will be available. Now that we have permits in hand, we think if everyone is rowing the boat in the right direction together, that that’s definitely still achievable to get that phase one in and have it be 2027 power. That’s everybody’s goal.

Nick Giles, Analyst, B. Riley Securities: Understood. That’s helpful. Go ahead, Charlie.

Charlie Nelson, Chairman and CEO, New Era: No, no, agree with that. Yep.

Nick Giles, Analyst, B. Riley Securities: Great. Okay. Maybe just back on phase one. Given that you have some of those permits in hand, it sounds like some dirt can be moved in the near term. Are there any long lead time items you might need to make deposits on or any sense for how much capital you’d be willing to spend on pre-lease development?

Charlie Nelson, Chairman and CEO, New Era: In terms of the quantum of capital for pre-lease development, obviously we’ve been spending dollars on pre-lease development, preparing the site, doing pipeline removal, remediation on the sites. In terms of the quantum of capital that we’d be willing to spend, I don’t think we have a firm dollar figure where we limit it to. We’re going to be responsible with our TopCo cash. That’s our primary mode of responsibility there. To the extent that there are items that come up that can significantly reduce time to delivery to RFS, we will do that. But again, it’s very subjective when we make those decisions. For the most part, just how this development is going to roll out. There is an upper bound just naturally in what you do before you go full final investment decision on the asset.

Ted Warner, President and Chief Financial Officer, New Era: I think the fact that we’re working with Stream and with their connections and what they actually have on hand, the Thunderhead partnership that we have, the long lead timeline that they have already procured, that makes it a whole lot easier. We don’t foresee any major CapEx items on our front prior to a lease related to long lead time stuff. It’s more about making sure that the site gets ready and is moving in the right direction to meet the timeline.

Nick Giles, Analyst, B. Riley Securities: Got it. No, thanks for that. Maybe one more if I could. Just given that the potential or the commercial nature of phase one is kind of expanded, can you just speak to kind of what design options from a data center perspective are on the table? Are you mostly considering ground-up type builds, or would you explore maybe modular options? What are you comfortable with?

José Rodriguez, Chief Operating Officer, New Era: Yes, thank you for that question, Nick. So for the first phase, working with our partners, we’re looking at a stick build approach initially. However, we’re also considering modular data center options that we’re working with different suppliers to deploy that offer a pretty aggressive RFS timeline, better than stick build. So we are not closing any options, and we’ll do whatever gets us closer to capacity delivery on the site.

Nick Giles, Analyst, B. Riley Securities: Got it. Okay. That’s helpful. Well, guys, nice work on the progress. I’ll turn it over, but thanks for the update.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Derrick Whitfield of Texas Capital. Your line is now open.

Derrick Whitfield, Analyst, Texas Capital: Good afternoon, all, and congrats on the team that you’ve assembled.

Charlie Nelson, Chairman and CEO, New Era: Thank you.

Derrick Whitfield, Analyst, Texas Capital: I wanted to start with the bigger picture at TCDC. As highlighted by Governor Abbott’s press release today, you guys are the model citizen for bring-your-own generation. Thinking beyond his endorsement, I wanted to ask more broadly your views on how this may play out for competing projects that are subject to Batch Zero and data center reviews, and what it means likely for the level of competition you’d expect for capacity at TCDC.

Charlie Nelson, Chairman and CEO, New Era: I’d say, just right off the bat, there is a high level of uncertainty, both in terms of are people going to get power? The recipients of that are still up in the air for Batch Zero, and then furthermore, what the timing of that is. The process has taken some turns, and had some adjustments. I would say just in terms of the competitiveness, one thing is definitively clear that we have a very firm grasp on what we have. Everything just comes down to timing of resources for end users and tenants. If that’s uncertainty, it definitely throws some questions around other sites. In terms of the competitiveness, those that get battery or power, there’s going to be an absolute green light on those. But for us, we’re feeling pretty confident in our position right now because of this.

Derrick Whitfield, Analyst, Texas Capital: Great. As my follow-up, I wanted to focus on the opportunity beyond TCDC. We have heard from several in the industry that lease rates have materially increased over the last six months. With the benefit of your entire team being in place, could you speak to where you would like to take the business beyond TCDC?

Charlie Nelson, Chairman and CEO, New Era: Yeah, I think we have spoken pretty openly about this. Really, we see two main opportunities, and we have kind of assembled a team to tackle them accordingly. As you have heard with the team introductions and what we have brought on, we are building a team for growth. This is not just to build TCDC, this is to build beyond. The two opportunity sets really lie in inference and then rinse and repeat on these large-scale sites. What do I mean by inference? That is 100 MW and below, opportunistically, a little bit bigger than that. Those are kind of rinse and repeat modular sites. Then, on the larger scale stuff, obviously, those are greenfield developments, kind of like what TCDC is. We like the blueprint that we have established here with TCDC.

The plan going forward is to kind of just rinse and repeat those, and that is why we have built the team to do just that. Yeah, we view the market for inference to be a very strong one, though.

Derrick Whitfield, Analyst, Texas Capital: Terrific. Maybe just one last, if I could. In your decision to expand phase 2 capacity, could you speak to what led to that decision to go from 450 to 550, and how should we think about expansion potential beyond phase 2 based on this revised generation equipment, if you guys choose to use that for phase 3?

Charlie Nelson, Chairman and CEO, New Era: Yeah. It really just came down to what we are able to get under a standard air permit with the equipment packages. Really, it just came down to what we could permit. Because above that, we go to a PSD permit, which is typically an 18-month cycle. Those have been delivered quicker now in recent months. But standard air permit is a very straightforward process. Yeah, it really just came down to some revisions on our ability to put a little bit more under a standard air permit.

Derrick Whitfield, Analyst, Texas Capital: Perfect. Great update. Again, congrats on the team that you guys have assembled.

Charlie Nelson, Chairman and CEO, New Era: Thank you.

Operator: Thank you. One moment for our next question. Our next question comes on the line of Nick Giles of B. Riley Securities. Your line is now open.

Nick Giles, Analyst, B. Riley Securities: Hey, thanks for taking my follow-up. I think earlier you mentioned there is one more surface waiver pending. I was hoping you could just give us a sense for what timing could look like there, and ultimately what having that software does for the site.

Charlie Nelson, Chairman and CEO, New Era: Sorry, you cut out there for a second. Could you repeat the question?

Ted Warner, President and Chief Financial Officer, New Era: Charlie, he was asking about, I think in the PR on Friday, that we have one more signature on the surface lease waiver side, only one remaining, and what we thought timing was with that.

Charlie Nelson, Chairman and CEO, New Era: It should be pretty soon. Everyone is pretty much agreed in principle on it, so yeah, it should be relatively soon.

Ted Warner, President and Chief Financial Officer, New Era: Verbal sign-off on that is great. We do not really dive into that, how unique, in a good way, our situation is compared to a lot of people trying to develop data centers in the heart of the Permian Basin. You need to find a site where you do not expect to have any pads or roads drilled. You are in the right part of the section, you need to be on top of. Even if you own the land, if you are sitting on top of minerals that have not been developed yet, you need to make sure that those mineral owners are going to be able to have access to those minerals, regardless of if you own the land on top of them or not.

Fortunately for us, we got two operators that have leased this acreage, they have all but drilled up and wine-racked, basically, all the productive formations outside of a couple more permits, I think. Two or three, I cannot remember the exact number. But those pads are going to be nowhere near our site. They can get drilled. We have got 40-plus years’ worth of production out of those wells, so it makes it really easy for us to get insurance related to that. Whereas a lot of people have come into West Texas on sites that really do not have a ton of development on them yet, or they are in a part of the section where a bunch of pads and roads need to be put in for the mineral owners to get their minerals.

That has derailed a lot of projects in the heart of the Permian Basin. But again, we feel really fortunate with this site for many reasons, that is one of them. So just one more signature remaining from an operator and we are good to go.

Nick Giles, Analyst, B. Riley Securities: Great. No, thanks for that background, Ted. Then one more that just came to mind, if I can. When we think about exploring other kind of smaller scale data center projects, just to clarify, these would be kind of New Era, independent opportunities, or would this be something that Stream might be interested in pursuing as well?

Charlie Nelson, Chairman and CEO, New Era: Look, we think of them as New Era opportunities. Obviously Stream has been a wonderful partner here at TCDC, and to the extent that we can work together in the future where it makes sense, why not? Our team is built for everything from development all the way through execution and operations at this point in time. The idea being that carving our own path forward on future sites is the likely outcome.

Nick Giles, Analyst, B. Riley Securities: Got it. Okay. Thanks again, guys.

Operator: Thank you. Again, as a reminder to ask a question, you will need to press star one one on your telephone. I am showing no further questions at this time. I will now turn it back to Charlie Nelson for closing remarks.

Charlie Nelson, Chairman and CEO, New Era: All right. Well, first off, thanks everyone for the questions, and thank you for making time this afternoon. I am going to close where I started on this. Our focus this quarter was on the parts of TCDC that sit with us and de-risking. That is all this is. This is just a giant function of de-risking. The construction permits are now in hand. The land is obviously secured. The fantastic team is built. On the commercial side, we are working hard across the end-tenant negotiations, and with the Stream JV, with the phase one PPA. Look, we appreciate your support, and the team is always available here if you need to follow up. Again, thank you for your time, and appreciate you.

Operator: Thank you for your participation in today’s conference. This concludes the program. You may now disconnect.