Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 14, 2026 · Beat 0 of last 2 quarters
New Era Energy & Digital, Inc. reported Q2 FY2026 revenue of $0M, a miss of 92.7% against consensus, and EPS of $-0.18, a miss of 111.8%.
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New Era's quarter was about converting a Permian Basin site into a permitted, construction-ready power-and-shell asset, with roughly 757 MW of gross Phase 1 and 2 capacity now contemplated and a Phase 1 PPA being finalized in the company's own name. The behind-the-meter, islanded design — no ERCOT interconnection and no air permit for Phase 1 — positions the project outside the Batch Zero queue that management said is creating uncertainty for competing Texas data center projects. If the 4Q 2027 Phase 1 target holds, TCDC could add a meaningful behind-the-meter gas-powered node to the AI infrastructure buildout, though the project remains pre-lease and pre-final-investment-decision.
New Era ended June 30 with $84.8M of cash, cash equivalents, and restricted cash, and has $270M undrawn on the Macquarie facility. The company received two key permits from Ector County — the development structure permit and driveway approach permit — submitted the Phase 1 plat to Ector County and the City of Odessa, and received approval of the notice of intent to TCEQ to commence grading. It closed the 54-acre corridor acquisition, bringing the site to 492 owned acres, and removed 22 abandoned pipes across 12 right-of-ways. Phase 2's power partner filed a standard air permit supporting approximately 550 MW, taking Phases 1 and 2 to roughly 757 MW of gross capacity, with Phase 1 at 207 MW sourced from existing adjacent generation that is islanded and behind-the-meter, requiring no ERCOT interconnection and no air permit. Management said it is finalizing a Phase 1 PPA in New Era's own name, that one final surface waiver from a single leasehold operator remains, and that the Macquarie facility has $270M undrawn against an up to $290M total.
Management framed the quarter as de-risking the parts of TCDC that sit with the company rather than a counterparty — permitting, land, and site works — and said crews would begin erosion control and site grading in the coming weeks. The company is finalizing a Phase 1 PPA in New Era's own name after being given the opportunity in early July, with Ted Warner describing it as substantially in final form, and it continues anchor tenant negotiations alongside definitive documentation for the Stream joint venture. Phase 2 capacity was raised to approximately 550 MW from 450 MW, taking Phases 1 and 2 to roughly 757 MW gross, reflecting different generation equipment and more effective emission controls that lower emissions per megawatt within the same emission ceiling; turbines are on order through TURBINE-X and Thunderhead Energy Solutions is the power partner. Management reaffirmed a 4Q 2027 Phase 1 target and said the campus remains master planned toward 1.4 GW, with project capital to be raised at the asset level post-lease targeting roughly 80% debt rather than at the parent. On capital allocation, Warner said the default position is to stay focused on TCDC and be disciplined until key milestones are executed, with a high bar for anything incremental — ideally requiring immaterial near-term cash and producing NOI far sooner, likely from smaller inference sites. Charlie Nelson said the team was built for growth beyond TCDC, targeting sub-100 MW inference sites and repeat large-scale greenfield developments.
“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 Phase 1 PPA
“Phase 2 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 allows more capacity within the same emission ceiling.”
on Phase 2 Capacity Increase
“However, our default position is to stay focused on TCDC and be disciplined with our capital until the key milestones there are executed.”
on Capital Allocation Discipline
Can you talk about the process to get the PPA, the likelihood you can get it, and give some sense for timing?
Charlie Nelson said it comes down to contracting, with contracts materially drafted and terms agreed, now awaiting approvals; he declined to give full details given the sensitive commercial nature. Ted Warner added the PPA has been worked on for a long time and is substantially in its final form.
Should we still think about initial timing at Phase 1 in the 4Q '27 timeframe?
Ted Warner said that is definitely still what they are shooting for, citing power availability and permits in hand, and that 2027 power for Phase 1 is achievable if everyone rows in the same direction. Charlie Nelson agreed.
What led to the decision to expand Phase 2 capacity from 450 to 550 megawatts, and how should we think about expansion potential beyond Phase 2?
Charlie Nelson said it came down to what can be permitted under a standard air permit with the equipment packages, since going above that threshold requires a PSD permit typically on an 18-month cycle; the increase reflected revisions to what could fit under a standard air permit.