Helium stocks are not something that you often hear investors talking about.
Apart from helium use in balloons, it has a variety of different use cases.
Helium is used in the manufacturing process of mobile phone, computer, and tablet chips, computer hard drives, and for respiratory ailments such as asthma.
It is also an element that is commonly used in the aerospace sector, used to clean rocket fuel.
The United States is currently the largest helium producer in the world (Statista, 2022).
They produce approximately 75 million cubic meters of helium per annum.
Now that we are aware of helium use cases, let’s explore why helium stocks might be a great investment idea for risk averse investors.
Below, we will present the 7 Best Helium Stocks to consider in 2023!
- Linde PLC
- Air Products & Chemicals
- Desert Mountain Energy
- Royal Helium
- Avanti Helium
- Total Helium
- First Helium
1. Linde PLC (NYSE: LIN)
- Ticker: LIN
- Dividend Yield: 1.42%
- 10-Yr Dividend Growth Rate: 7.83%
- Payout Frequency: Quarterly
- Payout Ratio: 56.87%
- Market Cap: $177.01 Billion
Linde PLC is a multinational chemical and gas company headquartered in Dublin, Ireland.
They are the largest gas company in the world both by revenue and market share.
Their product offerings serve a variety of industries and include specialty gasses, gas mixtures, hydrogen energy, wastewater treatments, pipeline services and refining solutions.
This includes the production and distribution of helium through Linde’s robust helium supply network.
Linde PLC employs more than 65,000 people and has approximately $79.65 billion in total assets.
In 2022, the company had annual revenues of $33.36 Billion.
2. Air Products & Chemicals (NYSE: APD)
- Ticker: APD
- Dividend Yield: 2.45%
- 10-Yr Dividend Growth Rate: 11.37%
- Payout Frequency: Quarterly
- Payout Ratio: 63.97%
- Market Cap: $63.56 Billion
Air Products & Chemicals is an American chemicals and industrial gas supplier headquartered in Allentown, Pennsylvania, United States.
The company was founded more than 80 years ago and owns some of the largest industrial gas projects in the world.
They operate in 50 countries serving more than 200,000 customers through their network of 750+ production facilities.
Including their product offering of liquid helium and compressed helium gas through their network of storage and transfill facilities.
Air Products & Chemicals employs more than 21,000 people and has approximately $27.19 billion in total assets.
In 2022, the company had annual revenues of $12.69 Billion.
3. Desert Mountain Energy (TSXV: DME.V)
- Ticker: DME.V
- Dividend Yield: N/A
- Market Cap: $153.05 Million
Desert Mountain Energy is a helium exploration company headquartered in Vancouver, Canada.
They deal in the production and exploration of high grade helium in the Southern US.
The company has a 100% ownership interest in their Holbrook Helium Basin Project. Located in North Eastern Arizona, the deposits are said to have some of the highest grades of helium in the world ranging from 8-10% purity.
Desert Mountain Energy is also heavily focused on sustainability. The company built the world’s first solar-powered helium processing facility.
They are also exploring other key assets with future expansion into hydrogen.
While the company growth prospects look promising, it is still a pre-revenue venture with a market cap of more than $150 Million.
4. Royal Helium (TSXV: RHC.V)
- Ticker: RHC.V
- Dividend Yield: N/A
- Market Cap: $90.42 Million
Royal Helium is a helium exploration and development company headquartered in Saskatoon, Saskatchewan, Canada.
They deal in the production and exploration of helium deposits in Western Canada.
The company is one of the largest leaseholders of helium in Canada. Their operations cover approximately 862,908 hectares of prospective helium rights.
However, the purity is extremely low, ranging from 0.33% – 0.64%.
That is certainly not impressive, when you consider competitors like Desert Mountain Energy with purity between 8% – 10%.
Despite the company’s low purities, the land mass of their helium project Climax still holds potential. But keep in mind that it is risky, and the project might not be worth the capital expenditures to explore.
5. Avanti Helium (TSXV: AVN.V)
- Ticker: AVN.V
- Dividend Yield: N/A
- Market Cap: $46.19 Million
Avanti Helium is a helium exploration and development company headquartered in Calgary, Alberta, Canada.
They deal in the production and exploration of helium deposits in the United States and Western Canada.
The company owns approximately 78,000 acres of land for prospective helium exploration. Their primary operations are located in the Knappen region across Montana and Alberta.
Avanti expects about 1.15% – 1.2% purity from its assets (WNG 10-21), and will commence its drilling program in Q3 2023.
As demand for helium accelerates over the next decade, Avanti is a top helium stock to watch in 2023.
6. Total Helium (TSXV: TOH.V)
- Ticker: TOH.V
- Dividend Yield: N/A
- Market Cap: $34.19 Million
Total Helium is a helium exploration and production company headquartered in Denver, Colorado, United States.
They deal in the production, exploration and storage of helium in North America.
The company has a 20% ownership interest in 2 helium drill sites located in Arizona. They also plan to acquire a 50% ownership interest in 8 additional drill wells in the surrounding area. Some with helium purity in excess of 8%.
Apart from their operations in Arizona, Total Helium owns 27,000 acres in Kansas with 2 helium and natural gas wells. The helium purity is approximately 0.725%.
Total Helium also has plans to be a leader in underground helium and hydrogen storage.
Their operations span more than 87,000 acres.
With a market cap of only $34 Million, Total Helium could be a great long term bet on the growing demand for helium and hydrogen storage solutions.
7. First Helium (TSXV: HELI.V)
- Ticker: HELI.V
- Dividend Yield: N/A
- Market Cap: $18.28 Million
First Helium is a helium exploration and development company headquartered in Calgary, Alberta, Canada.
They deal in the exploration of helium in Alberta.
The company’s two projects (Worsley Project and Lethrbridge) cover 336,000 acres. Their 100% owned Worsley project has helium purity of approximately 1.3%.
On April 11, 2023, First Helium announced the acquisition of an additional 640 acres of land in the Worsley area. The company expects impressive helium purity between 1.7% – 5.7%.
They expect drilling at its first well in Worsley to commence sometime in 2023.
First Helium is still an early stage company with a market cap just shy of $20 Million. Although its helium deposits have a lot of potential, the company is still extremely risky.
Investors who are bullish on helium stocks might want to consider more mature companies like Linde PLC or Air Products & Chemicals.
Should You Buy Helium Stocks Now?
Investing in helium is not something that you often hear about. But there are proven companies who operate in the space and are profitable.
For the most part, many of the pure play helium stocks are extremely small, early stage exploration companies that are unprofitable.
This makes investing in the helium sector extremely risky. Now that we understand the risks associated with helium stocks, investing in helium might not be for everyone.
However, helium stocks could provide an opportunity for more risk averse, patient investors who are bullish on helium’s long term growth prospects.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
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