HOUSTON, March 18, 2026 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQ: USEG) (“U.S. Energy” or the “Company”), an integrated energy company advancing a diversified industrial gas, energy, and carbon management platform, today announced that it has reached a Final Investment Decision (“FID”) for the construction of its processing facility at the Big Sky Carbon Hub (“Big Sky”) in Montana, and executed an Engineering, Procurement, and Construction (“EPC”) agreement with CANUSA EPC under a fixed-scope EPC contr ...

Group 1: Market Reactions to Geopolitical Events - The bombing of Iran's Kharg Island caused significant volatility in energy markets, with crude oil futures rising 4.2% to nearly $94 a barrel, reflecting concerns over supply disruptions [2][4] - Major oil companies like ExxonMobil (XOM) and Chevron (CVX) experienced stock increases of 3.4% and 2.9% respectively, as traders anticipated a prolonged supply crunch [3] - The NASDAQ index fell by 1.4%, indicating investor fatigue regarding geopolitical tensions unless they directly impact technology sectors [3] Group 2: Investment Announcements and Economic Strategies - The U.S. administration announced a $300 billion investment deal with Reliance Industries, aiming to bolster U.S. energy and infrastructure while positioning India as a manufacturing alternative to China [5] - Fertilizer stocks such as CF and MOS saw gains of 2.1% and 1.8% respectively, as domestic production became more appealing amid potential disruptions in natural gas supplies from the Middle East [6] - New tariffs targeting China, Canada, and Japan are expected to close a $1.6 trillion revenue gap, with potential costs to U.S. households estimated at over $2,500 [7][8] Group 3: Personnel Changes and Market Sentiment - The exit of Ric Grenell from the Kennedy Center and his replacement by Matt Floca highlights ongoing personnel changes within the administration, which may contribute to market volatility [9][10] - Analysts suggest a "Turnover Index" to track cabinet-level official tenures, indicating instability in policy continuity [10] - The DOW index is currently at 42,150, down 400 points from its recent high, reflecting a market grappling with uncertainty amid geopolitical and economic challenges [11]

Financial Performance - U.S. Energy reported a net loss of $14.4 million for 2025, equating to $0.43 per diluted share, which included a non-cash impairment of $3.6 million[12]. - Full year 2025 revenue totaled $7.4 million, a decline of 64% from $20.6 million in 2024, primarily due to the strategic divestiture of legacy oil and gas assets[10]. - The company produced 164,752 BOE in 2025, a decrease of 60% from 415,887 BOE in the previous year, reflecting its asset monetization strategy[10]. - Total revenue for 2025 decreased to $7,353,000 from $20,619,000 in 2024, representing a decline of approximately 64.3%[22]. - Operating loss for 2025 was $14,359,000, an improvement from the operating loss of $25,675,000 in 2024[22]. - Net loss for 2025 was $14,374,000, compared to a net loss of $25,633,000 in 2024, indicating a reduction in losses by approximately 44%[22]. - Adjusted EBITDA for 2025 was $(4,446,000), down from $3,648,000 in 2024, indicating a significant decline in operational performance[27]. - The company reported a net cash used in operating activities of $(7,138,000) in 2025, compared to net cash provided of $4,587,000 in 2024[24]. Asset and Liability Management - Total assets decreased to $40,630,000 in 2025 from $49,667,000 in 2024, a decline of about 18.2%[21]. - Total liabilities decreased to $16,435,000 in 2025 from $25,466,000 in 2024, a reduction of approximately 35.4%[21]. - The company incurred impairment of oil and natural gas properties amounting to $3,628,000 in 2025, compared to $11,918,000 in 2024[22]. Resource Management and Future Plans - U.S. Energy controls 1.3 BCF of certified helium and 444 BCF of CO₂ resources, with plans for CO₂-enhanced oil recovery and carbon management operations[2]. - The company expects to qualify for $130 million in Phase 1 Section 45Q tax credits, with a projected $85 per metric ton of CO₂ captured and utilized[4]. - The company is targeting a Final Investment Decision (FID) for its processing plant in Q2 2026, with initial helium sales and carbon management operations expected to commence in Q1 2027[4]. Market Position and Valuation - U.S. Energy's stock trades at approximately 2.8x estimated 2027 EBITDA, indicating a significant discount compared to its estimated net asset value[4]. - The present value of the company's SEC proved reserves at year-end 2025 was $18.4 million, with 75% classified as oil and 25% as natural gas[9]. - The average realized price for oil in 2025 was $56.54 per barrel, down from $70.91 in 2024, while natural gas averaged $3.13 per Mcf, up from $2.56[10]. - Cash and equivalents at the end of 2025 were $429,000, a decrease from $7,723,000 at the end of 2024[24]. - Basic and diluted loss per share improved to $(0.43) in 2025 from $(0.96) in 2024[22].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to _______________ Commission File Number 000-06814 Delaware 83-0205516 (I.R.S. Employer Identification No.) 1616 S. Voss Rd., Suit ...

Core Viewpoint - U.S. Energy Corporation is undergoing a strategic transformation into a fully integrated industrial gas, energy, and carbon management platform, which is believed to be undervalued by the market [2][3]. Financial Performance - For the full year 2025, U.S. Energy reported revenue of $7.4 million, a decline from $20.6 million in 2024, primarily due to the strategic divestiture of its legacy oil and gas assets [11]. - The company generated a net loss of $14.4 million, or $0.43 per diluted share, which included a non-cash impairment of $3.6 million related to oil and natural gas properties [13]. - Adjusted EBITDA for 2025 was ($4.5 million), reflecting the company's transition strategy [13][29]. Operational Highlights - U.S. Energy controls 1.3 billion cubic feet (BCF) of certified helium and 444 BCF of CO₂ resources, with plans for CO₂-enhanced oil recovery (EOR) at its Cut Bank oil field [2][4]. - The company has submitted the first Monitoring, Reporting, and Verification (MRV) plans in Montana to the EPA, which could position its project among the top 20 largest CCUS projects in the U.S. [4]. - Initial helium sales and carbon management operations are expected to commence in Q1 2027, with a Final Investment Decision (FID) targeted for Q2 2026 [4][5]. Balance Sheet and Liquidity - As of March 13, 2026, U.S. Energy has a cash balance of $15.4 million and total liquidity of $22.9 million, providing a strong financial position to advance its capital deployment strategy [6]. - The company has a net cash position, with total debt outstanding at $2.5 million [7]. Market Position and Valuation - U.S. Energy trades at approximately 2.8 times estimated 2027 EBITDA, indicating a significant discount compared to its internally estimated net asset value and typical trading multiples in the industrial gas and carbon infrastructure sector [4]. - The company anticipates $130 million in projected Phase 1 Section 45Q tax credits, which will support its carbon management initiatives [4].

Oil Market Impact - Oil prices surged about 20% due to the ongoing U.S.-Israeli conflict with Iran, raising concerns over prolonged energy supply disruptions [1] - Brent crude prices remain above $100, last seen at $100.96, while West Texas Intermediate was at $95.96 [3] - The U.S. Energy Department announced a release of 172 million barrels from its Strategic Petroleum Reserve to address supply concerns [3] European Market Reaction - European equities ended the previous session lower, with the pan-European Stoxx 600 closing about 0.7% down [1] - The Stoxx 600 was 0.5% lower in early trading on Friday, with most sectors trading negatively [1][2] - Investors are weighing the impact of the Middle East conflict on economic growth, contributing to the negative sentiment in European markets [2] U.S. Market Trends - U.S. futures showed slight gains, with S&P 500 futures rising 0.25% and Dow Jones Industrial Average futures adding 0.32% [5] - Despite the gains in futures, U.S. markets are lower week-to-date [5] Geopolitical Developments - U.S. Treasury Secretary announced that vessel escorts through the Strait of Hormuz would begin "as soon as militarily possible" due to recent attacks on vessels [4] - Iran's Supreme Leader stated that the country would continue to block the shipping channel, contributing to the spike in oil prices [4]

Core Viewpoint - Oil stocks surged significantly due to a sharp increase in international oil prices, driven by geopolitical tensions in the Middle East, particularly statements from Iran's new Supreme Leader [1] Group 1: Oil Stock Performance - Battalion Oil (BATL.US) soared over 20% [1] - US Energy (USEG.US) rose more than 6% [1] - Murphy Oil (MUR.US) increased over 4% [1] - Occidental Petroleum (OXY.US) gained over 3% [1] - ConocoPhillips (COP.US) climbed nearly 2% [1] Group 2: Oil Price Movement - WTI crude oil prices surged over 8%, reaching $94.66 [1] - Brent crude oil prices increased by more than 7%, hitting $95.78 [1] Group 3: Geopolitical Factors - Iran's Supreme Leader, Mojtaba Khamenei, stated that revenge will not be abandoned and the Strait of Hormuz will remain closed [1] - Analyst Dara Doyle noted that Khamenei's remarks were interpreted as very hardline, indicating no signs of Iran preparing to make concessions to the US and Israel [1] - Khamenei's first public statement after taking office emphasized the need to keep the Strait of Hormuz closed and threatened to open new fronts in the war, heightening concerns over potential disruptions in a critical oil supply route [1]

Group 1: Major Developments - A historic $300 billion partnership has been announced between the U.S. and India's Reliance Industries to build a new oil refinery in Brownsville, Texas, marking the first major U.S. refinery construction in 50 years [1][3] - The refinery is expected to process 168,000 barrels of oil per day, which has led to a 3.4% increase in Reliance Industries' shares in international markets [3] Group 2: Market Reactions - Following the announcement, the Dow Jones Industrial Average fell by 185 points (-0.42%), while the S&P 500 dipped by 0.31%, indicating a mixed market response [2] - Domestic energy companies like ExxonMobil (XOM) and Chevron (CVX) experienced slight declines of -0.8% and -1.1% respectively, as they face potential competition from the new refinery [4] Group 3: Trade Policy Implications - A 25% tariff on Indian imports is set to take effect on August 1, which could complicate the relationship between the U.S. and India despite the new refinery deal [4] - The administration is also considering a 10% universal global tariff, with reciprocal tariffs ranging from 11% to 50% for countries taxing American goods, impacting market sentiment negatively [6] Group 4: Broader Economic Context - The $300 billion investment is comparable to the GDP of Romania, raising concerns among fiscal hawks about the scale of the project [5] - The market is experiencing volatility, with the VIX (volatility index) increasing by 4.5%, reflecting investor uncertainty amid aggressive trade policies and geopolitical tensions [11]

Market Overview - U.S. equity index futures showed slight increases after a volatile session, with the S&P 500 down 0.2% to 6,781, Nasdaq 100 unchanged at 24,956, Dow 30 down 0.1% to 47,706, and Russell 2000 down 0.2% to 2,548, indicating fragile market sentiment amid geopolitical tensions and oil price fluctuations [1][1][1] - Treasury yields mostly increased, with market expectations indicating a hold from the Fed next week, and a potential rate cut in July and December being nearly evenly split [1][1][1] Stocks - Rivian Automotive shares rose 4.2% following an upgrade to buy from hold ahead of its R2 SUV launch [1] - Oracle reported better-than-expected earnings and revenue, leading to an 8.7% increase in shares during extended trading [1] - Hims & Hers Health shares increased by 5.9% after receiving an upgrade from Bank of America [1] - BioNTech shares fell 17.9% due to a Q4 net loss and news of co-founders leaving to start a new company [1] Commodities - Gold prices rose above $5.2K as tensions in the Middle East persisted, with safe-haven demand increasing amid a weaker dollar [1] - Oil price volatility remained above pre-conflict levels, with WTI prices fluctuating below $80, influenced by ongoing disruptions in the Strait of Hormuz [1] - The IEA proposed a significant release of oil reserves, exceeding the previous record of 182 million barrels in 2022 [1] - API's weekly energy inventory showed draws for oil (-1.7 million barrels), gasoline (-1.8 million), and distillate (-2.3 million) [1] Economic Data - The U.S. NFIB small business optimism index for February declined to 98.8, missing the forecast of 99.7 [1] - Existing home sales in February increased to 4.09 million, up from 4.02 million [1] - Japanese producer prices contracted by 0.1% month-over-month, with a year-over-year decline to 2% [1] Upcoming Events - U.S. CPI data is expected to be released, with headline CPI year-over-year anticipated to hold at 2.4% and core CPI at 2.5% [1]

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