Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was approximately $2 million, down from $6 million in the same quarter last year, reflecting the impact of divestitures in 2024 [15] - Lease operating expense for the quarter was $1.6 million or $32.14 per BOE, compared to $3.1 million or $27.69 per BOE in the same quarter last year, indicating a decrease due to divestitures [16] - Cash, general, and administrative expenses were $1.7 million for 2025, aligning with quarterly run rate expectations [16] - As of June 30, 2025, the company had no debt outstanding on its $20 million revolving credit facility and a cash position of over $6.7 million [17] Business Line Data and Key Metrics Changes - The company drilled its second and third industrial gas wells targeting the helium and CO2 rich Dupro formation, achieving peak rates of approximately 12.2 million cubic feet per day with a gas composition of 85% CO2, 5% natural gas, and 0.4% helium [6][7] - The independent resource report confirmed net contingent resources of 444 billion cubic feet of CO2 and 1.3 billion cubic feet of helium, among the largest known deposits of its kind [7] Market Data and Key Metrics Changes - The company emphasized its unique competitive positioning in the helium market, as most US helium production is tied to heavy hydrocarbon gas streams, while its project is sourced from a limited hydrocarbon stream, resulting in a lower environmental footprint [8] Company Strategy and Development Direction - The primary focus is on the development of the Montana-based industrial gas project, which is expected to meet growing demand and deliver strong economics [5] - The company aims to build a full cycle platform that spans upstream production, midstream processing, and long-term carbon management while maintaining strict capital discipline [12] - The strategy includes investing in the core Montana industrial gas project, monetizing non-core legacy assets, and maintaining capital discipline to position 2026 as a breakout year [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the Kievan Dome as a first mover opportunity in the industrial gas sector that cannot be replicated [11] - The company is set up for 2026 to be a stellar year as it advances its projects [54] Other Important Information - The company has initiated its EPA monitoring reporting and verification plan, targeting submission in September and approval by spring 2026, which may allow access to federal carbon credits under section 45Q [11] - Construction costs for the processing plant are expected to be under $10 million, funded by the existing balance sheet and modest strategic use of debt [9] Q&A Session Summary Question: Details on the resource report - Management was pleased with the resource report, confirming previously held beliefs about the large resource potential, with no surprises in the final numbers [24][25] Question: Goals for different offtake streams - Management aims to control offtakes for CO2 and helium, with expectations to enter into helium offtake agreements by the end of the year [31][32] Question: Helium concentration on drilled wells - Management acknowledged variations in helium concentration, stating that while current levels are slightly lower than expected, they remain economically viable [38][40] Question: Processing plant development changes - Management indicated that the development of the processing plant is being fine-tuned to optimize costs and economics, with no significant complications reported [46][47] Question: Future SG&A expenses - Management expects SG&A expenses to decrease in the near term as one-time costs associated with project development lessen [50]

Exhibit 99.1 MANAGEMENT COMMENTS "U.S. Energy delivered significant progress in the second quarter of 2025 as we advance our transformation into an integrated industrial gas company," said Ryan Smith, Chief Executive Officer of U.S. Energy. "Our Montana project continues to move forward with disciplined execution across upstream development, infrastructure design, and carbon management planning. The scale and strategic location of the Kevin Dome position us as a leader in a high-growth segment of the energy ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 or ☐ 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 (Exact Name of Registrant as Specified in its Charter) | Delaware | 8 ...

HOUSTON, Aug. 07, 2025 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, “U.S. Energy” or the “Company”), a growth-focused energy company engaged in the development and operation of high-quality producing energy and industrial gas assets, today announced that it will issue second quarter 2025 results before the market opens on Tuesday, August 12, 2025. A conference call will be held Tuesday, August 12, 2025, at 9:00 a.m. ET/8:00 a.m. CT to review the Company’s financial results, discuss recent even ...

Core Viewpoint - U.S. Energy Corp. is advancing its development of an industrial gas processing plant with a finalized capacity of 17 MMCF, expected to be operational soon [1]. Company Summary - The industrial gas processing plant being constructed by U.S. Energy Corp. is a significant step in its development strategy [1]. - The finalized capacity of the plant is 17 million cubic feet per day (MMCF) [1]. Industry Context - The construction of gas processing facilities is crucial for enhancing the efficiency and output of energy production in the sector [1].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was approximately $2.2 million, down from $5.4 million in the same quarter last year, reflecting the impact of divestitures in the second half of 2024 [20] - Lease operating expense for the quarter was $1.6 million or $34.23 per BOE, compared to $3.2 million or $29.2 per BOE in the same quarter last year, indicating a decrease due to divestitures [21] - Cash position stood at over $10.5 million as of March 31, 2025, reflecting net cash proceeds of $10.3 million from a successful equity offering [22] Business Line Data and Key Metrics Changes - The company is focusing on the development of its Montana industrial gas project, which includes workovers, flow testing, and drilling new development wells [7][8] - The processing plant at Ki Bin Dome is expected to process approximately 17 million cubic feet of raw gas per day, with an estimated cost of $15 million [11] - The company anticipates sequestering approximately 250,000 metric tons of CO2 annually once the processing plant is operational [13] Market Data and Key Metrics Changes - The helium market remains steady, with current pricing around $400 per Mcf, down from previous peaks [34] - The largest growth forecast for helium demand is in the semiconductor industry, which is expected to drive future growth [33] Company Strategy and Development Direction - The company aims to build a full cycle platform from production and processing to long-term carbon storage while maintaining disciplined capital allocation [15] - The strategy includes monetizing legacy hydrocarbon assets while investing in the core Montana project [16] - The company positions itself as a first mover in the industrial gas sector with a unique non-hydrocarbon gas stream, providing a competitive advantage [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the transformational opportunity presented by the Montana project [14] - The company has de-risked its project year to date and is on track to launch and grow its initiatives within the next twelve months [41] Other Important Information - The company has repurchased approximately 832,000 shares, representing roughly 2.5% of its outstanding float, reflecting management's confidence in the stock's value [17] - The company is in talks to renew and extend its credit agreement, expected to be completed in Q2 2025 [22] Q&A Session Summary Question: Was the cost of the processing plant higher than expectations? - Management clarified that the cost was in line with expectations, considering the complexity of the infrastructure and production requirements [27][29] Question: Could the completion of the processing plant bleed into Q2 2026? - Management indicated that completion could be at the end of Q1 or the beginning of Q2 2026, depending on weather conditions [31] Question: Can you provide an update on the helium markets? - Management noted that the helium market remains steady, with pricing around $400 per Mcf, and highlighted the semiconductor industry as a key growth area [34][36]

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was approximately $2.2 million, down from $5.4 million in the same quarter last year, reflecting the impact of divestitures in the second half of 2024 [18] - Lease operating expense for the quarter was $1.6 million or $34.23 per BOE, compared to $3.2 million or $29.2 per BOE in the same quarter last year, indicating a decrease due to divestitures [19] - Cash position stood at over $10.5 million, reflecting net cash proceeds of $10.3 million from a successful equity offering during the first quarter [20] Business Line Data and Key Metrics Changes - The company’s primary focus is on the development of the Montana industrial gas project, which includes workovers, flow testing, and drilling new development wells [6][7] - The company acquired 24,000 net acres in the Cuban Dome structure, targeting helium and CO2-rich formations [8] - The processing plant at Ki Bin Dome is expected to process approximately 17 million cubic feet of raw gas per day, with an estimated cost of $15 million [9][10] Market Data and Key Metrics Changes - The helium market remains steady, with current pricing around $400 per Mcf, down from previous peaks [30][34] - The largest growth forecast for helium demand is in the semiconductor industry, which is expected to drive future growth [30] Company Strategy and Development Direction - The company aims to build a full cycle platform from production and processing to long-term carbon storage while maintaining disciplined capital allocation [14] - The strategy includes monetizing legacy hydrocarbon assets while focusing on the core Montana project [15] - The company is positioned as a first mover in the industrial gas sector, leveraging its unique non-hydrocarbon gas stream for competitive advantage [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the transformational opportunity presented by the Montana project [13] - The company is focused on de-risking its projects and expects to reach scale within the next twelve months [38] Other Important Information - The company has repurchased approximately 832,000 shares, representing roughly 2.5% of its outstanding float, reflecting management's confidence in the stock's value [16] - The company controls one of the largest known CO2 deposits in the U.S., which is crucial for its carbon management initiatives [11] Q&A Session Summary Question: Was the cost of the processing plant higher than expected? - Management clarified that the cost was in line with expectations, considering the complexity of the infrastructure and production requirements [25][26] Question: Could the completion of the processing plant bleed into the second quarter of 2026? - Management indicated that weather could affect the timeline, but they are currently targeting a completion date around the end of the first quarter or early second quarter of 2026 [28] Question: Can you provide an update on the helium markets? - Management noted that the helium market remains stable, with significant demand from the semiconductor industry and current pricing around $400 per Mcf [30][34]

Financial Performance - Total revenue for Q1 2025 was $2,193,000, a decrease of 59.3% compared to $5,391,000 in Q1 2024[19] - Operating loss for Q1 2025 was $3,088,000, improved from an operating loss of $8,022,000 in Q1 2024[19] - Net loss for Q1 2025 was $3,111,000, compared to a net loss of $9,537,000 in Q1 2024, representing a 67.4% reduction[19] - Basic and diluted loss per share improved to $0.10 in Q1 2025 from $0.38 in Q1 2024[19] - The net loss attributable to common shareholders for the three months ended March 31, 2025, was $3,111,000, compared to a net loss of $9,537,000 for the same period in 2024, representing a 67.4% improvement[78] - Basic and diluted net loss per share for the three months ended March 31, 2025, was $(0.10), compared to $(0.38) for the same period in 2024[78] Cash and Liquidity - Cash and equivalents increased to $10,502,000 as of March 31, 2025, up from $7,723,000 at the end of 2024[23] - Cash used in operating activities was $4.544 million for the three months ended March 31, 2025, compared to $603 thousand in 2024, mainly due to a net loss of $3.1 million[137] - Cash used in investing activities was $2.422 million, significantly higher than $179 thousand in the comparable period of 2024, primarily due to the Synergy acquisition[138] - Cash provided by financing activities was $9.745 million, a substantial increase from cash used of $563 thousand in 2024, driven by an equity offering that raised $11.9 million[139] - As of March 31, 2025, the Company had no outstanding amounts under the Credit Agreement after repaying the remaining balance of $2.0 million on September 10, 2024[52] Assets and Liabilities - Total assets rose to $55,835,000 as of March 31, 2025, compared to $49,667,000 at the end of 2024, reflecting a 12.4% increase[18] - Total liabilities decreased to $22,277,000 as of March 31, 2025, down from $25,846,000 at the end of 2024, a reduction of 13.1%[18] - Shareholders' equity increased to $33,558,000 as of March 31, 2025, compared to $23,821,000 at the end of 2024, marking a 40.9% increase[18] Revenue Breakdown - In the Rockies region, oil revenue decreased to $1.357 million from $1.721 million, while natural gas and liquids revenue increased to $69,000 from $41,000[41] - Oil revenue fell by 63% to $1.77 million, while natural gas and liquids revenue decreased by 36% to $423,000 for the same period[119] - Production quantities dropped by 57%, with 47,008 barrels of oil equivalent (BOE) produced in Q1 2025, down from 109,800 BOE in Q1 2024[119] - The average sales price for oil decreased by 14% to $59.01 per barrel, while the average sales price for natural gas and liquids increased by 54% to $4.14 per Mcfe[119] Acquisitions and Investments - The company acquired industrial gas properties for $2,128,000 during Q1 2025[23] - The Company acquired 24,000 net operated acres in Montana for a total consideration of $4.7 million, which includes $2.0 million in cash and 1,400,000 shares of common stock[39] - The company plans to use proceeds from the stock offering for the development of its recent acquisition in Montana and general corporate purposes[58] Shareholder Activities - The company issued 4,871,400 shares in an underwritten offering, netting $11,877,000[21] - The ongoing share repurchase program has been extended until June 30, 2026, with $5.0 million authorized for repurchases[110] - During the first quarter of 2025, the company repurchased a total of 125,600 shares at an average price of $1.87 per share, with a remaining authorization of approximately $3,596,161 under the share repurchase program[152] Operational Costs - For the three months ended March 31, 2025, total oil and natural gas production costs decreased to $1.773 million, a reduction of $1.820 million or 51% compared to $3.593 million in 2024[120] - Lease operating expenses were $1.609 million, down $1.577 million or 49% from $3.186 million in the prior year, while lease operating expense per BOE increased by 18% to $34.23[120] - Gathering, transportation, and treating costs fell to $16 thousand, a decrease of $48 thousand or 75% compared to the same period in 2024[121] - Production taxes decreased to $148 thousand, down $195 thousand or 57% from $343 thousand in 2024, remaining between 6% and 7% of revenue[122] - General and administrative expenses increased to $2.389 million, an increase of $183 thousand or 8% compared to $2.206 million in 2024, primarily due to higher professional fees and stock-based compensation[125] Financial Reporting and Controls - The Company is currently assessing the impact of new accounting standards on its financial disclosures, including ASU 2023-09 and ASU 2024-03[34][36] - As of March 31, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls were not effective due to a material weakness in internal control over financial reporting as of December 31, 2024[143] - A material weakness was identified related to the accounting system, which lacked certain functionalities such as system-based account reconciliations and independent evaluation of third-party IT controls[144] - The company began outsourcing day-to-day accounting to a third-party provider in January 2025, aiming to remediate the material weakness by year-end 2025[146] - There were no changes in internal control over financial reporting during the three months ended March 31, 2025, that materially affected the company's internal controls[147] Risk Factors and Future Outlook - Significant credit risk exists, with Purchaser A accounting for 46% of total oil and natural gas revenue for the three months ended March 31, 2025, compared to 28% in 2024[42] - The company expects to record a write-down of oil and natural gas properties in the second quarter of 2025, estimated between $7.0 million and $8.0 million, due to lower commodity prices[92] - The company anticipates capital expenditures for industrial gas development to range between $3.5 million and $4.5 million in 2025[130] - The company is not currently involved in any legal proceedings that could materially affect its business or financial condition[149] - There have been no material changes to the risk factors previously disclosed in the Annual Report for the year ended December 31, 2024[151]

Production and Sales - U.S. Energy reported total hydrocarbon production of approximately 47,008 BOE in Q1 2025, with oil production accounting for 64% of total output[13] - Total oil and gas sales for Q1 2025 were approximately $2.2 million, a decrease from $5.4 million in Q1 2024, primarily due to divestitures and declining oil prices[13] - Total revenue for Q1 2025 was $2,193,000, a decrease of 59.3% compared to $5,391,000 in Q1 2024[26] Reserves and Assets - The company's proved developed producing (PDP) reserves as of March 31, 2025, were approximately 2.0 million BOE, with a present value discounted at 10% of approximately $28.7 million[12] - Total current assets increased to $12,091,000 in Q1 2025 from $9,724,000 in Q4 2024, reflecting a 24.5% growth[24] - Total assets rose to $55,835,000 in Q1 2025, up from $49,667,000 in Q4 2024, indicating a 12.5% increase[24] - Total liabilities decreased to $22,277,000 in Q1 2025 from $25,846,000 in Q4 2024, a reduction of 13.5%[24] Financial Performance - The company reported a net loss of $3.1 million, or a loss of $0.10 per diluted share, in Q1 2025, compared to adjusted EBITDA of ($1.5) million[16] - Net loss for Q1 2025 was $3,111,000, compared to a net loss of $9,537,000 in Q1 2024, representing a 67.4% improvement[26] - Adjusted EBITDA for Q1 2025 was $(1,498,000), a decline from $237,000 in Q1 2024[31] - Cash general and administrative expenses for Q1 2025 were approximately $1.9 million, reflecting an 18% decrease from $2.0 million in Q1 2024[15] - Operating expenses for Q1 2025 totaled $5,281,000, down 60.7% from $13,413,000 in Q1 2024[26] - The company incurred no impairment of oil and natural gas properties in Q1 2025, compared to $5,419,000 in Q1 2024[26] Liquidity and Capital Management - U.S. Energy ended Q1 2025 with approximately $30.5 million in total liquidity, remaining entirely debt-free[10] - Cash and equivalents at the end of Q1 2025 were $10,502,000, up from $7,723,000 at the end of Q4 2024, marking a 36.5% increase[28] Future Projects - U.S. Energy achieved a sustained gas injection rate of 17.0 MMcf/d, projected to sequester approximately 240,000 metric tons of CO₂ annually[7] - The company has budgeted $1.3 million for each of two new industrial gas wells targeting the Duperow formation, with completion expected by early June 2025[8] - Construction of the initial gas processing plant, capable of processing 17.0 MMcf/d, is scheduled to begin in July 2025 at a capital cost of approximately $15 million[8] Shareholder Actions - U.S. Energy repurchased approximately 832,000 shares year-to-date, representing 2.5% of outstanding shares, reflecting strong alignment with shareholders[17]

Core Insights - U.S. Energy Corporation is focused on becoming a leading provider of non-hydrocarbon industrial gases, with significant progress in its Montana development project [2][3] - The company has a disciplined capital allocation strategy, having divested legacy oil and gas assets, eliminated debt, and returned capital to shareholders through share repurchases [2][8] Financial Performance - For Q1 2025, U.S. Energy reported total hydrocarbon production of approximately 47,008 barrels of oil equivalent (BOE), with oil production accounting for 64% [11] - Total oil and gas sales for Q1 2025 were approximately $2.2 million, a decrease from $5.4 million in Q1 2024, primarily due to divestitures and declining oil prices [11] - The company reported a net loss of $3.1 million, or a loss of $0.10 per diluted share, compared to a net loss of $9.5 million in the same quarter of 2024 [14][24] Operational Developments - U.S. Energy has acquired 24,000 net acres in the Kevin Dome, with the Kiefer Farms well demonstrating helium concentrations of approximately 0.6% and flow rates exceeding 3.2 million cubic feet per day (MMcf/d) [6][10] - The company is set to begin construction of its gas processing plant in July 2025, which will have a processing capacity of 17.0 MMcf/d at a capital cost of approximately $15 million [6][10] Carbon Management Initiatives - The company is projected to permanently sequester approximately 240,000 metric tons of CO₂ annually through its gas injection activities [13] - U.S. Energy has submitted an application for a new Class II injection well, with approval expected in June 2025 [13] Balance Sheet and Liquidity - As of March 31, 2025, U.S. Energy remained entirely debt-free, with approximately $30.5 million in available liquidity [8][9] - The company ended Q1 2025 with a cash balance of $10.5 million, an increase from $7.7 million at the end of 2024 [9][21] Shareholder Returns - U.S. Energy has repurchased approximately 832,000 shares year-to-date, representing about 2.5% of its outstanding shares, reflecting strong alignment with shareholders [15]