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]

Core Viewpoint - U.S. Energy Corporation is set to release its first quarter 2025 financial results on May 12, 2025, before market opening, indicating a focus on transparency and communication with investors [1]. Group 1: Financial Results Announcement - The company will announce its first quarter 2025 results before the market opens on May 12, 2025 [1]. - A conference call is scheduled for the same day at 9:00 a.m. ET to discuss the financial results and recent events [2]. Group 2: Investor Relations - A webcast of the conference call will be available on the company's Investor Relations website, emphasizing the company's commitment to keeping investors informed [2]. - Replay options for the teleconference will be available until May 26, 2025, providing additional access for stakeholders [3]. Group 3: Company Overview - U.S. Energy Corporation focuses on the development and operation of high-quality energy and industrial gas assets in the U.S., aiming for low-risk development and attractive shareholder returns [3]. - The company is committed to reducing its carbon footprint in its operational areas, aligning with broader industry trends towards sustainability [3].

Core Viewpoint - U.S. Energy Corporation has successfully completed a strategic acquisition for $0.2 million, enhancing its industrial gas and carbon capture platform in Montana, which includes approximately 2,300 net acres with CO2 rights and an active Class II injection well for CO2 sequestration [1][3][4]. Group 1: Acquisition Details - The acquisition strengthens U.S. Energy's position in the Kevin Dome structure, known for its helium-rich and CO2-dominated gas systems [5]. - The Class II injection well is permitted by the U.S. Environmental Protection Agency (EPA) under the Safe Drinking Water Act, ensuring compliance for safe CO2 storage [2][5]. - The acquisition is part of a broader strategy to develop scalable, low-emission industrial gas operations and position the company as a supplier of clean helium and other critical gases [3][4]. Group 2: Management Commentary - The CEO of U.S. Energy highlighted that the acquisition is a significant milestone in integrating carbon sequestration into the industrial gas platform, enhancing the company's ability to deliver clean helium while sequestering CO2 at scale [4]. - The company is committed to a responsible growth strategy that aligns with global demand for lower-carbon energy solutions [4]. Group 3: Future Plans - U.S. Energy plans to submit a Monitoring, Reporting, and Verification (MRV) plan to the EPA for the Class II well in the second quarter of 2025 [5]. - The CCUS-enabled infrastructure will support the planned industrial gas processing facility and broader environmental goals, positioning U.S. Energy as a leading industrial gas and carbon management platform in the U.S. [5].

Core Viewpoint - U.S. Energy Corporation has completed a strategic acquisition for $0.2 million, enhancing its industrial gas and carbon capture platform in Montana, which includes approximately 2,300 net acres with CO2 rights and an active Class II injection well for CO2 sequestration [1][3][5] Acquisition Details - The acquisition strengthens U.S. Energy's position in the Kevin Dome structure, known for its helium-rich and CO2-dominated gas systems [5] - The Class II injection well is permitted by the U.S. Environmental Protection Agency (EPA) under the Safe Drinking Water Act, ensuring compliance for safe CO2 storage [2][5] Strategic Implications - This acquisition aligns with U.S. Energy's broader strategy to develop scalable, low-emission industrial gas operations and positions the company as a supplier of clean helium and other critical gases [3][4] - The company plans to submit a Monitoring, Reporting, and Verification (MRV) plan to the EPA for the Class II well in Q2 2025, supporting its environmental goals [5] Management Commentary - The CEO of U.S. Energy emphasized that the acquisition is a significant milestone in integrating carbon sequestration into the industrial gas platform, enhancing the company's ability to deliver clean helium while sequestering CO2 at scale [4]

Core Viewpoint - U.S. Energy Corp is actively engaging with investors through a presentation at the Emerging Growth Conference, highlighting its focus on growth and high-quality energy assets [1][2]. Company Overview - U.S. Energy Corp is a growth-focused energy company that operates a portfolio of high-quality producing assets in the United States [4]. - The company aims to optimize production and generate free cash flow through low-risk development while maintaining an attractive shareholder returns program [4]. - U.S. Energy is committed to reducing its carbon footprint in its operational areas [4]. Event Details - The company will present at the Emerging Growth Conference on April 16, 2025, at 12:00 p.m. Eastern Time for a duration of 30 minutes [3]. - The presentation will be interactive, allowing investors to engage with the Company's President and CEO, Ryan Smith, who will provide a company overview and answer questions [2][3].

Core Viewpoint - U.S. Energy Corp is actively participating in the 37th Annual Roth Conference, indicating its commitment to engaging with institutional investors and analysts to discuss its growth strategy and asset portfolio [1][2]. Company Overview - U.S. Energy Corp is a growth-focused energy company that consolidates high-quality producing assets in the United States, aiming to optimize production and generate free cash flow through low-risk development [3]. - The company emphasizes maintaining an attractive shareholder returns program while being a leader in reducing its carbon footprint in operational areas [3]. Conference Participation - The company will engage in discussion panels and one-on-one meetings with institutional investors and analysts during the conference, which will take place at the Laguna Cliffs Marriott Resort & Spa in Dana Point, California [2]. - Attendance information and additional details can be obtained through Roth Capital Partners [2].

US Energy (NASDAQ:USEG) Q4 2024 Earnings Conference Call March 13, 2025 9:00 AM ET Company Participants Mason McGuire ??? Vice President-Finance and Strategy Ryan Smith ??? Chief Executive Officer Mark Zajac ??? Chief Financial Officer Conference Call Participants Jesse Sobelson ??? D. Boral Capital Charles Meade ??? Johnson Rice Tom Kerr ??? Zacks Small Cap Research Operator Greetings and welcome to U.S. Energy Corporation Fourth Quarter and Year End 2024 Results Conference Call. At this time, all particip ...

Share Repurchase and Acquisitions - The Company authorized a share repurchase program for up to $5.0 million, scheduled to expire on June 30, 2026[353]. - The Company acquired 82.5% of Wavetech's rights for approximately 144,000 net acres, paying $2.0 million in cash and 2.6 million shares valued at $2.7 million[356]. - The Company aims to enhance stockholder value through strategic acquisitions and by redeploying capital into core focus areas[377]. Divestitures and Asset Management - The Company divested properties for a total of $14.0 million in net proceeds, relieving $5.4 million in asset retirement obligations[360]. - In South Texas, the Company divested assets for approximately $5.2 million, representing 13% of total production in Q1 2024[361]. - In East Texas, the Company sold assets for $6.8 million, averaging 1.1 million cubic feet of natural gas and 168 barrels of oil per day[362]. - The Company recognized a $5.0 million loss on the sale of East Texas properties, which represented 36% of reserve volumes[364]. - The company closed a series of divestitures for total net proceeds of $14.0 million, which were used to repay the credit facility and fund industrial gas property development[412]. Financial Performance - For the year ended December 31, 2024, the company recorded a net loss of $25.8 million, an improvement from a net loss of $32.4 million in 2023[395]. - Total revenue decreased by $11.7 million, or 36%, from $32.3 million in 2023 to $20.6 million in 2024, primarily due to lower production quantities and commodity prices[398]. - Oil production decreased by 35% to 256,166 Bbls, while natural gas production decreased by 31% to 958,325 Mcfe compared to 2023[399]. - Lease operating expenses were $11.2 million, a decrease of 27% from $15.3 million in 2023, with a per BOE increase of 10% to $26.83[400]. - The company experienced a decrease in gathering, transportation, and treating costs by 63% to $205,000 due to divestitures[401]. - Production taxes decreased by 39% to $1.3 million, consistent with the overall revenue decline[402]. - Depreciation, depletion, and amortization (DD&A) was $8.3 million, down from $11.2 million in 2023, with a depletion rate of $19.64 per BOE[403]. - Impairment charges totaled $11.9 million in 2024, compared to $26.7 million in 2023, driven by lower crude oil and natural gas prices and divestments[404]. - The realized price for oil production decreased by 2% to $70.91 per Bbl, while the realized price for natural gas decreased by 10% to $2.56 per Mcfe[398]. Expenses and Cash Flow - General and administrative expenses decreased by $3.3 million, or 29%, from $11.5 million in 2023 to $8.2 million in 2024, primarily due to reduced headcount and non-recurring fees[405]. - Non-operating expenses totaled $(26) thousand in 2024, a decrease of $1.8 million, or 101%, compared to $1.8 million in 2023, driven by a significant drop in commodity derivative gains[407]. - Interest expense decreased as the outstanding balance on the credit facility was reduced from $5.0 million in 2023 to $0.0 million in 2024, with the average interest rate increasing to 9.2%[408][409]. - Cash provided by operating activities decreased by $0.9 million, from $5.5 million in 2023 to $4.6 million in 2024, due to reduced cash receipts from revenues[427]. - Cash provided by investing activities increased by $2.9 million, from $2.8 million in 2023 to $5.8 million in 2024, primarily due to $13.5 million in net proceeds from property sales[428]. - Cash used in financing activities for the year ended December 31, 2024, was $6.0 million, a decrease from $9.4 million in 2023[429]. - Net payments of debt under the credit facility for 2024 amounted to $5.0 million, compared to net payments of borrowings of $7.0 million in 2023[429]. - Amounts paid to repurchase common stock in 2024 were $0.8 million, while dividends paid on common stock in 2023 were $1.2 million[429]. Future Plans and Development - The Company plans to complete two wells and drill two additional new wells targeting an industrial gas zone in the first half of 2025[376]. - The company anticipates spending between $4.0 million and $6.5 million on industrial gas development, including drilling and completing 2 to 4 wells[413]. - The company had cash and equivalents of $7.7 million as of December 31, 2024, an increase of $4.4 million from $3.4 million in 2023[422]. - Total assets decreased by $30.8 million from $80.4 million in 2023 to $49.7 million in 2024[422].