HIGHLIGHTS "We are pleased to announce U.S. Energy's recent Transaction, which will represent the complete divestment of the Company's assets in South Texas," stated Ryan Smith, Chief Executive Officer of U.S. Energy Corp., who continued, "With proceeds expected to go directly towards the development of the Company's Recent Acquisition, combined with a portion of conservative debt reduction, we anticipate that following the closing of the Transaction, U.S. Energy will sit in a position of increased liquidit ...

HOUSTON, July 09, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, "U.S. Energy" or the "Company") today announced that the Company has executed definitive documents (the "Transaction") for the sale of assets located in South Texas (the "South Texas Assets"). The Transaction is subject to customary conditions to closing and the Transaction may not close on a timely basis, or at all. All cash proceeds of approximately $6.5 million. Proceeds are expected to be used to fund development of U.S. E ...

HOUSTON, July 01, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, "U.S. Energy" or the "Company") today announced that the Company has closed a transaction (the "Agreement") with Wavetech Helium Inc ("Wavetech" or "WT") for the acquisition of operated acreage targeting helium production across the Kevin Dome structure in Toole County, Montana (the "WT Asset"). Additionally, the Company has executed a non-binding letter of intent (the "LOI") with Synergy Offshore, LLC ("Synergy" or "SOG") to ...

HOUSTON, July 01, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, "U.S. Energy" or the "Company") today announced that the Company has closed a transaction (the "Agreement") with Wavetech Helium Inc ("Wavetech" or "WT") for the acquisition of operated acreage targeting helium production across the Kevin Dome structure in Toole County, Montana (the "WT Asset"). Additionally, the Company has executed a non-binding letter of intent (the "LOI") with Synergy Offshore, LLC ("Synergy" or "SOG") to ...

U.S. Energy Corp. (NASDAQ:USEG) Q1 2024 Earnings Conference Call May 10, 2024 9:00 AM ET Company Participants Mason McGuire - Director, Corporate Development Ryan Smith - Chief Executive Officer Mark Zajac - Chief Financial Officer Conference Call Participants Charles Meade - Johnson Rice Tim Moore - EF Hutton Operator Greetings. And welcome to the U.S. Energy Corporation First Quarter 2024 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session ...

First Quarter 2024 Overview [First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) U.S. Energy Corp. reported Q1 2024 net daily production of **1,207 Boe/d**, **Adjusted EBITDA of $0.2 million**, and **$17.0 million liquidity** - Net daily production: **1,207 Boe/d**, with oil comprising **62%** of total production[8](index=8&type=chunk) - Lease Operating Expense (LOE): **$3.2 million**, or **$29.02 per Boe**[8](index=8&type=chunk) - Adjusted EBITDA: **$0.2 million**[8](index=8&type=chunk) - Share Repurchase: Approximately **0.3 million shares** bought back for **~$0.3 million**[8](index=8&type=chunk) - Liquidity: Ended the quarter with **$5.0 million debt**, **$2.0 million cash**, and **$17.0 million total liquidity**[8](index=8&type=chunk) [Management Comments](index=1&type=section&id=Management%20Comments) CEO Ryan Smith highlighted the operations team's rapid recovery from adverse weather and emphasized leveraging the strong balance sheet and stock repurchase plan to maximize shareholder returns - The operations team successfully recovered from severe weather (heavy rains and flooding) in East Texas and the Gulf Coast, bringing most production back online by late March and early April without long-term negative effects[3](index=3&type=chunk) - The company is leveraging its strong balance sheet and liquidity to actively execute its stock repurchase plan and pursue initiatives focused on maximizing total shareholder returns[3](index=3&type=chunk) Financial and Operating Performance [Production Update](index=1&type=section&id=Production%20Update) Q1 2024 total production was **109,800 Boe** (**1,207 Boe/d**), impacted by weather-related downtime and asset divestitures, resulting in an estimated **125-150 Boe/d** temporarily shut-in Q1 2024 vs. Q1 2023 Production and Sales Prices | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Sales Volume** | | | | Oil (Bbls) | 68,599 | 91,311 | | Natural gas and liquids (Mcfe) | 247,209 | 384,031 | | Total (BOE) | 109,800 | 155,316 | | Average Daily Production (BOE/Day) | 1,207 | 1,726 | | **Average Sales Prices** | | | | Oil ($/Bbl) | $68.91 | $77.70 | | Natural gas and liquids ($/Mcfe) | $2.69 | $3.06 | | BOE ($/BOE) | $49.10 | $53.26 | - Weather-related downtime, mainly from flooding in East Texas and the Gulf Coast, led to an estimated **125-150 Boe/d** of temporarily shut-in production during the quarter[4](index=4&type=chunk) [First Quarter 2024 Financial Results](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results) Q1 2024 total oil and gas sales decreased to **$5.4 million** due to lower production and an **8% price drop**, resulting in a **$9.5 million net loss** (or **$0.38 per share**) primarily from a **$5.4 million impairment**, with **Adjusted EBITDA at $0.2 million** Q1 2024 Key Financial Metrics (vs. Q1 2023, in millions) | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Total Oil and Gas Sales | $5.4 | $8.3 | | Lease Operating Expense (LOE) | $3.2 | $4.4 | | Cash G&A Expenses | $2.0 | $2.1 | | Adjusted EBITDA | $0.2 | $1.2 | | Net Loss | ($9.5) | ($1.3) | | Loss Per Diluted Share | ($0.38) | ($0.05) | - The decrease in revenue was primarily due to lower production quantities following an asset divestiture and weather-related events, combined with an **8%** decrease in realized prices[6](index=6&type=chunk) - A significant contributor to the net loss was a non-cash impairment of **$5.4 million**, primarily driven by a reduction in SEC reserve pricing[10](index=10&type=chunk) [Balance Sheet Update](index=3&type=section&id=Balance%20Sheet%20Update) As of March 31, 2024, U.S. Energy maintained a solid liquidity position with **$5.0 million debt** outstanding, **$15.0 million credit facility availability**, and a **$2.0 million cash balance** Liquidity Position as of March 31, 2024 (in millions) | Item | Amount (in millions) | | :--- | :--- | | Debt Outstanding | $5.0 | | Credit Facility Availability | $15.0 | | Cash Balance | $2.0 | [Hedging Program Update](index=3&type=section&id=Hedging%20Program%20Update) The company has fixed-price crude oil swaps through Q4 2024 at **$80.01/bbl** and added new swaps for 2025 at **$73.71/bbl** to manage commodity price risk Crude Oil Hedged Volumes and Prices (as of May 9, 2024) | Period | Volume (Bbls) | Swap Price ($/bbl) | | :--- | :--- | :--- | | Q2 2024 | 48,600 | $81.76 | | Q3 2024 | 45,000 | $79.80 | | Q4 2024 | 40,720 | $78.15 | | Q1 2025 | 45,000 | $75.73 | | Q2 2025 | 43,225 | $74.19 | | Q3 2025 | 39,100 | $72.82 | | Q4 2025 | 36,800 | $71.64 | - On April 2, 2024, the Company entered into new fixed price crude oil swaps for the period from Q1 2025 to Q4 2025 with a weighted average swap price of **$73.71/bbl**[13](index=13&type=chunk) Financial Statements [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were **$70.3 million** (down from **$80.4 million**), driven by depreciation and reduced oil and gas properties, with total liabilities at **$33.5 million** and shareholders' equity at **$36.7 million** Balance Sheet Summary (in thousands) | Account | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and equivalents | $2,006 | $3,351 | | Total current assets | $5,400 | $8,372 | | Net oil and natural gas properties | $63,089 | $70,175 | | **Total assets** | **$70,270** | **$80,444** | | Total current liabilities | $10,495 | $11,078 | | Credit facility | $5,000 | $5,000 | | **Total liabilities** | **$33,527** | **$33,922** | | **Total shareholders' equity** | **$36,743** | **$46,522** | [Unaudited Condensed Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 total revenues were **$5.4 million** (down from **$8.3 million**), with a **$5.4 million impairment** leading to an **$8.0 million operating loss** and a **$9.5 million net loss** (or **$0.38 per share**) Statement of Operations Summary (in thousands) | Account | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total revenue | $5,391 | $8,272 | | Total operating expenses | $13,413 | $10,232 | | Impairment of oil and natural gas properties | $5,419 | $- | | Operating income (loss) | ($8,022) | ($1,960) | | **Net income (loss)** | **($9,537)** | **($1,247)** | | **Basic and diluted income (loss) per share** | **($0.38)** | **($0.05)** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash used in operating activities was **$0.6 million**, with **$0.2 million** used in investing and **$0.6 million** in financing, resulting in a **$1.3 million net decrease** in cash for the quarter Cash Flow Summary (in thousands) | Cash Flow Category | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($603) | $236 | | Net cash provided by (used in) investing activities | ($179) | ($1,367) | | Net cash provided by (used in) financing activities | ($563) | ($859) | | **Net (decrease) increase in cash and equivalents** | **($1,345)** | **($1,990)** | | Cash and equivalents, end of period | $2,006 | $2,421 | Non-GAAP Reconciliation [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a non-GAAP measure, was **$0.2 million** in Q1 2024 (down from **$1.2 million**), with reconciliation from net loss including adjustments for a **$5.4 million impairment** and other non-cash items Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Net Income (Loss)** | **($9,537)** | **($1,247)** | | Depreciation, depletion, accretion and amortization | $2,195 | $2,417 | | Non-cash loss (gain) on commodity derivatives | $1,785 | ($1,325) | | Interest Expense, net | $120 | $268 | | Income tax expense (benefit) | $18 | ($62) | | Non-cash stock based compensation | $200 | $727 | | Impairment of oil and natural gas properties | $5,419 | - | | Other Adjustments | ($3) | $405 | | **Total Adjusted EBITDA** | **$197** | **$1,183** | - Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, DD&A, non-cash derivative gains/losses, share-based compensation, and other specific non-recurring or non-cash items[25](index=25&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from _____________ to _____________________ 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 March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-06814 (Exact Name of Registrant as Specified in its Charter) | Delaware | ...

Financial Data and Key Metrics Changes - The company achieved annual net daily production of over 1,700 barrels of oil equivalent per day, marking an increase from the comparable period of 2022 [9] - Total oil and gas sales for Q4 2023 amounted to approximately $7.3 million, reflecting a decrease from $10.4 million in the same period last year, attributed to a 21% reduction in volumes and a 10% reduction in realized prices [25] - The company reported a net loss of $19.8 million in Q4 2023, largely due to an oil and gas impairment expense of $20.2 million [29] - Adjusted EBITDA, excluding the impact of hedges, stood at $1.4 million in Q4 2023, compared to $2.7 million in the same period last year [30] Business Line Data and Key Metrics Changes - Oil production accounted for 63% of total production, with the remainder consisting of an approximately even split of natural gas and NGLs [17] - Lease operating expense for Q4 was approximately $3.1 million, equivalent to $22.38 per BOE, indicating a 28% reduction compared to Q4 2022 [26] Market Data and Key Metrics Changes - The company closed on approximately $7.3 million of asset divestitures during Q4, representing roughly 11% of company production [19] - The company plans to allocate a portion of free cash flow to debt reduction and maintain flexibility to react to market conditions [31] Company Strategy and Development Direction - The company aims to maintain production profiles of existing assets, reduce outstanding debt, and take advantage of organically driven opportunities [13] - The focus remains on operational efficiency, balance sheet discipline, and responsible resource management to drive sustainable value creation [22] - The company is exploring monetizing non-operated properties to realize tangible value amid high borrowing rates and low equity valuations [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving energy landscape, emphasizing the importance of maintaining a steady production profile with minimal capital [14] - The management highlighted the challenges in the A&D market, noting that smaller-scale M&A opportunities have become tougher due to depressed public equity valuations and high borrowing costs [45][48] Other Important Information - The company restarted its $5 million share repurchase program in December 2023, repurchasing nearly 0.5 million shares or approximately 2% of outstanding shares [15] - Cash general and administrative expenses reached approximately $2.2 million for Q4 2023, a decrease from roughly $2.4 million in the same period of 2022 [28] Q&A Session Summary Question: Growth opportunities within the portfolio - Management confirmed that there are higher return opportunities within the existing portfolio compared to external M&A, focusing on maintaining production and funding through cash flow [37][39] Question: Character of the A&D market - Management agreed that the A&D market has slowed, with buyers and sellers not aligning on valuations, particularly affecting smaller-scale transactions [43][45] Question: Strategic alternatives and focus on oil-weighted assets - Management indicated that all options are on the table for strategic alternatives, with a focus on oil-weighted assets due to their understanding and stability compared to gas [53][55] Question: Potential for further reduction in lease operating expenses - Management acknowledged that while there is potential for further reductions in lease operating expenses, much of the significant improvement has already been realized [57][62] Question: Expectations for impairments in 2024 - Management projected potential impairments in Q1 2024, dependent on SEC rolling prices and market conditions [64]

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, 2023 ☐ 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 U.S. ENERGY CORP. (Exact Name of Company as Specified in its Charter) (State or ...

FOURTH QUARTER 2023 HIGHLIGHTS MANAGEMENT COMMENTS "I am pleased with our team's performance during 2023, efforts which continue advancing the Company's daily goal of unlocking shareholder value," said Ryan Smith, U.S. Energy's Chief Executive Officer. "U.S. Energy's track record of successfully integrating the Company's previous acquisitions has resulted in a more efficient and lower declining asset base today, as shown in the operating results and cost structure of the Company. As a result, U.S. Energy's ...