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].
U.S. Energy (USEG) - 2024 Q4 - Annual Report