U.S. Energy (USEG) - 2025 Q3 - Quarterly Results

Production and Sales - U.S. Energy reported total hydrocarbon production of approximately 35,326 BOE in Q3 2025, with oil production accounting for 75% of total production[15] - Total oil and gas sales for Q3 2025 were approximately $1.7 million, a decrease from $5.0 million in Q3 2024, primarily due to the company's divestiture program[15] - Total revenue for Q3 2025 was $1,738,000, compared to $4,957,000 in Q3 2024, representing a decrease of 65%[27] Financial Performance - The company's adjusted EBITDA was ($1.3) million in Q3 2025, compared to $1.9 million in Q3 2024, with a net loss of $3.3 million or $0.10 per diluted share[18] - Adjusted EBITDA for Q3 2025 was $(1,334,000), compared to $1,846,000 in Q3 2024, indicating a decline in operational performance[31] - Operating loss for Q3 2025 was $(3,379,000), compared to $(4,152,000) in Q3 2024, reflecting a 19% improvement[27] - Net loss for the nine months ended September 30, 2025, was $12,510,000, compared to a net loss of $13,758,000 for the same period in 2024, showing an improvement of 9%[28] Assets and Liabilities - Total assets as of September 30, 2025, were $46,497,000, down from $49,667,000 at December 31, 2024, a decrease of 4%[25] - Total current liabilities decreased to $8,468,000 as of September 30, 2025, from $12,348,000 at December 31, 2024, a reduction of 31%[27] - Proved oil and natural gas properties decreased to $135,552,000 as of September 30, 2025, from $142,029,000 at December 31, 2024, a decline of 5%[25] Liquidity and Cash Flow - U.S. Energy ended Q3 2025 with approximately $11.4 million in available liquidity, providing flexibility for growth initiatives[12] - Cash and equivalents decreased to $1,415,000 as of September 30, 2025, from $7,723,000 at the beginning of the period[28] Resource Development - The company achieved a combined peak rate of 12.2 MMcf/d from three industrial gas wells, with flows restricted to ~8.0 MMcf/d to preserve reservoir value[9] - The current industrial gas resource report indicates 1.28 BCF of net helium resources and 443.8 BCF of net CO2 resources contingent upon future development[10] - The company plans to drill one additional industrial gas well in Spring 2026 and has finalized the design for an initial gas processing facility[9] Regulatory and Environmental Initiatives - The EPA Monitoring, Reporting, and Verification plan was submitted in October 2025, with approval expected by Spring-Summer 2026, enabling the capture of federal carbon credits[9] Shareholder Information - The company reported a total of 32,793,272 basic and diluted weighted average shares outstanding for Q3 2025, compared to 28,052,356 for Q3 2024[27] Impairment - The company incurred impairment of oil and natural gas properties amounting to $3,628,000 for the nine months ended September 30, 2025, compared to $6,843,000 for the same period in 2024[28]