Core Viewpoint - U.S. Energy Corporation reported significant developments in 2024, focusing on the acquisition and development of industrial gas assets, achieving a strong financial position with zero debt, and planning for sustainable growth in the industrial gas sector [4][6][18]. Full Year 2024 Highlights - Total revenue for 2024 was $20.6 million, a decrease of 36% compared to 2023, with oil sales at $18.2 million and natural gas and liquids sales at $2.5 million [15][18]. - Average daily production was 1,136 Boe/d, down 34% from 2023, with oil production averaging 702 Bbl/d [11][12]. - Lease operating expenses totaled $11.2 million, or $26.83 per Boe, reflecting a 27% decrease from 2023 [16]. - Adjusted EBITDA for 2024 was $3.6 million, with a net loss of $25.8 million, primarily due to asset impairments and losses on asset sales [18][39]. Fourth Quarter 2024 Highlights - Revenue for Q4 2024 was $4.2 million, a 15% decrease from Q3 2024, with oil sales at $3.6 million and natural gas and liquids sales at $0.6 million [21]. - Average daily production in Q4 was 971 Boe/d, down 16% from Q3 2024 [19][20]. - Lease operating expenses for Q4 totaled $1.8 million, or $20.58 per Boe, a significant decrease from Q3 2024 [22]. - Adjusted EBITDA for Q4 was $0.4 million [23]. Management Comments - The CEO emphasized the importance of 2024 as a transformative year, highlighting the acquisition of over 160,000 acres for industrial gas development and the elimination of all outstanding debt [4][6]. - The company plans to scale operations, execute new drilling programs, and advance carbon sequestration initiatives [4][6]. Montana Project Timeline - The company has outlined an active development program for its industrial gas assets in Montana, with initial activities planned for April 2025 [6][13]. - Key activities include the completion of existing wells, drilling new wells, and launching a carbon sequestration business [13]. Shareholder Returns Program - The company has repurchased 1.67 million shares, representing approximately 4.9% of total shares outstanding, as part of its ongoing share repurchase program [9][10]. - The Board of Directors extended the share repurchase program through June 30, 2026, with $3.7 million remaining for future repurchases [10]. Reserves Summary - As of year-end 2024, the company reported SEC proved reserves of 2.0 MBoe, with 81% classified as oil and 19% as natural gas [24][25]. - The present value of the proved reserves, discounted at 10%, was $29.1 million [26]. Financial Statements Overview - The company ended 2024 with $7.7 million in cash and no debt, indicating a strong liquidity position [5][34]. - Total assets decreased to $49.7 million from $80.4 million in 2023, primarily due to asset divestments [34].
U.S. Energy Corp. Reports Financial and Operating Results for Full Year and Fourth Quarter 2024