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U.S. Energy Corp. Reports Financial and Operating Results for Full Year and Fourth Quarter 2024
USEGU.S. Energy (USEG) GlobeNewswire·2025-03-13 10:00

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 20.6million,adecreaseof3620.6 million, a decrease of 36% compared to 2023, with oil sales at 18.2 million and natural gas and liquids sales at 2.5million[15][18].−Averagedailyproductionwas1,136Boe/d,down342.5 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 26.83perBoe,reflectinga2726.83 per Boe, reflecting a 27% decrease from 2023 [16]. - Adjusted EBITDA for 2024 was 3.6 million, with a net loss of 25.8million,primarilyduetoassetimpairmentsandlossesonassetsales[18][39].FourthQuarter2024Highlights−RevenueforQ42024was25.8 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 3.6millionandnaturalgasandliquidssalesat3.6 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 1.8million,or1.8 million, or 20.58 per Boe, a significant decrease from Q3 2024 [22]. - Adjusted EBITDA for Q4 was 0.4million[23].ManagementComments−TheCEOemphasizedtheimportanceof2024asatransformativeyear,highlightingtheacquisitionofover160,000acresforindustrialgasdevelopmentandtheeliminationofalloutstandingdebt[4][6].−Thecompanyplanstoscaleoperations,executenewdrillingprograms,andadvancecarbonsequestrationinitiatives[4][6].MontanaProjectTimeline−ThecompanyhasoutlinedanactivedevelopmentprogramforitsindustrialgasassetsinMontana,withinitialactivitiesplannedforApril2025[6][13].−Keyactivitiesincludethecompletionofexistingwells,drillingnewwells,andlaunchingacarbonsequestrationbusiness[13].ShareholderReturnsProgram−Thecompanyhasrepurchased1.67millionshares,representingapproximately4.90.4 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 29.1million[26].FinancialStatementsOverview−Thecompanyended2024with29.1 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 49.7millionfrom49.7 million from 80.4 million in 2023, primarily due to asset divestments [34].