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U.S. Energy Corp. Reports First Quarter 2025 Results and Provides Operational Update
USEGU.S. Energy (USEG) GlobeNewswire·2025-05-12 10:00

Core Insights - U.S. Energy Corporation is focused on becoming a leading provider of non-hydrocarbon industrial gases, with significant progress in its Montana development project [2][3] - The company has a disciplined capital allocation strategy, having divested legacy oil and gas assets, eliminated debt, and returned capital to shareholders through share repurchases [2][8] Financial Performance - For Q1 2025, U.S. Energy reported total hydrocarbon production of approximately 47,008 barrels of oil equivalent (BOE), with oil production accounting for 64% [11] - Total oil and gas sales for Q1 2025 were approximately 2.2million,adecreasefrom2.2 million, a decrease from 5.4 million in Q1 2024, primarily due to divestitures and declining oil prices [11] - The company reported a net loss of 3.1million,oralossof3.1 million, or a loss of 0.10 per diluted share, compared to a net loss of 9.5millioninthesamequarterof2024[14][24]OperationalDevelopmentsU.S.Energyhasacquired24,000netacresintheKevinDome,withtheKieferFarmswelldemonstratingheliumconcentrationsofapproximately0.69.5 million in the same quarter of 2024 [14][24] Operational Developments - U.S. Energy has acquired 24,000 net acres in the Kevin Dome, with the Kiefer Farms well demonstrating helium concentrations of approximately 0.6% and flow rates exceeding 3.2 million cubic feet per day (MMcf/d) [6][10] - The company is set to begin construction of its gas processing plant in July 2025, which will have a processing capacity of 17.0 MMcf/d at a capital cost of approximately 15 million [6][10] Carbon Management Initiatives - The company is projected to permanently sequester approximately 240,000 metric tons of CO₂ annually through its gas injection activities [13] - U.S. Energy has submitted an application for a new Class II injection well, with approval expected in June 2025 [13] Balance Sheet and Liquidity - As of March 31, 2025, U.S. Energy remained entirely debt-free, with approximately 30.5millioninavailableliquidity[8][9]ThecompanyendedQ12025withacashbalanceof30.5 million in available liquidity [8][9] - The company ended Q1 2025 with a cash balance of 10.5 million, an increase from $7.7 million at the end of 2024 [9][21] Shareholder Returns - U.S. Energy has repurchased approximately 832,000 shares year-to-date, representing about 2.5% of its outstanding shares, reflecting strong alignment with shareholders [15]