US Energy (USEG) Q4 2024 earnings summary

Executive summary

• Monetized legacy oil and gas assets, generating up to $13.5 million in proceeds, eliminating all outstanding debt, and redeploying capital into the Montana industrial gas project, which expanded to over 160,000 net acres by early 2025.

• Maintained disciplined capital allocation, including share repurchases totaling 1.7 million shares (~4–4.9% of outstanding shares) and a focus on non-dilutive funding.

• Ended 2024 with $7.7 million in cash, no debt, and total liquidity of $27.7 million.

• Completed equity offerings raising up to $12.1 million in January 2025 and extended a $5 million share repurchase program through June 2026.

• Launched and advanced the Montana industrial gas project, including drilling, acreage acquisition, and focus on CO2-dominant and helium pay zones.

Financial highlights

• 2024 revenue was $20.6 million, down 36% year-over-year, with Q4 sales at $4.2 million due to divestitures and lower production.

• Lease operating expense for 2024 was $11.2 million ($26.83/Boe), with Q4 at $1.8 million ($20.58/BOE), both down year-over-year.

• Net loss for 2024 was $25.8 million, including $11.9 million impairment and $5.0 million loss on asset sales; Q4 net loss was $12 million.

• Adjusted EBITDA was $3.6 million for 2024 and $0.4 million in Q4.

• Year-end 2024 proved reserves were 2.0 MBoe (81% oil), PV-10 value $29.1 million.

Outlook and guidance

• 2025 will focus on workover operations and drilling up to four industrial gas wells in Montana, with operational results from four wells expected by end of Q2.

• Commercial production from industrial gas assets is targeted for Q1/Q2 2026, reflecting a shift due to plant size and weather constraints.

• All 2025 development activities expected to be funded from cash and operating cash flow.

• Final investment decision on gas processing plant and launch of carbon sequestration business expected in Q2 2025.

• Offtake agreements for helium are expected to be pursued in the second half of 2025.