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US Energy (USEG)
NASDAQ:USEG
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US Energy
(NASDAQ:USEG)
46Neutral
US Energy (USEG) vs. S&P 500 (SPY)
Market Cap
$48.70M
Dividend YieldN/A
Average Volume (3M)588.14K
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth-36.19%
EPS Growth24.43%
CountryUS
Employees41
SectorEnergy
Sector Strength86
IndustryFossil Fuels
Share Statistics
EPS (TTM)-0.96
Shares Outstanding33,821,020
10 Day Avg. Volume340,225
30 Day Avg. Volume588,141
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.41
Price to Cash Flow (P/CF)7.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
US Energy Business Overview & Revenue Model
Company DescriptionUS Energy Corp. is an independent energy company, which engages in the acquisition and development of oil and natural gas properties. Its projects include North Dakota, Texas, and Louisiana. The company was founded in 1966 and is headquartered in Denver, CO.
How the Company Makes MoneyUS Energy Corp. generates revenue through the exploration, drilling, and production of oil and natural gas. The company's primary revenue streams include the sale of produced crude oil, natural gas, and natural gas liquids. USEG operates in various oil-rich regions, which allows it to capitalize on favorable market conditions and commodity prices. The company's earnings are significantly influenced by factors such as production volumes, oil and gas prices, and operational efficiencies. Additionally, USEG may engage in strategic partnerships and joint ventures to enhance its operational capabilities and expand its asset portfolio, further contributing to its revenue growth.
US Energy Financial Statement Overview
Summary
US Energy faces significant financial challenges, including declining revenues, persistent losses, and a decreasing asset base. The balance sheet reveals weakening financial stability, and cash flow management needs improvement. Addressing operational inefficiencies and improving profitability are crucial for future growth and stability.Income Statement
US Energy has experienced significant revenue fluctuations, with a notable decline from 2022 to 2023. Gross profit margin is relatively high, but net income has consistently been negative, indicating persistent profitability challenges. The EBIT and EBITDA margins are also weak, reflecting operational inefficiencies.35
Negative
Balance Sheet
The company's debt-to-equity ratio is manageable, but the declining stockholders' equity over recent years poses a risk. Total assets have decreased, and with zero stockholders' equity in the latest period, financial stability is a concern. The equity ratio has deteriorated, potentially impacting leverage and investment capacity.40
Negative
Cash Flow
Operating cash flow shows volatility, with periods of negative free cash flow, indicating challenges in cash conversion. Free cash flow growth has been inconsistent, and the cash flow to net income ratios reveal inefficiencies in translating earnings into cash.30
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 23.72M | 20.62M | 32.32M | 44.55M | 6.66M | 2.33M | Gross Profit |
| 74.00K | 20.62M | 3.16M | 14.70M | 3.20M | 220.00K | EBIT |
| -10.46M | 0.00 | -35.04M | 9.38M | -1.43M | 1.57M | EBITDA |
| -23.87M | 0.00 | -20.72M | 7.50M | -1.03M | -1.96M | Net Income Common Stockholders |
| -33.56M | 0.00 | -32.36M | -963.00K | -2.15M | -6.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.80M | 0.00 | 3.52M | 4.52M | 4.61M | 3.04M | Total Assets |
| 14.59M | 378.00K | 80.44M | 118.32M | 17.66M | 12.36M | Total Debt |
| 160.00K | 0.00 | 5.79M | 12.98M | 133.00K | 518.00K | Net Debt |
| -1.10M | 0.00 | 2.44M | 8.57M | -4.29M | -2.34M | Total Liabilities |
| 2.84M | 0.00 | 33.92M | 39.97M | 4.23M | 3.80M | Stockholders Equity |
| 11.75M | 0.00 | 46.52M | 78.35M | 13.44M | 8.57M |
| Cash Flow | Free Cash Flow | ||||
| 1.78M | 0.00 | 1.60M | -8.39M | -1.76M | -1.89M | Operating Cash Flow |
| 5.39M | 0.00 | 5.47M | 10.90M | -153.00K | -717.00K | Investing Cash Flow |
| 6.88M | 0.00 | 2.83M | -16.95M | -3.33M | -1.11M | Financing Cash Flow |
| -13.09M | 0.00 | -9.36M | 6.04M | 5.05M | 3.15M |
US Energy Technical Analysis
Negative
1.41
Price Trends
1.99
Negative
1.79
Negative
1.43
Negative
Market Momentum
-0.16
Negative
39.71
Neutral
63.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USEG, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.99, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 63.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USEG.
US Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.33B | 7.09 | 19.67% | 1.90% | 23.47% | 0.80% | |
75 Outperform | $4.67B | 12.40 | 20.06% | 2.25% | 7.25% | -4.99% | |
70 Neutral | $2.97B | 5.83 | 23.82% | 5.48% | 29.45% | -48.29% | |
57 Neutral | $8.61B | 5.18 | -5.98% | 7.34% | -0.26% | -72.80% | |
50 Neutral | $5.67B | ― | -9.51% | 0.66% | -22.76% | -199.21% | |
46 Neutral | $48.70M | ― | -73.31% | ― | -36.19% | 24.43% |
* Energy Sector Average
Performance Comparison
USEG
US Energy
1.41
0.38
36.89%
CRK
Comstock Resources
19.84
11.48
137.32%
MTDR
Matador Resources
52.31
-15.18
-22.49%
NOG
Northern Oil And Gas
30.80
-6.95
-18.41%
MGY
Magnolia Oil & Gas
25.33
0.93
3.81%
US Energy Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -1.40% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strategic shift towards industrial gas development with significant progress in Montana and a strong capital position. However, the company faces challenges with declining oil and gas sales and a delayed timeline for industrial gas production. Despite these challenges, the strategic initiatives and clean balance sheet position US Energy for future growth.Highlights
Successful Drilling and Expansion in Montana
US Energy successfully drilled its first industrial gas well in Montana and acquired approximately 24,000 net acres, expanding its footprint to 160,000 net acres in the Kevin Dome region. This strategic acquisition targets CO2 dominant pay zones with significant helium concentrations.
Capital Strategy and Debt Elimination
The company eliminated its outstanding debt through the sale of South Texas and East Texas assets for $6 million and $6.8 million, respectively. This provided additional capital for the Montana development efforts and resulted in a clean balance sheet.
Share Repurchase Program and Executive Investment
US Energy repurchased approximately 1.7 million shares, representing 4% of the outstanding share count, and the executive team increased their personal holdings, indicating strong confidence in the company's valuation.
Carbon Sequestration Progress
Substantial progress was made on the carbon sequestration component of the Montana project, with plans to optimize existing Class 2 injection permits and advance the monitoring, reporting, and verification process to leverage federal CO2 sequestration incentives.
Lowlights
Decline in Oil and Gas Sales
Total oil and gas sales for the fourth quarter decreased from $7.3 million in the previous year to $4.2 million, attributed to a 36% reduction in volumes due to divestitures.
Net Loss for the Fourth Quarter
The company reported a net loss of $12 million in Q4 2024, compared to a $19.8 million loss in the prior year, driven by non-cash expense items and reduced production volumes from divestitures.
Delayed Industrial Gas Production Timeline
The timeline for reaching commercial production from industrial gas assets has been extended to 12-13 months due to a shift from nitrogen to CO2-based zones, which require longer lead times for equipment and are affected by harsh winter conditions in Montana.
Company Guidance
During U.S. Energy Corporation's fourth quarter and year-end 2024 results conference call, key guidance focused on the progression of their Montana industrial gas project. The company highlighted a strategic expansion with the acquisition of approximately 24,000 net acres, bringing their total to around 160,000 net acres at the Kevin Dome, which includes a CO2 dominant pay zone with significant helium concentrations. U.S. Energy plans to initiate workover operations on two wells in April 2025 and drill two additional wells by June, aiming to gather critical data such as flow rates and gas composition. The company projects to move into the plant manufacturing phase by the end of the second quarter of 2025. Additionally, they are advancing their carbon sequestration efforts, optimizing existing permits, and aligning with federal incentives. Financially, U.S. Energy reported a decrease in total oil and gas sales to $4.2 million for Q4 2024, down from $7.3 million in the prior year, attributed to a 36% reduction in volumes mainly due to divestitures. The company ended 2024 debt-free, maintaining a strong balance sheet with a cash position over $7.7 million and no outstanding borrowings on their $20 million credit facility. Capital expenditures for 2024 included $6.5 million on the industrial gas project.US Energy Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
US Energy Announces Public Offering and Development Plans
Positive
Jan 23, 2025
On January 22, 2025, U.S. Energy Corp. announced the pricing of its underwritten public offering of 4,236,000 shares of common stock at $2.65 per share, with total expected gross proceeds of approximately $13 million, after including an over-allotment option. The net proceeds of approximately $12.1 million are intended for the development of its recent Montana acquisition, general corporate purposes, and working capital. The offering aims to support growth capital for its industrial gas development project and may involve purchasing shares from Sage Road Capital, a related party.
M&A TransactionsBusiness Operations and Strategy
US Energy Expands with Strategic Acquisition in Montana
Positive
Jan 10, 2025
U.S. Energy Corp. has completed a significant acquisition of 24,000 net operated acres from Synergy Offshore LLC, strategically located across the Kevin Dome structure in Montana. This acquisition targets helium and other industrial gas production, enhancing U.S. Energy’s industrial gas operations and marking a milestone in its carbon management initiatives. The transaction includes a $2 million cash payment, issuance of 1.4 million shares of restricted stock, and a $20 million carried working interest agreement. This move positions U.S. Energy as a leader in sustainable industrial gas production, aligning closely with state and federal legislation, and aims to meet the growing demand for helium and CO₂ while addressing supply chain challenges.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.