US Energy (USEG) AI Stock Analysis

• Market Cap: $46.48M
• Dividend Yield: N/A
• Average Volume (3M): 9.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -57.06%
• EPS Growth: 38.11%
• Country: US
• Employees: 20
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.06
• Shares Outstanding: 35,833,824
• 10 Day Avg. Volume: 25,371,235
• 30 Day Avg. Volume: 9,329,256
• PEG Ratio: 0.04
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 4.25
• P/FCF Ratio: -1.63
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 5.46
• Enterprise Value/Gross Profit: -17.78
• Enterprise Value/Ebitda: -6.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.12
• Revenue Forecast (FY): $8.41M

• Rating: 45 Neutral
• Price Target: $1.00 ▲(0.00% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily held down by weak financial performance (recent revenue contraction, large losses, and substantial TTM cash burn, with added concern from unusual TTM balance-sheet figures). Technical indicators are broadly neutral and do not provide a strong offset, valuation is unattractive due to losses and no dividend support, while the recent equity raise modestly improves near-term funding but comes with dilution.

Positive Factors

Large Kevin Dome resource base

A very large, independently evaluated resource base provides multi-decade feedstock for helium production, CO2 sequestration and CO2-EOR. This scale underpins multiple independent revenue streams, supports long-term project economics, and makes the asset strategic and bankable for project financing.

Regulatory MRV progress

Early MRV submissions to EPA position the company as a regulatory first-mover in Montana, reducing permitting uncertainty. MRV approvals materially improve access to carbon credit markets and make project-level financing and long-term sequestration contracts more attainable for the Kevin Dome platform.

De-risked initial processing and supply

Having final plant engineering, a secured plant site, and producing low-decline wells supplies initial throughput without immediate drilling. This reduces early execution and capital intensity risks, increases predictability of first-phase volumes, and strengthens the path to meaningful near-term cash flows once processing and offtake are contracted.

Negative Factors

Severe TTM cash burn

Large negative operating and free cash flow across the trailing twelve months creates an urgent funding requirement to sustain development. Continued cash burn increases reliance on external financing, heightens dilution risk, and constrains the company’s ability to self-fund Kevin Dome capex and sustain operations during project ramp.

Deteriorated profitability and revenue decline

Sharp revenue contraction and sustained net losses show legacy operations are not generating sufficient cash to support transformation. Persistent negative margins weaken internal funding capacity, forcing dependence on external capital and making successful execution of the new industrial gas/carbon strategy critical for restoring profitability.

Heavy reliance on dilutive equity financing

Frequent private placements and a recent underwritten offering (closed March) show dependence on equity to fund development. Ongoing dilution reduces per-share economics for existing holders, signals limited internal cash funding, and raises execution risk if future capital markets access weakens before project cash flows commence.

US Energy Business Overview & Revenue Model

Company Description

U.S. Energy Corp., an independent energy company, focuses on the acquisition, exploration, and development of oil and natural gas properties in the continental United States. It holds interests in various oil and gas properties in the Williston Basin in North Dakota; the Permian Basin in New Mexico; and Texas. As of December 31, 2021, the company had an estimated proved reserves of 1,344,626 barrel of oil equivalent; oil and natural gas leases covered 89,846 gross acres and 5,757 net acres; and 146 gross producing wells. U.S. Energy Corp. was incorporated in 1966 and is based in Houston, Texas.

How the Company Makes Money

USEG primarily makes money by selling the crude oil and natural gas (and associated natural gas liquids, if produced) generated from its oil and gas properties. Revenue is driven by (1) production volumes attributable to its working interests and (2) realized commodity prices, net of applicable differentials and certain post-production costs where applicable. As a non-operator on many properties, USEG typically receives its share of production revenue while paying its proportionate share of capital expenditures and operating costs billed by the operator; earnings are therefore influenced by operator-led drilling and completion activity, field operating performance, and well decline rates. The company may also generate cash flow or gains from asset-level transactions—such as acquiring additional interests, divesting properties, or entering into participation arrangements—when such transactions occur; specific, current material partnerships or contractual arrangements beyond typical operator/non-operator joint-interest relationships are null.

US Energy Financial Statement Overview

Summary

Weak overall financial quality driven by sharp TTM revenue decline, deeply negative profitability (net loss of -$15.6M), and a major swing to cash burn (TTM operating cash flow -$17.0M; TTM free cash flow -$29.2M). Low leverage in annual snapshots is a partial offset, but unusual TTM balance-sheet figures (zero equity/negative assets) elevate risk and reduce confidence.

Income Statement

Profitability has deteriorated meaningfully. In TTM (Trailing-Twelve-Months), revenue declined sharply to $7.4M (down 27.8%), while gross profit turned deeply negative and losses widened (net income of -$15.6M, with very weak margins). The annual trend also shows persistent losses across 2023–2024 despite higher revenue levels, indicating the cost structure is not scaling well. A key positive is that 2022 showed comparatively stronger operating performance (positive EBITDA), but the subsequent reversal weighs heavily on the score.

Balance Sheet

Leverage appears low in the annual periods (debt-to-equity roughly 0.03 in 2024 and 0.12 in 2023), which reduces near-term balance-sheet risk. However, profitability has been poor for multiple years, reflected in consistently negative returns on equity. Additionally, the TTM (Trailing-Twelve-Months) balance sheet data is a major red flag (stockholders’ equity shown as 0 and total assets shown as slightly negative), which raises data-quality/structure concerns and, if reflective of real conditions, would indicate severe financial strain.

Cash Flow

Cash generation has weakened materially. TTM (Trailing-Twelve-Months) operating cash flow is -$17.0M and free cash flow is -$29.2M, implying heavy cash burn. While 2022–2024 showed periods of positive operating cash flow (including ~$4.6M in 2024) and occasional positive free cash flow (2022 and 2023), the latest TTM reversal is significant and suggests funding needs could rise if conditions don’t improve.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	7.35M	20.62M	32.32M	44.55M	6.19M
Gross Profit	-2.26M	-276.00K	3.16M	14.70M	3.77M
EBITDA	-6.54M	-16.81M	-20.72M	7.50M	-273.00K
Net Income	-14.37M	-25.78M	-32.36M	-963.00K	-1.77M
Balance Sheet
Total Assets	40.63M	49.67M	80.44M	118.32M	17.66M
Cash, Cash Equivalents and Short-Term Investments	575.00K	7.85M	3.52M	4.52M	4.61M
Total Debt	2.92M	611.00K	5.79M	12.98M	133.00K
Total Liabilities	16.43M	25.85M	33.92M	39.97M	4.23M
Stockholders Equity	24.20M	23.82M	46.52M	78.35M	13.44M
Cash Flow
Free Cash Flow	-19.21M	-3.33M	1.60M	4.25M	-1.76M
Operating Cash Flow	-7.14M	4.59M	5.47M	10.90M	-153.00K
Investing Cash Flow	-11.88M	5.77M	2.83M	-16.95M	-3.33M
Financing Cash Flow	11.73M	-5.98M	-9.36M	6.04M	5.05M

US Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.04, and below the 200-day MA of 1.16, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 10.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USEG.

US Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRT	84 Outperform	$78.67M	10.31	375.02%	12.50%	22.51%	26.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRT	57 Neutral	$39.17M	10.89	7.20%	11.00%	-0.83%	-0.82%
VIVK	46 Neutral	$2.51M	-0.05	-69.23%	―	101.82%	-605.58%
USEG	45 Neutral	$46.48M	-2.17	-51.91%	―	-57.06%	38.11%

US Energy Corporate Events

US Energy Completes Underwritten Equity Offering for Growth

On March 9, 2026, U.S. Energy Corp. entered into an underwriting agreement with Roth Capital Partners for a previously announced underwritten offering of 8,800,000 shares of common stock at $1.00 per share. The agreement includes customary representations, warranties, indemnification provisions and a 60‑day lock‑up restricting sales or transfers of company stock by the company, directors and executive officers without the underwriter’s consent.

The offering, conducted under an effective shelf registration statement filed in September 2025, closed on March 10, 2026 and generated approximately $8.2 million in net proceeds. U.S. Energy plans to use these funds to advance development of its Kevin Dome asset in Montana and for general corporate purposes and working capital, a move that strengthens its funding for key projects and near‑term operational needs while modestly diluting existing shareholders.

The most recent analyst rating on (USEG) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on US Energy stock, see the USEG Stock Forecast page.

US Energy Discloses Additional Unregistered Common Stock Sales

U.S. Energy Corp. has been selling shares of common stock to Roth Principal Investments, LLC under a $25 million Common Stock Purchase Agreement first executed on October 9, 2025. Since a prior disclosure on February 10, 2026, the company has issued an additional 6,525,843 shares for gross proceeds of about $7.3 million, representing roughly 19.1% of its shares outstanding as of September 30, 2025.

Within this total, 1,425,000 shares, or approximately 4.0% of the September 30, 2025 share count, were sold once the average purchase price met or exceeded $1.2788 per share as defined in the agreement. A sale completed on March 2, 2026 pushed new issuances above the 5% threshold, triggering disclosure requirements, and the company now has 44,269,192 common shares outstanding following these private, exempt transactions and the effectiveness of a resale registration in December 2025.

The most recent analyst rating on (USEG) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on US Energy stock, see the USEG Stock Forecast page.

U.S. Energy Highlights Strategy at Emerging Growth Conference

On February 25, 2026, U.S. Energy Corp. posted its February 2026 investor presentation on its website, offering updated materials for investors and analysts reviewing the company. This updated presentation provides the market with fresh context on the company’s positioning and is intended for informational use rather than as a formally filed document under securities regulations.

On February 26, 2026, U.S. Energy Corp. was scheduled to present at The Emerging Growth Conference at 12:00 PM Eastern Time, highlighting its efforts to reach a broader base of growth-focused investors. Participation in this event underscores the company’s strategy of increasing engagement with the investment community and potentially expanding its visibility among small-cap and emerging growth market participants.

The most recent analyst rating on (USEG) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on US Energy stock, see the USEG Stock Forecast page.

US Energy Expands Equity Financing Through Private Share Sales

U.S. Energy Corp. disclosed that, under a Common Stock Purchase Agreement signed on October 9, 2025, with Roth Principal Investments, it may sell up to $25 million of its common stock at its discretion, subject to specified conditions. Between its November 12, 2025 quarterly filing and subsequent transactions through February 10, 2026, the company issued 2,022,539 shares for gross proceeds of about $2 million, representing roughly 5.7% of its shares outstanding as of September 30, 2025.

The February 10, 2026 sale caused issuances under the agreement to exceed 5% of outstanding shares, triggering disclosure requirements for unregistered equity sales. The shares were sold in a private placement to accredited investor Roth Principal Investments under a Securities Act exemption, and U.S. Energy later filed a registration statement, declared effective on December 1, 2025, to permit Roth’s resale of those shares, highlighting an ongoing use of equity financing that dilutes existing shareholders while bolstering the company’s capital base.

The most recent analyst rating on (USEG) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on US Energy stock, see the USEG Stock Forecast page.