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US Energy (USEG)
NASDAQ:USEG
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US Energy
(NASDAQ:USEG)
Rating:40Underperform
Price Target:
$1.00
▼(-9.91% Downside)
US Energy (USEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.77M
Dividend YieldN/A
Average Volume (3M)314.39K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth-51.27%
EPS Growth49.89%
CountryUS
Employees20
SectorEnergy
Sector Strength58
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.19
Shares Outstanding34,023,550
10 Day Avg. Volume215,776
30 Day Avg. Volume314,390
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.93
Enterprise Value/Gross Profit-22.31
Enterprise Value/Ebitda-3.64
Forecast
1Y Price Target
$1.00Price Target Upside-9.91% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering0
US Energy Business Overview & Revenue Model
Company DescriptionUS Energy Corp (USEG) is an independent energy company primarily engaged in the acquisition and development of oil and natural gas properties in the United States. The company operates in the exploration and production sector, focusing on enhancing its asset base through strategic investments in proven reserves and exploring new opportunities in energy-rich regions. USEG's core products include crude oil and natural gas, which are essential resources for various industries and consumer markets.
How the Company Makes MoneyUS Energy Corp generates revenue primarily through the sale of crude oil and natural gas produced from its operations. The company's revenue model is based on extracting hydrocarbons from its properties and selling them at prevailing market prices. Key revenue streams include the direct sale of oil and gas, as well as potential income from joint ventures and partnerships with other exploration and production companies. Additionally, the company may benefit from hedging strategies that lock in prices for its products, thus providing financial stability. Significant partnerships with other firms in the energy sector may also enhance its operational capabilities and revenue potential.
US Energy Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The call highlighted successful developments in the Montana industrial gas project and significant resource confirmation, demonstrating progress in U.S. Energy's strategic transformation. However, revenue decline and lower-than-expected helium concentrations are challenges that need addressing. Overall, the call reflects a balanced outlook with both achievements and challenges.Q2-2025 Updates
Positive Updates
Successful Development of Montana Industrial Gas Project
Completed the initial phase of development, including drilling of 2 new wells targeting helium and CO2, and managing production to optimize reservoir performance.
Significant Resource Confirmation
Independent resource report confirmed 444 billion cubic feet of CO2 and 1.3 billion cubic feet of helium, among the largest known deposits of its kind.
Strong Cash Position and Debt Management
Maintained a strong cash position with over $6.7 million and no outstanding debt on the $20 million revolving credit facility.
Carbon Management and CO2 Sequestration Progress
Injection testing achieved sustained rates of over 17 million cubic feet a day, supporting a sequestration capacity of approximately 240,000 metric tons of CO2 annually.
Expansion Opportunities in the Helium Market
Plans to break ground on the Kevin Dome processing plant to separate gas into helium, natural gas, and CO2 streams.
Negative Updates
Revenue Decline
Revenue dropped to approximately $2 million from $6 million in the same quarter last year due to divestitures.
Helium Concentration Lower Than Expected
New wells had a helium concentration of 0.4%, lower than the previously expected 0.6%.
Increased Lease Operating Expenses
Lease operating expense was $1.6 million or $32.14 per BOE, up from $27.69 per BOE in the same quarter last year.
Company Guidance
During the second quarter of 2025, U.S. Energy Corporation reported significant strides in its Montana-based industrial gas project, with the completion of the initial development phase on track to bring operations online. This phase involved drilling two new wells and optimizing production to approximately 8 million cubic feet per day with a premium gas composition of 85% CO2, 5% natural gas, and 0.4% helium. The company reported net contingent resources of 444 billion cubic feet of CO2 and 1.3 billion cubic feet of helium. Plans for the Kevin Dome processing plant are underway, with construction costs projected to be under $10 million. U.S. Energy also highlighted its carbon management strategy, with injection wells supporting a sequestration capacity of approximately 240,000 metric tons of CO2 annually. Financially, the company posted $2 million in revenue, with a lease operating expense of $1.6 million or $32.14 per BOE. The balance sheet showed no debt on a $20 million revolving credit facility, and a cash position of over $6.7 million, bolstered by net proceeds from an equity offering.US Energy Financial Statement Overview
Summary
US Energy is facing significant financial challenges with declining revenues, negative profit margins, and cash flow issues. Despite a low debt-to-equity ratio, the negative return on equity and substantial cash flow decline highlight operational inefficiencies and financial distress.Income Statement
US Energy's income statement reveals significant challenges. The company has experienced declining revenues with a negative growth rate of -23.06% in the TTM. Gross profit margin and net profit margin are both negative, indicating the company is not covering its costs and is operating at a loss. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and financial distress.25
Negative
Balance Sheet
The balance sheet shows a low debt-to-equity ratio of 0.018, which is a positive indicator of financial stability. However, the return on equity is negative, suggesting that the company is not generating profit from its equity base. The equity ratio is relatively healthy, but the overall financial position is weakened by consistent losses.40
Negative
Cash Flow
The cash flow statement highlights a concerning decline in free cash flow growth by -94.02% in the TTM. The operating cash flow to net income ratio is below 1, indicating that operating cash flow is not sufficient to cover net losses. The free cash flow to net income ratio is negative, further emphasizing cash flow challenges.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.40M | 20.62M | 32.32M | 44.55M | 6.66M | 2.33M |
| Gross Profit | -1.76M | -276.00K | 3.16M | 14.70M | 3.20M | 220.00K |
| EBITDA | -10.79M | -16.81M | -20.72M | 7.50M | -1.03M | -5.95M |
| Net Income | -23.44M | -25.78M | -32.36M | -963.00K | -1.77M | -6.44M |
Balance Sheet | ||||||
| Total Assets | 50.99M | 49.67M | 80.44M | 118.32M | 17.66M | 12.36M |
| Cash, Cash Equivalents and Short-Term Investments | 6.94M | 7.85M | 3.52M | 4.52M | 4.61M | 3.04M |
| Total Debt | 515.00K | 611.00K | 5.79M | 12.98M | 133.00K | 518.00K |
| Total Liabilities | 23.03M | 25.85M | 33.92M | 39.97M | 4.23M | 3.80M |
| Stockholders Equity | 27.96M | 23.82M | 46.52M | 78.35M | 13.44M | 8.57M |
Cash Flow | ||||||
| Free Cash Flow | -569.00K | -3.33M | 1.60M | -8.39M | -1.76M | -1.89M |
| Operating Cash Flow | 4.26M | 4.59M | 5.47M | 10.90M | -153.00K | -717.00K |
| Investing Cash Flow | 3.96M | 5.77M | 2.83M | -16.95M | -3.33M | -1.11M |
| Financing Cash Flow | 2.42M | -5.98M | -9.36M | 6.04M | 5.05M | 3.15M |
US Energy Technical Analysis
Negative
1.11
Price Trends
1.25
Negative
1.28
Negative
1.51
Negative
Market Momentum
-0.03
Positive
35.58
Neutral
7.41
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 1.11 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.25, and below the 200-day MA of 1.51, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $46.60M | 8.42 | 375.02% | 10.26% | 22.51% | 26.50% | |
65 Neutral | $15.01B | 7.39 | 3.39% | 5.33% | 4.10% | -61.80% | |
57 Neutral | $47.69M | 8.91 | 7.42% | 10.72% | 1.82% | 1.15% | |
40 Underperform | $37.77M | ― | -71.37% | ― | -51.27% | 49.89% | |
| ― | $45.56M | 4.66 | 82.21% | 18.84% | ― | ― | |
41 Neutral | $33.73M | ― | -63.23% | ― | 98.83% | -85.72% | |
| ― | $41.79M | ― | -38.59% | ― | ― | ― |
* Energy Sector Average
Performance Comparison
USEG
US Energy
1.11
0.21
23.33%
VOC
VOC Energy
2.68
-1.36
-33.66%
NRT
North European Oil Royalty
5.07
0.40
8.57%
PRT
Permrock Royalty
3.92
0.47
13.62%
VIVK
Vivakor
0.70
-1.08
-60.67%
INDO
Indonesia Energy
2.88
0.11
3.97%
US Energy Corporate Events
Executive/Board ChangesShareholder Meetings
US Energy Appoints New Director at Annual Meeting
Positive
May 20, 2025
On May 16, 2025, U.S. Energy Corp. held its 2024 Annual Meeting of Stockholders, where three key proposals were voted on. The meeting resulted in the appointment of Duane H. King as a Class Three director, the ratification of Weaver & Tidwell, L.L.P. as the independent auditor for the fiscal year ending December 31, 2025, and the approval of executive officer compensation. These decisions are expected to impact the company’s governance and financial oversight positively.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.