U.S. Energy (USEG)
NASDAQ:USEG
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US Energy
(NASDAQ:USEG)
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Rating:52Neutral
Price Target:
$0.95
▼(-4.60% Downside)
Action:Reiterated
Date:05/09/26
Overall score reflects weak current financial performance (persistent losses and newly negative TTM operating/free cash flow) as the primary drag. This is partially offset by a positive earnings-call setup—construction underway, funding actions described as completing the Phase 1 capital stack, and a contracted take-or-pay helium offtake—while technicals and valuation metrics remain neutral-to-unfavorable.
Positive Factors
Project FID & EPC contract
Reaching a Final Investment Decision and executing a fixed‑scope EPC with an experienced contractor moves Big Sky from development to construction. This reduces execution risk, improves schedule and cost visibility, and materially raises the probability of delivering long‑term, recurring project cash flows once commissioned.
Negative Factors
Negative operating & free cash flow
Trailing‑twelve‑month negative operating and free cash flows indicate the company is burning cash rather than generating it from operations. Persistent cash burn raises reliance on external capital or asset sales to fund near‑term obligations and remaining project spend, increasing dilution and refinancing risk if timelines slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Project FID & EPC contract
Reaching a Final Investment Decision and executing a fixed‑scope EPC with an experienced contractor moves Big Sky from development to construction. This reduces execution risk, improves schedule and cost visibility, and materially raises the probability of delivering long‑term, recurring project cash flows once commissioned.
Read all positive factors
US Energy (USEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.90M
Dividend YieldN/A
Average Volume (3M)9.09M
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth-61.17%
EPS Growth38.42%
CountryUS
Employees20
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.42
Shares Outstanding52,320,430
10 Day Avg. Volume970,193
30 Day Avg. Volume9,086,944
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.29
Price to Sales (P/S)4.25
P/FCF Ratio-1.63
Enterprise Value/Market Cap0.53
Enterprise Value/Revenue4.01
Enterprise Value/Gross Profit-18.39
Enterprise Value/Ebitda-2.46
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$8.83M
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 Ba...
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 ...
US Energy Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call emphasized multiple material positive operational and commercial milestones: FID on Phase 1, a fixed-scope EPC contract, a completed Phase 1 capital stack, and a 5-year 100% take-or-pay helium offtake at $285/Mcf. Management also quantified a significant policy-backed revenue stream (~$130M of 45Q value over 12 years) and outlined a clear path to commercial operations (first gas and revenue targeted Q1 2027) plus scalable Phase 2 optionality. The principal risks discussed were near-term execution/permit timing (MRV/EPA approvals), remaining near-term CAPEX (~$25M), and the fact the project is not yet revenue-generating. On balance, the highlights — completed financing, long-term offtake, and construction underway — materially outweigh the near-term operational and regulatory risks.Positive Updates
Final Investment Decision (FID) on Big Sky Phase 1
Reached FID on the Phase 1 processing facility at the Big Sky Carbon Hub; transitioned the project from development to construction with long-lead equipment on order and capital flowing into the project. Commercial operations targeted for Q1 2027.
Negative Updates
Project Not Yet Revenue-Generating
Big Sky Phase 1 is under construction and management targets first revenue in Q1 2027 — revenues have not yet begun, leaving near-term financial optics constrained while the company is in a build phase.
Read all updates
Q1-2026 Updates
Positive
Negative
Final Investment Decision (FID) on Big Sky Phase 1
Reached FID on the Phase 1 processing facility at the Big Sky Carbon Hub; transitioned the project from development to construction with long-lead equipment on order and capital flowing into the project. Commercial operations targeted for Q1 2027.
Read all positive updates
Company Guidance
Management guided that, following FID on March 18 and execution of a fixed‑scope EPC with CANUSA, Phase 1 is under construction with the capital stack complete (March equity offering; amended senior secured facility: $20M borrowing base, 200 bps margin, maturity May 31, 2029, covenant testing suspended through the quarter ending Mar 31, 2027; ELOC suspended) and roughly $25M of project spend remaining, with plant commissioning targeted late‑2026 and first gas/first revenue in Q1 2027; the modular plant is designed for ~8 MMcf/day inlet capacity targeting ~14–14.4 MMcf/year of high‑purity helium (1.2 MMcf/month contracted) and ~125,000 metric tons CO2/year, with a 5‑year 100% take‑or‑pay helium offtake at $285/Mcf (CPI escalation from 3/1/2028; year‑3 repricing), MRV/45Q approvals expected summer 2026 (45Q = $85/ton today, underpinning ~ $130M of credits over the first 12 years), drilling/completions wrapped Aug 2025 (3 drilled wells + 2 acquired), two Class II injection wells operational, gathering/EOR prep this summer/fall, and acreage plus 170+ permitted Class II wells supporting 2–3x Phase 1 capacity and ~70M barrels incremental recovery at Cut Bank (Phase 2 excluded from base case but expected to lower per‑unit CapEx and significantly improve economics).US Energy Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
60
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.76M | 7.35M | 20.62M | 32.32M | 44.55M | 6.19M |
| Gross Profit | -1.48M | -2.26M | -276.00K | 3.16M | 14.70M | 3.77M |
| EBITDA | -11.02M | -6.54M | -16.81M | -20.72M | 7.50M | -273.00K |
| Net Income | -14.45M | -14.37M | -25.78M | -32.36M | -963.00K | -1.77M |
Balance Sheet | ||||||
| Total Assets | 55.19M | 40.63M | 49.67M | 80.44M | 118.32M | 17.66M |
| Cash, Cash Equivalents and Short-Term Investments | 10.62M | 575.00K | 7.85M | 3.52M | 4.52M | 4.61M |
| Total Debt | 2.87M | 2.92M | 611.00K | 5.79M | 12.98M | 133.00K |
| Total Liabilities | 16.72M | 16.43M | 25.85M | 33.92M | 39.97M | 4.23M |
| Stockholders Equity | 38.48M | 24.20M | 23.82M | 46.52M | 78.35M | 13.44M |
Cash Flow | ||||||
| Free Cash Flow | -19.25M | -19.21M | -3.33M | 1.60M | 4.25M | -1.76M |
| Operating Cash Flow | -5.16M | -7.14M | 4.59M | 5.47M | 10.90M | -153.00K |
| Investing Cash Flow | -13.89M | -11.88M | 5.77M | 2.83M | -16.95M | -3.33M |
| Financing Cash Flow | 19.00M | 11.73M | -5.98M | -9.36M | 6.04M | 5.05M |
US Energy Technical Analysis
Positive
1.00
Price Trends
0.93
Positive
0.98
Negative
1.05
Negative
Market Momentum
>-0.01
Positive
52.75
Neutral
53.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USEG, the sentiment is Positive. The current price of 1 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.93, and below the 200-day MA of 1.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 53.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USEG.
US Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $72.70M | 10.31 | 689.28% | 12.50% | 75.78% | 85.87% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | $50.90M | -2.78 | -49.96% | ― | -61.17% | 38.42% | |
| ― | $25.91M | 24.84 | 20.50% | 11.00% | -29.38% | -33.68% | |
46 Neutral | $5.93M | -0.09 | -69.23% | ― | -22.13% | -238.13% |
* Energy Sector Average
USEG
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US Energy Corporate Events
Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
US Energy Shareholders Approve Key Governance and Financing Measures
Positive
May 8, 2026
On May 8, 2026, U.S. Energy Corp. director Randall Keys concluded his service on the Board of Directors at the expiration of his term at the 2026 Annual Meeting of Stockholders, after previously indicating he would not stand for re‑election,...
Business Operations and StrategyPrivate Placements and Financing
US Energy Secures Long-Term Helium Sales Agreement
Positive
Apr 27, 2026
U.S. Energy Corp., listed on Nasdaq as USEG, is building an integrated energy and carbon management platform centered on its wholly owned Big Sky Carbon Hub and Cut Bank oil field in Montana. The company generates three distinct revenue streams fr...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
US Energy Secures Funding, Advances Big Sky Carbon Hub
Positive
Apr 20, 2026
On April 17, 2026, U.S. Energy Corp. amended its senior secured credit agreement, doubling the borrowing base to $20 million, fixing the interest margin at 2.00 percentage points over the alternate base rate, and suspending quarterly financial cov...
Business Operations and Strategy
US Energy Advances Big Sky Carbon Hub Processing Project
Positive
Mar 18, 2026
On March 18, 2026, U.S. Energy Corp. announced it had reached a Final Investment Decision to construct a processing facility at its Big Sky Carbon Hub in Montana’s Kevin Dome and had begun capital spending, underpinned by a fixed‑scope...
Business Operations and StrategyPrivate Placements and Financing
US Energy Completes Underwritten Equity Offering for Growth
Positive
Mar 11, 2026
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 represe...
Financial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
US Energy Discloses Additional Unregistered Common Stock Sales
Neutral
Mar 4, 2026
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 issu...
Business Operations and Strategy
U.S. Energy Highlights Strategy at Emerging Growth Conference
Positive
Feb 25, 2026
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...
Private Placements and FinancingRegulatory Filings and Compliance
US Energy Expands Equity Financing Through Private Share Sales
Neutral
Feb 13, 2026
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...
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.