US Energy (USEG) AI Stock Analysis

• Market Cap: $37.98M
• Dividend Yield: N/A
• Average Volume (3M): 390.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -57.06%
• EPS Growth: 38.11%
• Country: US
• Employees: 20
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.10
• Shares Outstanding: 35,833,824
• 10 Day Avg. Volume: 239,228
• 30 Day Avg. Volume: 390,909
• PEG Ratio: 0.07
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.11
• P/FCF Ratio: -13.10
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.68
• Enterprise Value/Gross Profit: -22.38
• Enterprise Value/Ebitda: -1.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.34
• Revenue Forecast (FY): $7.73M

• Rating: 44 Neutral
• Price Target: $1.00 ▲(0.00% Upside)

US Energy's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability. Technical analysis indicates bearish momentum, while valuation metrics reflect unprofitability. The earnings call provided some positive developments, but challenges remain significant.

Positive Factors

Strong Cash Position

A strong cash position with no debt enhances financial flexibility, allowing US Energy to invest in growth opportunities and weather economic fluctuations.

Montana Industrial Gas Project

Successful development in Montana indicates strategic progress and potential new revenue streams, strengthening US Energy's market position in industrial gases.

Carbon Management Strategy

Advancements in carbon management align with environmental trends, potentially opening up new regulatory incentives and enhancing the company's sustainability profile.

Negative Factors

Revenue Decline

A significant revenue decline suggests challenges in maintaining market share and profitability, impacting long-term financial health and growth prospects.

Helium Concentration

Lower-than-expected helium concentration could reduce the profitability of new wells, affecting the anticipated returns from the Montana project.

Increased Lease Operating Expenses

Rising operating expenses can erode margins, making it harder for US Energy to achieve cost efficiency and sustain profitability in a competitive market.

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

US Energy Corp generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its operations. The company operates on a revenue model that includes direct sales of hydrocarbons, as well as potential partnerships with other energy firms for joint ventures and exploration projects. Key revenue streams include production royalties from leased properties, sales contracts with refineries and distributors, and strategic partnerships that enhance its operational capabilities. The company's earnings are influenced by fluctuations in commodity prices, regulatory environments, and operational efficiency, alongside its ability to expand its asset base through strategic acquisitions.

US Energy Financial Statement Overview

Summary

US Energy is facing significant financial challenges with declining revenues and profitability, as evidenced by negative margins and growth rates. Despite a low debt-to-equity ratio indicating financial stability, negative return on equity and cash flow issues 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.18M	20.62M	32.32M	44.55M	6.19M	2.16M
Gross Profit	-1.67M	-276.00K	3.16M	14.70M	3.77M	627.00K
EBITDA	-19.07M	-16.81M	-20.72M	7.50M	-273.00K	-1.96M
Net Income	-24.54M	-25.78M	-32.36M	-963.00K	-1.77M	-6.44M
Balance Sheet
Total Assets	46.50M	49.67M	80.44M	118.32M	17.66M	12.36M
Cash, Cash Equivalents and Short-Term Investments	1.73M	7.85M	3.52M	4.52M	4.61M	3.04M
Total Debt	465.00K	611.00K	5.79M	12.98M	133.00K	518.00K
Total Liabilities	21.46M	25.85M	33.92M	39.97M	4.23M	3.80M
Stockholders Equity	25.04M	23.82M	46.52M	78.35M	13.44M	8.57M
Cash Flow
Free Cash Flow	-16.78M	-3.33M	1.60M	4.25M	-1.76M	-1.89M
Operating Cash Flow	-4.58M	4.59M	5.47M	10.90M	-153.00K	-717.00K
Investing Cash Flow	-4.59M	5.77M	2.83M	-16.95M	-3.33M	-1.11M
Financing Cash Flow	9.44M	-5.98M	-9.36M	6.04M	5.05M	3.15M

US Energy Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USEG, the sentiment is Neutral. The current price of 1 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.12, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 63.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USEG.

US Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRT	71 Outperform	$55.97M	10.12	375.02%	12.62%	22.51%	26.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRT	57 Neutral	$47.45M	9.25	7.20%	10.86%	-0.83%	-0.82%
VIVK	49 Neutral	$26.81M	-0.21	-163.97%	―	101.82%	-605.58%
USEG	44 Neutral	$37.98M	―	-80.75%	―	-57.06%	38.11%

US Energy Corporate Events

US Energy Updates Consents for Registration Statement

U.S. Energy Corp. has filed a report to update consents from Weaver and Tidwell, L.L.P., and On Point Resources, Inc., for incorporation into its Registration Statement. These consents relate to the company’s financial statements and estimated oil and gas reserves, impacting its regulatory compliance and investor information.

US Energy Secures $25M Stock Purchase Agreement

On October 9, 2025, U.S. Energy Corp. entered into a Common Stock Purchase Agreement with Roth Principal Investments, allowing the company to sell up to $25 million of its common stock over a 24-month period. This agreement provides U.S. Energy with financial flexibility to manage its operations and capital needs, potentially impacting its market position and shareholder value. The arrangement includes specific conditions and limitations, such as a maximum issuance cap and restrictions on stock ownership percentages, ensuring compliance with Nasdaq rules.

U.S. Energy Amends Credit Agreement with Firstbank

U.S. Energy Corp. recently amended its credit agreement with Firstbank Southwest, extending the maturity date to May 31, 2029, and lowering the borrowing base to $10 million. This amendment, effective August 1, 2025, allows for revolving loans to be borrowed, repaid, and re-borrowed until the new maturity date, with interest rates tied to prime and Federal Funds rates. The amendment also waived certain technical defaults and updated various terms of the agreement, impacting the company’s financial operations and obligations.