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US Energy (USEG)
NASDAQ:USEG
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US Energy
(NASDAQ:USEG)
Rating:54Neutral
Price Target:
$1.50
▲(21.95%Upside)
US Energy (USEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.51M
Dividend YieldN/A
Average Volume (3M)226.87K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-40.81%
EPS Growth57.32%
CountryUS
Employees20
SectorEnergy
Sector Strength43
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.10
Shares Outstanding33,992,733
10 Day Avg. Volume309,847
30 Day Avg. Volume226,870
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.25
Price to Sales (P/S)0.00
P/FCF Ratio-131.85
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit-58.08
Enterprise Value/Ebitda-0.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
US Energy Business Overview & Revenue Model
Company DescriptionU.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 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 Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 8.85%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strategic shift towards the Montana Industrial Gas project with significant progress in infrastructure and carbon management, supported by a strong financial position. However, the company faces challenges with declining revenue and increased operating expenses due to divestitures and commodity price fluctuations.Q1-2025 Updates
Positive Updates
Montana Industrial Gas Project Development
Successfully launched the most significant phase of the Montana Industrial Gas project with workovers, flow testing, and drilling of new wells. The project features a non-hydrocarbon gas stream with a lower environmental footprint.
Infrastructure Advancements
Completion of the initial development program is expected in June, leading to the construction of a processing plant at Kevin Dome, capable of processing approximately 17 million cubic feet of raw gas per day.
Carbon Management Progress
Completed successful injection tests at two disposal wells and expect to sequester approximately 250,000 metric tons of CO2 annually. Drafting an MRV plan for submission to the EPA in July.
Strong Financial Position
No debt outstanding on a $20 million revolving credit facility and a cash position of over $10.5 million.
Shareholder Value Initiatives
Repurchased approximately 832,000 shares, representing roughly 2.5% of the outstanding float, showing confidence in undervaluation.
Negative Updates
Revenue Decline
Revenue decreased to $2.2 million from $5.4 million in the same quarter last year, primarily due to divestitures.
Increased Lease Operating Expense
Lease operating expense per BOE increased to $34.23 from $29.02 in the same quarter last year, despite overall expense reduction due to divestitures.
Commodity Price Impact
Pulled back commodity prices affected earnings across the sector, impacting legacy oil and gas assets.
Company Guidance
During the first quarter of 2025, U.S. Energy Corporation provided guidance on several key metrics and strategic initiatives. The company focused on the development of its Montana Industrial Gas project, highlighting the drilling of two new development wells with a budget of approximately $1.2 million each. The construction of a processing plant at Kevin Dome, expected to cost around $15 million and process approximately 17 million cubic feet of raw gas per day, is slated for completion in roughly 40 weeks. U.S. Energy also emphasized its carbon management initiatives, anticipating the sequestration of about 250,000 metric tons of CO2 annually. Financially, the company reported a revenue drop to $2.2 million, down from $5.4 million the previous year, due to divestitures. However, it maintained a strong balance sheet with over $10.5 million in cash and no debt on its $20 million revolving credit facility. Additionally, U.S. Energy repurchased approximately 832,000 shares, representing roughly 2.5% of its outstanding float, as part of its commitment to shareholder value creation.US Energy Financial Statement Overview
Summary
US Energy faces significant financial challenges, including declining revenues, persistent losses, and a decreasing asset base. Weak operational efficiencies and negative cash flow trends further undermine financial 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 | ||||
| 17.42M | 20.62M | 32.32M | 44.55M | 6.66M | 2.33M | Gross Profit |
| -578.00K | -276.00K | 3.16M | 14.70M | 3.20M | 220.00K | EBIT |
| -20.80M | -25.74M | -35.04M | 9.38M | -1.43M | 1.57M | EBITDA |
| -11.55M | -16.81M | -20.72M | 7.50M | -1.03M | -1.96M | Net Income Common Stockholders |
| -19.36M | -25.78M | -32.36M | -963.00K | -2.15M | -6.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.85M | 7.85M | 3.52M | 4.52M | 4.61M | 3.04M | Total Assets |
| 49.67M | 49.67M | 80.44M | 118.32M | 17.66M | 12.36M | Total Debt |
| 611.00K | 611.00K | 5.79M | 12.98M | 133.00K | 518.00K | Net Debt |
| -7.11M | -7.11M | 2.44M | 8.57M | -4.29M | -2.34M | Total Liabilities |
| 25.85M | 25.85M | 33.92M | 39.97M | 4.23M | 3.80M | Stockholders Equity |
| 23.82M | 23.82M | 46.52M | 78.35M | 13.44M | 8.57M |
| Cash Flow | Free Cash Flow | ||||
| -9.51M | -3.33M | 1.60M | -8.39M | -1.76M | -1.89M | Operating Cash Flow |
| 646.00K | 4.59M | 5.47M | 10.90M | -153.00K | -717.00K | Investing Cash Flow |
| 3.52M | 5.77M | 2.83M | -16.95M | -3.33M | -1.11M | Financing Cash Flow |
| 4.33M | -5.98M | -9.36M | 6.04M | 5.05M | 3.15M |
US Energy Technical Analysis
Negative
1.23
Price Trends
1.17
Positive
1.56
Negative
1.47
Negative
Market Momentum
0.03
Negative
49.40
Neutral
23.95
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 1.23 is below the 20-day moving average (MA) of 1.23, above the 50-day MA of 1.17, and below the 200-day MA of 1.47, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 23.95 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $49.03M | 8.86 | 432.55% | 8.81% | -53.52% | -56.30% | |
57 Neutral | $7.16B | 3.10 | -4.49% | 5.66% | 0.82% | -49.15% | |
57 Neutral | $47.45M | 8.62 | 7.52% | 11.60% | -16.25% | -17.58% | |
54 Neutral | $43.51M | ― | -55.07% | ― | -40.81% | 57.32% | |
54 Neutral | $52.87M | 18.74 | 6.10% | 5.21% | -80.46% | -51.76% | |
| $49.55M | 4.40 | 87.09% | 19.73% | ― | ― | ||
| $34.91M | ― | -38.59% | ― | ― | ― |
* Energy Sector Average
Performance Comparison
USEG
US Energy
1.23
0.19
18.27%
PVL
Permianville Royalty
1.74
0.60
52.63%
VOC
VOC Energy
2.75
-1.57
-36.34%
NRT
North European Oil Royalty
5.20
-0.36
-6.47%
PRT
Permrock Royalty
3.90
0.60
18.18%
INDO
Indonesia Energy
2.48
-0.36
-12.68%
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.
Executive/Board ChangesShareholder Meetings
Joshua Batchelor Resigns from US Energy Board
Neutral
Apr 22, 2025
On April 21, 2025, Joshua Batchelor resigned from the Board of U.S. Energy Corp., effective immediately, after deciding not to stand for re-election at the upcoming 2025 Annual Meeting of Stockholders. His resignation is linked to his responsibilities at Sage Road Capital and not due to any disagreements with the company. As a result, the Board plans to reduce its size to six members at the time of the meeting, and Banner Oil & Gas, LLC, along with its affiliates, is not expected to nominate a replacement for Mr. Batchelor.
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.