U.S. Energy Corp. (USEG) reports earnings

The report was filed on March 13, 2025

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U.S. Energy Corp. (USEG-6.50%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.

The filing reports a net loss of $25.8 million for the year, primarily due to a reduction in revenue, ceiling test write-downs, and a loss on the sale of East Texas properties.

Oil and gas revenue decreased by $11.7 million, attributed to both lower production quantities and commodity prices. The company produced 415,887 BOE during the year, a decrease from the prior year's 624,420 BOE.

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Lease operating expenses were reduced to $11.2 million from $15.3 million in the previous year, due to property sales and lower workover activity.

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General and administrative expenses decreased by $3.3 million, primarily due to reduced headcount and lower stock-based compensation.

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The company reported a $5.0 million loss on the sale of its East Texas properties, which represented a significant divestment of 36% of reserve volumes.

Non-operating income included a $0.5 million gain from the settlement of commodity derivative contracts.

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The company completed several divestitures totaling $14.0 million in net proceeds, which were used to repay its credit facility, bringing the balance to $0.0 million as of December 31, 2024.

U.S. Energy Corp. acquired 144,000 acres of industrial gas properties in Montana, with plans to drill and complete wells in 2025.

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The company raised $12.1 million in an underwritten offering in January 2025, intended for the development of its Montana acquisition and other corporate purposes.

The filing notes a material weakness in internal controls over financial reporting related to the design of the company's accounting system, which management aims to remediate in 2025.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the U.S. Energy Corp. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.