U.S. Energy Corp. completed the sale of East Texas assets for $6.83 million to fund a Montana gas project.
Quiver AI Summary
U.S. Energy Corp. announced the completion of its sale of East Texas assets for $6.825 million, which was initially disclosed on December 12, 2024. The proceeds from this all-cash transaction will support the development of the Company’s industrial gas project in Montana. The divested assets had produced approximately 1.0 million cubic feet of natural gas and 149 barrels of oil per day for the quarter ending September 30, 2024. CEO Ryan Smith expressed satisfaction with the successful divestment, emphasizing that it enhances U.S. Energy’s liquidity and positions the Company for growth as a leader in the industrial gas sector.
Potential Positives
- Closing the sale of East Texas assets generated $6,825,000 in cash proceeds, enhancing the company's liquidity.
- The proceeds will be strategically allocated to the development of the industrial gas project in Montana, indicating a focused growth strategy.
- The divested assets had an average production of approximately 1.0 million cubic feet per day of natural gas and 149 barrels of oil per day, suggesting that the sale will streamline operations and potentially lead to increased efficiency.
- The CEO's statement emphasizes a stronger balance sheet and increased focus on becoming a leading industrial gas company, which could improve investor confidence and future market positioning.
Potential Negatives
- The divestment of significant production assets in East Texas could indicate a strategic retreat or a lack of confidence in future profitability from these operations.
- The press release contains numerous forward-looking statements that highlight various risks, indicating potential instability in the company's future performance and operations.
- The reliance on the proceeds from the asset sale to fund future projects raises concerns about the company’s financial stability and ability to manage growth without external support.
FAQ
What assets did U.S. Energy Corp. sell in East Texas?
U.S. Energy Corp. sold its East Texas assets, which included approximately 1.0 million cubic feet per day of natural gas and 149 barrels of oil per day.
How much did U.S. Energy Corp. earn from the asset sale?
The company received all cash proceeds of $6,825,000 from the sale of its East Texas assets.
What is the intended use of the sale proceeds?
The proceeds from the sale will fund the continued development of U.S. Energy's industrial gas project in Montana.
When was the closing date for the asset sale?
The asset sale closed on December 31, 2024, with an effective date of November 1, 2024.
Who commented on the successful asset sale?
Ryan Smith, Chief Executive Officer of U.S. Energy Corp., commented on the successful closing of the transaction.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$USEG Insider Trading Activity
$USEG insiders have traded $USEG stock on the open market 30 times in the past 6 months. Of those trades, 30 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $USEG stock by insiders over the last 6 months:
- RYAN LEWIS SMITH (CEO) has traded it 30 times. They made 30 purchases, buying 15,100 shares and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$USEG Hedge Fund Activity
We have seen 7 institutional investors add shares of $USEG stock to their portfolio, and 7 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- UBS GROUP AG removed 33,160 shares (-100.0%) from their portfolio in Q3 2024
- GEODE CAPITAL MANAGEMENT, LLC added 19,350 shares (+28.3%) to their portfolio in Q3 2024
- HRT FINANCIAL LP removed 13,162 shares (-100.0%) from their portfolio in Q3 2024
- GOLDMAN SACHS GROUP INC removed 13,049 shares (-100.0%) from their portfolio in Q3 2024
- VERITY ASSET MANAGEMENT, INC. removed 5,752 shares (-5.0%) from their portfolio in Q3 2024
- RENAISSANCE TECHNOLOGIES LLC added 1,300 shares (+2.6%) to their portfolio in Q3 2024
- BRIDGEWAY CAPITAL MANAGEMENT, LLC added 1,072 shares (+2.3%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HOUSTON, Dec. 31, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQ: USEG, “
U.S. Energy
” or the “
Company
”) today announced that the Company has closed the sale (the “
Transaction
”) of assets located in East Texas (the “
East Texas Assets
”). The Transaction was previously announced on December 12, 2024.
HIGHLIGHTS
All cash proceeds of $6,825,000.
Proceeds are expected to be used to fund the continued development of U.S. Energy’s industrial gas project in Montana.
Divested assets averaged approximately 1.0 million cubic feet per day of natural gas and 149 barrels of oil per day for the quarter ending September 30, 2024.
The transaction closed on December 31, 2024 with an effective date of November 1, 2024.
MANAGEMENT COMMENTARY
“We are pleased to announce the successful closing of U.S. Energy's recent transaction, completing the divestment of a significant portion of our legacy East Texas assets,” stated Ryan Smith, Chief Executive Officer of U.S. Energy Corp. “The proceeds from this sale will be strategically allocated to advancing our industrial gas project in Montana. With this milestone behind us, U.S. Energy is now poised with greater liquidity and a stronger balance sheet, enabling us to focus on our growth into a leading industrial gas company.”
ABOUT U.S. ENERGY CORP.
We are a growth company focused on consolidating high-quality energy and industrial gas assets in the United States with the potential to optimize production and generate free cash flow through low-risk development while maintaining an attractive shareholder returns program. We are committed to being a leader in reducing our carbon footprint in the areas in which we operate. More information about U.S. Energy Corp. can be found at
www.usnrg.com
.
INVESTOR RELATIONS CONTACT
Mason McGuire
IR@usnrg.com
(303) 993-3200
www.usnrg.com
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.
Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation: (1) the ability of the Company to grow and manage growth profitably and retain its key employees; (2) the ability of the Company to close previously announced transactions and the terms of such transactions, including the closing of the Transaction on the terms and timeline set forth above, including, but not limited to the ability to meet conditions to closing the Transaction and the use of proceeds associated therewith; (3) risks associated with the integration of acquired assets; (4) the Company’s ability to comply with the terms of its senior credit facilities; (5) the ability of the Company to retain and hire key personnel; (6) the business, economic and political conditions in the markets in which the Company operates; (7) the volatility of oil and natural gas prices; (8) the Company’s success in discovering, estimating, developing and replacing oil and natural gas reserves; (9) risks of the Company’s operations not being profitable or generating sufficient cash flow to meet its obligations; (10) risks relating to the future price of oil, natural gas and NGLs; (11) risks related to the status and availability of oil and natural gas gathering, transportation, and storage facilities; (12) risks related to changes in the legal and regulatory environment governing the oil and gas industry, and new or amended environmental legislation and regulatory initiatives; (13) risks relating to crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; (14) technological advancements; (15) changing economic, regulatory and political environments in the markets in which the Company operates; (16) general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine and the global response to such conflict; (17) actions of competitors or regulators; (18) the potential disruption or interruption of the Company’s operations due to war, accidents, political events, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the Company’s control; (19) pandemics, governmental responses thereto, economic downturns and possible recessions caused thereby; (20) inflationary risks and recent changes in inflation and interest rates, and the risks of recessions and economic downturns caused thereby or by efforts to reduce inflation; (21) risks related to military conflicts in oil producing countries; (22) changes in economic conditions; limitations in the availability of, and costs of, supplies, materials, contractors and services that may delay the drilling or completion of wells or make such wells more expensive; (23) the amount and timing of future development costs; (24) the availability and demand for alternative energy sources; (25) regulatory changes, including those related to carbon dioxide and greenhouse gas emissions; (26) uncertainties inherent in estimating quantities of oil and natural gas reserves and projecting future rates of production and timing of development activities; (27) risks relating to the lack of capital available on acceptable terms to finance the Company’s continued growth, potential future sales of debt or equity and dilution caused thereby; (28) the review and evaluation of potential strategic transactions and their impact on stockholder value and the process by which the Company engages in evaluation of strategic transactions; and (29) other risk factors included from time to time in documents U.S. Energy files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly filed reports, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and future annual reports and quarterly reports. These reports and filings are available at www.sec.gov. Unknown or unpredictable factors also could have material adverse effects on the Company’s future results.
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