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US Energy (USEG) investor relations material
US Energy Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net loss of $3.3 million for Q3 2025, primarily due to declining commodity prices, lower production after divestitures, and operational progress in industrial gas and carbon management.
Revenue for Q3 2025 was $1.7 million, down 65% year-over-year, with production averaging 384 BOE/day, a 67% decrease from the prior year.
Major developments included the acquisition of 24,000 net operated acres in Montana, a $11.9 million equity offering, and a new $25 million equity facility.
Advanced Montana industrial gas project with facility design completion, two new wells drilled at a combined peak rate of 12.2 MMcf/d, and EPA MRV plan submission for carbon management.
Acquired 80 acres in Montana for $240,000 for facility site and received approval for a second Class II injection well.
Financial highlights
Q3 2025 revenue: $1.7 million, down from $5.0 million in Q3 2024, primarily due to asset divestitures.
Net loss for Q3 2025: $3.3 million, or $0.10 per diluted share; net loss for nine months ended September 30, 2025: $12.5 million.
Lease operating expenses for Q3 2025: $1.0 million ($29.36/BOE), down from $3.1 million year-over-year, reflecting fewer producing assets.
Adjusted EBITDA for Q3 2025 was ($1.3) million, down from $1.9 million in Q3 2024.
Ended Q3 2025 with $11.4 million in available liquidity and $1.4 million in cash and equivalents.
Outlook and guidance
Anticipates further write-down of oil and natural gas properties in Q4 2025 due to lower commodity prices, estimated at $0.8–$1.8 million.
Construction of the initial gas processing facility and gathering system scheduled for early 2026, with an additional well planned for Spring 2026.
Industrial gas development costs for the remainder of 2025 expected to be less than $1.0 million.
Plans to fund expenditures through cash on hand, operating cash flows, divestitures, credit facility, and equity sales.
EPA MRV plan approval anticipated by Spring-Summer 2026, enabling access to federal carbon credits.
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