U.S. Energy Q4 revenue falls on asset divestitures, net loss widens

Reuters03-13
U.S. Energy Q4 revenue falls on asset divestitures, net loss widens

Overview

  • Industrial gas and carbon platform's Q4 revenue fell yr/yr after planned asset divestitures

  • Company posted Q4 net loss of $1.9 mln, with negative adjusted EBITDA

  • Declines reflect shift from oil and gas to industrial gas and carbon management

Outlook

  • Company expects plant final investment decision in Q2 2026

  • U.S. Energy anticipates initial helium sales and carbon management operations to start in Q1 2027

  • Company expects EPA MRV approvals and long-term helium offtake agreement in 2026

Result Drivers

  • ASSET DIVESTITURES - Q4 production and revenue declined due to planned sale of West Texas assets, finalizing the company's legacy asset optimization program

  • LOWER COMMODITY PRICES - Declines in realized oil prices contributed to lower Q4 revenue

  • COST REDUCTIONS - Q4 general and administrative expense fell due to lower compensation and professional fees

Company press release: ID:nGNX30zXCs

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

$1.40 mln

$1.88 mln (1 Analyst)

Q4 EPS

-$0.06

Q4 Net Income

-$1.90 mln

Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for US Energy Corp is $2.50, about 138.1% above its March 12 closing price of $1.05

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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