USEG: DEBT FREE
HOUSTON, Jan. 10, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq: USEG, “U.S. Energy” or the “Company”), a growth-focused energy company engaged in the operation of high-quality producing oil and natural gas assets, today announced it had completed a series of non-core asset divestitures.
HIGHLIGHTS
All-cash proceeds of approximately $7.2 million;
Divested assets averaged approximately 200 barrels of oil equivalent per day (83% oil) from July-September 2023, or 12% of USEG total production over the same period;
All proceeds used to reduce existing debt, leaving USEG materially debt-free1;
No changes to the Company’s existing $20.0 million borrowing base;
Represents the majority of USEG’s non-operated assets.
MANAGEMENT COMMENTARY
“Throughout the fourth quarter, we executed on a series of asset divestitures representing the majority of U.S. Energy’s non-operated assets,” stated Ryan Smith, Chief Executive Officer of U.S. Energy Corp. “The assets divested represent legacy USEG properties, primarily in current non-core focus areas, and will allow the Company to realize immediate additional corporate overhead savings. With proceeds going directly towards debt reduction, U.S. Energy now sits in a position of increased liquidity across all measures and meaningful portions of our 2024 oil production hedged at an average price in the low $80’s. As we enter 2024, we look forward to focusing our capital allocation efforts on the Company’s highest rate of return growth initiatives, maintaining a strong balance sheet, and driving shareholder returns.”
BALANCE SHEET AND LIQUIDITY UPDATE
The below table provides an overview of U.S. Energy’s debt and cash balances, as well as the Company’s hedge position, at both September 30, 2023 and December 31, 2023.
HEDGING PROGRAM UPDATE
The following table reflects the hedged volumes under U.S. Energy’s commodity derivative contracts and the average fixed prices at which production is hedged for full year 2024, as of January 9, 2024:
ABOUT U.S. ENERGY
We are a growth company focused on consolidating high-quality producing 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. More information about U.S. Energy Corp. can be found at www.usnrg.com .
Net debt/net cash calculation arrived at by taking debt outstanding plus cash plus value of commodity derivative portfolio.
12/31/2023 hedge position valued as of January 9, 2024.
Liquidity calculated by taking the difference between the Company’s current $20.0 million borrowing base and the Company’s net debt/cash positions.
Time for a strong rebound?:
Jan 09, 2024 1.0700 1.0700 1.0200 1.0400 1.0400 38,135
Jan 01, 2024 1.0400 1.1200 1.0200 1.0600 1.0600 335,400
Dec 01, 2023 1.1700 1.1700 0.8300 1.0000 1.0000 2,016,000
Oct 31, 2023 1.4300 1.4700 1.1200 1.1700 1.1700 1,099,800
Sep 30, 2023 1.3400 1.5500 1.2300 1.4500 1.4500 1,788,400
Aug 31, 2023 1.3500 1.4500 1.3100 1.3500 1.3500 636,600
Jul 31, 2023 1.6300 1.7600 1.3100 1.3300 1.3300 1,051,100
Jun 30, 2023 1.4400 1.6500 1.3700 1.6000 1.6000 1,189,900
May 31, 2023 1.4500 1.6000 1.3500 1.4200 1.4200 1,248,500
May 18, 2023 0.023 Dividend
Apr 30, 2023 1.3700 1.4900 1.2800 1.4200 1.3954 1,447,000
Mar 31, 2023 2.1000 2.6900 1.2200 1.3800 1.3561 22,256,700
Mar 01, 2023 2.1700 2.2100 1.6600 1.7600 1.7296 1,118,000
Feb 09, 2023 0.023 Dividend
Feb 01, 2023 2.4200 2.5100 2.1600 2.1600 2.1025 708,900
Jan 01, 2023 2.3000 2.6200 2.2200 2.4300 2.3653 686,100
Dec 01, 2022 2.7300 2.7300 2.1700 2.3000 2.2387 1,400,000
Nov 07, 2022 0.023 Dividend
Oct 31, 2022 2.9500 3.0700 2.4900 2.6600 2.5688 1,529,500
Sep 30, 2022 3.0000 3.2300 2.7500 2.9800 2.8778 2,165,500
Aug 31, 2022 3.4000 3.9400 2.6700 2.9200 2.8198 3,529,400
Aug 05, 2022 0.023 Dividend
Jul 31, 2022 3.5000 4.2400 3.3000 3.4700 3.3281 4,419,700
Jun 30, 2022 3.4300 3.8400 3.2600 3.5300 3.3857 1,276,000
May 31, 2022 4.4100 5.2800 3.3700 3.4600 3.3185 8,493,600
Apr 30, 2022 3.8100 4.6500 3.6700 4.4400 4.2584 6,559,700
Apr 13, 2022 0.023 Dividend
Mar 31, 2022 4.3700 5.1900 3.7400 3.8500 3.6723 8,696,000
Mar 01, 2022 3.9800 13.9200 3.7500 4.3500 4.1493 86,797,700
