0001437749-26-008057
SEC filingU.S. Energy Corp. reported a net loss of $14.4 million for FY 2025, driven by a 64% year-over-year revenue decline to $7.4 million from $20.6 million in 2024. The revenue decrease resulted from a 60% reduction in production volumes (164,752 BOE vs. 415,887 BOE) and a 10% decline in average sales price per BOE ($44.63 vs. $49.58). Operating loss was $14.4 million, with significant expenses including $8.1 million in general and administrative costs and $3.6 million in impairment of oil and natural gas properties. The company ended the year with $429,000 in cash, $16.4 million in total liabilities, and a working capital deficit of $4.0 million. Management plans to seek $35 million in financing for industrial gas processing plant construction in 2026.
U.S. Energy Corp. reported a net loss of $14.4 million for FY 2025, consistent with the operating loss of $14.4 million. Revenue declined 64% year-over-year to $7.4 million from $20.6 million in 2024. This decrease was driven by a 60% reduction in production volumes to 164,752 BOE (451 BOE per day) from 415,887 BOE (1,136 BOE per day) in 2024, primarily due to property divestitures. Average sales price per BOE decreased 10% to $44.63 from $49.58. Oil revenue decreased 65% to $6.4 million with production down 56% to 112,797 Bbls and average price down 20% to $56.54 per Bbl. Natural gas revenue decreased 60% to $975,000 with production down 67% to 311,729 Mcfe, though average price increased 22% to $3.13 per Mcfe.
The company's revenue is entirely derived from oil and natural gas production, with no segment breakdown provided. The 64% revenue decline resulted from both volume and price factors. Production declines were primarily attributable to property sales during 2025 and 2024. The production mix shifted slightly to 68% oil and 32% natural gas in 2025 compared to 62% oil and 38% natural gas in 2024. No geographic revenue breakdown was provided, though operations are concentrated in Montana, Wyoming, Texas, and Oklahoma.
Operating expenses totaled $21.7 million, resulting in an operating loss of $14.4 million. Key expense components included lease operating expenses of $5.2 million ($31.40 per BOE, up 17% per BOE), general and administrative expenses of $8.1 million, depreciation, depletion, accretion and amortization of $3.6 million, and impairment of oil and natural gas properties of $3.6 million. The impairment resulted from decreased crude oil and natural gas prices. Exploration expense was $230,000, primarily for acquisition evaluation costs. Loss on sale of assets was $411,000 related to final settlement on East Texas property sale.
Net cash used in operating activities was $7.1 million, compared to $4.6 million provided in 2024. Net cash used in investing activities was $11.9 million, primarily for $2.1 million in industrial gas property acquisitions. Net cash provided by financing activities was $11.7 million, including $11.9 million from equity offerings and $2.5 million from credit facility borrowings. The company ended with $429,000 in cash, down $7.3 million from 2024. Total assets were $40.6 million, including $15.2 million in net oil and natural gas properties and $22.5 million in unproved industrial gas properties. Total liabilities were $16.4 million, including $2.5 million in credit facility debt and $8.0 million in asset retirement obligations. Shareholders' equity was $24.2 million. The current ratio was 0.33:1 with working capital deficit of $4.0 million.
Management plans to seek approximately $35 million in financing during 2026 to fund construction of an industrial gas processing plant, gathering systems, and related infrastructure. The company may utilize its existing Form S-3 registration statement or purchase agreement with Roth Principal Investments, though no financing commitments have been secured. Key risks include volatility in oil and natural gas prices, need for additional capital, industrial gas exploration risks, regulatory changes, and competition. The company intends to finalize engineering, acquire surface acreage, negotiate rights of way and offtake agreements, and design power infrastructure for its industrial gas development.