BSIN · U.S. Energy Corp.

U.S. Energy Corp. executed the Second Amendment to its Credit Agreement on April 17, 2026, significantly enhancing its liquidity position by doubling the borrowing base from $10 million to $20 million. This Scheduled Redetermination provides immediate access to additional debt capacity at a time when the company has only $2.5 million outstanding, offering substantial headroom for operational needs. The fixed 2.00% margin over ABR during the Financial Covenant Holiday Period—ending March 30, 2027—delivers cost predictability and covenant relief, allowing management to prioritize execution without quarterly financial ratio pressures. Post-holiday, covenants revert to a 3:1 total debt to EBITDAX ratio and 1:1 current ratio, both standard for energy sector facilities. Maturity extends to May 31, 2029, with no prepayment penalties and a modest 0.50% commitment fee on unused capacity. This amendment, combined with March 2026 equity proceeds, completes the Phase 1 capital stack for the Big Sky Carbon Hub, targeting Q1 2027 commercial operations for helium sales and carbon management. The formal suspension of the $25 million ELOC with Roth Principal Investments removes dilution overhang, signaling confidence in the non-dilutive funding structure. Investors gain visibility into near-term catalysts, including EPA MRV plan approvals expected summer 2026 and a targeted long-term helium offtake agreement.