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HOUSTON - U.S. Energy Corporation (NASDAQ:USEG), a company specializing in industrial gas and carbon management solutions with a market capitalization of $37.2 million, announced the acquisition of a strategic asset designed to enhance its carbon capture and storage operations. The $0.2 million purchase includes roughly 2,300 net acres with carbon dioxide (CO2) rights in Montana’s Kevin Dome area, alongside an active Class II injection well. According to InvestingPro analysis, the company currently holds more cash than debt on its balance sheet, positioning it favorably for such strategic investments.
The well, which is critical for the secure storage of CO2, comes with permits approved by the U.S. Environmental Protection Agency (EPA) under the Safe Drinking Water Act’s Underground Injection Control Program. This infrastructure is part of the company’s plan to develop a new industrial gas processing facility, which will also support its carbon capture, utilization, and storage (CCUS) initiatives.
Ryan Smith, CEO of U.S. Energy, stated that this acquisition represents a significant step in integrating carbon sequestration into their industrial gas platform. Smith emphasized that the addition of this permitted injection infrastructure strengthens their position in the Kevin Dome and expedites their ability to supply clean helium while sequestering CO2 at scale.
The company plans to submit a Monitoring, Reporting, and Verification (MRV) plan to the EPA for the Class II well during the second quarter of 2025, aligning with its environmental goals and broader strategy to develop scalable, low-emission industrial gas operations.
U.S. Energy Corp. has positioned itself as a growth company, focusing on consolidating high-quality assets in the United States. With current revenues of $19.34 million and a gross profit margin of 41.24%, the company aims to optimize production and generate free cash flow through low-risk development while maintaining attractive shareholder returns and leading efforts to reduce carbon footprints in its operational areas. For deeper insights into U.S. Energy’s financial health and growth potential, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis in the comprehensive Pro Research Report.
The acquisition is expected to contribute to U.S. Energy’s broader strategy of becoming a leading U.S.-based supplier of clean helium and other critical gases, as well as a carbon management platform. With a current ratio of 0.79, investors should note that short-term obligations exceed liquid assets. The company, however, cautions that forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. Get exclusive access to detailed financial analysis and future growth projections with a subscription to InvestingPro, which offers comprehensive coverage of over 1,400 US stocks.
This report is based on a press release statement from U.S. Energy Corp.
In other recent news, U.S. Energy Corporation reported its fourth-quarter 2024 earnings, which showed a significant earnings per share (EPS) miss. The company posted an EPS of -0.96, falling short of the forecasted -0.07. However, U.S. Energy’s revenue reached $20.62 million, surpassing the expected $5.49 million, driven by strategic asset sales. Despite the revenue beat, the company’s net loss for the quarter was $12 million, with total oil and gas sales dropping to $4.2 million from $7.3 million the previous year. The company remains debt-free, supported by a strong cash reserve and additional funds from an equity offering. U.S. Energy is focusing on expanding its helium production capabilities, with plans to initiate workover operations on two wells in April 2025. Analysts from firms such as DeBoro Capital have shown interest in the company’s timeline for commercial production and the challenges associated with its CO2 processing plant. The company is also exploring potential offtake agreements, indicating strategic efforts to secure future growth.
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