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Here are 1-3 brief analogies for U.S. Energy (USEG):

• Think of it as a small-scale ConocoPhillips, focused on exploring and producing oil and gas in specific U.S. basins.
• It's like a highly focused, independent oil and gas producer, similar to the exploration and production division of a major like Chevron, but operating on a much smaller scale.
• A scaled-down version of Occidental Petroleum, concentrating on acquiring and developing oil and natural gas properties, primarily in the Permian Basin and North Dakota.

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• Crude Oil and Natural Gas: The primary commodities extracted and sold from the company's oil and gas properties.
• Oil and Natural Gas Property Development: Services encompassing the acquisition, exploration, and development of oil and natural gas properties to establish reserves and production.

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U.S. Energy Corp. (USEG) sells its crude oil and natural gas primarily to other companies, which are typically purchasers with access to gathering and pipeline facilities, including marketers, refiners, and trading companies.

Based on their latest available financial reports, major customers contributing a significant portion of their revenue in recent years include:

• Cactus Marketing, LLC: Accounted for approximately 54% of U.S. Energy Corp.'s total oil and natural gas sales revenue for the year ended December 31, 2022. Cactus Marketing, LLC is a private company.
• ConocoPhillips Company (Symbol: COP): Accounted for approximately 20% of U.S. Energy Corp.'s total oil and natural gas sales revenue for the year ended December 31, 2021.
• JP Morgan Ventures Energy Corporation (part of JPMorgan Chase & Co., Symbol: JPM): Accounted for approximately 20% of U.S. Energy Corp.'s total oil and natural gas sales revenue for the year ended December 31, 2020.

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Ryan Smith, President, Chief Executive Officer, and Director

Mr. Smith has served as the Company's Chief Executive Officer and President since December 2019. He previously held the position of Chief Financial Officer for U.S. Energy Corp. from January 2017 through June 2023. Prior to joining U.S. Energy, Mr. Smith served as Chief Financial Officer of Emerald Oil Inc. from September 2014 to January 2017, and as Vice President of Capital Markets and Strategy from July 2013 to September 2014. Before his time at Emerald Oil, Mr. Smith was a Vice President in Canaccord Genuity's Investment Banking Group, where he focused on the energy sector and was responsible for executing public and private financing engagements, as well as mergers and acquisitions advisory services. He began his career as an Analyst in the Wells Fargo Energy Group, working solely with upstream and midstream oil and gas companies.

Mark Zajac, Chief Financial Officer and Principal Financial and Accounting Officer

Mr. Zajac was appointed Chief Financial Officer of U.S. Energy Corp. effective June 1, 2023. He brings 30 years of leadership experience in energy and finance, having previously served as a Partner and national industry leader with KPMG prior to his retirement. In this role, his career encompassed serving a diverse range of public and private companies across the energy value chain, including exploration and production, master limited partnerships, trading and marketing, and independent power sectors. He also possesses extensive experience with securities and exchange offerings, mergers and acquisitions, and global accounts. Mr. Zajac began his public accounting career in 1994 with Arthur Andersen.

Jakob Hulcy, Vice President of Operations

Mr. Hulcy serves as the Vice President of Operations for U.S. Energy Corp.

Mason McGuire, Vice President of Finance and Strategy

Mr. McGuire holds the position of Vice President of Finance and Strategy at U.S. Energy Corp.

Tug Eiden, Vice President of Production & Commercial Development

Mr. Eiden is the Vice President of Production & Commercial Development for U.S. Energy Corp.

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The key risks for U.S. Energy Corp. (USEG) primarily revolve around its ongoing strategic transformation from a traditional oil and gas producer to a company focused on industrial gas and carbon management, alongside the financial implications and inherent market volatility in the energy sector.

1. Execution Risk of Strategic Transformation and Associated Financial Instability: U.S. Energy Corp. is undergoing a significant and high-stakes business transformation, divesting its legacy oil and gas assets to fund and focus on early-stage industrial gas (helium and CO2) and carbon management projects, particularly the Kevin Dome project in Montana. This pivot has already resulted in substantial revenue decline, significant net losses (e.g., a $14.4 million net loss in 2025), and negative cash flow from operating activities, as the company is burning cash to fund its new growth strategy. The success of the company hinges on its ability to successfully execute this transition, including obtaining regulatory approvals, developing new projects, and achieving commercial viability and expected revenue from its new industrial gas ventures.
2. Funding Risk and Shareholder Dilution: To finance its strategic pivot, including future acquisitions and development of its industrial gas and carbon management assets, U.S. Energy Corp. will likely require additional capital. There is a risk that necessary funding may not be available on favorable terms, or at all, which could impede the progress of its new projects. Any future equity raises to secure capital could lead to significant dilution for existing shareholders, as evidenced by a significant share offering in early 2025 and the potential utilization of a committed equity facility.
3. Commodity Price Volatility: Despite its strategic shift, U.S. Energy Corp.'s financial performance remains significantly influenced by the volatile prices of oil, natural gas, and now industrial gases. Fluctuations in these commodity prices, driven by global economic conditions, supply-demand dynamics, and geopolitical events, can adversely affect the company's revenues, profitability, and liquidity, impacting its ability to meet capital obligations and financial commitments. The absence of commodity hedges further exposes the company to market price changes.

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United States (Overall Market)

Regional Markets

Permian Basin (New Mexico and Texas)

Williston Basin (North Dakota)

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U.S. Energy Corp. (USEG) is undergoing a significant strategic transformation, shifting its focus from traditional oil and natural gas exploration and production towards an integrated industrial gas, energy, and carbon management platform. This pivot is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Helium Production and Sales: The company's Kevin Dome Industrial Gas Project is central to its new strategy, with initial helium sales anticipated to begin in the first quarter of 2027. This initiative is expected to establish a new, high-margin revenue stream and contribute to meaningful cash flow starting in 2027.
2. Carbon Management and CO2 Sequestration: U.S. Energy is actively developing its carbon management platform, including the Big Sky Carbon Hub, which involves CO2 sequestration. The company has acquired a Class II injection permit well for CO2 sequestration and has filed two Monitoring, Reporting, and Verification (MRV) applications with the EPA, with approvals projected by mid-2026. This platform is designed to capitalize on emerging market opportunities in carbon management and is expected to generate federal Section 45Q tax credits.
3. CO2-Enhanced Oil Recovery (CO2-EOR): U.S. Energy plans to enhance oil recovery at its Cut Bank oil field through CO2-EOR, which is expected to commence in the first quarter of 2027. This strategy aims to increase incremental oil production from existing assets, providing a stable and growing revenue base as the industrial gas and carbon platform is built out.
4. Optimized Operations of Retained Oil and Gas Assets: While undergoing a strategic divestiture of legacy oil and gas assets, the company aims to improve the operational efficiency and reduce costs associated with its retained producing properties. These efforts are intended to stabilize and optimize the revenue and profitability from its traditional energy segment during the transition period.

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Share Repurchases

• U.S. Energy Corp. initiated a share repurchase program in April 2023, authorizing the repurchase of up to $5.0 million of its common stock.
• The program, initially set to expire on June 30, 2024, was extended until June 30, 2025.
• As of March 21, 2024, approximately $4.2 million remained available for future repurchases under this program.

Share Issuance

• In January 2025, U.S. Energy completed an underwritten public offering of 4,236,000 shares of common stock at $2.65 per share, raising approximately $12.1 million in net proceeds, including the full exercise of an over-allotment option for 635,400 additional shares.
• Under a Common Stock Purchase Agreement with Roth Principal Investments dated October 9, 2025, U.S. Energy has issued approximately 2,022,539 shares for about $2 million between November 2025 and February 2026, and an additional 6,525,843 shares for $7,300,223 on March 2, 2026. The agreement allows for the sale of up to $25 million of common stock over time.
• On March 10, 2026, the company completed another underwritten public offering of 8,800,000 shares of common stock at $1.00 per share, generating gross proceeds of $8.8 million and expected net proceeds of approximately $8.2 million.

Inbound Investments

• U.S. Energy entered into a Common Stock Purchase Agreement with Roth Principal Investments, LLC on October 9, 2025, enabling the company to sell up to $25 million of its common stock to this accredited investor over time.

Outbound Investments

• As part of its strategic repositioning, U.S. Energy divested non-core oil and gas properties in South Texas, East Texas, and Mid-Continent in 2024, generating approximately $13.2 million in cash.
• The company recorded a $5.0 million loss on the East Texas sale and an additional $424 thousand post-closing loss in 2025.
• Proceeds from these divestitures are being redeployed to fund the development of its Kevin Dome industrial gas project in Montana.

Capital Expenditures

• U.S. Energy is making significant capital investments in its strategic shift towards an integrated industrial gas, energy, and carbon management platform, primarily focused on the Kevin Dome project in Montana.
• Net proceeds from the January 2025 equity offering (approximately $12.1 million) and the March 2026 equity offering (approximately $8.2 million) are designated to fund growth capital for this industrial gas development project, including a processing plant and infrastructure, and to support upcoming operations.
• The company acquired approximately 144,000 net acres from Wavetech and 24,000 net operated acres from Synergy, both related to the Kevin Dome project, with carried-interest commitments up to $20 million each.