U.S. Energy Corp. Announces First Quarter Financial and Operating Results
May 13 2021 - 4:30PM
U.S. Energy Corp. (NASDAQCM: USEG) (“We”, “U.S.
Energy” or the “Company”) today announced financial and operating
results for the first quarter ended March 31, 2021.
Management Comments
“U.S. Energy’s first quarter performance was
strong as we began to successfully integrate and enhance assets
that were acquired during late 2020,” said Ryan Smith, U.S.
Energy’s Chief Executive Officer. “Since the beginning of the year,
U.S. Energy has increased the value and size of our asset base
while both growing and maintaining our liquidity and financial
flexibility. The highly effective asset assimilation and immediate
upside realization of the Company’s two most recent acquisitions
shows that U.S. Energy can continue consolidating operated
properties of increasing size and complexity while efficiently
growing the Company’s existing portfolio. As we continue through
2021, U.S. Energy’s focus will be on maintaining the strength of
our balance sheet and liquidity position while targeting properties
that generate free cash flow and can be immediately upgraded
through operational enhancements and variable-cost reductions.”
First Quarter 2021 Production
Update
During the quarter ended March 31, 2021, U.S.
Energy produced volumes of 25,905 BOE, an average of approximately
288 BOE per day. Oil represented 84% of total production in the
first quarter of 2021 and the Company’s oil production increased
approximately 21% from the fourth quarter of 2020. U.S. Energy’s
oil production growth has primarily been driven by the successful
integration of assets acquired during 2020. The Company’s
production during the first quarter of 2021, specifically natural
gas volumes from non-operated properties, was negatively impacted
by extreme winter weather. All properties have since been returned
to production.
|
1st
Quarter2021 |
|
4th
Quarter2020 |
|
Sales Volume
(Total) |
|
|
|
|
Oil (Bbls) |
|
21,872 |
|
|
18,101 |
|
Gas (Mcf) |
|
24,195 |
|
|
43,776 |
|
Sales volumes (Boe) |
|
25,905 |
|
|
25,397 |
|
|
|
|
|
|
Average Daily Production
(Boe/d) |
|
288 |
|
|
276 |
|
|
|
|
|
|
Average Sales
Prices |
|
|
|
|
Oil (Bbl) |
$ |
51.74 |
|
$ |
39.16 |
|
Gas (Mcf) |
$ |
3.27 |
|
$ |
2.31 |
|
Barrel of Oil Equivalent |
$ |
46.74 |
|
$ |
31.90 |
|
Current Liquidity Position
At March 31, 2021, the Company had approximately
$7.2 million in cash, no existing debt and 4.6 million shares
outstanding.
During the first quarter of 2021, the Company
entered into a fixed-price swap commodity derivative contract on
100 barrels of crude oil per day from March 1 to December 31, 2021,
at $61.90 per barrel.
First Quarter Ended March 31, 2021
Financial Results
Revenues from sales of oil and natural gas
during the first quarter of 2021 were $1.2 million compared to $0.9
million during the comparable period of 2020. The change in revenue
was primarily attributable to an increase in oil production volumes
and an improvement in realized commodity prices. Revenue from oil
production represented 93% of our revenue during the quarter.
During the first quarter of 2021, we realized an
average oil sales price of $51.74 per Bbl and an average gas sales
price of $3.27 per Mcf for an overall average sales price of $46.74
per BOE compared to an average oil sales price of $42.11 per Bbl
and an average gas sales price of $1.69 per Mcf for an average
sales price of $34.16 BOE during the comparable period of 2020.
Lease operating expenses during the first
quarter of 2021 were $568 thousand compared to $408 thousand during
the comparable period of 2020. The increase in lease operating
expenses was primarily due to elevated workover expenses related to
bringing curtailed and shut-in production back online, primarily on
our non-operated properties. General and administrative (“G&A”)
expenses, including all non-cash items, totaled $735 thousand
during the first quarter of 2021. Excluding non-cash items, G&A
expenses totaled $583 thousand.
About U.S. Energy Corp.
We are an independent energy company focused on
the acquisition and development of oil and gas producing properties
in the United States. Our business is currently focused on
targeting mature, low decline assets with existing infrastructure
that allows us to maximize our return on capital in a sustainable
and efficient manner. More information about U.S. Energy Corp. can
be found at www.usnrg.com.
Forward-Looking Statements
This press release may include “forward-looking
statements” within the meaning of the securities laws. All
statements other than statements of historical facts included
herein may constitute forward-looking statements. Forward-looking
statements in this document may include statements concerning the
Company’s expectations regarding the Company’s operational,
exploration and development plans; expectations regarding the
nature and amount of the Company’s reserves; and expectations
regarding production, revenues, cash flows and recoveries. When
used in this press release, the words "will," "potential,"
"believe," "estimate," "intend," "expect," "may," "should,"
"anticipate," "could," "plan," "predict," "project," "profile,"
"model," or their negatives, other similar expressions or the
statements that include those words, are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to,
fluctuations in oil and natural gas prices, uncertainties inherent
in estimating quantities of oil and natural gas reserves and
projecting future rates of production and timing of development
activities, competition, operating risks, acquisition risks,
liquidity and capital requirements, the effects of governmental
regulation, adverse changes in the market for the Company’s oil and
natural gas production, dependence upon third-party vendors, and
other risks detailed in the Company’s periodic report filings with
the Securities and Exchange Commission.
Corporate Contact:
U.S. Energy Corp.
Ryan Smith
Chief Executive Officer
(303) 993-3200
www.usnrg.com
US Energy (NASDAQ:USEG)
Historical Stock Chart
From Mar 2024 to Apr 2024
US Energy (NASDAQ:USEG)
Historical Stock Chart
From Apr 2023 to Apr 2024