U.S. Energy Corp. (Nasdaq: USEG, “U.S. Energy” or the “Company”), a
growth-focused energy company engaged in operating a portfolio of
high-quality producing assets, today announced that its Board of
Directors has authorized a share repurchase program under which the
Company may purchase up to $5.0 million of its outstanding shares
of common stock in the open market, in accordance with all
applicable securities laws and regulations, including Rule 10b-18
of the Securities Exchange Act of 1934. The Company’s decision to
repurchase its shares, as well as the timing of such repurchases,
will depend on a variety of factors, including the ongoing
assessment of the Company’s capital needs, the market price of the
Company’s common stock, general market conditions and other
corporate considerations, as determined by management. The
repurchase program may be suspended or discontinued at any time.
MANAGEMENT COMMENTARY
“U.S. Energy has a focused and disciplined
capital allocation strategy that prioritizes growing cash flow
through accretive acquisitions and returning cash to shareholders.
The significant increases to cash flow generated by the successful
integration of our acquisitions have provided the means to pay a
meaningful dividend since the second quarter of 2022,” said Ryan
Smith, U.S. Energy’s Chief Executive Officer.
“This program supports our belief that the
underlying value of our assets is not fully appreciated by the
market and represents a highly attractive use of our capital. We
anticipate the repurchase program providing numerous benefits to
the Company and its stockholders, including, among others, support
in the market for the Company’s common stock; a more tax-efficient
way of returning capital to shareholders compared to declaring
additional cash dividends; and accretion to earnings per share,”
continued Smith.
ABOUT U.S. ENERGY
We are a growth company focused on consolidating
high-quality producing assets in the United States with the
potential to optimize production and generate free cash flow
through low-risk development while maintaining an attractive
shareholder returns program. We are committed to ESG
stewardship and being a leader in reducing our carbon footprint in
the areas in which we operate. More information about U.S. Energy
Corp. can be found at www.usnrg.com .
ACCOMPANYING FINANCIAL
DISCLOSURES
Under the stock repurchase program, shares may
be repurchased from time to time in the open market or through
negotiated transactions at prevailing market rates, or by other
means in accordance with federal securities laws. Repurchases will
be made at management’s discretion at prices management considers
to be attractive and in the best interests of both the Company and
its stockholders, subject to the availability of shares, general
market conditions, the trading price of the common stock,
alternative uses for capital, and the Company’s financial
performance. Open market purchases are expected to be conducted in
accordance with the limitations set forth in Rule 10b-18 of the
Securities Exchange Act of 1934 (the “Exchange Act”) and other
applicable laws and regulations. Repurchases may also be made under
a Rule 10b5-1 plan, which would permit shares to be repurchased
when the Company might otherwise be precluded from doing so under
insider trading laws.
The repurchase program may be suspended,
terminated or modified at any time for any reason, including market
conditions, the cost of repurchasing shares, the availability of
alternative investment opportunities, liquidity, and other factors
deemed appropriate. These factors may also affect the timing and
amount of share repurchases. The repurchase program does not
obligate the Company to purchase any particular number of shares.
There is no guarantee as to the exact number or value of shares
that will be repurchased by the Company, if any.
The repurchase program will be funded using the
Company’s working capital. As of December 31, 2022, the Company had
25,023,812 shares of common stock issued and outstanding and $4.46
million in cash and cash equivalents.
All shares purchased by the Company under the
stock repurchase program will be retired and returned to
treasury.
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this
communication which are not statements of historical fact
constitute forward-looking statements within the meaning of the
federal securities laws, including the Private Securities
Litigation Reform Act of 1995, that involve a number of risks and
uncertainties. Words such as “strategy,” “expects,” “continues,”
“plans,” “anticipates,” “believes,” “would,” “will,” “estimates,”
“intends,” “projects,” “goals,” “targets” and other words of
similar meaning are intended to identify forward-looking statements
but are not the exclusive means of identifying these
statements.
Important factors that may cause actual results
and outcomes to differ materially from those contained in such
forward-looking statements include, without limitation, risks
associated with the stock buyback, including, but not limited to,
the purchase price of shares acquired, the availability of funding
for such buyback, the effect of such buyback on the Company’s cash
on hand and ability to pay future quarterly dividends, and the
effect of such buyback, if any, on the value of the Company’s
securities; the Company’s ability to comply with the terms of its
senior credit facilities; the ability of the Company to retain and
hire key personnel; the business, economic and political conditions
in the markets in which the Company operates; the volatility of oil
and natural gas prices; our success in discovering, estimating,
developing and replacing oil and natural gas reserves; risks of our
operations not being profitable or generating sufficient cash flow
to meet our obligations; risks relating to the future price of oil,
natural gas and NGLs; risks related to the status and availability
of oil and natural gas gathering, transportation, and storage
facilities; risks related to changes in the legal and regulatory
environment governing the oil and gas industry, and new or amended
environmental legislation and regulatory initiatives; risks
relating to crude oil production quotas or other actions that might
be imposed by the Organization of Petroleum Exporting Countries and
other producing countries; technological advancements; changing
economic, regulatory and political environments in the markets in
which the Company operates; general domestic and international
economic, market and political conditions, including the military
conflict between Russia and Ukraine and the global response to such
conflict; actions of competitors or regulators; the potential
disruption or interruption of the Company's operations due to war,
accidents, political events, severe weather, cyber threats,
terrorist acts, or other natural or human causes beyond the
Company's control; pandemics, governmental responses thereto,
economic downturns and possible recessions caused thereby;
inflationary risks and recent increased interest rates, and the
risks of recessions and economic downturns caused thereby or by
efforts to reduce inflation; risks related to military conflicts in
oil producing countries; changes in economic conditions;
limitations in the availability of, and costs of, supplies,
materials, contractors and services that may delay the drilling or
completion of wells or make such wells more expensive; the amount
and timing of future development costs; the availability and demand
for alternative energy sources; regulatory changes, including those
related to carbon dioxide and greenhouse gas emissions;
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; dependence
upon third-party vendors; the lack of capital available on
acceptable terms to finance the Company’s continued growth; and
other risk factors included from time to time in documents U.S.
Energy files with the Securities and Exchange Commission,
including, but not limited to, its Form 10-Ks, Form 10-Qs and Form
8-Ks. Other important factors that may cause actual results and
outcomes to differ materially from those contained in the
forward-looking statements included in this communication are
described in the Company’s publicly filed reports, including, but
not limited to, the Company’s Annual Report on Form 10-K for the
year ended December 31, 2022. These reports and filings are
available at www.sec.gov.
The Company cautions that the foregoing list of
important factors is not complete. All subsequent written and oral
forward-looking statements attributable to the Company or any
person acting on behalf of any Sale Agreement Parties are expressly
qualified in their entirety by the cautionary statements referenced
above. Other unknown or unpredictable factors also could have
material adverse effects on U.S. Energy’s future results. The
forward-looking statements included in this press release are made
only as of the date hereof. U.S. Energy cannot guarantee future
results, levels of activity, performance or achievements.
Accordingly, you should not place undue reliance on these
forward-looking statements. Finally, U.S. Energy undertakes no
obligation to update these statements after the date of this
release, except as required by law, and takes no obligation to
update or correct information prepared by third parties that are
not paid for by U.S. Energy. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements.
INVESTOR RELATIONS CONTACTU.S. Energy Corp.
IR@usnrg.com(303) 993-3200www.usnrg.com
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