U.S. Energy Corporation, a growth-focused energy company engaged in the development and operation of high-quality producing energy and industrial gas assets, has released its financial and operational results for the second quarter of 2025. The company continues to advance its transformation into an integrated industrial gas company, with significant progress in its Montana project and other strategic initiatives.\n\nFinancial Highlights\nFor the second quarter of 2025, U.S. Energy reported a net loss of $6.1 million, or a loss of $0.19 per diluted share. Total revenue for the quarter was $2.0 million, a significant decrease from $6.1 million in the same quarter of 2024. This decline is primarily attributed to the company's divestiture program throughout 2024 and a drop in oil prices. Lease operating expenses were approximately $1.6 million, or $32.14 per BOE, compared to $3.1 million, or $27.69 per BOE, in the prior year. Adjusted EBITDA was ($1.2) million, compared to $1.1 million in the second quarter of 2024.\n\nBusiness and Operational Highlights\nThe company successfully drilled two additional industrial gas wells in late July, bringing the total to three high-deliverability wells in the CO₂- and helium-rich Duperow Formation. These wells delivered a combined peak production rate of 12.2 MMcf/d. The company also advanced the design and planning of its initial processing facility, with construction expected to commence in the coming months. This facility is projected to deliver first revenues in the first half of 2026.\n\nStrategic Initiatives and Corporate Developments\nU.S. Energy remains debt-free, ending the second quarter with approximately $26.7 million in available liquidity. The company has also strengthened its carbon management platform with the acquisition of a Class II permitted injection well, enabling both CO₂ sequestration and enhanced oil recovery opportunities. Additionally, the company released its initial third-party resource report, confirming the vast potential of its Kevin Dome asset, which includes 1.28 BCF of net helium resources and 443.8 BCF of net CO₂ resources.\n\nManagement's Perspective\nRyan Smith, Chief Executive Officer of U.S. Energy, commented, \"U.S. Energy delivered significant progress in the second quarter of 2025 as we advance our transformation into an integrated industrial gas company. Our Montana project continues to move forward with disciplined execution across upstream development, infrastructure design, and carbon management planning. The scale and strategic location of the Kevin Dome position us as a leader in a high-growth segment of the energy sector.\"\n\nFuture Outlook\nThe company expects to commence construction of its initial processing facility in the coming months, with first revenues anticipated in the first half of 2026. The facility will process upstream production and support carbon management initiatives. U.S. Energy is also evaluating near-term enhanced oil recovery opportunities leveraging its CO₂ resources and nearby legacy hydrocarbon assets.

U.S. Energy Corp. Reports Second Quarter 2025 Results and Provides Operational Update

U.S. Energy Corporation released its financial and operational results for the second quarter of 2025, reporting a net loss of $6.1 million and total revenue of $2.0 million, down from $6.1 million in the same quarter of 2024. The company highlighted progress in drilling three high-deliverability industrial gas wells in the Duperow Formation, achieving a combined peak production rate of 12.2 MMcf/d. It also advanced planning for an initial processing facility, with construction expected to begin in the coming months and first revenues anticipated in the first half of 2026. U.S. Energy acquired a Class II permitted injection well to support CO₂ sequestration and enhanced oil recovery, and released a third-party resource report confirming 1.28 BCF of net helium and 443.8 BCF of net CO₂ resources at its Kevin Dome asset. The company remains debt-free with $26.7 million in available liquidity and continues its transformation into an integrated industrial gas company.