U.S. Energy: Inching Closer To Helium Production

Summary

• U.S. Energy is transitioning from oil and gas to industrial gases, focusing on helium extraction and CO2 sales to diversify revenue streams.
• The company is building a 17 MMCF/d CO2 processing plant, increasing CAPEX but unlocking higher volumes and tax credit opportunities through CO2 sequestration.
• Recent well costs have declined, and USEG's existing oil and gas assets help de-risk the speculative nature of this development phase.
• With no debt, a share buyback program, and projected EBITDA of $6 million, USEG offers an out-of-the-box, early-stage growth opportunity.

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U.S. Energy Overview

U.S. Energy Corp. (NASDAQ:USEG) continues along its development path of constructing an industrial gas processing plant. The capacity of this plant has been finalized at 17 MMCF and is expected to be online

Analyst’s Disclosure:I/we have a beneficial long position in the shares of USEG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.