U.S. Energy Corp. Regains Full Compliance with Nasdaq Listing Standards

Rhea-AI Summary

U.S. Energy (NASDAQ: USEG) announced on October 11, 2024, that it has regained full compliance with Nasdaq listing standards. The company received a notification letter from Nasdaq on October 10, 2024, confirming its compliance with the minimum bid price rule and all applicable listing standards. Ryan Smith, CEO of U.S. Energy, expressed satisfaction with the development, highlighting the company's recent industrial gas transaction, development program initiation, debt-free balance sheet, and active share buyback program. He stated that these factors position the company well for entering 2025 with financial strength and operational runway to continue its disciplined capital allocation strategy, drive growth, and enhance shareholder value.

Positive

• Regained full compliance with Nasdaq listing standards
• Recent industrial gas transaction completed
• Initiated development program
• Debt-free balance sheet
• Active share buyback program in place

Negative

• None.

Insights

Financial Analyst

U.S. Energy Corp.'s regaining of full compliance with Nasdaq listing standards is a positive development, albeit with immediate financial impact. The news removes a significant risk factor that could have led to delisting, which would have negatively affected investor confidence and stock liquidity.

The CEO's commentary highlights several key points that warrant attention:

• Recent industrial gas transaction
• Initiation of a development program
• Debt-free balance sheet
• Active share buyback program

These factors collectively suggest a strengthened financial position and a focus on growth. The debt-free status is particularly noteworthy in the energy sector, where leverage is common. This provides U.S. Energy with financial flexibility and reduced risk in a volatile commodity price environment.

The share buyback program indicates management's confidence in the company's valuation and commitment to returning value to shareholders. However, investors should monitor how this balances with capital allocation for growth initiatives.

While regaining compliance is positive, the company's small market cap of $36 million suggests it remains vulnerable to market volatility. Investors should closely watch the execution of the company's growth strategy and its ability to capitalize on its improved financial position in the coming quarters.

HOUSTON, Oct. 11, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, “U.S. Energy” or the “Company”) a growth-focused company engaged in the operation and development of high-quality producing energy assets, today announced that on October 10, 2024, the Company received a notification letter from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that Nasdaq has determined that the Company has regained compliance with the minimum bid price rule and that the Company is in compliance with all applicable listing standards. Accordingly, the matter is now closed.

MANAGEMENT COMMENTARY

"I am pleased to announce that U.S. Energy is now fully compliant with all Nasdaq listing standards," said Ryan Smith, Chief Executive Officer of U.S. Energy. "Following our recent industrial gas transaction and the start of our development program, along with a debt-free balance sheet and an active share buyback program, we are well-positioned to enter 2025 with the financial strength and operational runway needed to continue our disciplined capital allocation strategy, drive growth, and enhance shareholder value."

ABOUT U.S. ENERGY CORP.

We are a growth company focused on consolidating high-quality energy assets in the United States through low-risk development while maintaining an attractive shareholder returns program. We are committed to 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.

INVESTOR RELATIONS CONTACT

Mason McGuire
Vice President – Finance and Strategy
IR@usnrg.com
(303) 993-3200
www.usnrg.com

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: (1) the ability of the Company to grow and manage growth profitably and retain its key employees; (2) the ability of the Company to close previously announced transactions and the terms of such transactions; (3) risks associated with the integration of recently acquired assets; (4) the Company’s ability to comply with the terms of its senior credit facilities; (5) the ability of the Company to retain and hire key personnel; (6) the business, economic and political conditions in the markets in which the Company operates; (7) the volatility of oil and natural gas prices; (8) the Company’s success in discovering, estimating, developing and replacing oil and natural gas reserves; (9) risks of the Company’s operations not being profitable or generating sufficient cash flow to meet its obligations; (10) risks relating to the future price of oil, natural gas and NGLs; (11) risks related to the status and availability of oil and natural gas gathering, transportation, and storage facilities; (12) 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; (13) 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; (14) technological advancements; (15) changing economic, regulatory and political environments in the markets in which the Company operates; (16) general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine and the global response to such conflict; (17) actions of competitors or regulators; (18) 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; (19) pandemics, governmental responses thereto, economic downturns and possible recessions caused thereby; (20) inflationary risks and recent changes in inflation and interest rates, and the risks of recessions and economic downturns caused thereby or by efforts to reduce inflation; (21) risks related to military conflicts in oil producing countries; (22) 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; (23) the amount and timing of future development costs; (24) the availability and demand for alternative energy sources; (25) regulatory changes, including those related to carbon dioxide and greenhouse gas emissions; (26) uncertainties inherent in estimating quantities of oil and natural gas reserves and projecting future rates of production and timing of development activities; (27) risks relating to the lack of capital available on acceptable terms to finance the Company’s continued growth; (28) the review and evaluation of potential strategic transactions and their impact on stockholder value and the process by which the Company engages in evaluation of strategic transactions; and (29) 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, 2023 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and future annual reports and quarterly reports. These reports and filings are available at www.sec.gov. Unknown or unpredictable factors also could have material adverse effects on the Company’s future results.

The Company cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements except as required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results. The forward-looking statements included in this communication are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company 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 the Company. 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.

FAQ

When did U.S. Energy Corp (USEG) regain compliance with Nasdaq listing standards?

U.S. Energy Corp (USEG) regained compliance with Nasdaq listing standards on October 10, 2024, as confirmed by a notification letter from Nasdaq.

What specific Nasdaq rule did U.S. Energy Corp (USEG) comply with?

U.S. Energy Corp (USEG) regained compliance with the minimum bid price rule, as well as all other applicable Nasdaq listing standards.

What recent developments did U.S. Energy Corp (USEG) highlight in the announcement?

U.S. Energy Corp (USEG) highlighted a recent industrial gas transaction, the start of a development program, a debt-free balance sheet, and an active share buyback program.

How does U.S. Energy Corp (USEG) plan to enhance shareholder value in 2025?

U.S. Energy Corp (USEG) plans to enhance shareholder value in 2025 through a disciplined capital allocation strategy and driving growth, leveraging its financial strength and operational runway.