|
|
|
|
||
U.S. Energy Corp. Announces First Quarter Financial and Operating ResultsHOUSTON, May 14, 2020 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (USEG) (“We”, “U.S. Energy” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2020. First Quarter Highlights
“Despite extreme commodity price volatility and the unprecedented contraction of global hydrocarbon demand, U.S. Energy is uniquely well positioned to weather the turmoil in the oil markets,” said Ryan Smith, U.S. Energy’s Chief Executive Officer. “Our low-cost corporate structure and strong balance sheet have enabled us to begin successfully implementing our stated strategy of acquiring PDP heavy assets that are immediately cash flow accretive. Our closing of the previously announced New Horizon Resources acquisition, and the structure in which it transacted, is an example of our strategy being achievable and successful in the current market. Going forward, our priorities will continue to be focused on protecting our balance sheet and current liquidity position while continuing to take advantage of market dislocations and the associated acquisition opportunities.” First Quarter 2020 Production Update During the quarter ended March 31, 2020, U.S. Energy produced volumes of 27,204 BOE (75% oil), an average of approximately 297 BOE per day.
Current Liquidity Position At March 31, 2020, the Company had approximately $1.1 million in cash. As of May 14, 2020, we had approximately $1.3 million in cash, no outstanding debt and 1,404,817 shares outstanding. The Company had capital expenditures of approximately $128 thousand during the quarter ended March 31, 2020, which primarily consisted of the cash portion paid as part of the New Horizon Resources acquisition.
First Quarter Ended March 31, 2020 Financial Results Revenues from sales of oil and natural gas during the first quarter of 2020 were $0.9 million compared to $1.6 million during the comparable period of 2019. The change in revenue was primarily attributable to a decrease in commodity prices combined with a decrease in production volumes. We realized an average oil sales price of $42.11 per Bbl and an average gas sales price of $1.69 per Mcf for an overall average sales price of $34.16 per BOE. Our average realized oil price per Bbl for January 2020, February 2020 and March 2020 was $54.10, $44.15 and $25.22, respectively. Revenue from oil production represented 93% of Company revenue during the quarter. Lease operating expenses during the first quarter of 2020 were $0.4 million, or $15.00 per BOE, compared to $0.5 million, or $13.64 per BOE, during the comparable period of 2019. The decrease in overall lease operating expenses was the result of reduced overall field activity. The increase in lease operating expenses on a per BOE basis was driven by the expected natural decline of wells drilled in late 2018 and early 2019, primarily from the participation in development on our South Texas acreage. General and administrative (“G&A”) expenses totaled $572 thousand during the first quarter of 2020 compared to $848 thousand during the comparable period of 2019. The reduction was primarily attributable to a decrease in professional fees combined with savings realized as a result of the Company’s successful implementation of a reduction in corporate overhead. We believe expenditures related to the litigation involving the Company during 2019 are substantially behind us and expect a continued reduction in professional fees throughout 2020. Net loss was $306 thousand and Adjusted EBITDAX was $(40) thousand for the first quarter of 2020. Adjusted EBITDAX is a non-GAAP financial measure. Please see the below table that provides an unaudited reconciliation of net loss to Adjusted EBITDAX for the three months ended March 31, 2020 and 2019.
About U.S. Energy Corp. We are an independent energy company focused on the lease acquisition and development of oil and gas producing properties in the continental United States. Our business is currently focused in the Williston Basin of North Dakota and South Texas. We target low decline assets with existing infrastructure that allows us to maximize our return on capital in a cost effective and sustainable manner. More information about U.S. Energy Corp. can be found at www.usnrg.com. |
return to message board, top of board |