U.S. Energy Corp. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months amounting to $4.96 million, a decrease of 43% from $8.74 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $16.39 million, down 34% from $24.99 million in the prior year. This decline was primarily attributed to lower production levels and reduced oil sales, which fell from $7.81 million in Q3 2023 to $4.38 million in Q3 2024.

Operating expenses also decreased, totaling $9.11 million for the three months ended September 30, 2024, compared to $16.95 million in the same period of 2023. For the nine-month period, operating expenses were $30.28 million, down from $37.86 million. Despite the reduction in expenses, the company reported an operating loss of $4.15 million for Q3 2024, an improvement from the $8.21 million loss in Q3 2023. However, the nine-month operating loss increased to $13.89 million from $12.87 million year-over-year.

The net loss before income taxes for the three months ended September 30, 2024, was $2.27 million, significantly lower than the $8.95 million loss reported in Q3 2023. For the nine months, the net loss before income taxes was $13.76 million, compared to $12.98 million in the previous year. The net loss attributable to common shareholders for the three months was $2.25 million, down from $8.79 million in Q3 2023, while the nine-month loss increased to $13.76 million from $12.55 million.

Strategically, U.S. Energy Corp. made significant moves, including the acquisition of helium acreage in Montana for $2 million in cash and $2.7 million in stock, completed on June 26, 2024. The company also divested properties, generating $5.9 million in net proceeds during the nine months ended September 30, 2024, with no significant impact on reserves. Additionally, the company reported ceiling test write-downs of $1.4 million for Q3 2024 and $6.8 million for the nine months, reflecting reduced values of oil and natural gas reserves due to lower commodity prices.

As of September 30, 2024, U.S. Energy Corp. had cash and equivalents of $1.16 million, down from $3.35 million at the end of 2023. The company has also fully repaid its credit facility, which had an outstanding balance of $5 million as of December 31, 2023. The average interest rate on the credit facility increased to 9.3% for Q3 2024, up from 9.1% in the previous year. The company plans to drill additional helium wells in 2025, with estimated costs between $4 million and $6.5 million.