U.S. Energy announces completion of asset divestitures

U.S. Energy announced it had completed a series of non-core asset divestitures. HIGHLIGHTS: All-cash proceeds of approximately $7.2 million; Divested assets averaged approximately 200 barrels of oil equivalent per day from July-September 2023, or 12% of USEG total production over the same period; All proceeds used to reduce existing debt, leaving USEG materially debt-free; No changes to the Company’s existing $20.0 million borrowing base; Represents the majority of USEG’s non-operated assets. “Throughout the fourth quarter, we executed on a series of asset divestitures representing the majority of U.S. Energy’s non-operated assets,” stated Ryan Smith, Chief Executive Officer of U.S. Energy Corp. “The assets divested represent legacy USEG properties, primarily in current non-core focus areas, and will allow the Company to realize immediate additional corporate overhead savings. With proceeds going directly towards debt reduction, U.S. Energy now sits in a position of increased liquidity across all measures and meaningful portions of our 2024 oil production hedged at an average price in the low $80’s. As we enter 2024, we look forward to focusing our capital allocation efforts on the Company’s highest rate of return growth initiatives, maintaining a strong balance sheet, and driving shareholder returns.”