U.S. Energy Corp. raised $12.1 million from a stock offering to fund its industrial gas development project.
Quiver AI Summary
U.S. Energy Corp. has successfully closed an underwritten public offering of 4,871,400 shares of its common stock at a public price of $2.65 per share, generating approximately $12.1 million in net proceeds after underwriting commissions. The company plans to use these funds to support growth in its industrial gas development project, which includes the creation of new gas wells and processing facilities. Additionally, proceeds from the exercise of an over-allotment option may be used to repurchase shares from Sage Road Capital, LLC, a related party. Roth Capital Partners acted as the lead manager for the offering. The transaction was made under a shelf registration statement with the SEC, and further details can be accessed through SEC filings.
Potential Positives
- Successfully closed an underwritten public offering of 4,871,400 shares of common stock, raising approximately $12.1 million in net proceeds.
- Proceeds will fund growth capital for an industrial gas development project, including new wells and processing equipment, indicating strong potential for expansion.
- The offering included an exercised over-allotment option, reflecting strong demand and confidence from investors in the company's growth strategy.
Potential Negatives
- The press release indicates the use of proceeds from the stock offering may include purchasing shares from a related party, Sage Road Capital, which raises potential concerns regarding conflicts of interest and transparency.
- The company has outlined numerous risks in its forward-looking statements, including concerns over profitability, ability to manage growth, and reliance on oil and gas prices, which may signal financial instability.
- The potential for dilution of existing shareholder value is heightened due to the underwritten public offering, which could negatively impact stock performance and shareholder sentiment.
FAQ
What was the public offering price of U.S. Energy's shares?
The public offering price of U.S. Energy's shares was $2.65 per share.
How many shares were included in the offering?
The offering included a total of 4,871,400 shares of common stock.
What are the proceeds from the offering intended for?
The proceeds are intended to fund growth capital for an industrial gas development project and support operations.
Who acted as the book-running manager for the offering?
Roth Capital Partners acted as the sole book-running manager for the offering.
Where can I find the prospectus for this offering?
The prospectus can be found on the SEC's website at www.sec.gov.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$USEG Insider Trading Activity
$USEG insiders have traded $USEG stock on the open market 37 times in the past 6 months. Of those trades, 37 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $USEG stock by insiders over the last 6 months:
- RYAN LEWIS SMITH (CEO) has made 37 purchases buying 18,600 shares for an estimated $28,432 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$USEG Hedge Fund Activity
We have seen 7 institutional investors add shares of $USEG stock to their portfolio, and 7 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- UBS GROUP AG removed 33,160 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $38,134
- GEODE CAPITAL MANAGEMENT, LLC added 19,350 shares (+28.3%) to their portfolio in Q3 2024, for an estimated $22,252
- HRT FINANCIAL LP removed 13,162 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $15,136
- GOLDMAN SACHS GROUP INC removed 13,049 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $15,006
- VERITY ASSET MANAGEMENT, INC. removed 5,752 shares (-5.0%) from their portfolio in Q3 2024, for an estimated $6,614
- RENAISSANCE TECHNOLOGIES LLC added 1,300 shares (+2.6%) to their portfolio in Q3 2024, for an estimated $1,494
- BRIDGEWAY CAPITAL MANAGEMENT, LLC added 1,072 shares (+2.3%) to their portfolio in Q3 2024, for an estimated $1,232
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HOUSTON, Jan. 23, 2025 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQ: USEG, “ U.S. Energy ” or the “ Company ”) announced today the closing of its previously announced underwritten public offering of 4,871,400 shares of its common stock, which includes 635,400 shares sold pursuant to the exercise in full by the underwriters of their over-allotment option, par value $0.01 per share, at a public offering price of $2.65 per share, for total net proceeds, after underwriting commissions, of approximately $12.1 million.
U.S. Energy plans to use the net proceeds of the offering to fund growth capital for its industrial gas development project, including new industrial gas wells and processing plant and equipment, and to support upcoming operations. The proceeds received by the Company from the exercise of the over-allotment option may be utilized to purchase shares of common stock from Sage Road Capital, LLC, a related party, or its affiliates at a price equal to the net offering price received by the Company.
Roth Capital Partners acted as sole book-running manager for the offering. Johnson Rice & Company and D. Boral Capital acted as co-managers for the offering. The Loev Law Firm, PC represented the Company and K&L Gates LLP represented the underwriters in the offering.
The offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) and became effective on September 15, 2022. The prospectus supplement and accompanying base prospectus relating to the offering are available on the SEC’s website at www.sec.gov . Copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained by sending a request to: Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, (800) 678-9147, email at [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares of common stock or any other securities, nor shall there be any sale of such shares of common stock or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
ABOUT U.S. ENERGY CORP.
We are a growth company focused on consolidating high-quality assets in the United States with the potential to optimize production and generate free cash flow 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
[email protected]
(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 expected use of proceeds, including, but not limited to the repurchase of certain shares of common stock; (2) the ability of the Company to grow and manage growth profitably and retain its key employees; (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, natural gas and helium 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, NGLs and helium; (11) risks related to the status and availability of oil, natural gas and helium gathering, transportation, and storage facilities; (12) risks related to changes in the legal and regulatory environment governing the oil, gas and helium 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, natural gas and helium 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, potential future sales of debt or equity and dilution caused thereby; (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 September 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.