HIGHLIGHTS
- All-cash proceeds of approximately
$7.2 million ; - Divested assets averaged approximately 200 barrels of oil equivalent per day (83% oil) 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-free1;
- No changes to the Company’s existing
$20.0 million borrowing base; - Represents the majority of USEG’s non-operated assets.
MANAGEMENT COMMENTARY
“Throughout the fourth quarter, we executed on a series of asset divestitures representing the majority of
BALANCE SHEET AND LIQUIDITY UPDATE
The below table provides an overview of
As of | ||||||||
($000’s) | ||||||||
Debt Outstanding | $ | (12,000 | ) | $ | (5,000 | ) | ||
Add: Cash | 1,974 | 3,358 | ||||||
Add: MtM Hedging (Loss) / Gain2 | (348 | ) | 2,059 | |||||
Net (Debt) / Net Cash Position | $ | (10,374 | ) | $ | 417 | |||
Net Liquidity3 | $ | 9,626 | $ | 20,417 | ||||
HEDGING PROGRAM UPDATE
The following table reflects the hedged volumes under
Swaps | ||||||||
Period | Commodity | Volume (Bbls) | Avg Price ($/Bbl ) | |||||
Q1 2024 | Crude Oil | 53,000 | ||||||
Q2 2024 | Natural Gas | 48,600 | ||||||
Q3 2024 | Crude Oil | 45,000 | ||||||
Q4 2024 | Crude Oil | 40,720 |
ABOUT
We are a growth company focused on consolidating high-quality producing assets in
- Net debt/net cash calculation arrived at by taking debt outstanding plus cash plus value of commodity derivative portfolio.
12/31/2023 hedge position valued as ofJanuary 9, 2024 .- Liquidity calculated by taking the difference between the Company’s current
$20.0 million borrowing base and the Company’s net debt/cash positions.
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, risks associated with the integration of the recently acquired assets; the Company’s ability to recognize the expected benefits of the acquisitions and the risk that the expected benefits and synergies of the acquisition may not be fully achieved in a timely manner, or at all; the amount of the costs, fees, expenses and charges related to the acquisitions; the Company’s ability to comply with the terms of its senior credit facilities; the ability of the Company to retain and hire key personnel; the business, economic and political conditions in the markets in which the Company operates; fluctuations in oil and natural gas prices, uncertainties inherent in estimating quantities of oil and natural gas reserves and projecting future rates of production and timing of development activities; competition; operating risks; acquisition risks; liquidity and capital requirements; the effects of governmental regulation; adverse changes in the market for the Company’s oil and natural gas production; dependence upon third-party vendors; risks associated with COVID-19, the global efforts to stop the spread of COVID-19, potential downturns in the
The Company cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of any Sale Agreement Parties are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on
INVESTOR RELATIONS CONTACT
IR@usnrg.com
(303) 993-3200
www.usnrg.com
Source:
2024 GlobeNewswire, Inc., source