Oil and natural gas operator U.S. Energy Corp. (USEG) completed a series of non-core asset divestitures, according to a Jan. 10 press release.
USEG’s divestiture highlights include:
- All-cash proceeds of approximately $7.2 million;
- Divested assets averaged approximately 200 boe/d (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-free;
- No changes to the company’s existing $20 million borrowing base; and
- Represents the majority of USEG’s non-operated assets.
With proceeds from the divestitures going towards the company’s debt reduction, “U.S. Energy now sits in a position of increased liquidity across all measures and meaningful portions of [U.S. Energy’s] 2024 oil production, hedged at an average price in the low $80’s,” USEG’s CEO Ryan Smith said. “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.”
Recommended Reading
OPEC+ Brings Oil Overproduction Under Heel—Rystad
2024-07-15 - After years of noncompliance and underreporting of actual crude production, many OPEC+ members are voluntarily reducing output beyond set goals, according to analysis by Rystad Energy.
Calmer Waters May Be Ahead for Oil and Gas, Despite Wild Cards
2024-05-30 - Looking forward, while supply disruptions remain a possibility, the energy market’s nervousness is easing.
BlackRock, Citadel to Launch Texas Stock Exchange
2024-06-06 - The exchange, which has raised about $120 million, plans to file registration documents with the U.S. Securities and Exchange Commission to start operating as a national securities exchange later this year, TXSE said on June 5.
Hurricane Beryl Knocks Out Power as it Churns Across Texas
2024-07-08 - The energy industry braced for Beryl's impact across Texas as the powerful storm slowed refining activity and prompted the evacuation of some production sites.
US Republican Attorneys General Sue to Stop EPA's Carbon Rule
2024-05-09 - The rule, finalized by President Joe Biden's administration last month as part of an effort to combat climate change, was challenged in three lawsuits filed in the U.S. Court of Appeals for the District of Columbia Circuit.