U.S. Energy Corp. Sells Oil & Gas Assets

The company expects the $6.825 million sale to enhance its financial flexibility while it continues to focus on operational excellence.

December 16, 2024

Key Transaction Details

U.S. Energy Corp. has finalized an agreement to sell oil and gas properties in Liberty and Henderson Counties, Texas, to 84 Resources Holdings, LLC. The $6.825 million transaction includes 122 oil and gas wells, leases, surface rights, permits, and associated facilities. The sale was formalized on December 12, 2024, and will be effective retroactively from November 1, 2024.

The closing is expected by the end of December 2024, contingent on standard closing conditions and due diligence by 84 Resources. Adjustments of up to $350,000 to the purchase price are possible, depending on the findings. Until the deal is finalized or terminated, U.S. Energy Corp. will continue to manage the assets under standard operational protocols.

Legal and operational safeguards have been included in the agreement to manage risk and ensure a smooth transaction. These provisions include warranties, indemnifications, and disclaimers consistent with the size and nature of the deal.

Financial Implications

The transaction is expected to strengthen U.S. Energy Corp.’s balance sheet by providing liquidity that could be used for debt reduction, strategic investments, or other financial priorities. The move aligns with the company’s broader initiative to optimize its portfolio, focusing on high-value assets and operational efficiency.

Strategic Alignment

This sale represents a significant step in U.S. Energy’s ongoing strategy to streamline its holdings. By divesting non-core or underperforming properties, the company aims to redirect its resources toward higher-return opportunities. This approach is intended to adapt to fluctuating energy markets and secure long-term shareholder value.

Looking Ahead

U.S. Energy Corp. remains focused on operational excellence as it transitions its portfolio. While specifics on reinvestment plans have not yet been announced, further updates are anticipated as the company continues its strategic realignment.