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USEG: Future Oil-Weighted Production Mix Should Support Stronger Share Performance

Kevin Dome Production Will Benefit From Rising Global Energy Demand

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USEG
AnalystHighTarget
Not Invested
Published 14 Aug 2025

Update shared on 20 Dec 2025

Fair value Decreased 14%
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AnalystHighTarget's Fair Value
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1Y
-33.5%
7D
4.7%

Analysts have modestly reduced their price target on U.S. Energy, trimming fair value by approximately 15 percent, as slightly higher discount rate assumptions and expectations for softer profit margins outweigh a marginally stronger revenue growth outlook and a higher projected future P/E multiple.

What's in the News

  • Reported third quarter 2025 hydrocarbon production of approximately 35,326 BOE, with 75% from oil (company announcement)
  • Total oil and gas sales fell to about USD 1.7 million in the third quarter of 2025 from USD 5.0 million a year earlier, reflecting the impact of the 2024 divestiture program (company announcement)
  • Oil sales increased to 91% of total revenue in the third quarter of 2025, up from 88% in the third quarter of 2024 (company announcement)
  • Recognized USD 869,000 in impairment of oil and natural gas properties for the three months ended September 30, 2025, down from USD 1,424,000 a year earlier (company filing)

Valuation Changes

  • The fair value estimate has fallen modestly from 3.5 to 3.0 per share, reflecting a roughly 15 percent reduction in the intrinsic value assessment.
  • The discount rate has risen slightly from 6.80 percent to 6.96 percent, indicating a marginally higher required return and risk premium.
  • Revenue growth has increased slightly from about 25.4 percent to 26.2 percent, signaling a modestly stronger top line outlook.
  • The net profit margin has edged down from roughly 14.9 percent to 14.2 percent, suggesting expectations for somewhat softer profitability.
  • The future P/E has risen slightly from approximately 47.5x to 48.7x, implying a small increase in the valuation multiple applied to expected earnings.

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Disclaimer

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