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USEG: Higher Oil Weighting Will Support Stronger Long Term Earnings Profile

Montana Industrial Gas Project Will Unlock Future Opportunities

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USEG
AnalystConsensusTarget
Not Invested
Published 10 Apr 2025

Update shared on 06 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-33.5%
7D
4.7%

Analysts have modestly raised their price target on U.S. Energy by approximately $2.50 per share, citing expectations of slightly faster long term revenue growth and a higher future earnings multiple, which more than offset a small downward revision to projected profit margins.

What's in the News

  • Reported third quarter 2025 hydrocarbon production of approximately 35,326 BOE, with 75% of volumes from oil (company announcement)
  • Total oil and gas sales for the third quarter of 2025 were about $1.7 million, down from $5.0 million in the same quarter of 2024, largely due to asset divestitures completed in 2024 (company announcement)
  • Oil sales accounted for 91% of total revenue in the third quarter of 2025, up from 88% in the prior year period, highlighting a shift toward higher oil weighting in the portfolio (company announcement)
  • Recorded impairment of oil and natural gas properties of $869,000 for the three months ended September 30, 2025, an improvement from $1.4 million a year earlier (company filing)

Valuation Changes

  • Fair Value: Unchanged at an implied long term value of $2.50 per share, reflecting stable core assumptions.
  • Discount Rate: Edged down very slightly from 6.96% to 6.96%, indicating a marginally lower perceived risk profile.
  • Revenue Growth: Essentially unchanged, with long term annual revenue growth expectations holding around 22.9%.
  • Net Profit Margin: Reduced modestly from approximately 14.31% to 13.71%, reflecting slightly more conservative profitability assumptions.
  • Future P/E: Increased moderately from about 43.7x to 45.7x, implying a somewhat higher expected earnings multiple applied to future results.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.