U.S. Energy Slips To Loss In Q1 On Charges, Lower Revenues - Quick Facts

(RTTNews) - U.S. Energy Corp. (USEG) reported first-quarter net loss of $23.70 million or $0.85 per share, compared to net income of $0.25 million or $0.01 per share in the year-ago period.

The Company recorded a proved property impairment of $19.2 million related to its oil and gas assets, which represents $0.69 of the $0.85 per share loss during the quarter. The impairment was primarily due to a decline in the price of oil.

Adjusted net loss for the quarter was $4.35 million or $0.16 per share, compared to adjusted net income of $0.49 million or $0.02 per share in the prior-year quarter.

Revenues for the quarter fell to $2.7 million from $8.3 million in the same period of the prior year. The decline in revenue is primarily due to lower oil and gas prices as well as lower sales volumes compared to the year-ago period.

Keith Larsen, CEO of U.S. Energy Corp. said, "We are continuing to evaluate accretive acquisition opportunities in this price environment with significant upside potential and are confident that the current market conditions will allow us to find the right opportunity for meaningful growth. In order to accomplish our acquisition initiatives we are currently seeking additional sources of funding from within our banking contacts."