Us Energy Corp (NASDAQ: USEG)

Sector: Energy Industry: Oil & Gas E&P CIK: 0000101594
Market Cap 28.67 Mn
P/B 1.15
P/E -1.17
P/S 2.82
ROIC (Qtr) -90.98
Div Yield % 0.00
Rev 1y % (Qtr) -64.94
Total Debt (Qtr) 465,000.00
Debt/Equity (Qtr) 0.02
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About

US Energy Corp (USEG) operates in the energy sector, focusing on the acquisition and development of oil and natural gas producing properties within the continental United States. Incorporated in Wyoming in 1966, the company reincorporated in Delaware in 2022. The company's primary business activities encompass oil and natural gas exploration, development, and production. US Energy Corp's operations span several regions, including the Rockies, the Mid-Continent, and the West Texas, South Texas, and Gulf Coast regions. As of December 31, 2023, the...

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Investment thesis

Bull case

  • Healthy cash reserves of 1.42M provide 6.87x coverage of short-term debt 206000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 46.50M provides 99.99x coverage of total debt 465000, indicating robust asset backing and low credit risk.
  • Tangible assets of 46.50M provide robust 129.52x coverage of other current liabilities 359000, indicating strong asset backing.
  • Strong cash position of 1.42M provides 3.94x coverage of other current liabilities 359000, indicating excellent liquidity.
  • Short-term investments of 310000 provide 1.50x coverage of short-term debt 206000, showing strong liquidity management.

Bear case

  • Operating cash flow of (4.58M) barely covers its investment activities of (4.59M), with a coverage ratio of 1, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.59M) provide weak support for R&D spending of 128000, which is -35.87x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (4.58M) shows concerning coverage of stock compensation expenses of 1.77M, with a -2.59 ratio indicating potential earnings quality issues.
  • Operating cash flow of (4.58M) provides minimal -176.35x coverage of tax expenses of 26000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (24.16M) show weak coverage of depreciation charges of 5.09M, with a -4.75 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas E&P
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 COP Conocophillips 136.62 Bn 17.10 2.22 23.44 Bn
2 CNQ Canadian Natural Resources Ltd 85.21 Bn 17.67 3.04 12.51 Bn
3 EOG Eog Resources Inc 66.33 Bn -60.48 8.67 8.13 Bn
4 FANG Diamondback Energy, Inc. 49.64 Bn -2,818.83 314.47 16.24 Bn
5 OXY Occidental Petroleum Corp /De/ 37.18 Bn 15.36 2.56 22.88 Bn
6 WDS Woodside Energy Group Ltd 34.64 Bn 11.73 2.51 -
7 TPL Texas Pacific Land Corp 29.74 Bn 126.16 78.66 0.02 Bn
8 DVN Devon Energy Corp/De 18.80 Bn 3.24 1.91 8.55 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.48 1.02
EV to Cash from Ops. EV/CFO -4.90 18.21
EV to Debt EV to Debt 48.30 54.57
EV to EBIT EV/EBIT -0.93 29.98
EV to EBITDA EV/EBITDA -1.15 19.64
EV to Free Cash Flow [EV/FCF] EV/FCF -2.45 39.33
EV to Market Cap EV to Market Cap 0.78 1.57
EV to Revenue EV/Rev 2.21 11.47
Price to Book Value [P/B] P/B 1.15 2.97
Price to Earnings [P/E] P/E -1.17 -25.98
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 26.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 31.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.78
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.05
Interest Coverage Int. cover (Qtr) -68.63 -4.97
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -166.72 -533.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.51 52.06
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -5.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.67 6.14
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 26.41 105.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 27.75 75.94
EBT Growth (1y) % EBT 1y % (Qtr) 27.97 17.44
EPS Growth (1y) % EPS 1y % (Qtr) 37.12 3.07
FCF Growth (1y) % FCF 1y % (Qtr) -174.80 -43.36
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -64.60 149.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.22 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.17 1.32
Current Ratio Curr Ratio (Qtr) 0.33 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.34
Interest Cover Ratio Int Coverage (Qtr) -68.63 -4.97
Times Interest Earned Times Interest Earned (Qtr) -68.63 -4.97
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -187.30 16.19
EBIT Margin % EBIT Margin % (Qtr) -237.22 -16.83
EBT Margin % EBT Margin % (Qtr) -240.67 -24.06
Gross Margin % Gross Margin % (Qtr) 33.10 58.92
Net Profit Margin % Net Margin % (Qtr) -240.90 -28.75