U.S. Energy Corp. (NASDAQ:USEG) ("U.S. Energy" or the "Company"), an integrated energy company advancing a diversified industrial gas, energy, and carbon management platform, today announced the closing of an expanded senior secured debt facility (the "Facility") that, together with proceeds from the Company's March 2026 equity offering, is expected to complete the Phase 1 capital stack for the planned Big Sky Carbon Hub ("Big Sky"). Concurrently, the Company announced that it is formally suspending further use of its existing equity line of credit ("ELOC").

  • Phase 1 Capital Stack Complete: The Facility, together with proceeds from the Company's March 2026 equity offering, provides funding visibility into Phase 1 construction of Big Sky, with initial commercial operations targeted for Q1 2027.
  • Facility Structure: The $20 million facility is priced at the existing borrowing base grid plus 200 basis points (ABR + 2.25% to 3.25% depending on utilization), with no financial covenant testing until March 31, 2027, a final maturity of May 31, 2029, and no prepayment penalties.
  • ELOC Formally Suspended: The ELOC has not been drawn since March 2, 2026. The Company is formally suspending further use of the facility, which addresses a perceived dilution overhang associated with the ELOC.
  • Near-Term Execution Focus: With the Phase 1 capital stack in place, the Company's focus shifts to plant construction and the near-term operational milestones previously outlined, including initial helium sales and carbon management operations targeted to commence in Q1 2027.