Q4 2024 U.S. Energy Corp Earnings Call
Operator: quarter and year-end 2024 results conference call.
For our results conference call, Brian Smith, our Chief Executive Officer will provide an overview of our operating results and discuss the company's strategic outlook and our Chief Financial Officer, Mark Z Jack will give a more detailed review of our financial results before this morning's market opening U S energy issued a press release summarizing operating and financial results for the quarter and fiscal year.
Operator: Ryan Smith, our chief executive officer, will provide an overview of our operating results and discuss the company's strategic outlook, and our chief financial officer, Mark Zajac, will give a more detailed review of our financial results.
Operator: Before this morning's market opening, US Energy issued a press release summarizing operating and financial results for the quarter and fiscal year ended December 31st, 2024. This press release, together with the accompanying presentation materials, are available in the investor relations section of our website at www.usenergy.com. Today's discussion may contain forward-looking statements about future business and financial expectations.
Ended December 31, 2024. This press release together with the accompanying presentation materials are available in the Investor Relations section of our website at Www Dot U S NRG dot com.
Today's discussion may contain forward looking statements about future business and financial expectations actual results may differ significantly from those projected in today's forward looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission, except as required by law, we undertake no obligation to update our forward looking.
Operator: Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking Further, please note that non-GAAP financial measures may be disclosed during this call. A full reconciliation of GAAP to non-GAAP measurements are available in our latest quarterly earnings release and conference call presentation.
Statements further please note that non-GAAP financial measures may be disclosed during this call a full reconciliation of GAAP to non-GAAP measurements are available in our latest quarterly earnings release and conference call presentation.
Ryan Smith: With that, I'd like to turn the conference call over to Ryan Smith. Good morning, everyone, and thank you for joining us today. I'm pleased to share our fourth quarter results, highlight our key accomplishments in 2024, and provide an update on our strategic outlook and operational plans for the year ahead. Our results this quarter reflect the dedication and resilience of our operational team, as well as the strong momentum we've built throughout our recent business development efforts. In particular, I want to focus on our Montana project, where we continue to make significant progress. During the fourth quarter, we successfully drilled our first industrial gas well and have spent the past few months analyzing results to refine our development approach.
Ryan Smith: I'd like to turn the conference call over to Ryan Smith.
Ryan Smith: Good morning, everyone and thank you for joining us today I'm pleased to share our fourth quarter results highlight our key accomplishments in 2024 and provide an update on our strategic outlook and operational plans for the year ahead.
Ryan Smith: Our results this quarter reflect the dedication and resilience of our operational team as well as the strong momentum we built throughout our recent business development efforts in particular I want to focus on our Montana projects, where we continue to make significant progress.
Ryan Smith: During the fourth quarter, we successfully drilled our first industrial gas well I've spent the past few months analyzing results to refine our development approach our focus remains on targeting economically promising production zones, which independent testing has confirmed contained significant non hydrocarbon helium concentrations.
Ryan Smith: Our focus remains on targeting economically promising production zones, which independent testing has confirmed contain significant non-hydrocarbon helium concentrations. While we initially anticipated further well testing in December and January, we made the strategic decision to wait for warmer weather to optimize operational efficiency. Montana experienced a particularly harsh winter, and while existing operations continued without any issue, launching new operations in these conditions introduced unnecessary risk both to personnel and to equipment. With improved weather conditions, we are now well positioned to move forward. In early January, we completed another key milestone by acquiring approximately 24,000 net acres in Montana, further expanding our footprint across the most promising portions of the Key Van Dome.
Ryan Smith: While we initially anticipated further well testing in December and January we made the strategic decision to wait for warmer weather to optimize operational efficiency, Montana experienced a particularly harsh winter and while existing operations continued without any issue launching new operations in these conditions introduced unnecessary risks, both the personnel and equipment.
Ryan Smith: With improved weather conditions were not well positioned to move forward.
Ryan Smith: In early January we completed another key milestone by acquiring approximately 24000 net acres in Montana further expanding our footprint across the most promising portions of the key even though.
Ryan Smith: This acquisition is a cornerstone of our development strategy, targeting CO2-dominant pay zones with significant helium concentrations. Additionally, this transaction included an active-producing well, with recent gas analysis confirming material flow rates and helium production from the Dupreaux zone. With this latest acquisition, US Energy now controls the dominant land position across the Keven Dome, totaling approximately 160,000 net acres. This strategic expansion allows us to control the development of a vast resource base, securing years of future growth potential. While we will continue to opportunistically acquire smaller, high-value acreage to further optimize our holdings, we are confident that our current position is robust and scalable.
Ryan Smith: This acquisition is a cornerstone of our development strategy targeting C O two dominant pay zones with significant helium concentrations. Additionally, this transaction included as an active producing well with recent gas analysis confirming material flow rates and helium production from the <unk> zone.
Ryan Smith: With this latest acquisition U S energy now controls the dominant land position across the Keven dome totaling approximately 160000 net acres. This strategic expansion allows us to control the development of our vast resource base securing years of future growth potential.
Ryan Smith: While we will continue to opportunistically acquire smaller high value acreage to further optimize our holdings. We are confident that our current position is robust and scalable.
Ryan Smith: Looking ahead, we're gearing up for an active and highly strategic 2025. Beginning in April, we plan to initiate work over operations on two wells, the first being the industrial gas well that we drilled in the fourth quarter, and the second being the producing well acquired in our most recent transaction. These operations will provide critical data, including flow rates, reservoir characteristics, and gas composition. In June, we plan to commence drilling and completing two additional wells, marking the next phase of our development program. By the end of the second quarter, we anticipate having operational results from all four wells, providing valuable insights that will inform our full cycle development strategy.
Ryan Smith: Looking ahead, we are gearing up for an active and highly strategic 2025, beginning in April we plan to initiate workover operations on two wells the first being the industrial gas well that we drilled in the fourth quarter and the second being the producing well acquired in our most recent transaction.
Ryan Smith: These operations will provide critical data, including flow rates reservoir characteristics and gas composition.
Ryan Smith: In June we plan to commence drilling and completing two additional wells Mark in the next phase of our development program by the end of the second quarter, we anticipate having operational results from all four wells, providing valuable insights that will inform our full cycle development strategy.
Ryan Smith: Once we analyze this data, we expect to move into the manufacturing phase of our gas processing plant. Our team of internal professionals and highly experienced consultants have spent months refining the plant design, and we are confident in our ability to execute this next step once our well development program is complete.
Ryan Smith: Once we analyze this data we expect to move into the manufacturing phase of our gas processing plant our team of internal professionals and highly experienced consultants have spent months refining the plant design and we are confident in our ability to execute this next step once our well development program is complete.
Ryan Smith: Another important initiative underway is the carbon sequestration component of our Montana project. This effort is progressing in tandem with our acreage delineation and plant development. We have made substantial progress on both the operational and regulatory fronts, and we believe our plan meets all necessary requirements to fully leverage federal incentives related to CO2 sequestration. Our focus includes optimizing our existing Class II injection permits, identifying and permitting future injection sites, and advancing our Monitoring, Reporting, and Verification, or MRV, process. We expect to provide additional updates on this initiative in the second quarter. We're highly optimistic about the future of this project.
Ryan Smith: Another important initiative underway is the carbon sequestration component of our Montana projects. This effort is progressing in tandem with our acreage delineation implant development. We have made substantial progress on both the operational and regulatory fronts and we believe our plan meets all necessary requirements to fully leverage federal incentives related to <unk>.
Ryan Smith: Ration.
Ryan Smith: Our focus includes optimizing our existing class two injection permits identifying a permitting future injection sites and advancing our monitoring reporting and verification or MRV process. We expect to provide additional updates submission initiative in the second quarter.
Ryan Smith: We're highly optimistic about the future of this project not only does our Montana asset represent a transformational opportunity for U S energy, but it also positions us as a leading player in the industrial gas sector. This initiative aligns with our strategy to create a full cycle industrial gas platform, while efficiently deploying our capital to generate meaningful returns.
Ryan Smith: Not only does our Montana asset represent a transformational opportunity for US Energy, but it also positions us as a leading player in the industrial gas industry. This initiative aligns with our strategy to create a full cycle industrial gas platform while efficiently deploying our capital to generate meaningful return. Based on the data collected thus far, we believe our wells will support highly economic development, both at the field and infrastructure levels. Our capital spending plan remains disciplined and achievable, fully funded through our existing balance sheet and supplemented by our successful capital strategy. The development of these wells will further define our resource base and provide the necessary foundation for advancing our processing infrastructure and long-term production plan.
Ryan Smith: Based on the data collected thus far we believe our wells will support highly economic development, both at the field and infrastructure levels. Our capital spending plan remains disciplined and achievable fully funded through our existing balance sheet and supplemented by our successful capital strategy.
Ryan Smith: The development of these wells will further define our resource base and provide the necessary foundation for advancing our processing infrastructure and long term production plans.
Ryan Smith: It's also important to highlight the unique nature of our Kievan Dome assets. The majority of helium production in the U.S. today is tied to hydrocarbons and produced as a byproduct of natural gas extraction. In contrast, our Montana project is non-hydrocarbon based, making it one of the lowest environmental footprint helium projects in the country. This distinction is a key competitive advantage as we move forward.
Ryan Smith: It's also important to highlight the unique nature of our keeping dome assets. The majority of helium production in the U S. Today is tied to hydrocarbons and produced as a byproduct of natural gas extraction.
Ryan Smith: In contrast, our Montana project as non hydrocarbon based making it one of the lowest environmental footprint helium projects in the country. This distinction is a key competitive advantage as we move forward.
Ryan Smith: Turning to our legacy oil and gas assets, 2024 was a very successful year in executing our strategy to monetize these properties and redeploy that capital into our Montana project. In July, we completed the sale of our South Texas assets for $6 million, followed by the sale of certain East Texas properties in December for $6.8 million. These transactions directly benefited U.S. Energy in two ways. First, they enabled us to fully eliminate our outstanding debt, leaving us with a clean balance sheet. And second, they provided additional capital to accelerate our Montana development effort. These sales were executed with precision, thanks to the expertise for our ops and business development teams who have skillfully managed our legacy assets to maximize value in the current market.
Ryan Smith: Turning to our legacy oil and gas assets 2024 was a very successful year in executing our strategy to monetize these properties and redeploy that capital into our Montana project.
Ryan Smith: In July we completed the sale of our South Texas assets for $6 million, followed by the sale of certain East, Texas properties in December for $6 8 million. These.
Ryan Smith: These transactions directly benefited U S energy in two ways first they enabled us to fully eliminate our outstanding debt, leaving us with a clean balance sheet and second they provided additional capital to accelerate our Montana development efforts.
Ryan Smith: These sales were executed with precision thanks to the expertise of our office and business development teams, who are skillfully manage our legacy assets to maximize value in the current market.
Ryan Smith: As we move through 2025, we will continue to take a disciplined approach, strategically investing in our Montana project while remaining opportunistic and monetizing non-core oil and gas assets. This measured capital strategy is expected to make 2025 a transformational year for US Energy. Unlike many of our peers, we have access to significant internally generated non-dilutive capital, allowing us to fund growth without unnecessary shareholder dilution. US Energy stands apart from other energy companies of similar scale. We have a highly economic and scalable development project supported by legacy E&P assets that require minimal capital to maintain production. This allows us to generate predictable cash flows while making strategic, high return investments in our industrial gas development project.
Ryan Smith: As we move through 2025, we will continue to take a disciplined approach strategically investing in our Montana project, while remaining opportunistic in monetizing non core oil and gas assets. This measured capital strategy is expected to make 2025, a transformational year for U S synergy. Unlike many of our peers, we have access to significant.
Ryan Smith: <unk> internally generated non dilutive capital, allowing us to fund growth without unnecessary shareholder dilution.
Ryan Smith: U S energy stands apart from other energy companies of similar scale, we have a highly economic and scalable development project supported by legacy E&P assets that required minimal capital to maintain production. This allows us to generate predictable cash flows while making strategic high return investments in our industrial gas development project.
Ryan Smith: Our approach provides resilience against market volatility while positioning us to capitalize on emerging opportunities.
Ryan Smith: Our approach provides resilience against market volatility, while positioning us to capitalize on emerging opportunities.
Ryan Smith: Our commitment remains focused on operational excellence, discipline, financial management, and responsible resource development. As we look ahead, we are well-positioned to drive sustained growth and create long-term value for our shareholders.
Ryan Smith: Our commitment remains focused on operational excellence disciplined financial management and responsible resource development. As we look ahead, we are well positioned to drive sustained growth and create long term value for our shareholders.
Ryan Smith: On the capital allocation front, we continued executing our share repurchase program in 2024. To date, we have repurchased approximately 1.7 million shares, representing roughly 4% of our outstanding share count. Additionally, our executive team has consistently increased their personal holdings, underscoring our conviction that repurchasing our stock at current valuations represents one of the highest return opportunities for our free cash flow. We expect to continue this strategy moving forward. Maintaining a strong balance sheet remains a top priority. I'm pleased to report that we ended the year and currently sit completely debt-free with zero outstanding borrowings on our credit facility.
Ryan Smith: On the capital allocation front, we continued executing our share repurchase program in 2024 to date, we have repurchased approximately one 7 million shares representing roughly 4% of our outstanding share count. Additionally, our executive team has consistently increased their personal holdings underscoring our conviction that repurchase.
Ryan Smith: <unk> our stock at current valuations represents one of the highest return opportunities for our free cash flow.
Ryan Smith: We expect to continue this strategy moving forward.
Ryan Smith: Maintaining a strong balance sheet remains a top priority I'm pleased to report that we ended the year and currently sit completely debt free with zero outstanding borrowings on our credit facility.
Ryan Smith: And importantly, despite recent asset sales, our borrowing capacity has remained unchanged.
Ryan Smith: And importantly, despite recent asset sales our borrowing capacity has remained unchanged.
Ryan Smith: In closing, US Energy is uniquely positioned as a first moving, publicly traded, growth oriented industrial gas company in the United States. Many of our competitors are constrained by complex equity structures, financial stress, and limited capital access. We do not share these limitations. As our distinctive position gains broader recognition in the market, we expect to unlock additional scalable and highly accretive growth opportunities.
Ryan Smith: In closing U S energy is uniquely positioned as a first moving publicly traded growth oriented industrial gas company in the United States. Many of our competitors are constrained by complex equity structures financial stress and limited capital access we.
Ryan Smith: We do not share these limitations as.
As our distinctive position gains broader recognition in the market, we expect to unlock additional scalable and highly accretive growth opportunities.
Mark Zajac: With that, I'll now turn the call over to our Chief Financial Officer, Mark Zajac, who will provide a detailed update on our financial results for the Thank you, Ryan. Hello, everyone. Let's delve into the financial details for the fourth quarter of 2024. Total oil and gas sales for the quarter amounted to $4.2 million, reflecting a decrease from $7.3 million in the same period last year. This decline was attributed to a 36% reduction in volumes, most notably impacted by a number of divestitures we closed in 2024 as part of our strategy to monetize legacy assets and redeploy capital into our core focus area.
Ryan Smith: With that I'll now turn the call over to our Chief Financial Officer, Mark Z, Jack who will provide a detailed update on our financial results for the quarter.
Ryan Smith: Thank you Ryan Hello, everyone, let's delve into the financial details for the fourth quarter of 2024.
Ryan Smith: Total oil and gas sales for the quarter amounted to $4 $2 million, reflecting a decrease of $7 3 million in the same period last year.
Ryan Smith: This decline was attributed to a 36% reduction in volumes, most notably impacted by a number of divestitures. We closed in 2024 as part of our strategy to monetize legacy assets and redeploy capital into our core focus area.
Mark Zajac: Sales and oil production contributed 85% of our total revenue for the quarter, demonstrating our continued focus on optimizing our oil assets. Our lease operating expense for the fourth quarter was approximately $1.8 million, equivalent to $20.58 per BOE versus $22.38 per BOE in the same period last year. The decrease in the LOE-BOE quarter-to-quarter is due mainly to lower property taxes and the mix of properties remaining, resulting from the divestiture. Reduction taxes for the fourth quarter of 2024 totaled approximately $0.3 million. Consistent with historical trends, our taxes have remained approximately 6% of our total oil and gas sales revenue.
Ryan Smith: Sales of oil production contributed 85% of our total revenue for the quarter, demonstrating our continued focus on optimizing our oil assets.
Ryan Smith: Our lease operating expense for the fourth quarter was approximately $1 8 million.
Ryan Smith: Equivalent to $20 58 per Boe versus $22 38 per BOE in the same period last year the decrease in the low quarter.
Ryan Smith: Quarter to quarter is due mainly to lower property taxes and the mix of properties remaining resulting from the divestitures.
Ryan Smith: Production taxes for the fourth quarter of 2024 totaled approximately $3 million consistent with historical trends our taxes have remained approximately 6% of our total oil and gas sales revenue.
Mark Zajac: Cash general administrative expense was $1.7 million for the fourth quarter of 2024, a reduction of 23% when compared to the same period of 2023. Cumulative divestitures and organizational cost reductions impacted the change from prior year. Cost reductions have been a focus area, and year-to-day cash general administrative expenses have decreased $2.3 million when compared to the same period a year ago. The reduction reflects the impact of divestitures and right-sizing of the organization.
Ryan Smith: Cash general administrative expense was $1 7 million for the fourth quarter of 2024, a reduction of 23% when compared to the same period of 2023.
Ryan Smith: The divestitures and organizational cost reductions impacted the change from prior year cost reductions have been a focus area and year to date cash general administrative expenses decreased $2 3 million when compared to the same period a year ago. The reduction reflects the impact of divestitures and right sizing of the organization.
Mark Zajac: Turning to our net financial performance, the company reported a net loss of $12 million in the fourth quarter of 2024, compared to $19.8 million when compared to the prior year. Non-cash expense items such as DDNA, ceiling test write-downs, and loss on disposal represent 98% of our year-to-date loss in 2024. Reduction in production volumes resulting from divestitures and lower year-over-year quantity prices also impacted our... are just at EBITDA stood at $0.4 million in the fourth quarter 2024 compared to $1.6 million in the same period last year, influenced most notably by a number of factors, monetizing or hedges, divestitures, and comparatively lower commodity prices.
Ryan Smith: Turning to our net financial performance the company reported a net loss of $12 million in the fourth quarter of 2024 compared to $19 8 million when compared to the prior year noncash expense items, such as DD&A ceiling test write downs and loss on disposal represent 98% of our year to date loss in 2024 <unk>.
Ryan Smith: Reduction in production volumes, resulting from divestitures and lower year over year commodity prices also impacted our results.
Ryan Smith: Our adjusted EBITDA stood at <unk> 4 million in the fourth quarter of 2024 compared to $1 6 million in the same period last year influenced most notably by a number of factors monetizing their hedges divestitures and comparatively lower commodity prices.
Mark Zajac: Let's briefly touch on the balance sheet. As of 12-31-2024, there was no debt outstanding on our $20 million revolving credit facility. Our cash position stood at over $7.7 million. We generated an additional $10.5 million in net cash proceeds from our successful equity offering this past January. We are also in talks to renew and extend our credit agreement, which we expect to be completed in the second quarter of 2025. In terms of a shift in CapEx, during 2024, we spent $6.5 million acquiring, drilling, and completion work on our industrial gas project, while spending $1.4 million on oil and gas properties, which is down from $3.4 million in 2022.
Ryan Smith: Let's briefly touch on the balance sheet as of 12 31 2024, there was no debt outstanding on our $20 million revolving credit facility on our cash position stood at over $7 7 million.
Ryan Smith: We generated an additional $10 5 million in net cash proceeds from our successful equity offering. This past January we are also in talks to renew and extend our credit agreement, which we expect to be completed in the second quarter of 2025.
Ryan Smith: In terms of the shift in Capex. During 2024, we spent $6 5 million acquiring drilling and completion work on our industrial gas project, while spending $1 4 million of how oil and gas properties, which is down from $3 4 million in 2023.
Mark Zajac: Overall, we are pleased with our operating performance and financial results that are able to support the company's new initiatives while maintaining balance sheet discipline and integrity. My objective continues to be to ensure that the company's reporting process maintains a high standard of excellence. We feel confident in our ability to support the growth initiatives we currently have.
Ryan Smith: Overall, we are pleased with our operating performance and financial results that are able to support the company's new initiatives, while maintaining balance sheet discipline and integrity <unk>.
Ryan Smith: My objective continues to be to ensure that the company is reporting process maintains the highest standard of excellence, we feel confident in our ability to support the growth initiatives. We currently have underway.
Operator: Thank you for your participation this morning, we are now ready to take your questions. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Ryan Smith: Thank you for your participation. This morning, we are now ready to take your questions.
Speaker Change: Thank you if he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment may be necessary to pick up your handset before pressing the star keys.
Operator: One moment while we poll for questions.
Ryan Smith: One moment, while we poll for questions.
Jesse Sobelson: Our first question is from Jesse Sobelson with Deboral Capital. Please proceed. Hi, everyone. Thanks for taking my questions. It's great to see some pretty rapid progress on the industrial gases side of the business here.
Jesse Olson: Our first question is from Jesse Olson with people are all capital. Please proceed.
Jesse Olson: Hi, everyone. Thanks for taking my questions, it's great to see pretty rapid progress on the industrial gas segment of the business here.
Ryan Smith: I was just wondering, beyond the initial development activities that you've planned for the first half of 2025, do you know what the expected timeline is for reaching commercial production from the industrial gas assets? Hey, Jesse, good morning. Thanks for the question. So I mean, we have a good feel for it, you know, as we've kind of laid out in the past couple of calls and and release materials. You know, we're going after two zones here. One's a nitrogen zone, one's a CO2 based zone. You know, we believe very, very strongly that the CO2 based zone is just it's bigger, it has bigger wells, more resource, etc.
Jesse Olson: I was just wondering beyond the initial development activities that you've planned for the first half of 'twenty five do you know what the expected time line is for reaching commercial production from the industrial gas assets.
Jesse Olson: Hey, Jesse good morning. Thanks for the question. So I mean, we have a good feel for it you know as we've kind of laid out in the past couple of calls in and release materials.
We're going after two zones here once a nitrogen zone one's a C O two basis one.
Jesse Olson: We believe very strongly that the C. O two basis. One is just it's bigger it has bigger wells more resource et cetera.
Ryan Smith: With that comes You know, I would say. more confidence around gas flows and more confidence around design of plant. So, you know, as I think it was in the release yesterday, our development going forward, at least in 2025, is going to be targeting those CO2 zones. CO2 plants are a little bit longer to put up than nitrogen-based gas plants, just because the equipment's a little more longer lead time around processing. extremely large amounts of CO2. And, you know, combine that with Montana winter, I mean, we're looking at a second quarter, you know, blend first quarter and second quarter together.
Jesse Olson: With that comes.
Jesse Olson: I would say.
Jesse Olson: More confidence around gas flows and more confidence around design of plant.
Jesse Olson: So you know as I think it was in the release yesterday or our development going forward at least in 2025 is going to be targeting.
Jesse Olson: Those C O two zones.
Jesse Olson: C O two plants are a little bit longer to put up then nitrogen based gas plants, just because of the equipment a little more.
Jesse Olson: Longer lead time around processing.
Jesse Olson: Extremely large amounts of C O two.
And combine that with manta.
Jesse Olson: Montana Winter I mean, we're looking at a.
Jesse Olson: Oh second quarter, you know blend first quarter and second quarter together, because I can't put an over under on.
Ryan Smith: I can't put an over under on, you know, a specific number of days, but in 2026, so, you know, call it give or take. 12, 13 months from now.
Jesse Olson: A specific number of days, but in 2026 so.
Jesse Olson: So call it give or take.
Jesse Olson: 12, 13 months from now.
Ryan Smith: Okay, great. Yeah, I mean, understood, you know, whether and then just developing the business, you know, just take a bit of time. In terms of, you know, I'll follow up here just really quickly. It sounds like the sources of where you're going to be drilling and the concentration of gases is going to determine the size of the processing plant that you guys are going to develop.
Jesse Olson: Okay, Great I mean understood you know weather and then just developing the business.
Jesse Olson: At a time in terms of a follow up here just really quickly it sounds like the the sources of where youre going to be drilling in the concentration of gas is going to determine the Ah.
The size of the processing plant that you guys are going to develop but in terms of our business makes sense have you secured any off take agreements similar to others. We've seen the industry. Yet are you currently in negotiations and Harold Wood current pricing volatility impacts you know potential negotiations for this piece of the business to develop.
Ryan Smith: But in terms of business connections, have you secured any offtake agreements similar to others we've seen in the industry yet? Or are you currently in negotiations? And how would current pricing volatility impact, you know, potential negotiations for this piece of the business to develop further? Thank you. Yeah, great question. Yeah, you know, great, great question. And I'll kind of answer it in reverse order of how you asked it. Offtake agreements are very, I'll say, simple to secure and readily available. Healing prices have come down a little bit over the last several months. You know, I've loosely had discussions with offtake providers and, you know, there's still a scarcity.
Jesse Olson: Yeah, Great question, Yeah, Great Great question, and I'll I'll kind of answer it in reverse order of how you asked it.
Jesse Olson: Offtake agreements are.
Jesse Olson: Our very.
Jesse Olson: I'll say simple to secure and readily available helium prices come down a little bit over the last several months.
Jesse Olson: You know.
Speaker Change: Lucy Li had discussions with off take providers and Theres still a scarcity. So the degree of interest is very high.
Ryan Smith: So the degree of interest is very high. It's probably something that takes, I would say, start to finish, like six weeks. So we haven't secured one yet, but that is based on our doing. And then as we get this kind of second quarter of 25 development work done, you know, working over a couple of wells, you know, getting more data, more confidence around the flow rates of those, drilling and completing two more wells, you know, our plant size is probably going to be a 16 to 20 million a day type of processing plant. And then once we really get every one of those variables fine-tuned, we'll start looking into off-take agreements.
Speaker Change: It's probably something that takes I would say start to finish like six weeks.
Speaker Change: So we haven't secured one yet but that is that is based on our doing.
Speaker Change: And then you know as we.
Speaker Change: Get this kind of second quarter of 'twenty five.
Speaker Change: The development work done working over a couple of wells.
Speaker Change: You know getting more data more confidence around the flow rates of those drilling and completing two more wells are plant size is probably going to be a 16 to 20 million a day.
Speaker Change: Type of processing plant and then once once we really get every one of those variables fine tuned.
Speaker Change: We will start looking into off take agreements and there's there's your generic off take agreement that I would say historically have mostly been done with the really large.
Ryan Smith: And you know, there's your generic off-take agreement that I would say, you know, historically have mostly been done with, you know, the really large, I mean, Fortune 100 level industrial gas companies. And then, you know, as certain aspects of the economy, whether it be aerospace, semiconductor, specific medical uses, and their needs for helium supply have gone through the roof over the last. a few years going directly to kind of those. Bespoke end users secures much higher offtake prices than going to your traditional buyers. So, obvious comment, our focus is going to be to go to that latter group before we go to the former group.
Speaker Change: I mean fortune 100 level.
Speaker Change: Industrial gas companies and then as certain aspects of the economy, whether it be aerospace semiconductor.
Speaker Change: Specific medical uses and their their needs for.
Speaker Change: Helium supply have gone through the roof over the last.
Speaker Change: Few years going directly to kind of those be spoke.
And users.
Speaker Change: <unk> is much higher offtake prices, then going to your traditional buyers so obvious comment.
Speaker Change: Our focus is going to be to go to that latter group before we go to.
Speaker Change: Former group, but.
Ryan Smith: But it's a very established market and, you know, very standard offtake agreement terms with both of those separate groups.
Speaker Change: It's a very established market and very standard offtake agreement terms.
Speaker Change: With both of those separate groups. So I think that's probably a second half of 2025 activity.
Ryan Smith: So, I think that's probably a second half of 2025 activity. But where I sit now, I have very little concern about being able to secure one once, you know, us at US Energy are even more confident about the specific volumes that we can guarantee. Yeah, the industry certainly, over the longer term, definitely still looking at some supply constraints.
Speaker Change: But where I sit now I have very little concern about being able.
Speaker Change: To secure one once.
Speaker Change: US at U S energy are even more confident about the specific volumes that we can guarantee.
Speaker Change: Sure Yeah, the industry certainly over.
Over the longer term definitely still looking at some supply constraints. So we will be very interesting things develop thanks for taking my questions.
Ryan Smith: So, it will be very interesting to see how things develop.
Jesse Sobelson: Thanks for taking my questions.
Alright. Thanks.
Charles Meade: Our next question is from Charles Meade with Johnson Race. Please proceed.
Speaker Change: Our next question is from Charles Meade with Johnson Rice. Please proceed.
Ryan Smith: Good morning, Ryan, to you and the whole US Energy team there. You actually answered part of my question already in that you said you're looking at a gross, I think I interpret it as 16 to 20 million a day, that's going to gross inlet for the plant. But can you talk about what data points you're going to get either from these two new completions and the two new drills that's going to inform you towards either towards the 16 or the 20? And what are the data points you're looking for from those wells to help you spec out the plant?
Speaker Change: Good morning, Ryan to you in the in the whole U S energy team there.
You actually answered part of my question already in and that you said Youre looking at a a gross.
Speaker Change: Gross.
Speaker Change: Think I interpret as 16 to 20 million a day, that's gonna gross inlet for the plant, but can you talk about what data points, you're going to get either from these two new completions in the two new drills, that's going to that's going to inform you towards you know either towards towards the 16 of the 20 and what what are the data points here.
Your are you looking for from those wells to help you.
Speaker Change: Spec out the plan.
Ryan Smith: Yeah, no, great question. Good morning. So there's there's a few things, right. So, you know, we've we've drilled one well, and we've got a good amount of data from that. This most recent acquisition that we completed, I don't know when it was the first or second week of January of this year, you know, we acquired a well that you know, it's, it's, it's TA right now, but you know, it flowed for Many days back when it was when it was drilled. So like our data sources and our, our, our, you know, internal geologic modeling has only gotten more and more fine tune.
Speaker Change: Yeah, No great question and good morning.
Speaker Change: There's a few things right. So we've drilled one well and we've got a good amount of data from that this most recent acquisition that we completed.
Speaker Change: Don't know when it was the first or second week of January of this year.
Speaker Change: We acquired a well that.
Speaker Change: It's it's.
Ta right now, but it flowed for.
Speaker Change: Many days back when it was when it was drilled so like our data sources and our internal.
Speaker Change: Geologic modeling has only gotten more and more fine too. So all of that's kind of a let up to the locations that we're going to be drilling.
Ryan Smith: So, you know, all that's kind of led up to the locations that we're going to be drilling. here upcoming, and, you know, So I asked from a from a like a higher macro level. that data has led us to like very specific spots that we think are, you know, are like core tier one Keven Dome acreage. You know, we're very confident about finding CO2, huge amounts of it. We're very confident of the gas composition stream, the helium cuts, etc. And both of those wells that we're going to work over and and the wells that we're going to drill, but just even more fine tuning that data through these wells.
Speaker Change: Here upcoming and.
Speaker Change: So I guess from a from a like a higher macro level.
Speaker Change: Uh huh.
Speaker Change: That data has led us to like very specific spots that we think are our core tier one keven dome acreage.
Speaker Change: We're very confident about finding C O two huge amounts of it we're very confident of the gas composition stream the helium cuts et.
Speaker Change: Et cetera, and both of those wells that we're going to work over and the wells that we're going to drill, but just even more fine tuning.
Speaker Change: That data through these wells so you know.
Ryan Smith: So, you know, 1. flow rates to the full suite of gas composition, you know, at that point, we will have three or four wells drilled, which, you know, we believe is, I'll say more than enough to feed a plant of that size, tying all those wells back to each other. flowing them in the aggregate to really fine-tune what these wells will produce and what the gas stream looks like. And then, you know, very importantly, reservoir characteristics for for your. injection of the CO2, because on the class two and the monitoring reporting verification MRV reports, you know, those are mandatory requirements to have a very good feel for those reservoir characteristics and what those injection wells will hold from a CO2 basis.
Speaker Change: One.
Speaker Change: Low rates to the full suite of gas composition, you know at that point, we will have.
Three or four wells drilled which we believe is.
Speaker Change: I'll say more than enough to feed a plant of that size tying all those wells back to each other.
Speaker Change: Flowing them in the aggregate to really fine tune, what these wells will produce and what the gas stream looks like.
Speaker Change: And then.
Speaker Change: Very importantly.
Speaker Change: Reservoir characteristics for.
Further.
Speaker Change: Injection of of the C O two because on the class III and the monitoring reporting verification MRV reports.
Speaker Change: Those are those are mandatory requirements to have a very good feel for those reservoir characteristics and what dose injection wells.
Speaker Change: We'll hold.
Ryan Smith: So kind of it's more of the same data that we've already been accumulating, but it's just really getting, you know, the proverbial pencil as sharp as possible before the main portion of the CapEx of this initial phase of the development. Got it.
Speaker Change: From a Sidoti <unk>, so kind of it's it's more of the same data that we've already been accumulating but it's just really getting you know that.
Speaker Change: The proverbial pencil as sharp as possible before.
Speaker Change: The main portion of the Capex of this initial phase of the development.
Charles Meade: And then this is maybe a derivative question on that. The, what are the, you know, what are the overall design criteria for these next two wells? And I'm really, I'm wondering, are you designing them to be, you know, in, to be producers in established zones, like they're both targeting the Dupereaux, or are there other, there are other kind of design criteria in this that perhaps, you know, evaluating that the helium concentration in some of those other zones that you've, that you've highlighted, or, you know, just what, what, what is your, you know, your, what's your hope for these wells to be?
Speaker Change: Got it and then this is maybe a derivative question on that.
Speaker Change: The.
Speaker Change: What are the you know what are the the overall design criteria for these next two wells and I'm really I'm wondering are you designing them to be you know in to be producers and established zones like they're both targeting to do perot or are there. Other are there other kind of design criteria in this that perhaps.
Speaker Change: Evaluating the human concentration in some of those other zones that you've that you've highlighted or or just what is it.
Speaker Change: What is your you know your yes.
Speaker Change: Sure Hope for these wells to be.
Ryan Smith: Yeah, no, I mean, great question. The hope is that they're big producing high helium content wells. But no, you laid it out exactly what we're thinking, right? There may be some extra work done, but without a doubt, the primary target for The two neutral wells are. Dupreau zone, CO2, very, very heavy wells unequivocally. The Dupreau and these pay zones is the highest, least shallow, however you want to phrase that zone. So we may go a little deeper initially just for like data accumulation on some of these other zones. But without a doubt, the plan is to drill, complete, and produce from the Dupreau.
Speaker Change: Yeah, No I mean, great question.
Speaker Change: <unk>.
Speaker Change: The hope is that there are big producing high helium content wells, but.
Speaker Change: But but note that you laid it out exactly what we're thinking right. There may be some some extra work done but without a doubt the primary target for.
Speaker Change: Sure.
Speaker Change: The two new drill wells are.
Speaker Change: The <unk> zone.
Speaker Change: Oh two.
Speaker Change: Very heavy wells unequivocally the <unk> in these pay zones is the.
The highest lease shallow however, you want to phrase that zone. So we may go a little deeper initially just for like data accumulation on on some of these other zones, but but without a doubt the plan is to.
Speaker Change: Drill.
Speaker Change: Complete and produce from the <unk> on the on the Workover wells.
Ryan Smith: On the work over wells, kind of working backwards, one of the wells that we're working over is a well that we acquired. and they produced from the Dupreaux at large amounts when they floated it back when it was drilled a few years ago. So that is absolutely going to be a Dupreaux zone well. In a very good scenario, those three wells are large enough to supply the plant with, you know, call it a replacement well drilled, you know, every 18 months. If not. The second of the two wells that we'll be working over, we're also going to go back in.
Speaker Change: Kind of working backwards the.
Speaker Change: One of the wells that we're working over as a <unk>.
Speaker Change: Well that we acquired.
Speaker Change: And they produced from the dupe row at large amounts when they floated back when it was drilled a few years ago. So.
Speaker Change: That is absolutely going to be a <unk> zone well.
Speaker Change: And a a very good scenario those three wells are large enough to supply the plant with call. It.
Speaker Change: Replacement well drilled every 18 months.
Speaker Change: If not.
Speaker Change: The second of the two wells that we'll be working over we're also going to go back and we did not complete the due for the first time, we completed a lower zone that's nitrogen based.
Ryan Smith: We did not complete the DUPRO the first time. We completed a lower zone that's nitrogen-based. We would go back and we would complete the DUPRO, get data from that. That would either be kind of the fourth leg on the stool for producing the plant, but a very high likelihood. And what we're looking at is that becoming a class two injection well. So a few different answers there, but absolutely the majority of the targets are going down testing and producing from the DUPRO and, you know, eventually we're going to need a A large injection well, which all of these wells fit that bill.
Speaker Change:
Speaker Change: We will go back and we would complete the deep row get data from that.
Speaker Change: That would either be kind of the fourth leg on the stool for producing the plant.
Speaker Change: But a very high likelihood and what we're looking at is that becoming a class II injection well.
Speaker Change: And.
Speaker Change: So a few different answers there, but absolutely the majority of the targets are.
Speaker Change: Going down testing and producing from the <unk> and eventually we're going to need a.
Speaker Change: A large injection well, which all of these wells fit that bill we believe it's going to be able to hold.
Ryan Smith: We believe it's going to be able to hold is much injection volumes as we're ever going to need. Got it. But we'll test that as we go.
As much injection volumes as we're ever going to need.
But that will we'll test that as we go well.
Operator: Well, Ryan, I want to say thank you. I think I think you've done yourself a big service by by laying out what this 25 plan looks like. starting to come into focus and it looks like the mid part to the back half of this year is going to be going to be a really interesting time for you so congratulations. Yeah, thanks, Charles. As a reminder, there's star one on your telephone keypad if you would like to ask a question.
Speaker Change: Well, Brian I wanted to say, thank you I think I think you've done yourself, a big service by by laying out with this twenty-five plan looks like and and.
Speaker Change: Starting to come into focus and it looks like the mid part towards the back half of this year is going to be I'm going to be really interesting time for you. So congratulations.
Speaker Change: Yes, Thanks Charles.
As a reminder, this star one on your telephone keypad, if he would like to ask a question. Our next question is from Tom <unk> with Zacks small cap research. Please proceed.
Tom Carr: Our next question is from Tom Carr with Zacks Small Cap Research. Please proceed. Good morning, guys. Good morning.
Tom: Good morning, guys.
Ryan Smith: Just following up on that last question, I didn't hear mention of the cost. Are we still looking at sort of reduction in drilling each well cost in June for those two new ones compared to what they were the first two? So it's going to go up a little bit just because going after the CO2 heavy zones cost a little bit more just because of the corrosive nature of CO2 and like dissociated equipment versus nitrogen. I would say those wells on a standalone basis end up being, you know, 1.6, 1.7 million and then I would back some off of that because all activity.
Joe: Hey, Tom Good morning, Joe.
Speaker Change: Good morning, just following up on that last question I didn't hear mentioned as a cost or are we still looking at sort of a reduction in drilling each well cost in June for those two new ones compared to what they were.
Joe: The first two.
Joe: So it's going to go up a little bit just because going after <unk>.
Joe: Oh, two heavy zones cost a little bit more of a just because of the corrosive nature of cotwo and like the associated equipment versus nitrogen.
Joe: I would say those wells on a standalone basis end up being $161 7 million and then I would back some off of that because all activity.
Ryan Smith: at least I'll say all forecasted activity now being in this part of Montana, which has like it has huge advantages around Transport, and you know, surrounding helium supplies, etc., but it's also still very remote, so mobilizing equipment and crews out there, you know, it can get very expensive and add, you know, significant cost to it, so you want to do as much as you can back-to-back, which is what we're doing on these wells. We're working them over back-to-back. We're drilling them back-to-back. That knocks off a few hundred grand on each well and the aggregate cost, so, you know, I think that they come in probably about 1.5.
Joe: At least I'll say all forecasted activity now.
Joe: Being in this part of Montana, which has like it has huge advantages around <unk>.
Joe: Transport and.
Joe: No.
Joe: Surrounding helium supplies et cetera, but it's also still very remote so mobilizing equipment and crews out there it can get very expensive and add significant cost to it. So you want to do as much as you can.
Joe: Back to back which is what we're doing on these wells were working them over back to back we're drilling them.
Joe: Back to back that knocks off a few hundred grand on each on each well and the aggregate cost. So I think that they come in probably about 1.5.
Ryan Smith: So not too much difference from the forecast on the nitrogen zone drilling, but the CO2 wells, they're much bigger wells. These zones produce in much larger volumes than the nitrogen wells. But the process you were saying is just the same as healing, it's just the volumes involved. Just bigger zones, higher porosity.
Joe: So not not not too much difference.
Joe: From.
Joe: The forecast on the.
Joe: Nitrogen zone drilling.
Joe: But but the Sidoti wells or they're much bigger wells these zones produce and much larger volumes than than the nitrogen wells do.
Joe: But the process as you were saying, it's just the same as helium.
Joe: The volumes involved.
Joe: Brian It's just bigger has taken a couple of bigger zones higher for higher porosity.
Joe: Great.
Ryan Smith: And is the MRV report, is that just the federal permittee type report or what does that involve or let you do? Yeah. So I guess on the whole cycle of sequestration, it starts at the state level, which you go after your class 2 or your class 6 injection permits. And again, those are done at the state level. Class 6 are bigger projects, multi-year applications. Class 2 are a little more simple around traditional injection, both EOR and otherwise. And again, those are approved at the state level. And then after you have your class 2 or class 6 permits, your MRV is what's done at the federal level.
Speaker Change: Got it and as the MRV reported that just the federal permitting type report or what does that involve or let you do.
Speaker Change: Yeah, So I guess on the whole cycle of of sequestration. It starts at the state level, which you know you go after your your class II or your class six injection permits and again those deals are done at the state level.
Speaker Change: Classics are.
Speaker Change: Bigger projects multi year.
Applications class two are a little more simple around.
Speaker Change: Traditional injection, both EUR and otherwise and.
Speaker Change: And again those are approved at the state level.
Speaker Change: And then after you have your.
Speaker Change: Class II or class six permits your MRV is what's done at the federal level and Thats what enables you to.
Ryan Smith: And that's what enables you to benefit from. The Federal Tax Incentives, depending on where you are in the earnings chain at the federal level. So, you know, a Class 2 permit is very quick to acquire once you have all of the necessary data. You know, that is a supplement to your federal level MRV report, and those are very big reports. They're very established processes with established groups that have been successful in drafting these. But, you know, that's that's really where, you know, one part of the the big CO2 prizes is getting that MRV started and approved.
Benefit from.
Speaker Change: <unk>.
Speaker Change: Federal tax incentives, depending on where you are in the earnings chain.
Speaker Change: At the federal level. So a class II permanent is very is very quick to acquire once you have all of the necessary data.
Speaker Change: And then.
Speaker Change: That is a supplement to your federal level MRV report.
Speaker Change: And those are very big report, so very established processes with established groups that have been successful in drafting these.
Speaker Change: <unk>.
Speaker Change: But that's that's really where.
Speaker Change: One part of the big.
Speaker Change: C O. Two prizes is getting that MRV started and approved and we will start that in the second quarter, we'll have an announcement whenever we get it started and they take seven eight months from start to finish.
Tom Carr: And we'll start that in the second quarter. We'll have an announcement whenever we get it started. And they take seven, eight months from start to finish. And then once you have both of those things in hand and signed off on everything that you want to be eligible for from, you know, a monetary standpoint, that's officially when you're across the line on that. Got it, got it. Two more quick ones. Just a clarification from a comment you made a few minutes ago about realize 12 to 13 months to realize industrial gas sales. Were you talking just CO2 or helium also?
And then once you have both of those things in hand and signed off on.
Speaker Change: Everything that you want to be eligible for.
Speaker Change: From.
Speaker Change:
Speaker Change: Monetary standpoint to Europe.
Speaker Change: Officially when youre across the line on that.
Speaker Change: Got it got it.
Speaker Change: Two more quick ones just a clarification from a comment you made a few minutes ago about.
Speaker Change: Realizing the 12 to 13 months to realize our industrial gas sales were you talking just C O two or helium also.
Ryan Smith: Or what was the 12 to 13 months? It's both right, they, excuse me, they move in lockstep, like once your plant is up and running, you know, you can't you can't sell anything before the for the gases process. So it would it would be, you know, I'll just I'll call it concurrent. Okay, but that was a, that's sort of a material change of expectations. Correct? Because we have expected stuff in the fourth quarter. I mean, Yeah, and I think, yeah, it has and we've we've we've talked about a little bit on on previous releases and and things that I've done, but going from.
Speaker Change: Or what it was 12 to 13.
Speaker Change: It's it's it's both right excuse me they move in lock step once your plant is up and running.
Speaker Change: You can't you can't sell any of them before the four the gases process. So.
Speaker Change: It would be.
Speaker Change: I'll just I'll call it concurrent.
Speaker Change: Okay, but that was a.
Speaker Change: Sort of a material change from expectations correct, because we have.
Speaker Change: For the fourth quarter.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: And I think yeah. It has and we've talked about it a little bit on on previous releases and things that I've done but going from.
Ryan Smith: A smaller nitrogen based unit to a larger CO2 based unit takes a little more time, just a bigger plant. The equipment's a little bit different. The lead time on some of the CO2 equipment is a little bit longer and then you mix in. the winter months up there, which to be candidate, it's impossible to put a piece of infrastructure in this portion of Montana in the months of December, January, February. It would just lead to problems and significant extra risks. That's the difference in the time. Well, Montana's always going to have a harsh winter. It is going to have a harsh winter, right?
Speaker Change: A smaller nitrogen based unit to a larger C. O. Two based unit takes a little more time, just a bigger plant equipment is a little bit different the lead time on some of the Sidoti <unk> equipment is a little bit longer and then you mix in the.
The winter months up there, which.
Speaker Change: Just to be candidate, it's impossible to put a piece of infrastructure in this portion of Montana and the months of December January February.
Speaker Change: Just lead to problems.
Speaker Change: Significant extra risks.
Speaker Change: <unk>.
Speaker Change: So that's the difference.
Speaker Change: That's the difference in the time.
Well, Montana is always going to have a harsh winter.
Speaker Change: It is going to have a harsh winter right. It's always there.
Ryan Smith: It's always. I mean, there's degrees of harshness, which this past winter was as bad as it gets. I mean, there's days you wake up when. It's in the negative teens and it snowed, you know, 24 inches in the last 24 hours. And at that, at that point, it's, it's just hunker down and wait for it to. Wait for it to recede.
There's degrees of harshness, which this past winter was as bad as it gets I mean, Theres days, you wake up when.
Speaker Change: It's in the negative teens and it snowed 24 inches in the last 24 hours and at that point it's.
It's just hunker down and wait for it to.
Speaker Change: Wait for it to recede.
Ryan Smith: Yeah, last quick financial question. Can you comment on the current cash position? Was there any big uses of cash in the first quarter? So are we still looking at, I don't know, 17, 18 million in cash as of today or the end of the first quarter? Yeah, it's a little less than that just because we had some CapEx. That was That was owed from. some December operations, some January operations. And then, you know, we closed our oil and gas asset sale. I mean, it might've been the last day of December. We've made that acquisition in January, which was, you know, two million off the top.
Speaker Change: Yes.
Speaker Change: Last quick financial question can you comment on the current cash position was there any big uses of cash in the first quarter.
Speaker Change: So are we still looking at my notes.
Speaker Change: $17 million to $18 million in cash as of today or the end of the first quarter.
Speaker Change: Yes, it's a little less than that just because we had some capex that was.
Speaker Change: That was.
Speaker Change: Owed from.
Speaker Change: Some December operation Some January operations, and then we closed our.
Speaker Change: Oil and gas asset sale it might've been the last day of December.
Speaker Change: We made that acquisition in January which was two 2 million off the top so it's a little bit less than that now, but it's still and I haven't I haven't looked today, but it's still in the.
Ryan Smith: So it's a little bit less than that now. But it's still and I haven't I haven't looked today. But it's still in The lower teen type of number, the lower double digits. Yep, yep, yep.
Speaker Change: The lower teen type of type of number the lower double digits.
Speaker Change: Yep Yep Yep, Okay. That's all I have for today.
Tom Carr: Okay, that's all I have for today. Thanks. Thank you. Bye.
Speaker Change: Alright.
Ryan Smith: We have reached the end of our question and answer session. I would now like to turn the conference back over to management for closing comments. Yeah, thank you. I appreciate everybody dialing in. We're excited about what we're working on here. We expect 2025 to really set up the ability of US Energy in 2026 to realize the full economics of our project, which, you know, we're very, we're very excited about. So we look forward to giving the market more information over the coming quarters, the coming months, we have a lot of activity going into our 2025 development program.
Speaker Change: We have reached the end of our question and answer session I would now like to turn the conference back over to management for closing comments.
Speaker Change: Yes. Thank you I appreciate everybody dialing in we're excited about what we're working on here, we expect 2025 to really set up.
Speaker Change: Uh huh.
Speaker Change: The ability of U S energy in 2026 to realize the full economics of of our projects, which we're very we're very excited about so we look forward to giving the market more information over the coming quarters. The coming months, we have a lot of activity going into our 2025 development program.
Operator: And We believe that US Energy is in a true first mover advantage, both from an asset level and a public market's exposure level on this project and in this emerging industry. So we look forward to giving the market more information in the coming months. Thank you.
Speaker Change: And.
Speaker Change: We believe that U S energy is in a true first mover advantage both from an asset level.
Speaker Change: Our public markets exposure level on this project and in this emerging industry. So we look forward to.
Speaker Change: Given the market more information in the coming months.
Speaker Change: Thank you. This will conclude today's conference you may disconnect at this time and thank you for your participation.
Operator: This will conclude today's conference. You may disconnect at this time and thank you for your participation.
Speaker Change: [music].
Speaker Change: Yes.
[music].