U.S. Energy Corp. Makes Final Investment Decision to Build Big Sky Carbon Hub Facility; Targets Commercial Operations in Q1 2027

Key Highlights

• Final Investment Decision (FID) Reached: On March 18, 2026, U.S. Energy Corp. (NASDAQ: USEG) announced that it has reached a Final Investment Decision (FID) to construct its processing facility at the Big Sky Carbon Hub in Toole County, Montana.
• Project Execution Underway: The company has commenced capital spending on the Big Sky project, signaling a major step forward in its strategic growth plan.
• Targeted Commercial Operation Date: U.S. Energy is targeting commercial operations for the Big Sky facility in the first quarter of 2027.
• Multi-Revenue Stream Platform: The Big Sky Carbon Hub and the Cut Bank oil field together will generate three independent revenue streams: helium, carbon management, and oil, all from a wholly owned and operated asset base.
• Helium Offtake Agreement: U.S. Energy is in advanced negotiations to execute a long-term helium offtake agreement with a global industrial gas company, with expectations to finalize commercial terms during 2026.
• Section 45Q Tax Credit Qualification: The company anticipates receiving EPA Monitoring, Reporting, and Verification (MRV) approvals in 2026, which will enable the Big Sky facility to qualify for Section 45Q federal tax credits for carbon management.
• Strategic Positioning: U.S. Energy positions itself at the intersection of critical supply, domestic energy production, and federal energy policy.

Details of the Announcement

U.S. Energy Corp.’s decision to move forward with the Big Sky Carbon Hub facility marks a significant inflection point for the company and its shareholders. The FID demonstrates management’s confidence in the project economics, regulatory pathway, and market demand for helium and carbon management services.

The Big Sky project is designed to capitalize on three major revenue streams:

• Helium Sales: High-purity helium is in global demand with limited domestic supply, resulting in premium pricing under long-term supply agreements. The company is in advanced negotiations for such an agreement and anticipates finalizing commercial terms during 2026.
• Carbon Management Revenue: The facility will capture CO₂ from helium processing, expected to qualify for Section 45Q tax credits, providing a policy-supported, commodity-independent revenue stream with meaningful Phase 1 value.
• Oil Production: By leveraging the Cut Bank oil field, U.S. Energy adds an established hydrocarbon revenue stream to support overall returns and project economics.

Potential Price-Sensitive and Shareholder-Relevant Information

• Commencement of Capital Spending: The move from planning to execution with capital outlays is a critical milestone for any infrastructure project. This transition can be viewed positively as it reduces project uncertainty.
• Helium Offtake Agreement Negotiations: Securing a long-term contract with a global industrial gas company would provide revenue visibility and de-risk the commercial aspect of the project. The finalization of these terms could be a significant catalyst for the share price.
• Section 45Q Tax Credit Qualification: Anticipated regulatory approval for Section 45Q credits can materially impact project returns and cash flows by adding a government-backed revenue stream, which is particularly valuable in the current energy transition landscape.
• Targeted Commercial Operations: The company aims to bring the project online in Q1 2027, providing a clear timeline for investors to monitor progress and milestone achievements.

Strategic Outlook

U.S. Energy’s integrated strategy—combining helium, oil, and carbon management—positions it to benefit from trends in both traditional and emerging energy markets. The Big Sky Carbon Hub could become a flagship asset, leveraging federal policy incentives and strong market demand for helium.

The company is headquartered in Houston, Texas, and is listed on NASDAQ under the symbol “USEG.” More information is available on their website at www.usnrg.com.

Investor Relations Contact

Mason McGuire
[email protected]
(303) 993-3200
www.usnrg.com

Forward-Looking Statements

Disclaimer: This article contains forward-looking statements, including anticipated project milestones, commercial agreements, regulatory approvals, and financial impacts. Actual results may differ materially due to risks and uncertainties, including but not limited to changes in market conditions, regulatory developments, financing availability, and execution risks. Investors are urged to review U.S. Energy’s filings with the Securities and Exchange Commission for a detailed discussion of risk factors and should not place undue reliance on forward-looking statements. The company undertakes no obligation to update forward-looking statements except as required by law.

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