Operational sustainability is compromised by a capital expenditure-to-revenue ratio of 163.1% in 2025Q4, leaving the firm unable to fund operations without external financing.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | May'02 | May'00 | May'99 | May'98 | May'97 | May'96 |
|---|
| Cash from Operations | -5.16M | -7.14M | 4.59M | 5.47M | 10.9M | -153K | -717K | 638K | -490K | -892K | -1.85M | 64K | 20.75M | 17.41M | 13.26M | 3.33M | 12.37M | 2.55M | -6.61M | -31.7M | -8.13M | -6.06M | -4.57M | -5.67M | -2.86M | -1.98M | -6.62M | 4.3M | -2.2M | -2.6M | -2.8M |
| Operating CF Margin % | - | -97.08% | 22.25% | 16.93% | 24.46% | -2.47% | -33.16% | 10.38% | -8.85% | -13.63% | -32.25% | 0.62% | 64.09% | 51.76% | 40.76% | 11.07% | 45.53% | 26.51% | -289.13% | -2691.79% | -999.75% | -713.09% | -98.42% | -677.61% | -278.1% | -13.68% | -95.4% | 39.45% | -18.97% | -44.83% | -29.17% |
| Operating CF Growth % | -483.33% | -255.61% | -16.17% | -49.79% | 7222.88% | 78.66% | -212.38% | 230.2% | 45.07% | 51.86% | -2995.31% | -99.69% | 19.16% | 31.32% | 297.75% | -73.05% | 384.8% | 138.59% | 79.14% | -289.83% | -34.24% | -32.61% | 19.48% | -98.53% | -44.11% | 70.05% | -253.98% | 295.45% | 15.38% | 7.14% | -12% |
| Net Income | -14.45M | 0 | -25.78M | -32.36M | -963K | -1.77M | -6.44M | -550K | -1.04M | -1.36M | -11.67M | -67.28M | -2.09M | -7.69M | -9.45M | -2.18M | -772K | -8.18M | -6.29M | 56.36M | 1.05M | 8.84M | -6.25M | -5.81M | -3.84M | 1.77M | -10.64M | -11.6M | -1M | -3.7M | 300K |
| Depreciation & Amortization | 2.62M | 0 | 8.42M | 11.41M | 9.81M | 679K | 520K | 876K | 526K | 890K | 2.26M | 8.56M | 14.96M | 13.9M | 15.46M | 14.59M | 12.13M | 5.07M | 1.43M | 490K | 510.9K | 3.56M | 2.17M | 1.09M | 571.3K | 831.5K | 699.5K | 700K | 700K | 700K | 800K |
| Stock-Based Compensation | 399K | 0 | 1.27M | 2.29M | 0 | 549K | 211K | 41K | 636K | 323K | 213K | 948K | 1.02M | 452K | 518K | 1.6M | 1.71M | 1.94M | 2.54M | 0 | 0 | 688.5K | 336.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | -16K | -882K | -1.92M | 0 | 0 | 0 | -526K | 0 | 10.44M | 53.48M | -378K | 8.39M | -60K | -3.99M | -1.58M | -2.07M | 1.32M | 14.78M | -15.1M | -21.1M | -336.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.46M | -4.61M | 18.27M | 22.75M | 1.76M | -58K | 4.04M | -140K | 318K | 495K | -1.58M | -110K | 88K | 64K | 6.9M | -808K | 1.69M | 2.77M | -4.14M | 1.5M | 7.36M | 1.53M | -304K | -605.1K | 655.6K | -4.11M | 3.75M | 15.5M | -800K | 1.9M | -2.3M |
| Working Capital Changes | 621K | -2.52M | 2.43M | 2.25M | 2.21M | 447K | 948K | 411K | -404K | -350K | -1.52M | 4.47M | 7.15M | 2.3M | -101K | -5.89M | -798K | 3.03M | -1.46M | -2.06M | 2.21M | 419.7K | -188.4K | -350.3K | -244.6K | -478.8K | -424.4K | -300K | -1.1M | -1.5M | -1.6M |
| Change in Receivables | -105K | 844K | 1.04M | 851K | -2.26M | -419K | 214K | -49K | -10K | -125K | 580K | 2.03M | 2.57M | -1.62M | 315K | -1.49M | -162K | -2.84M | -400.2K | 0 | 0 | -166K | 64.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -159K | -1.13M | -188K | -271K | 180K | 7K | -1.05M | -131K | 6.35M | -292.5K | 0 | 0 | 0 | -385.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 786K | -1.99M | 1.36M | -60K | 4.88M | -125K | 461K | 100K | -283K | -77K | -1.05M | 1.13M | 909K | 3.62M | -476K | -3.37M | -567K | 80K | -647.5K | 0 | 0 | -700 | 132.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -13.89M | -11.88M | 5.77M | 2.83M | -16.95M | -3.33M | -1.11M | -281K | -1.31M | 1.7M | -193K | -566K | -19.54M | -3.56M | -20.88M | -17.83M | -39.86M | 17.15M | -66.15M | 86.76M | 13.83M | 5.71M | -5.06M | 6.96M | 1.57M | 174.1K | -7.48M | -900K | 1.6M | 1.7M | 500K |
| Capital Expenditures | -14.09M | -12.08M | -2.58M | -3.87M | -6.64M | -1.6M | -699K | -376K | -1.31M | -299K | -193K | -3.62M | -31.04M | -20.8M | -42.41M | -50.53M | -45.68M | -17.91M | -20.15M | -9.88M | -649.3K | -376K | -4.71M | -92.7K | -411.2K | -2.91M | -7.27M | -1M | -3.1M | -1M | -2.2M |
| CapEx % of Revenue | 208.25% | 164.23% | 12.5% | 11.97% | 14.91% | 25.93% | 32.33% | 6.12% | 23.69% | 4.57% | 3.36% | 35.16% | 95.88% | 61.82% | 130.37% | 167.81% | 168.09% | 186.06% | 881.06% | 839.05% | 79.83% | 44.26% | 101.37% | 11.07% | 40.02% | 20.08% | 104.74% | 9.17% | 26.72% | 17.24% | 22.92% |
| Acquisitions | 134K | 194K | 0 | 0 | -10.31M | -2.22M | 0 | 0 | 0 | 2M | 0 | 1.76M | 0 | 0 | 0 | 14.02M | 0 | -877K | 0 | -7.52M | -1.6M | -710.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 61K | 0 | 8.35M | 6.69M | 0 | 500K | -455K | 95K | 2K | 2M | -448K | 3.05M | 11.62M | 17.28M | 21.55M | 17.84M | 1.26M | 2.01M | 5.5M | 18.56M | 2.39M | -216.4K | -1.01M | 7.06M | 1.98M | 3.09M | -8.4K | 400K | 4.7M | 4.1M | 3.4M |
| Cash from Financing | 19M | 11.73M | -5.98M | -9.36M | 6.04M | 5.05M | 3.15M | -1.17M | 863K | -50K | 1.21M | -154K | -3.06M | -10.82M | -2.43M | 21.56M | 94K | 5.27M | 8.91M | 256.9K | 4.27M | 3.5M | 9.38M | 1.05M | 467.5K | 1.58M | 4.84M | 1.2M | 4.9M | 1.4M | 2.9M |
| Debt Issued (Net) | 2.5M | 2.11M | -5.06M | -7.65M | 7.89M | -199K | 116K | -1.17M | -600K | -23K | 0 | 0 | -3M | -10.82M | -2.48M | 21.7M | -200K | -17.89M | 12.94M | -969.7K | -160.5K | 684.5K | 6.26M | -675.5K | 467.5K | -566.1K | 1.31M | 796.1K | -200K | 0 | -700K |
| Equity Issued (Net) | 9.02M | -1.89M | -788K | -368K | 195K | 5.28M | 3.03M | 0 | 1.46M | -27K | 1.31M | -29K | -55K | 0 | 51K | -146K | 294K | 23.12M | -4.03M | 2.09M | 4.43M | 3.49M | 3.13M | 1.73M | 0 | 3.96M | 267.8K | 4M | -100K | 1.8M | 2.2M |
| Dividends Paid | 0 | 0 | 0 | -1.19M | -1.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -82K | -1.89M | -788K | -368K | 0 | 0 | -2M | 0 | -203K | 0 | -3K | -29K | -55K | 0 | 0 | 0 | 0 | -1.4M | -5.55M | -1.47M | 0 | 0 | 0 | 0 | 0 | 0 | -20.6K | 0 | -100K | 0 | -200K |
| Other Financing | 7.48M | 11.5M | -133K | -151K | -307K | -38K | 0 | 0 | 0 | 0 | -103K | -125K | 0 | 0 | 0 | 0 | 0 | 38K | 0 | 1.24M | 0 | 0 | -5.13M | 0 | 0 | 0 | 0 | -3.6M | 5.2M | -400K | -100K |
| Net Change in Cash | -51K | -7.29M | 4.37M | -1.06M | -11K | 1.57M | 1.32M | -808K | -937K | 759K | -836K | -656K | -1.84M | 3.03M | -10.05M | 7.06M | -27.39M | 24.97M | -63.86M | 55.32M | 9.97M | 3.16M | -242.3K | 2.34M | -823.2K | -230.8K | -9.26M | 4.5M | 4.3M | 500K | 600K |
| Free Cash Flow | -19.25M | -19.21M | -3.33M | 1.6M | 4.25M | -1.76M | -1.89M | 262K | -1.8M | -1.19M | -2.05M | -3.56M | -10.29M | -3.38M | -29.15M | -47.19M | -33.31M | -15.36M | -26.76M | -41.58M | -8.78M | -6.43M | -9.27M | -5.77M | -3.27M | -4.89M | -13.89M | 3.3M | -5.3M | -3.6M | -5M |
| FCF Margin % | -284.54% | -261.31% | -16.13% | 4.97% | 9.55% | -28.4% | -87.47% | 4.26% | -32.53% | -18.2% | -35.61% | -34.54% | -31.79% | -10.06% | -89.6% | -156.74% | -122.56% | -159.55% | -1170.2% | -3530.84% | -1079.58% | -757.35% | -199.79% | -688.68% | -318.12% | -33.76% | -200.13% | 30.28% | -45.69% | -62.07% | -52.08% |
| FCF Growth % | -171.61% | -477.86% | -307.17% | -62.28% | 342.17% | 7.09% | -821.76% | 114.54% | -51.3% | 41.79% | 42.46% | 65.45% | -204.14% | 88.39% | 38.23% | -41.69% | -116.85% | 42.61% | 35.64% | -373.54% | -36.49% | 30.62% | -60.83% | -76.39% | 33.21% | 64.76% | -520.94% | 162.26% | -47.22% | 28% | -47.06% |
| FCF per Share | -0.48 | -0.57 | -0.12 | 0.06 | 0.17 | -0.39 | -1.16 | 0.20 | -1.40 | -2.02 | -4.29 | -7.60 | -22.19 | -7.34 | -63.68 | -103.96 | -74.67 | -42.66 | -68.99 | -112.44 | -24.93 | -23.86 | -42.74 | -30.96 | -18.21 | -34.82 | -108.62 | 27.82 | -47.70 | -31.77 | -48.25 |
| FCF Conversion (FCF/Net Income) | 1.33x | 0.50x | -0.18x | -0.17x | -11.32x | 0.09x | 0.11x | -1.16x | 0.47x | 0.66x | 0.13x | -0.00x | -9.92x | -2.36x | -1.18x | -0.69x | -16.03x | -0.31x | 4.76x | -0.56x | -7.73x | -0.69x | 0.73x | 0.98x | 0.74x | -1.03x | 0.62x | -0.37x | 2.20x | 0.70x | -9.33x |
| Interest Paid | 0 | 0 | 605K | 806K | 0 | 5K | 5K | 11K | 119K | 451K | 442K | 210K | 385K | 274K | 179K | 290K | 22K | 39K | 69K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 353K | 5.75M | 944.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity exhaustion and insolvency
As reported in recent financial statements, USEG exhibits a chronic inability to convert net income into positive operating cash flow, with OCF/NI ratios frequently oscillating in ways that suggest significant non-cash accounting distortions rather than genuine operational cash generation during periods of severe net income losses.
The consistent gap between net income and operating cash flow suggests that the company's reported losses are heavily influenced by non-cash items, yet the underlying cash generation remains insufficient to cover basic operating requirements. Investors should monitor this divergence as it implies that the company's earnings profile is not reflective of its actual cash-burning operational reality.
Based on quarterly data, USEG's free cash flow trajectory has remained consistently negative, with FCF margins frequently plummeting into deep double-digit territory, indicating that the firm is unable to fund its capital requirements through internal operations without relying on external financing or asset liquidation.
The persistent negative FCF trajectory highlights a business model that is currently incapable of self-funding its capital intensity. This trend suggests that the company is effectively consuming its remaining liquidity to maintain legacy assets that fail to provide a positive return on invested capital.
According to historical cash flow filings, USEG's capital expenditure relative to revenue has reached extreme levels, such as the 163.1% ratio observed in 2025Q4, which underscores a high-cost maintenance cycle that appears disconnected from the company's ability to generate meaningful top-line growth.
The high capital intensity relative to revenue suggests that the company is forced to reinvest heavily just to maintain its existing, low-productivity asset base. This dynamic appears to be a primary driver of the company's cash burn, as the cost of capital deployment significantly outweighs the marginal revenue benefits.
As evidenced by the erratic swings in working capital changes, ranging from a $3.1 million outflow in 2025Q1 to a $1.5 million inflow in 2024Q4, USEG's cash position is highly sensitive to timing differences in collections and payables that the company lacks the scale to smooth.
These fluctuations in working capital suggest that the company's liquidity is subject to the operational timing of its third-party partners, over whom it has little control. This lack of control over the cash conversion cycle further exacerbates the risk of sudden liquidity crunches during periods of low commodity prices.
Based on reported figures, USEG has continued to engage in share repurchases despite a critically low cash balance of $429,000, a decision that warrants further investigation given the company's inability to generate positive free cash flow or maintain a sustainable production base.
The allocation of scarce capital toward share repurchases in the face of persistent operational losses appears to be a questionable use of resources that may be accelerating the company's path toward insolvency. This strategy suggests a potential misalignment between capital allocation decisions and the urgent need to preserve liquidity for core operations.
Quick answers to the most common questions about buying USEG stock.
U.S. Energy Corp. (USEG) generated $-7.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
U.S. Energy Corp. (USEG) reported negative free cash flow of $19.2M in 2025, indicating capital requirements exceeded cash from operations.
U.S. Energy Corp. (USEG) spent $12.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, U.S. Energy Corp. (USEG) spent $1.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.