US Energy (NASDAQ: USEG) reported Q1 EPS of ($0.03). Revenue for the quarter came in at $1.55 million.

David Veltri, U.S. Energy’s Chief Executive Officer, stated, “We are pleased to announce a strong operational quarter as a result of resumed drilling activity, well performance exceeding our initial expectations and strengthening commodity prices. Over the first quarter of 2018, U.S. Energy returned to sequential production and revenue growth while driving down operating costs and maintaining low levels of leverage. We continue to evaluate a number of opportunities around our existing assets with the ultimate objective being to build scale through participating in organic development and acreage trades, while working toward larger acquisitions that will lead to efficient and economic asset development. We look forward to updating the market on the results of these efforts.”

Financial Results

• Revenues from sales of oil and natural gas during the first quarter of 2018 were $1.6 million compared to $1.3 million during the fourth quarter of 2017 and $1.7 million during the first quarter of 2017. The increase in revenue from the fourth quarter of 2017 was driven by both an increase in production combined with increased oil prices. The primary cause of the decrease in revenue from the first quarter of 2017 is driven by the assets associated with the October 2017 asset divestiture. Revenue from oil production represented 79% of Company revenue during the first quarter of 2018.
• Lease operating expenses for the first quarter of 2018 were $0.4 million, or $11.33 per BOE, during the first quarter of 2018 compared to $0.7 million or $14.03 per BOE during the first quarter of 2017. This decrease was primarily attributed to the divestment of high-cost properties by the Company during 2017.
• G&A expenses totaled $1.1 million during the first quarter of 2018 compared to $1.3 million during the first quarter of 2017. The decrease was primarily attributable to a $0.7 million reduction in professional fees due to the completion of Company transactions during 2017. The decrease was partially offset by a $0.6 million increase in incentive compensation.
• Adjusted EBITDAX was ($0.4) million for the first quarter of 2018 as compared to $(0.6) million for the first quarter of 2017. Net Loss was $0.2 million for the first quarter of 2018 compared to $0.7 million for the first quarter of 2017. Adjusted EBITDAX is a non-GAAP financial measure. For additional information please refer to the reconciliation of this measure at the end of this news release.

For earnings history and earnings-related data on US Energy (USEG) click here.