Tom Kurtz's questions to US Energy Corp (USEG) leadership • Q3 2024
Question
Tom Kurtz from Investment Research asked about the potential revenue or EBITDA contribution from the helium program over the next 12 months, the expected cost per well, the current state and outlook for helium pricing, and the latest PV10 value for the oil and gas assets.
Answer
CEO Ryan Smith provided a conservative annual EBITDA estimate of $5-6 million for the first nitrogen-based plant. He stated that while the first well cost was high at $1.8 million, future wells are expected to cost around $1-1.1 million. For pricing, he noted they model the low end of the $450-$600/Mcf range but aim for the higher end by contracting directly with end-users. He also clarified the current oil and gas PV10 value is approximately $51 million.