U.S. Energy Sees Strong Revenue and EBITDA Growth Planned for 2027; Price Target Increased to $3.50

U.S. Energy (USEG) plans to increase its price target to $3.50 as it expects strong revenue and EBITDA growth in 2027. The company has invested $22 million and is executing on its vertically integrated long-term business strategy, with three independent revenue streams and federal policy incentives. The Big Sky Carbon Hub controls 1.3 BCF of helium and 444 BCF of CO2 resources and is integrated with the owned Cut Bank oil field. The company expects to qualify for $130 million of Section 45Q tax credits and trades at a substantial discount to its estimated Phase 1 net asset value.