US Energy Corp signs 5-year helium sales agreement with industrial gas firm

U.S. Energy Corp. (NASDAQ: USEG) announced it has executed a five-year helium sales agreement with an investment-grade global industrial gas company for helium production at its Big Sky Carbon Hub in Montana.

The agreement establishes a take-or-pay contract requiring the counterparty to purchase or pay for 100% of helium production over the five-year term. Monthly volumes are set at up to 1.2 million cubic feet, totaling 14.4 million cubic feet annually, reflecting expected Phase 1 processing capacity.

Pricing is fixed at $285 per thousand standard cubic feet of contained helium on a plant-gate basis with no deductions. The counterparty assumes all transportation, processing and downstream costs. Annual price escalations begin March 1, 2028, based on the U.S. Consumer Price Index.

The contract includes a year-three price redetermination provision allowing either party to request pricing adjustments. The counterparty holds a right of first refusal to match third-party offers at a 5% premium.

"This contract establishes long-term, contracted helium revenues and meaningfully de-risks Phase 1 commercial operations at Big Sky," said Ryan Smith, president and chief executive officer of U.S. Energy.

The agreement supports Phase 1 commercial operations targeted for the first quarter of 2027. U.S. Energy previously closed an expanded senior secured credit facility on April 20, 2026, completing its Phase 1 capital requirements.

The company continues advancing carbon management operations at Big Sky, with two Monitoring, Reporting, and Verification plan submissions pending EPA approval anticipated during summer 2026. These carbon management activities represent separate revenue streams from the helium sales agreement.

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