U.S. Energy Corp Signs Five-Year Helium Supply Deal with Unnamed Global Buyer

U.S. Energy Corp. U.S. cash session after the company announced a five-year helium offtake agreement with an unnamed investment-grade global industrial gas company. U.S. Energy Corp. with its first contracted revenue stream tied to its Big Sky Carbon Hub in Montana.

4 million cubic feet annually, under a take-or-pay structure. Phase 1 commercial operations at the Big Sky Carbon Hub remain targeted for early next year. Helium pricing under the agreement is fixed at $285 per MCF on a plant-gate basis, with no deductions, meaning the buyer assumes transportation, processing, and downstream costs.

Energy Corp. U.S. ' Smith added: 'The agreement provides fixed helium revenues of $285 per MCF and supports Phase 1 operations at Big Sky, targeted for early next year. ' Smith noted that the agreement reduces risk for Big Sky's Phase 1 development by locking in long-term cash flow with a creditworthy counterparty.

-Iran conflict entering its third month. @zerohedge reported that helium faces supply disruption risks affecting end markets including semiconductor production and medical imaging. ' The analysis highlighted potential impacts of Gulf helium disruptions on markets, including semiconductors and medical imaging, with ExxonMobil's unaffected Wyoming facility supplying 20% of global helium.

UBS analyst Manav Gupta noted that ExxonMobil's LaBarge facility in Wyoming provides 20% of the world's helium supply. Gupta stated that ExxonMobil's LaBarge facility in Wyoming has not been impacted by recent events in the Middle East. The facility has an estimated eight decades worth of helium left to produce.

Gupta added that ExxonMobil's LaBarge facility is poised to play a significant role through the end of this century.