U.S. Energy Locks Five-Year Helium Sales for 14.4 MMCF Annually at $285/MCF
U.S. Energy Corp. signed a five-year, 100% take-or-pay helium agreement with an investment-grade industrial gas firm, securing 1.2 million cubic feet per month at $285 per MCF plant-gate pricing with annual CPI-linked escalations. The deal de-risks Phase 1 operations at Big Sky and funds commercial startup in Q1 2027.
1. Helium Offtake Agreement
U.S. Energy Corp. finalized a five-year, 100% take-or-pay contract with an investment-grade industrial gas partner for helium from the Big Sky Carbon Hub. The agreement secures up to 1.2 million cubic feet per month at $285 per MCF plant-gate pricing with CPI-linked annual escalators and includes a year-three price redetermination right.
2. De-risking Phase 1 Operations
This contract provides long-term contracted cash flow and materially reduces volume and demand risk ahead of Phase 1 commercial operations, which are slated to begin in the first quarter of 2027. Coupled with the recently expanded senior secured debt facility, U.S. Energy now has a fully funded capital stack to support construction and startup.
3. Strategic Financial Impact
The fixed pricing and take-or-pay structure offer predictable netbacks and remove downstream cost exposure, enhancing financial visibility. Secured access to a global industrial gas distribution network validates the helium platform and positions the company for future Phase 2 expansion planned for 2029.