U.S. Energy Corp (USEG) announced on April 27, 2026 that it has secured a five‑year helium offtake agreement with an investment‑grade global industrial gas company. The contract covers all helium produced at the company’s Big Sky Carbon Hub in Montana and locks in a fixed price of $285 per MCF on an all‑in, plant‑gate basis.
The deal transforms the Big Sky facility from a development asset into a contracted platform, providing a predictable revenue stream that de‑risks Phase 1 commercial operations and supports the company’s goal of achieving commercial production in the first quarter of 2027. The agreement also complements the company’s planned carbon‑management revenue streams, which are expected to generate additional income from Section 45Q credits.
Helium demand has surged in recent years, driven by applications in medical imaging, semiconductor manufacturing, and emerging AI technologies. Global supply constraints have pushed prices upward, making the $285/MCF rate highly attractive. By securing a long‑term, take‑or‑pay contract, USEG positions itself to capture a share of this tight market while mitigating volume risk.
CEO Ryan Smith said, “The execution of this agreement with an investment‑grade industrial gas company with global distribution infrastructure represents a defining milestone for U.S. Energy and validates years of development work at Big Sky.” He added, “This contract establishes long‑term, contracted helium revenues and meaningfully de‑risks Phase 1 commercial operations at Big Sky.”
The announcement was met with a strong market reaction, reflecting investor confidence in the de‑risking of Phase 1 and the company’s strategic pivot to industrial gases. Analysts noted that the contract provides a critical cash‑flow foundation amid the company’s weak financial health rating and ongoing cash burn.
In addition to the helium revenue, the Big Sky Carbon Hub is designed to generate three revenue streams—helium, carbon management, and enhanced oil recovery—through CO₂ recovery and sequestration. Phase 2 expansion, expected to come online in 2029, is projected to deliver 2–3 times greater processing capacity, further scaling the company’s industrial‑gas portfolio.
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