U.S. Energy Corp.

Greetings and welcome to the U.S. Energy Corporation second quarter 2025 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mason McGuire, VP of Finance and Strategy. Thank you. You may begin.

Thank you, operator, and good morning, everyone. Welcome to U.S. Energy Corp's second quarter 2025 results conference call. Ryan Smith, our chief executive officer, will provide an overview of our operating results and discuss the company's strategic outlook, and our chief financial officer, Mark Zajac, will give a more detailed overview of our financial results. Before this morning's market opening, U.S. Energy issued a press release summarizing operating and financial results for the quarter ended June 30th, 2025. This press release, together with accompanying presentation materials, are available in our investor relations section of our website at www.usnrg.com. Today's discussion may contain forward-looking statements about the future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to the various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements. Further, please note that non-GAAP financial measures may be disclosed during this call. A full reconciliation of GAAP to non-GAAP measurements are available in our latest quarterly earnings release and conference call presentation. With that, I would like to turn the call over to Ryan Smith.

Good morning, everyone, and thank you for joining us today. I'm pleased to walk you through our second quarter results highlight key milestones, and share a strategic update as we continue advancing U.S. energy's transformation and growth. As we've discussed in prior quarters, our primary focus is the development of our Montana-based industrial gas project, an asset we believe is uniquely positioned to meet growing demand, deliver strong economics, and achieve meaningful scale in the public markets. This summer, we completed the initial phase of our development program and remain firmly on track to bring operations online. This first phase included drilling two new development wells, advancing engineering on an acquired, already productive well, flow testing all existing producing wells, reaching a final investment decision on infrastructure, and making significant progress in our carbon management strategy. I will walk you through these in more detail now. Starting with upstream development, in the second quarter, we drilled our second and third industrial gas wells, targeting the helium and CO2-rich Dupereaux formation. both within budget. Including the productive well we acquired earlier this year, peak rates reached approximately 12.2 million cubic feet per day with a premium gas composition of approximately 85% CO2, 5% natural gas, and 0.4% helium. To optimize reservoir performance and maximize value, we subsequently managed production in the 8 million cubic feet a day range with similar compositions. With three producing industrial gas wells and two injection wells, we are well positioned for near-term cash flow generation. These results validate the quality and scale of our resource, further reinforced by our independent resource report. Following drilling, we engaged Ryder Scott to prepare a volumetric resource assessment of our Montana asset. The report confirmed net contingent resources of 444 billion cubic feet of CO2 and 1.3 billion cubic feet of helium. among the largest known deposits of its kind. We expect to release a commercial resource report once processing facility development plans are finalized. It's worth emphasizing the unique competitive positioning of the Keven Dome. While most U.S. helium production is tied to heavy hydrocarbon gas streams, our project is sourced from a limited hydrocarbon stream, delivering a lower environmental footprint and aligning with growing market demand for sustainable solutions. With the initial development program concluding in September, we will break ground on our Keevan Dome processing plant. This facility will separate our upstream gas into helium, natural gas, and CO2 streams, each with its own monetization pathway. We expect construction costs of under $10 million, funded by our existing balance sheet and a modest strategic use of debt. Importantly, this infrastructure will not only serve our operations, but will also provide a platform to support undercapitalized producers in the region. With control over the majority of the basin's helium supply, we see multiple opportunities to expand our value capture. Lastly, I would like to touch on U.S. Energy's carbon management front. U.S. Energy controls one of the largest CO2 deposits in the U.S., with geology ideally suited for both permanent storage and enhanced oil recovery. Our proximity to the Cutbank oil field, just 15 miles away, offers a unique and lucrative integration opportunity between CO2 supply and hydrocarbon recovery. We already hold multiple Class II injection permits, with additional approvals expected in August. Recent injection testing at two disposal wells achieved sustained rates of over 17 million cubic feet a day, supporting a sequestration capacity of approximately 240,000 metric tons of CO2 annually. We've also initiated our EPA monitoring, reporting, and verification plan, targeting submission this September and approval by spring 2026, positioning us to potentially access federal carbon credits under section 45Q. We're highly optimistic about the road ahead. The Keevan Dome represents a first mover opportunity in the industrial gas sector and one that cannot be replicated. Our vision is to build a full cycle platform that spans upstream production, midstream processing, and long-term carbon management while maintaining strict capital discipline. The data collected to date supports a highly economic development path, both at the wellhead and infrastructure levels. Initial phases have modest funding requirements with a clear and measured capital plan designed to scale returns over time. Turning briefly to our legacy oil and gas portfolio, lower commodity prices have weighed on earnings across the sector, including ours. While these assets are no longer our primary focus, they do remain valuable. Our 2024 monetization program eliminated debt and strengthened liquidity, and we remain opportunistic in pursuing value-maximizing divestitures. As we progress through 2025, our strategy remains clear. Invest in our core Montana industrial gas project, monetize non-core legacy assets where appropriate, and maintain capital discipline to position 2026 as a breakout year in our transformation. We believe U.S. Energy stands apart with a scalable high margin development platform supported by legacy assets that require minimal reinvestment. This structure allows us to pursue high return growth in industrial gases while reducing exposure to commodity volatility. In short, U.S. Energy is emerging as a differentiated and growth oriented industrial gas company with exposure across upstream, midstream, and carbon management. Our strong financial position and clean capital structure give us a competitive advantage, and we believe the strategy we're executing today will deliver sustainable long-term shareholder value. With that, I'll now turn the call over to our Chief Financial Officer, Mark Zajac, who will provide an update on our financial results for the quarter.