U.S. Energy Closes $20M Senior Secured Debt for Big Sky

U.S. Energy Corp. has closed an expanded senior secured debt facility of $20 million to complete Phase 1 capital stack for the planned Big Sky Carbon Hub (“Big Sky”). The facility, together with proceeds from U.S. Energy’s March 2026 equity offering, is expected to provide funding visibility for Phase 1 construction, with initial commercial operations targeted for Q1 2027.

The $20 million facility is priced at the existing borrowing base grid plus 200 basis points (ABR + 2.25% to 3.25% depending on utilization), with no financial covenant testing until March 31, 2027, a final maturity of May 31, 2029, and no prepayment penalties. U.S. Energy also formally suspended further use of its existing equity line of credit, which has not been drawn since March 2, 2026.