US Energy (USEG) said Monday it has signed a five-year helium sales agreement with an unnamed investment-grade global industrial gas company, securing long-term contracted cash flow for its Big Sky Carbon Hub project in Montana ahead of targeted Q1 2027 operations.
The agreement is a 100% take-or-pay contract requiring the industrial gas company to purchase all phase 1 helium output over a five-year initial term, with volumes of up to 1.2 million cubic feet per month priced at $285 per thousand standard cubic feet and subject to annual inflation-linked increases starting March 1, 2028, the company said.
Either party can seek a price revision in the third year, and if US Energy receives third-party bids, the industrial gas company can match the best offer with a 5% premium to retain the contract, with the new price taking effect at the start of year four, US Energy said.
US Energy said the agreement, alongside recently completed financing, supports the execution of phase 1, with additional capacity expansion planned in phase 2, expected to come online in 2029.
Shares of US Energy were up more than 21% in Monday afternoon trading.
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