Investor Presentaiton
January 2022 Transaction Overview
Transaction Strategic Rationale & Overview
In January 2022, closed transactions that have created a diversified,
low leverage, free cash flow generating oil and gas company focused
on continued consolidation.
The assets were acquired from three private entities and not publicly
marketed.
The acquired assets consist of mature, low decline properties
generating stable free cash flows with low capital intensity.
With increased size and scale, U.S. Energy will optimize the cost
structure of the combined asset base and provide enhanced access to
lower cost capital.
The total consideration for the acquired assets was ~$88.7 million
comprised of:
19.9 million shares of USEG common stock valued at $67.6
million using the closing price of USEG stock on 1/6/22.
$1.25 million of cash.
Assumption of $3.50 million of indebtedness.
Remainder represents assumption of outstanding liabilities
including commodity derivatives.
The Board of Directors is comprised of four existing U.S. Energy
directors and three directors from the Acquired Assets.
Seasoned and experienced energy professional John Weinzierl
now serves as U.S. Energy's Chairman.
Ryan Smith continues to serve as CEO and a Board member.
(1) 1Q2022 SEC pricing of $75.24 oil and $4.09 natural gas.
5
(2)
Reserves based on 3rd party engineering report as of April 1, 2022.
Confidential.
U.S. Energy Transformation
U.S. ENERGY CORP.
Company Highlights
Year End 2021
2022 YTD
acquired assets
Pro Forma
USEG
Market Cap. ($mm)
$15.9
N/A
$110.7
Debt ($mm)
$0.0
$3.5
$3.5
Cash ($mm) Q1 2022
N/A
N/A
$1.7
PDP +PDNP Reserves
(MMboe) (1)(2)
1.6
5.3
6.9
PDP + PDNP PV-10 ($MM)
(1)(2)
$21.5
$109.5
$131.0
% Oil/Gas Mix
75% / 25%
81% / 19%
78% / 22%
Geographic Footprint of Acquired AssetsView entire presentation