Investor Presentaiton
6
Transformational Acquisition Detail
Increases Size & Scale
Transaction Highlights
■ Increases average daily production from 380 Boe/d
to 1,341 Boe/d.
■ Increases PDP reserves from 1.5 Mmboe to 6.9
Mmboe, a 320% increase. (1) (2)
■ Increases internal PDP PV-10 from $21.5 million to
$110.6 million, a 414% increase. (1)(2)
Transaction Valuation Summary
All amounts represented in millions except for USEG share price
Shares Issued to Sellers
USEG Price
Equity Consideration
19.91
$
3.40
$ 67.7
$
3.5
Plus: Cash to Sellers
$
1.3
Plus: Assumption of Existing Liabilities
Total Consideration
$
13.8
$
86.2
Plus: Debt Assumed
Accretive to
Shareholders
■ Immediately improve Cash Flow per share.
■ Immediately improves operating margins on a cash
flow per BOE metric.
Significant cost savings through operational
synergies and corporate efficiencies expected
throughout 2022.
Strong Pro and Zero
Net Debt
■ Pro Forma for the transaction USEG has $1.7 million
of cash and $3.5 million of debt.
■ New $100 million Credit Facility with $15 million
borrowing base provides incremental liquidity.
■ Company plans to operate with low total leverage.
Experienced and Highly
Aligned Board
■ John Weinzierl serves as Chairman of the Board.
■ Former founder of Memorial Resource Partners and
senior partner at NGP.
■ Highly aligned Board of Directors with an ownership
position of 82%.
(1)
(2)
1Q2022 SEC pricing of $75.24 oil and $4.09 natural gas.
Reserves based on 3rd party engineering report as of April 1, 2022.
Confidential.
U.S. ENERGY CORP.
USEG Shares Oustanding
4.7
19.2%
Shares Issued
19.9
80.8%
Total PF Shares Outstanding at 1/6/2022
24.6
100.0%View entire presentation