Investor Presentaiton
7
Consistently Successful M&A Activity
U.S. ENERGY CORP.
■
Additional M&A Transactions
In addition to the Company's transformation January 2022
acquisitions, USEG has completed four other M&A transactions since
existing management took control in December 2019.
Added a total of $11.4 mm PDP PV-10 at then current strip for total
purchase aggregate consideration of $2.2 mm financed using a mix of
cash (55%) and equity (45%).
Assets acquired from both private entities and a Chapter 7
bankruptcy process.
Executed without adding any incremental leverage - used public
currency and existing cash.
4Q2019
Period:
3Q2020.
Asset Overview:
Asset Overview Map
WY
Purchase of Op. & Non-Op. Assets in Lea
County, NM & Converse County, WY.
Seller:
Converse
Natrona
Chapter 7 Fieldpoint Petroleum.
Consideration:
$500k Cash.
Status at close:
Operated Prod. Shut off, Little Overall Prod.
and netted by Operators, PV-10 of $2.5mm,
~800 HBP Net Acres.
Status Today:
Improved Status with Large Operators and
Remedied Non-Op Cash Flows, Operated Prod.
Online.
Chaves
Platte
Eddy
2Q2022
+
Period:
1Q2020.
Asset Overview:
Purchase of Assets in North
2Q2020
4Q2020
+
+
2Q2021
+
4Q2021
H
NM
Lea
+
Asset Overview Map
Asset Overview Map
Nally
doches
Newton
Jasper
Divide
Burke
Renville
Bottineau.
San
Augus
Houston
tine Sabine
Angelina
Williams
Mountrail
Ward
McHenry
Trinity
Polk
Tyler
Walker
McLean
San
Jacinto
Sheri
Hardin
Dunn
Mercer
Montgomery
Orange
Liberty
Oliver
Jefferson
Burleigh
Harris
Stark
Morton.
Chambers
2020 Transaction
Period:
4Q2020.
Asset Overview:
Purchase of Operated Assets in
Liberty County, TX.
Seller:
Private Equity Portfolio
Company.
Consideration:
$250k in USEG stock at $3.72
per share.
Status at close:
$1.1mm Reserve Value, 5bbl/d,
680 HBP Net Acres.
Status Today:
$400k Capex spent, producing
~80-100 Bbl/d.
Period:
2Q2022.
2022 Transaction
Asset Overview:
Purchase of Operated Assets in
Liberty County, TX.
Seller:
Private Company.
Consideration:
$1.0mm cash.
Status at close:
$2.3mm Reserve Value, 20 bbl/d,
1,022 HBP Net Acres.
Status Today:
Began extension of gas gathering
pipeline
Dakota.
Seller:
Private Company.
Consideration:
$275k in USEG stock at $4.60 per
share and $150k Cash
Consideration.
McKenzie
Status at close:
20 Bbl/d, 1,300 HBP Net Acres in
McKenzie and Divide Counties.
Status Today:
Production Levels Maintained,
Billings
Golden
Development supported by
Sustained Price Recovery.
Valley
Confidential.View entire presentation