U.s. Energy Corp. · NASDAQ:USEG
U.s. Energy — Investor Presentation (August 2022)
17 slides from U.s. Energy's investor presentation, Aug 16, 2022
Slide 1: Corporate Overview
a U.S. ENERGY CORP. \ Corporate Overview August 2022
Slide 2: Disclaimer & Forward-Looking Statements
DISCLAIMER & FORWARD-LOOKING STATEMENTS Forward Looking Statements The information in this presentation includes “forward-looking statements” that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of histori
Slide 3: The Transformed U.S. Energy
THE TRANSFORMED U.S. ENERGY Greater Efficiency from Increased Critical Mass Eight acquisitions since 2020 increased production by >6x and improved cost and operating efficiencies Low Leverage Recent acquisitions have been efficiently acquired with year-end 2022 leverage expected to be ~0.5x Top Basi
Slide 4: U.S. Energy Overview
U.S. ENERGY OVERVIEW U.S. Energy is a growth-focused energy company engaged in operating a portfolio of high-quality producing assets that will allow the Company to execute on an attractive capital returns program to shareholders. Company Overview Where We Operate NASDAQ USEG Shares Outstanding (8/0
Slide 5: Successful M&A Track Record
SUCCESSFUL M&A TRACK RECORD U.S. Energy has completed eight highly-accretive transactions since 2020, while maintaining the Company’s strong balance sheet by using free cash flow, low-cost bank capital, and public currency. Asset # of Transactions Seller Entity Acquisition Price PV-10 (112) % Oil (R
Slide 6: Consistent Reserve and Production Growth
CONSISTENT RESERVE AND PRODUCTION GROWTH Net PDP Reserves 9,000 8,000 7,000 PDP Reserves (MMboe) 6,000 $120 , 5,000 $100 , 4,000 $80 B11 3,000 $60 2,000 $40 500 1,000 a | | | $20 5 a a 250 Net Production $180 2,000 $160 $140 PDP PV-10 ($MM) Production (Boe/d) 3 8 8 2 ww? ye yw ye wt . mReserves (Mmb
Slide 7: Asset Overview
ASSET OVERVIEW Asset Overview Long-Life_ Reserves: Mature production profile with an approximate 50-year production life of proved producing reserves. Balanced Product Mix: Current production mix of 66% oil and 34% natural gas allows for the realization of increased commodity prices across the entir
Slide 8: Recently Closed Acquisition — July 2022
RECENTLY CLOSED ACQUISITION — JULY 2022 The acquisition represents operated properties in Henderson and Anderson counties in East Texas with greater than 400 Boepd production (65% gas). Asset Overview Asset Map = WI 94.5% / NRI 76.0%. = Company owned 25-mile gathering system. Operated ETX 7 ‘ ‘ oo P
Slide 9: Illustrative USEG Asset Value Potential
ILLUSTRATIVE USEG ASSET VALUE POTENTIAL ~$105 MM Enterprise Value 44% Discount to SEC Proved PV-10 per Share (as of 7/4/22) Proved Developed Producing (“PDP”) PV-10 Proved Non-Producing Reserves (“PDNP”) Total Proved PV-10(2(3) Less: Net Debt (8/08/22)) Net Total Proved PV-10 Shares Outstanding (6/3
Slide 10: Committed to ESG Initiatives
COMMITTED TO ESG INITIATIVES = Continually improve operational performance of all owned assets throughout their lifespan by prioritizing ESG initiatives in our decision making. Dedicated to the environmental, health and safety performance, workplace diversity / Performance inclusion, and community r
Slide 11: U.S. Energy Investment Thesis
U.S. ENERGY INVESTMENT THESIS U.S. Energy Management has consistently shown conservatism and success in executing a corporate strategy of acquiring quality assets, managing its balance sheet, and returning capital to shareholders, offering investors commodity exposure and an opportunity to invest in
Slide 12: Experienced and Highly Aligned Board of Directors
EXPERIENCED AND HIGHLY ALIGNED BOARD OF DIRECTORS ~57% of outstanding shares are owned by U.S. Energy’s Board of Directors ohn A. Weinzierl | Joshua Batchelor |James W. Denny Ill Randall Keys | Duane King _ | D. Stephen Slack | Ryan smith _ | Chairman John Weinzierl co-founded | * ‘Memorial Resource
Slide 13: Appendix
APPENDIX 13 say) U.S. ENERGY CORP. CY
Slide 14: Reserves Summary — July 1, 2022
RESERVES SUMMARY — JULY 1, 2022 (2)(3) Reserves Summary = U.S. Energy operates 86% of its asset base. = Oil makes up 66% of total proved reserves = 100% of U.S. Energy’s booked reserves are proved developed Oil Gas Total % of Total % Oil PV-10 MBBL MMCF MBOE Reserves (63 ) PDP 5,230 16,393 7,962 98%
Slide 15: Hedge Summary
HEDGE SUMMARY 3Q 2022 Crude Hedges 4Q 2022 1Q 2023 2Q2 4Q 2023 WTI Collars Total Volumes (Bbl) 73,400 Daily Volumes (Bbl/d) 798 Wot. Avg. Ceiling ($/Bbl) $80.54 Wot. Avg. Floor ($/Bbl) $59.97 WTI Swaps Total Volumes (Bbl) 9,000 Daily Volumes (Bbl/d) 98 Wgt. Avg. Fixed Price ($/Bbl) $49.99 71,800 780
Slide 16: Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP “NET INCOME” TO NON-GAAP “AbduUSTED EBITDA” Reconciliation of GAAP “Net Income (loss)” to Non-GAAP “Adjusted EBITDA” Adjusted EBITDA is a “non-GAAP financial measure” presented as supplemental measures of the Company's performance. It is not presented in accordance with accoun
Slide 17: Footnotes
FOOTNOTES Enterprise Value is calculated as Market Cap plus Net Debt at August 8, 2022. Calculation: $85.9 million + $11.3 million = $97.2 million. 2. Reserves prepared by 3" party engineer as of July 1, 2022 at 2Q 2022 SEC prices of $85.78 oil and $5.13 natural gas. Includes both Proved Developed P