US Energy (USEG) investor relations material

Business highlights and strategic positioning

• Asset base in Montana includes a 50+ year producing resource with significant helium, CO2, and oil reserves, fully owned and operated, with minimal third-party dependencies.

• Phase one development targets 125,000 metric tons of CO2 utilization and sequestration annually, monetized at $85/ton, with first sales of helium and carbon management expected in Q1 2027.

• Infrastructure includes 170+ permitted Class II injection wells and a major rail line, supporting efficient market access and future expansion.

• Three revenue streams—helium, CO2, and oil—share infrastructure, lowering costs and driving stable cash flow, with oil optimization leveraging CO2 for enhanced recovery.

• Projected EBITDA starts at $15 million in 2027, rising to the low $20 million range, with significant upside as infrastructure expands.

Market opportunity and competitive advantages

• Positioned as the westernmost large-scale helium and CO2 hub in the U.S., with a unique combination of geology, asset size, and integration.

• First mover in a multi-trillion dollar emerging CCUS market, with federal 45Q tax credits providing a stable revenue floor and price escalator.

• Helium supply targets critical sectors like aerospace and chip manufacturing, with modest but growing revenues and strong margins.

• Permitting is advanced, with approvals expected by summer 2026, making the company the only Montana entity with such permits.

• Existing oil field offers immense incremental recovery potential, with CO2 EOR driving production growth without significant new CapEx.

Execution, financials, and outlook

• Over $22 million invested to date, with a proven track record of acquisitions, drilling, and regulatory progress.

• Trades at a significant discount to NAV and peer multiples, with current valuation at 2.5x 2027 estimated EBITDA versus 7–12x for comparable projects.

• Near-term catalysts include a long-term helium offtake agreement, plant construction, infrastructure completion, and third-party carbon management partnerships.

• Three-phase oil development approach leverages existing assets and infrastructure, with each phase scaling production and revenue.

• Management emphasizes both organic growth and M&A opportunities, seeking synergistic deals with both large and small industry players.