US Energy (USEG) Investor presentation summary

Strategic transformation and platform overview

• Transitioned from legacy oil and gas to an integrated industrial gas and carbon management platform, focusing on long-life, low-decline assets with multi-stream monetization and reduced commodity price correlation.

• Controls one of the largest industrial gas structures in the U.S., with fully owned and operated assets, including a 50+ year producing oil field and significant helium and CO₂ resources.

• Owns unique infrastructure, including the only gas processing facility in the Northern Rockies and a permitted oil field for CO₂ enhanced recovery.

• Building a 45Q-enabled carbon management business with contracted, policy-driven cash flows and a strategic helium resource.

• Platform supports independent, contracted, or federally supported revenue streams across helium, carbon management, and oil production.

Asset base, resources, and project economics

• Proved oil reserves of 1.4 MBOE with a PV-10 of $16.1 million as of Q1 2026; industrial gas Phase 1 PV-10 valued at $90 million.

• Helium resource of 1.3 BCF and CO₂ resource of 444 BCF, with annual CO₂ removal capacity of 125,000 metric tons, equivalent to removing 25,000 vehicles from the road.

• Phase 1 eligible for ~$130 million in 45Q tax credits over 12 years, with first helium sales and carbon management operations launching in Q1 2027.

• Projected 2027 revenue mix: 50% oil, 35% carbon management, 15% helium, with sharp EBITDA growth as Phase 2 comes online.

• Trading at a significant discount to intrinsic value, with an EV/2027E EBITDA of 2.67x versus 7-10x for peers.

Capital structure, funding, and financial outlook

• Phase 1 capital fully secured, with $27.9 million in liquidity and expanded debt facility; remaining capex funded by cash and covenant-light debt.

• Targeting a 40% unlevered return on capital employed at the project level, with opportunity to enhance ROE with term debt post-completion.

• Estimated 1.0x net leverage on run-rate EBITDA by Q1 2027.

• Suspending use of equity line of credit to avoid dilution.