Porter Hedges Represents Sage Road Capital in $100M Upstream Acquisition by U.S. Energy Corp. from Multiple Sellers

Porter Hedges represented entities controlled by Sage Road Capital in the sale, along with Lubbock Energy Partners, LLC and Synergy Offshore, LLC (collectively, the “Sellers”), of certain oil and gas assets across the Rockies, West Texas, Eagle Ford, and Mid-Continent to U.S. Energy Corp. (“U.S. Energy” or the “Company”) (NASDAQCM: USEG).

Under the terms of the agreements, U.S. Energy will issue 19,905,736 shares of common stock, pay $1.25 million of cash, and assume $3.3 million of indebtedness from the Sellers, equating to a total consideration of $99.5 million using U.S. Energy’s closing stock price on October 1, 2021. Upon completion, the Sellers will own approximately 80.8% and existing U.S. Energy shareholders will own approximately 19.2% of the Company’s outstanding common stock. 

Sage Road Capital is a Houston-based private equity investor in the upstream oil and gas sector. Founded in 2012, it targets lower middle-market investment opportunities in North America with a primary regional focus on Texas, Oklahoma, and the surrounding states.

U.S. Energy Corp. is an independent energy company focused on the acquisition and development of oil and gas producing properties in the United States.