The OW Ranch by powerslandbrokerage

“But notwithstanding all its drawbacks, the cattle business is the most deeply satisfying in which men engage. No other business so fully occupies a strong man’s full powers of body and mind. Cattle ranching still possesses great allurements and some of its traditional romance ... Those who have grown up with the business can never escape the call of the range.” –John B. Kendrick, 1924

Introduction – 2 The Land – 5 The Water – 6 Fences, Roads, and Grass – 7 Past Ownership – 8 Livestock Management – 9 Historic Living Quarters – 10 Working Improvements – 11 Recreation and Wildlife – 12 Elevation and Climate – 13 Minerals, Leases, and Boundaries – 14 Offering Price and Conditions Of Sale – 15 Acreages and Leases – 16 Map – 18 Contact Info – 20

At your request, Powers Land Brokerage, their agents and representatives (referred to as “Brokers” within this brochure), have provided you with certain information and/or documentation for the purpose of your investigation of the subject property. In doing so, Brokers make no representations or warranties whatsoever with respect to the accuracy, reliability or completeness of any information, reports, tests, or other documentation provided to you whether directly or indirectly by Brokers. The only representations or warranties made will be those set forth in a fully executed purchase and sale agreement, if the parties enter into such an agreement. Brokers encourages you to independently verify any and all information that has been supplied to you by conducting your own independent investigation and consulting with appropriate experts.

THE OW R ANCH IS THE ORIGINAL HEADQUARTERS OF THE KENDRICK CAT TLE COMPANY, perhaps the most famous of the cattle empires created in the late 1800s in the Sheridan, Wyoming area. The OW operates on nearly 41,551 sprawling acres, of which 24,694 ± is well-blocked and deeded. Grazing units are comprised of foothills range with scattered timber complemented by protected meadows in the surrounding valleys. Significant wildlife resources include deer, elk, antelope, black bear and upland birds. Two sets of headquarters buildings and wellconnected roads throughout provide sound presence on all parts of the ranch. The many Kendrick buildings were renovated to their historical splendor under the guidance of well-known Montana architect Jonathan Foote. The ranch stretches across the border of three Montana counties just a one-hour drive northeast of Sheridan, Wyoming. The OW represents the opportunity to own one of the West’s most famous ranches.

2 | INTRODUC TION

AS YOU ENTER THE OW, the legacy of generations of ranch families that forged the West percolate in your soul. It is with this passion that the current owner of nearly 30 years, Jim Guercio, embraced the responsibility of land stewardship. Beginning with only 6,000 deeded acres purchased during the break out Kendrick landholdings in the late 1980s, like his predecessor, Jim diligently assembled contiguous ranches to arrive at the scale and function necessary for a sizable cattle operation. Driving around the ranch, you will see that OW Ranch Manage-ment is in a state of continuous improvement, focusing on fence infrastructure, water resources, marketable livestock and healthy plant communities. The OW is true to its roots as a horseback operated cattle ranch. Cowboys meet each morning in the bunkhouse that was built in the late 1880’s for breakfast and decide the work for the day. Horses are saddeld in the famous barn with massive cottonwood post and beams. The corrals, calving barns, carriage house, and buildings are like stepping back in time as the owner and his ranch manager maintain all the original improvements with such care they look as good as they did in the late 1800’s. In 2021, OW management conducted its first horse sale allowing the young cowboys to participate in proceeds of the auction as compensation for breaking horses during the summer as they moved cattle for hundreds of miles and in all kinds of conditions. The horse sale was a great success and has spurred on the alure of the west as a popular wedding venue.

THE LAND | 5

WATER DEVELOPMENT IS THE BEST IMPROVEMENT AN OWNER CAN MAKE and has been a primary focus for Mr. Guercio and his ranch management team for years. Putting together a ranch of this magnitude requires practical engineering as well as modernizing the use of available water resources. Supplementing numerous springs and seasonal streams, the entire ranch is served by multiple stock tank locations that provide water to 40± cross-fenced pastures. An example of the water infrastructure is a 2,100-foot well at the Conley Headquarters. This well water is pumped to storage at the eastern highest point where gravity flows into 12+ miles of buried pipe serving 25 rubber stock tanks. Most of these tanks lie along the ridge dividing East Trail and Trail Creek with the next phase of the plan stubbing additional tanks into the bottom of the numerous grazing cells to the north and south. Domestic wells lie at each of the three headquarters. A state-of-theart water treatment facility is in place at the OW Headquarters. This state-of-the-art domestic system is another example of the significant investment made by the Seller. Hanging Women Creek is the center piece to the OW as it flows north the nearby border with Wyoming to the Tongue River. Trail Creek, PK Creek, Horse Creek and numerous other seasonal tributaries create endless escarpements of Ponderosa Pine and ideal big game habitat. A smart John Kendrick created contour spreader dikes along many of these systems catching run-off water to and distributing it to vast tracks of improved pasture. It is the old school and low operational cost improvements that make the OW the incredible cattle ranch it is. 6 | THE WATER

THE OW IS FENCED INTO APPROXIMATELY 40± PASTURES designed to maximize grazing distribution around carefully planned water

The OW Ranch has a diverse mix of warm- and cool-season forage plant

infrastructure. The fences are of various age and condition and would be

communities. Vast range ground covers the broad sloping valleys of Hanging

considered well maintained. Practically conceived, the pastures throughout reflect

Woman, PK, Trail, and Horse Creeks. Numerous coulees and ridges provide ideal

a good balance of timbered rangeland to dryland hay ground to protected calving

cover and parklike meadows that support native and introduced grasses, including

meadows. In 2018 alone, 15 miles of new four-wire fireproof fencing was installed

Blue Grama, June, Japanese Brome, Needle and Thread, Bottle Brush, Blue Bunch,

to improve or replace interior cross fencing. As with most improvements to the OW,

Western and Crested wheat grasses. Profitable calf and stocker gains are supported

attention to detail can be seen with new swing-panel gates attached to welded

by good moisture and soils that this region is well known for. Over 10 miles of

pipe corners.

meandering creek bottom on Hanging Woman hold productive stands of Brome, Wheat, Timothy, Alfalfa, and Rye mixed fields. There was a reason John Kendrick,

Twenty miles of maintained county roads provide access across the ranch east to

one of Wyoming’s best-known cattleman, chose the OW, just an hour north east of

west. A network of private interior ranch roads is convenient to checking fences,

Sheridan, Wyoming, to be the cornerstone of his empire.

water and mineral tubs. The Seller has invested in quality mapping of pasture acreage tabulations, roads, fences, water resources and other details important to owner management.

FENCES, ROADS, AND GRASS | 7

JOHN BENJAMIN KENDRICK CAME TO W YOMING AS A COWBOY on a cattle drive from Texas in 1879. He was self-educated, having

Jim Guercio purchased the OW Headquarters in the late 1980’s from

left school in the 5th grade. He was a voracious reader however and

Charles Conley who was instrumental in the breakout and sale of

soon rose above the average cowboy to become the manager of the

over 200,000 acres of Kendrick Ranch Lands.

Converse Cattle Company in 1887. He moved the ranch operations to

Jim a younger “kindred spirit” who loved and appreciated the OW

the present location of the OW Headquarters on Hanging Woman

and its history. Immediately Jim set out to rebuild the OW, both as

Creek in 1889 and was soon able to buy out the absentee owners to

a low overhead large cattle ranch and as a historic beacon to the

create what eventually became the Kendrick Cattle Company.

ranching community.

Kendrick’s legacy carried on as he was Wyoming’s Governor and a

Guercio grew up in Chicago and made his mark in the world of rock and roll–

three time US Senator.

His family donated much of the land that

perhaps as far removed from the world of ranching and livestock as one could

now makes up the open spaces in the town of Sheridan including

imagine. He produced music for Chicago, Blood, Sweat & Tears, the Beach Boys,

Kendrick Park, Kendrick Golf Course, and the Trails End Museum.

and many other names everyone recognizes. Jim founded CMT, a premier

Kendrick’s business interests in Sheridan can also be observed along

country music channel, which he sold to Gaylord and Westinghouse in 1991,

downtown Main Street by the many buildings that have the iconic

shortly after Jim’s first purchase of the OW headquarters from Mr. Conley.

“K” carved in stone up high.

However, it has been Jim’s success in land stewardship that has provided him the greatest sense of accomplishment.

8 | PAST OWNERSHIP

Conley recognized in

GOING INTO THE WINTER OF 2023 calves wean in the 525# to 550# range and are sought after by repeat buyers at the Superior Livestock Auction due to the many designations, including progressive genetics; source and age certified; and verified natural beef. This is a very good one iron herd of black cows who were raised on the ranch and can be purchased separately with the equipment. We always recommend a light stocking rate of breeding cows on grass ranches that are reliant on annual precipitation, which can vary dramatically. Then, excess capacity, if available, can be allocated to stockers or some other form of short-term cattle. The OW is an efficient operation that should be able to be run by a ranch manager and two full-time employees.

*Carrying capacity of range country and of harvested feed produced on a ranch can be expressed as animal units or animal unit months. The animal unit (AU) is the annual feed requirement to maintain one mother cow or the equivalent in thrifty condition (with calf at side for six of the twelve months). Carrying capacity is that portion of the animal units of the maximum feed production that can be utilized after consideration of all limiting factors and customary operation practices. Any carrying capacity rating must be estimated with caution, keeping in mind the size and breed of the cows, the weaning weights of the calves, and even the length of time the calves are grazed. A carrying capacity rating can vary as much as 30% to 40%, depending upon the range usages. In addition to pasture rotation and other management factors, such as water availability, livestock type and size, and the length and timing of pasture season. A properties total carrying capacity is also affected by external influences such as topography, rainfall, pests, wildlife, and other numerous influences. **Selling Agent is related to the Seller**

LIVESTOCK MANAGEMENT | 9

THE IMPROVEMENTS ARE WELL LOCATED THROUGHOUT the ranch with the OW Headquarters being the focal point at the center of the ranch. The historic OW headquarters where John B. Kendrick lived and raised his children remains one of eastern Montana’s best open range cattle ranches. A large modern heated equipment shop is located near OW headquarters convenient to the nearby hay ground. The Conley Headquarters lies on the far east end of the ranch near Passaic Road 30 miles north of Clearmont. Shipping corrals and other improvements throughout the ranch provide good presence on all parts of the ranch.

OW HEADQUARTERS Senator Kendrick’s House was originally built in 1892. This 2,265 sq. ft. log house, along with other ranch buildings, is on the National Register of Historic Places and was recently refurbished under the guidance of renowned architect Jonathan Foote. Consistent with the standards imposed by the National Historic Register. It has 3 bedrooms and two bathrooms plus a kitchen, living room, office, dining room and covered wrap-around porch. The cookhouse is a 1,610 sq. ft. log construction with extensive decks and wrap-around porch and was built in 1902. It is where ranch management meets each morning to plan the day. The equipment shed, garage, spring house, and carriage house are buildings constructed of stone quarried nearby at the turn of the 19th Century and still in good condition. The barn is 32' x 64' built in 1902 and refurbished to its original splendor with historic stables, blacksmith shop, and other functional improvements. Rooms built from large timbers beckon traditional livestock operations.

10 | HISTORIC LIVING QUARTERS

CONLEY HEADQUARTERS With 1,008 sq. ft. on main floor over a full basement, the wood frame house, built in 1950 and remodeled in 1995, is used for ranch management on the far east boundary of the property.

Working improvements include

a 50’ x 50’ steel building, a 24’ x 24’ pole barn, an older sheep shed and a hopper bin overhead-type feeder.

EQUIPMENT SHOPS Near the OW Headquarters is the main equipment area with an envious steel shop building with radiant heated concrete slab under two enormous equipment bays and a 25’ overhang on two sides heated by a coal fired boiler.

This shop is the maintenance building for haying machinery and

other ranch equipment.

The interior space is approximately 50’ x 100’ and

has a coal fired heat source. A second 50’ x 50’ prefabricated steel shop with concrete floors built in 1995 in good condition

is situated at the East Trail

Creek headquarters.

SHIPPING CORRALS Conveniently located near the gravel county road intersections of Decker Road, Forks Road,

and Otter Creek Road the owner can ship south to US

Highway 14/16 near Clearmont, Wyoming; north to US Highway 212 near Ashland, Montana; or west to Interstate 90 at Sheridan, Wyoming.

WORKING IMPROVEMENTS | 11

PROBABLY THE MOST UNDERVALUED COMPONENT OF THE OW R ANCH IS ITS WORLD CL ASS GAME. Mule deer in the 190-200 inch class and elk in the 400-inch class are continuing their genetics in the resident herds. Of particular interest is the elk population that continues to grow both in numbers and reputation. The area is becoming well known as Montana’s premier destination among groups of hunters that are in the know. Pronghorn Antelope are prolific and share the open grass land with game birds such as dove and sharp tailed grouse. The OW is situated along a ridge of foothills that stretch from the Big Horn Mountains to the west and the Black Hills to east. The continuous escarpment of timbered ridges and highly productive vegetation is as good for cattle as it is for wildlife. Surprising to anyone who visits the OW is the feeling that you are in the mountains, yet you are at an elevation and terrain that is tempered by the plains.

12 | RECREATION & WILDLIFE

ELEVATION R ANGES FROM 3,450 TO 4,200 FEE T as the OW consists of a series of relatively broad valleys that drain from a high divide westerly into Hanging Woman Creek which flows in a northerly direction entering the Tongue River near the town of Birney. The dryland hay pastures and sub-irrigated meadows

along Trail Creek and Hanging Woman

Creek benefit from dike systems that catch winter and spring precipitation to spread the water table through the fertile soil. According to weather stations in Birney and Otter the area averages 13-18 inches of precipitation per year. The area is known for pleasant summers and relatively moderate winters although some days in the summer can break 100 degrees and some winters bring significant snowfall. Wildlife find refuge and food supply in abundance while livestock thrive on the protein rich grasses and dependable cover. Fire management is a constant concern and often a long-term benefit to the land. The big sage and timber create fuel for large wildfires that local response teams keep an active eye on. Many of the grass fields that appear to be improved pasture are in fact the result of fire that cleaned up the overgrowth and opened up the grass canopy.

Source: City-Data.com Based on data reported for the nearest weather station in Otter, Montana.

ELEVATION & CLIMATE | 13

MINERAL RIGHTS The Seller makes no representation as to the ownership of the mineral rights or mineral estate on the subject property. Fifty percent (50%) of the minerals owned by the Seller which are appurtenant to the property being purchased will be conveyed.

GRAZING AND HUNTING The East Trail Elk Preserve and the Pine Butte Elk Preserve units were sold to an elk enthusiast in 2020. These two units are currently in an exchange of hunting for grazing. These obligations will dissolve upon conveyance of ownership. The new owner would need to decide to carry on the hunting for grazing arrangement or remove those as functional units of the OW Ranch.

BOUNDARIES The Seller and Brokers are making known to all potential purchasers there may be variations between the deeded property lines and the location of the existing fence boundary lines on the subject property. Seller and Brokers make no warranties with regard to location of the fence lines in relationship to the deeded property lines, nor does the Seller make any warranties or representations with regard to specific acreage within the fenced property lines. Seller is selling the property in an “AS IS” condition which includes the location of the fences as they exist. Boundaries shown on any accompanying maps are approximate, based on the legal description. Maps are not to scale and are for visual aid only. The accuracy of the maps and information is not guaranteed. 14 | MINERALS, LEASES, AND BOUNDARIES

OFFERING PRICE The OW Ranch is being offered at $46,000,000 (Fourty-Six Million) U.S. Dollars.

I. The Seller prefers an all cash sale. II. All offers shall be: a. in writing, b. accompanied by an earnest money deposit check in the minimum amount of 5% of the offering price. III. All earnest money deposits will be deposited in the escrow account of the title company. IV. The Sellers shall provide and pay for an Owner’s title insurance policy in full satisfaction of the negotiated purchase price. V. Both Buyer and Seller shall be responsible for their own attorney’s fees. VI. The Selling Agent is related to the Seller

NOTICE: Offering is subject to errors, omissions, prior sale, change or withdrawal without notice, and approval of purchase by owner. Information regarding land classifications, acreages, building measurements, carrying capacities, potential profits, etc., are intended only as general guidelines and have been provided by sources deemed reliable, but whose accuracy we cannot guarantee. Prospective Buyers should verify all information to their satisfaction. Prospective Buyers should also be aware that the photographs in this brochure may have been digitally enhanced.

OFFERING | 15

ACREAGE Deeded 24,694 ± Acres State Lease

11,340 ± Acres

BLM Lease

2,392 ± Acres

Private Lease

3,124 ± Acres

Total 41,551 ± Acres

MAPPING A printed set of 12 pasture maps with acreages, roads, fences, water resources, and other improvements is available. Please contact

Brokers

make

arrangements

review.

Digital

mapping is also available through the Mapright cloud based server.

PROPERT Y TAXES Property is owned in three Montana counties with the majority in Big Horn County then smaller parcels in Powder River and Rosebud Counties. In total the 2017 taxes were $15,363.

BUREAU OF LAND MANAGEMENT BLM allotments total 471 AUM and are current with 10 year grazing leases running from November 1, 2017 to November 1, 2027. The largest allotment, MT10150 allows grazing from 6/01 to 9/26, with the other two, MT03249 and MT 10018 which allow grazing from 3/1 to 2/28. The lease rate in 2023 is established by BLM at $1.35 per AUM or approximately $600 for the year.

MONTANA DNRC Montana state grazing leases include 1378, 1382, 9826, 9827, 9828, 9941, 10037, 10038, 10039, and 10687. All the leases are for a 10 year term with four permits running until 2032 and the other six until 2027. The total AUM is 2,644 and the total cost of the state leases are $29,163. 16 | ACREAGES AND LEASES

TURN KEY ASSET SALE INCLUDES Preg Checked Cows

900-1,000

Replacement Heifers 300-400 Equipment Hay and Feed

US FOREST SERVICE USFS Permit on the nearby Custer National Forest which calls for 98 pairs from June 1 through October 18. Annual cost is estimated at $600.

PRIVATE LEASES Two private leases are in place and fenced into the OW Ranch along Trail Creek on the far south central portion of the ranch. The larger lease is with the original Kendrick Family on 2,746± acres and runs from March 1, 2017 to February 28, 2032. This lease begins at $5 per acre for the first five years and escalates for the next two 5 year periods. The smaller lease is with the Parkis Family and runs from November 1, 2017 to November 1, 2027 and is for $1,000 per year for approximately 320± acres. The East Trail Elk Preserve and the Pine Butte Elk Preserve units were sold to an elk enthusiast in 2020. These two units are currently in an exchange of hunting for grazing. These obligations will dissolve upon conveyance of ownership. The new owner would need to decide to carry on the hunting for grazing arrangement or remove those as functional units of the OW Ranch.

ACREAGES AND LEASES | 17

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Pipeline Cattleguard Gate Solar Panel Fence Electric Fence Ranch Road Lease Boundary County Road County Line TwnRng Line

Elk Preserve

Ranch Units

Deeded Land Ranch Unit BLM State Lease Mile 0.5 1.0 Ranch data 06/30/21; NAIP 2015 Aerial Last edited: 12/17/2021

1. Buckley Unit Deeded

195.40 195.40

2. Parker Unit Deeded State Leased BLM Leased

2,968.71 2,876.59 40.03 52.09

3. Dalton Unit Pine Butte Elk Preserve

3,174.57 3,174.57

4. OW Unit Deeded Private Leased State Leased BLM Leased

19,366.04 10,533.55 2,788.68 5,850.41 193.40

5. Trail Creek Hay Complex Deeded Private Leased State Leased

3,323.43 2,413.19 396.71 513.53

6. Conley Unit Deeded Private Leased State Leased BLM Leased

10,642.49 7,389.35 62.61 1,135.40 2,054.13

7. Stroud/Rosebud Unit Deeded State Leased Blm Leased

5,148.00 1,149.88 3,949.77 48.35

8. Horse Ranch Unit Deeded 9. East Trail Elk Preserve Deeded East Trail Elk Preserve State Leased

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274.43 274.43 7,836.98 91.80 7,324.85 420.33

18 | ACREAGE MAP

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This map is not to be used for accurate survey purposes. The information contained herein was obtained from reliable sources. However, Brokers, do not warrant or guarantee the accuracy of the information and this map is only intended to be used to illustrate the boundaries and features of the depicted property.

photography courtesy Sherri Stewart O’Hara

122 North Main Street Sheridan, Wyoming 307.217.2777 info@powerslandbrokerage.com

POWERSLANDBROKERAGE.COM