Enerplus Corp T.ERF

RBC Preview

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February 1, 2023

Enerplus Corporation
4Q Preview—Expecting a Strong End to an Outstanding Year

NYSE: ERF | USD 17.75 | Outperform | Price Target USD 21.00

Sentiment: Neutral

Enerplus will report its fourth-quarter results on Thursday, February 23, after market close.

4Q Preview

RBC is in-line with Street consensus on FFO/share and production volumes, while slightly below on capital spending.

Conference Call

• Time: 11:00 am ET, Friday, February 24
• Dial-in: [phone] (Conference ID: 48151534) • Replay: [phone] (Passcode: 151534 #)

Observations

• Our fourth-quarter production estimates include US oil & liquids production of 61,540 bbl/d and 248 mmcf/d of US natural gas production.

• In the context of $83/bbl WTI and $5.54/mmBtu Henry Hub, we forecast the company’s fourth-quarter oil and liquids realizations at $75/bbl, with natural gas realizations of $4.69/mcf.

• We peg Enerplus’ fourth-quarter share repurchases at $169 million.

• Also included in our outlook is fourth-quarter capital spending (gross) of $83 million, $9 million in cash taxes, and realized

  hedging losses of $53 million.

• Our fourth-quarter outlook includes disposition proceeds of approximately $215 million following the closing of its Canadian

  asset sales to Journey Energy and Surge Energy.

• For our latest update on Enerplus, please see our Update with Ian Dundas.

• For our full 4Q preview across our coverage universe, please see 4Q Preview - Net Debt Levels in Sharp Focus.

• Please refer to Exhibit 1 for a detailed look at our fourth-quarter estimates.