Enerplus Corp T.ERF

Energy Oil & Gas E&P

Enerplus Corporation is a Canada-based independent oil and gas exploration and production company. The Company is focused on the development of North American oil and natural gas assets. Its portfolio includes light oil assets in the Bakken, North Dakota, and a position in the Marcellus natural gas shale region in northeast Pennsylvania. The Company's operations are concentrated in the core of the Bakken/Three Forks light oil shale play where it holds approximately 235,600 net acres in North Dakota. The acreage is primarily located across the Fort Berthold Indian Reservation, as well as in Williams and Dunn Counties. It holds an interest in approximately 32,500 net acres in the dry gas window of the Marcellus shale in northeast Pennsylvania. This non-operated position is located in Susquehanna, Bradford, Wyoming, Sullivan and Lycoming counties.

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Post by retiredcfon Jul 29, 2022 9:15am

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Post# 34859583

RBC

July 28, 2022

Enerplus Corporation
Announces Sale of Certain Canadian Assets

NYSE: ERF | USD 13.72 | Outperform | Price Target USD 20.00

Sentiment: Neutral

Enerplus announced today that it has entered into a definitive agreement to sell certain Canadian assets located in Alberta to Journey Energy for a total consideration of C$140 million, prior to closing adjustments. The transaction is expected to close at the end of the third quarter of 2022.

Key Details

• The assets included in the transaction include Enerplus’ Ante Creek and Medicine Hat operations, along with broad interests in the West Five and West Six areas of Alberta.

Production from the assets is approximately 3,400 boe/d (60% crude oil) on a net basis after the deduction of royalties (4,400 boe/d before royalty deduction). The assets include over 400 net wells.
On a flowing gross (before royalties) barrel basis, the C$140 million disposition price and 4,400 boe/d of production would equate to roughly C$32,000/boe/d. Journey Energy indicated in its press release that the assets carry a total undiscounted and uninflated decommissioning liability of C$65 million.
Under the terms of the agreement, the total consideration comprises $81 million cash, 3.0 million common shares in Journey Energy valued at $14 million (based on Journey’s last five trading days' volume weighted average share price), and a $45 million monthly amortizing, interest-bearing loan which Enerplus will provide to Journey that is secured by certain of the assets and which must be repaid in full by October 31, 2024.
Enerplus is continuing to advance opportunities to divest its remaining Canadian assets with associated production of circa 3,000 boe/d net (99% crude oil).
Following the transaction and in conjunction with its second-quarter results on August 4, Enerplus will provide updated guidance as well as an update on its return of capital plans.