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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Enerplus Corp

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Post by retiredcfon Aug 05, 2022 9:17am

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Post# 34873624

RBC

August 4, 2022

Enerplus Corporation
Quick Take 2Q – Bolsters Shareholder Returns

NYSE: ERF | USD 12.15 | Outperform | Price Target USD 20.00

Sentiment: Positive

Enerplus’s second-quarter results reinforce our confidence in the company’s outlook amid in-line AFFO per share, 2% higher production, and 14% lower capital spending (see table below). The company bolstered its shareholder returns profile including a 16% increase in its dividend to an annualized rate of $0.20 per share.

Conference call

• Time: 11:00 a.m. ET, Friday, August 5
• Dial-in: (888) 390-0546 (conference ID: 73519318) • Replay: (888) 390-0541 (passcode: 519318 #)

Key points

• In conjunction with strong operating performance and a favourable financial and operational outlook, Enerplus has enhanced its 2022 return-of-capital plan. The company will now return a minimum of $425 million to shareholders, up from $325 million previously, returning at least 60% of free cash flow (vs. 50% previously) to shareholders in the second half of 2022 and continuing through 2023.

The company paid $9.9 million in dividends in the second quarter and repurchased 7.1 million shares for $92.9 million (avg. price of $13.13 per share). During July, the company repurchased the remaining 2.5 million shares under its 10% NCIB authorization at an average price of $12.81 per share, for total consideration of $31.5 million.
The company’s board has renewed its NCIB (10% of public float) in August (subject to TSX approval).
Year to date through July, Enerplus has returned $179 million through dividends and share repurchases, leaving a minimum

remaining return to shareholders of $246 million by the end of 2022.
Williston Basin production averaged 58,600 boe/d during the quarter, up 2% sequentially.
Marcellus production averaged 168 mmcf/d during the quarter, up 3% sequentially.
Second-quarter opex was $9.74/boe (below our $10.31 estimate).
Cash taxes of $12 million during the quarter were below our outlook of $20 million.
Enerplus’s net debt stood at $546 million as of June 30, 2022.

2022 guidance

• Enerplus has updated its 2022 guidance in conjunction with its disposition of certain Canadian assets, which it expects to close at the end of the third quarter.
- The company increased its 2022 midpoint production guidance to 99,500 boe/d, up 1% from 98,500 boe/d previously, reflecting
  
  strong well performance and the continued optimization of its development plan.
- There is no change to Enerplus’s midpoint capital guidance of $420 million ($400–440 million).
- Enerplus also updated its operating expense guidance to $10/boe (from $9.75–10.50/boe), increased its transportation expense
  
  2% to $4.25/boe, and decreased its cash G&A expense slightly to $1.20/boe (from $1.25/boe).
- Current taxes remain pegged at 2–3% of AFFO (before tax).