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 Nov 04, 2022 9:46am

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Post# 35072683

RBC

November 3, 2022

Enerplus Corporation Quick Take 3Q—A Dandy Quarter

NYSE: ERF | USD 17.25 | Outperform | Price Target USD 19.00

Sentiment: Positive

Enerplus’ third-quarter results (see table below) were above Street consensus on FFO/share and production volumes, while in line on capital spending. In conjunction with its third-quarter results, Enerplus provided a favorable guidance update and boosted its quarterly dividend by 10%.

Conference call

• Time: 11:00 am ET, Friday, November 4
• (888) 390-0546 (Conference ID: 58265396) • Replay:
• (888) 390-0541 (Passcode: 265396 #)

2Key points

• Enerplus reported third-quarter production of 107,800 boe/d – 3% above our expectation. Oil & liquids production of 68,400 bbl/d was up 20% sequentially (vs. our expectation of 15%). Enerplus expects similar total production levels of approximately 107,500 boe/d in the fourth quarter.

Williston Basin production averaged 73,200 boe/d during the quarter, up 25% sequentially.
Marcellus production averaged 165 mmcf/d during the quarter, down 2% sequentially.
Enerplus’ net debt stood at $391 million as of September 30, a reduction of approximately 28% since June 30.
The company returned approximately $123.3 million to shareholders in the third quarter, having paid $11.5 million in dividends

and repurchasing 7.9 million common shares for $111.8 million (avg. price of $14.13 per share). Subsequent to quarter-end and

up to November 2, Enerplus repurchased 2.7 million common shares for about $43.7 million (avg. price of $16.00 per share).
Third-quarter opex was $10.47/boe (3% above our estimate of $10.16/boe).
Enerplus recently announced the sale of its remaining Canadian assets (3,000 boe/d, 99% crude oil) in Alberta and Saskatchewan

to Surge Energy for a total consideration of C$245 million ($180 million).
Cash taxes of $8 million during the quarter were below our outlook of $12 million ($0.02/share impact).

2022 Guidance

• Enerplus slightly increased their midpoint 2022 production outlook by 875 boe/d (1%) to 100,375 boe/d, despite asset sales this year.

• Enerplus increased its 2022 midpoint liquids production guidance to 62,000 bbl/d, up 2% from 61,000 bbl/d previously.

• Enerplus refined its 2022 capital spending guidance to $430 million, within its prior guidance range of $400-$440 million. • Enerplus also increased its Bakken crude oil price differential guidance to $1.25/bbl above WTI (previously $1.00/bbl).