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 Jun 08, 2023 9:42am

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June 7, 2023

Enerplus Corporation
Highlights from the RBC Global Energy, Power & Infrastructure Conference

NYSE: ERF | USD 14.65 | Outperform | Price Target USD 20.00

Sentiment: Neutral

Enerplus Corporation (NYSE: ERF – Outperform) presented today at the RBC Global Energy, Power & Infrastructure Conference, with Ian Dundas (President & CEO) and Drew Mair (Senior Manager, Investor Relations, Corporate Planning and Reserves) in attendance. Highlights from the company’s breakout session are summarized below:

In one line: Enerplus remains our favorite intermediate producer given its strong balance sheet, capable leadership team, solid execution and rising shareholder returns.

Rapid deleveraging. Enerplus highlighted that the company is rapidly moving towards a net cash position which the company anticipates it could reach by the end of the year. The company noted that its balance sheet positioning could open the door to accelerated buybacks.
SIB decision. The company views a substantial issuer bid (SIB) as a tool it is ready and willing to use. Enerplus will weigh the decision of going debt free vs. buying back stock given a multitude of factors including its share price and the commodity price environment.
Shareholder returns. Enerplus reiterated its commitment of at least 60% of its free cash flow in 2023 toward shareholder returns. The company plans to repurchase the remaining balance of common share repurchases under its existing NCIB by the end of July and will look to renew their 10% NCIB in August. In regard to their base dividend, Enerplus noted that it would like to grow it at a sustainable and defensible rate.
2023 drilling program. Enerplus expects to bring approximately 20 wells on-stream in the second quarter, which is expected to drive strong oil growth in the second half of the year. The company noted that they expect a 50-60 wells per annum development pace going forward.
Re-frac opportunities. Enerplus sees re-frac opportunities in understimulated wells within the Bakken, with some 60 re-frac opportunities in its Dunn County acreage (three of which have already been executed).
A&D market. The company sees the market for A&D as hard to call at this point in time, noting that they have no urgency to do anything imminently on this front. However, should it choose to do so, the Bakken would be its first choice.
DJ Basin. Enerplus drilled two (100% wi) wells in the first quarter. The company has designated its 1,000 boe/d of production in the DJ as non-core, but given a volatile A&D market, remains content to unlock value organically.
Little Knife. The company is bringing online two pads at Little Knife, with more information expected on the second-quarter conference call. Enerplus noted that the well economics at Little Knife resemble results at Fort Berthold.