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 Jan 26, 2024 10:58am

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Post# 35847023

RBC

January 25, 2024

Enerplus Corporation
Provides Fourth-Quarter and Operational Update

NYSE: ERF | USD 14.40 | Outperform | Price Target USD 21.00

Sentiment: Neutral

Enerplus announced today its production, capital spending, and return of capital results for the fourth quarter of 2023, alongside an update regarding production impacts from the recent cold weather in North Dakota in the first quarter of 2024.

Key details

• Enerplus highlighted fourth-quarter production volumes of 103,500 boe/d (vs. RBCe 99,000 boe/d), which was about 5% above the high end of its fourth-quarter guidance of 95,000–99,000 boe/d.

Additionally, the company’s fourth-quarter liquids production volumes of 67,100 bbl/d (vs. RBCe 64,000 bbl/d) was 4% above the high end of its 60,500–64,500 bbl/d guidance for the quarter.
Enerplus’s 2023 annual production of 100,000 boe/d (vs. RBCe 98,900 boe/d) was 1% above the high end of its 98,000–99,000 boe/d full-year guidance, including liquids production of 62,200 bbl/d (1% above RBCe 61,400 bbl/d).
The company’s fourth-quarter capital spending was $91 million (6% above RBCe $86 million), which resulted in full-year 2023 capital spending of $532 million (vs. RBCe $530 million), within its $520–540 million guidance.
In the fourth quarter of 2023, the company repurchased approximately $93.3 million of its common shares (approximately 5.8 million shares at $16.09 per share) and paid $12 million of dividends.
Enerplus also provided an operational update highlighting that in mid-January 2024, extremely cold temperatures led to power outages and production disruptions in North Dakota. The company’s impacted production has now been largely restored.
Due to the impact of extreme cold weather, the company expects its first-quarter 2024 liquids production to be approximately 2,000–3,000 bbl/d lower than previously forecast. This maps to an approximately 4–5% production impact on our forecast first- quarter 2024 liquids production of 57,000 bbl/d (2–3% production impact on total estimated first-quarter 2024 volumes of 91,200 boe/d).
Enerplus will release its 2024 guidance in connection with its fourth-quarter and full-year 2023 results on February 22. However, it highlighted that it remains well positioned to execute its 2024 operational plan despite extreme weather impacts, which includes liquids production of approximately 64,000 bbl/d (2% above RBCe 62,500 bbl/d) amid capital spending of approximately $550 million.
Our current 2024 outlook for Enerplus includes production volumes of 97,300 boe/d amid $550 million of capital spending.