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Enerplus Corp. turned positive in afternoon trading after announcing it expects first-quarter liquids output to fall short of previous expectations due to power outages and production disruptions stemming from “extremely” cold temperatures in North Dakota.
The Calgary-based is estimating production will be be approximately 2,000 to 3,000 barrels per day lower than previously forecast.
“Despite this, Enerplus remains well positioned to efficiently execute its 2024 operational plan,” it said in a press release. “Inclusive of the impacts from the January weather event, the Company anticipates delivering 2024 liquids production of approximately 64,000 barrels per day with annual capital spending of approximately $550 million. Enerplus will provide 2024 guidance in connection with its fourth quarter and full-year 2023 results to be released on February 22nd, 2024.”
Enerplus said fourth-quarter 2023 production came in at 103,500 barrels of oil equivalent per day, exceeding the top end of its guidance (95,000-99,000). They attributed the beat to “continued strong productivity from both the Company’s 2023 well program and base production.”
“Overall, we view this event as positive given strong Q4/23 performance, as well as initial 2024 production guidance that exceeded our prior estimate, despite the January production loss; updating our model to account for this improves our 2024e CFPS by 3 per cent,” said ATB Capital Markets analyst Patrick O’Rourke.