This news release includes forward-looking statements and information
within the meaning of applicable securities laws. Readers are advised
to review the "Cautionary Note Regarding Forward-Looking Information
and Statements" at the conclusion of this news release. For information
regarding the presentation of certain information in this news release,
see "Currency, BOE and Operational Information" at the conclusion of
this news release.
CALGARY, Oct. 22, 2013 /CNW/ - Enerplus Corporation ("Enerplus") (TSX:
ERF) (NYSE: ERF) is pleased to announce that as a result of strong
operational performance, we are increasing our 2013 estimates for
annual average and exit production while maintaining our capital
spending guidance.
Production for the nine months ended September 30, 2013 averaged 88,300
BOE/day, ahead of our full year forecast of 85,000 BOE/day. During the
third quarter, we produced an average of 87,700 BOE/day, down slightly
from the second quarter, but in line with expectations due to planned
turn-around activity, lower capital spending earlier in the year and
the sale of 1,300 BOE/day of non-core production. Production during the
third quarter was weighted 48% to crude oil and natural gas liquids.
We continue to see strong performance from our core areas in both Canada
and the U.S. with our Bakken and Marcellus assets delivering ahead of
expectations. Production from the Fort Berthold region averaged
approximately 18,000 BOE/day in the third quarter, up 19% from the
second quarter, achieving our 2013 forecast exit rate ahead of
schedule. Production from the Marcellus region also continues to
surpass our expectations, averaging over 83 MMcf/day during the third
quarter, compared to our previous 2013 exit forecast of 75
MMcf/day. Given this strong performance, we now expect daily production
will average approximately 87,500 BOE/day during 2013.
We have also entered into an agreement to sell, subject to customary
closing conditions, an additional 900 BOE/day of non-core liquids
production for approximately $105 million before closing adjustments.
The increase in annual average guidance to 87,500 BOE/day assumes the
closing of the sale in the fourth quarter.
Despite the announced divestments we are also increasing our exit
production forecast to 88,000 BOE/day, which is the high end of our
original guidance range. Crude oil and liquids are still expected to
represent approximately 48% of the total production forecast. We remain
on track with our original capital guidance of $685 million as well as
operating and general and administrative cost guidance.
Based upon this updated forecast, we expect to deliver total annual
average production growth of approximately 7% in 2013 representing 4%
production growth per share.
INFORMATION REGARDING FINANCIAL AND OPERATIONAL INFORMATION
Currency and Production Amounts
All amounts in this news release are stated in Canadian dollars unless
otherwise specified. All production volumes are presented on a company
interest basis, being the Company's working interest share before
deduction of any royalties paid to others plus the Company's royalty
interests. Company interest is not a term defined in Canadian National
Instrument 51-101- Standards of Disclosure for Oil and Gas Activities)
and may not be comparable to information produced by other entities.
Barrels of Oil Equivalent and Cubic Feet of Gas Equivalent
This news release also contains references to "BOE" (barrels of oil
equivalent). Enerplus has adopted the standard of six thousand cubic
feet of gas to one barrel of oil (6 Mcf: 1 bbl) when converting natural
gas to BOEs. BOEs may be misleading, particularly if used in
isolation. The foregoing conversion ratios are based on an energy
equivalency conversion method primarily applicable at the burner tip
and do not represent a value equivalency at the wellhead. Given that
the value ratio based on the current price of oil as compared to
natural gas is significantly different from the energy equivalent of
6:1, utilizing a conversion on a 6:1 basis may be misleading.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains certain forward-looking information and
statements ("forward-looking information") within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "guidance",
"objective", "ongoing", "may", "will", "project", "should", "believe",
"plans", "intends", "budget", "strategy" and similar expressions are
intended to identify forward-looking information. In particular, but
without limiting the foregoing, this news release contains
forward-looking information pertaining to the following: achievement
of operational targets for 2013; Enerplus' expected operating and
general and administrative costs and oil and gas production volumes for
2013; the proportion of our anticipated oil and natural gas production
that is hedged; Enerplus' financial capacity to support capital
spending plans and its dividend; potential asset divestments and the
impact of such on our 2013 production; future efficiencies and reserves
and production growth from capital spending; future capital and
development expenditures and the allocation thereof among our assets;
future development and drilling locations, plans and costs; the
performance of and future results from Enerplus' assets and operations,
including anticipated production levels, decline rates and future
growth prospects; the expected change of our status from "foreign
private issuer" to U.S. domestic issuer as of January 1, 2014 and
expected changes in our reporting related thereto; and our ability to
improve our trading multiple and create significant value for our
shareholders.
The forward-looking information contained in this news release reflects
several material factors and expectations and assumptions of Enerplus
including, without limitation: that Enerplus' operations and
development plans will achieve the expected results; the general
continuance of current or, where applicable, assumed industry
conditions, including third party costs; the continuation of assumed
tax, royalty and regulatory regimes; commodity price and cost
assumptions; the continued availability of adequate debt and/or equity
financing, cash flow and other sources to fund Enerplus' capital and
operating requirements as needed; the continued availability and
sufficiency of our funds flow and availability under our bank credit
facility to fund our working capital deficiency; the extent of its
liabilities; and that Enerplus will be able to complete planned asset
sales. Enerplus believes the material factors, expectations and
assumptions reflected in the forward-looking information are reasonable
but no assurance can be given that these factors, expectations and
assumptions will prove to be correct.
The forward-looking information included in this news release is not a
guarantee of future performance and should not be unduly relied upon.
Such information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking information
including, without limitation: changes in commodity prices; changes in
the demand for or supply of Enerplus' products; unanticipated operating
results, results from development plans or production declines; changes
in tax or environmental laws, royalty rates or other regulatory
matters; changes in development plans by Enerplus or by third party
operators of Enerplus' properties; increased debt levels or debt
service requirements; inaccurate estimation of Enerplus' oil and gas
reserves and resources volumes; limited, unfavourable or a lack of
access to capital markets; an inability to complete planned asset
sales; increased costs; a lack of adequate insurance coverage; the
impact of competitors; reliance on industry partners; and certain other
risks detailed from time to time in Enerplus' public disclosure
documents (including, without limitation, those risks identified in
Enerplus' Annual Information Form and Form 40-F for the year ended
December 31, 2012, filed on SEDAR and EDGAR, respectively, on February
22, 2013).
The forward-looking information contained in this news release speaks
only as of the date of this news release, and none of Enerplus or its
subsidiaries assume any obligation to publicly update or revise them to
reflect new events or circumstances, except as may be required pursuant
to applicable laws.
SOURCE Enerplus Corporation
Ian C. Dundas
President & Chief Executive Officer
Enerplus Corporation