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Investor Update – Enerplus Corp

Enerplus Corp · May 12, 2014 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Update – Enerplus Corp – slide 1
    Investor Update May 12, 2014 ERF TSX & NYSE
  2. Investor Update – Enerplus Corp – slide 2
    Enerplus Proven Strategy Focused, top tier Strong financial resource plays & flexibility mature assets with low decline Deliver sustainable, profitable growth and income to Disciplined, investors return-based capital Competitive…
  3. Investor Update – Enerplus Corp – slide 3
    2014 Focus Operational execution Production growth of approximately 10% Capital discipline Target capital efficiencies…
  4. Investor Update – Enerplus Corp – slide 4
    Q1 2014 Results on Track ERF TSX & NYSE Q4 2013 Q1 2014 2014 Guidance Average Production (BOE/day) 94,167 98,821 96,000-100,000 Capital Expenditures (MM) 223 218 800 Funds Flow (MM) 181 221 - Debt-to-Funds Flow Ratio* 1.4x 1.3x -…
  5. Investor Update – Enerplus Corp – slide 5
    Core Areas 2014E Production by Core Area U.S. OilWilliston Basin U.S. Oil Operated Bakken/Three Forks position with 145 net future 25% 2014 Capital drilling locations U.S. 40% Upside potential via downspacing, additional Three Forks…
  6. Investor Update – Enerplus Corp – slide 6
    Demonstrated Growth Annual Production Reserves(2) 98(1) 450 100 90 406 90 400 82 80 346 75 350 322 306 MBOE/day 70 56 300 43% 48 MMBOE 49% 60 42 250 40% 42 43% 50 47% 200 40 150 30 100 49% 53% 55% 47% 20…
  7. Investor Update – Enerplus Corp – slide 7
    Demonstrated Per Share Growth Production/share Reserves/share(2) 0.20 2.25 0.18(1) Production Per Thousand Shares 0.18 2.00 Reserves Per Thousand Shares 0.16 2.00 0.16 0.15 0.15 1.78 1.74 1.71 1.75 0.14 1.50 0.12…
  8. Investor Update – Enerplus Corp – slide 8
    Competitive Reserve Addition Costs F&D Costs* FD&A Costs* 30 30 26.26 25 24.21 25 22.92 20 3 year: 20 17.89 /BOE /BOE 19.25 3 year: 15 15 14.66 11.28 10 10 8.36 5 5 0 0 2011 2012 2013 2011 2012 2013 * Based…
  9. Investor Update – Enerplus Corp – slide 9
    Delivering Funds Flow Growth per Share 5.00 4.41 4.00 3.76 Higher production volumes 3.29 and oil weighting has helped 3.19 drive funds flow growth over per Share 3.00 past three years 2.00 Q1 funds flow of 221 million…
  10. Investor Update – Enerplus Corp – slide 10
    Improved Sustainability 2.0 2.0 D/FF 1.8 D/FF 1.7x 1.8 1.6x D/FF 1.6 1.6 1.4x Debt to Funds Flow Ratio 1.4 1.4 D/FF* 1.2x Payout % 1.2 1.2 APO 1.0 1.0 212% APO 174% 0.8 0.8 0.6 APO APO* 0.6 114% 111% 0.4…
  11. Investor Update – Enerplus Corp – slide 11
    Funds Flow Protection WTI Crude Oil Hedges* Natural Gas Hedge Positions* Rest of 2014 Rest of 2014 9% AECO Swaps 4.23/Mcf 36% 53% 8% NYMEX Collars US94.24/bbl US4.30 - 5.08/Mcf 64% 30% NYMEX Swaps US4.14/Mcf** 12% C4.125…
  12. Investor Update – Enerplus Corp – slide 12
    Core Oil Assets
  13. Investor Update – Enerplus Corp – slide 13
    Operated Light Oil Assets in the Williston Basin 2014E Production: 28,000 BOE/day Sleeping Giant 20% Fort Berthold 80% 2013 2P Reserves*: 131 MMBOE Sleeping Giant Fort Sleeping (Elm Coulee) Berthold Giant 20% Dunn…
  14. Investor Update – Enerplus Corp – slide 14
    Top Tier Oil Asset: Fort Berthold, North Dakota Key Facts OOIP 1722 MMbbls/1280 DSU OOIP (W.I.) 1 billion bbls Net Acreage 73,000 (114 sections) 2P Reserves at Dec 31, 2013 105 MMBOE Best Est. Contingent 39 MMBOE Resource at Dec…
  15. Investor Update – Enerplus Corp – slide 15
    Fort Berthold: Production Growth 25 22 20 2014E annual production growth of 33% to 17 +22,000 BOE/day MBOE/day 15 12 Generated 40 million 10 of free cash flow* in Q1 2014 5 5 - 2011 2012 2013 2014E * Free…
  16. Investor Update – Enerplus Corp – slide 16
    Fort Berthold: Reserves* Growth 2P: 110 105.4 100 Replaced 400% of 2013 90 2P: 86.1 production adding 24.9 80 MMBOE of reserves at 70 F&D cost (incl. FDC) of 2P: 19.74/BOE MMBOE 60 56.2 50 Three year F&D cost of 40…
  17. Investor Update – Enerplus Corp – slide 17
    Significant Running Room at Fort Berthold YE 2P + CR (EUR)* 145 net future drilling locations 7 years of inventory 2P recovery factor 15% Downspacing Upside 150 net additional locations 7 years additional inventory Additional…
  18. Investor Update – Enerplus Corp – slide 18
    Evaluating Upside Potential at Fort Berthold Snakes Pad Snakes (Downspacing & Lower Three Forks) 8 well density test & Lower TF Hognose (2nd Bench) Best E+ Three Forks well drilled to date Turtles/Butterflies 60,000 bbls oil in 26…
  19. Investor Update – Enerplus Corp – slide 19
    Improving Capital Efficiencies at Fort Berthold CAPITAL EFFICIENCY IMPROVED in 2013 BY 40% vs 2012 14 13.1 35 12.1 30,000 bbls 12 30 30 Day Cumulative Oil (Mbbls) Long Well Cost (USMM) 25 10 7.8 20,000 bbls 8 7.4 20…
  20. Investor Update – Enerplus Corp – slide 20
    North Dakota Bakken/Three Forks ResultsHow does Enerplus compare E+ Best Bakken E+ Best Peak Calendar Month Cumulative Production* (bbls) Three Forks Enerplus wells drilled without high volume completions Enerplus wells…
  21. Investor Update – Enerplus Corp – slide 21
    Fort Berthold: Improved Performance through Completion Optimization EUR EUR EUR 800 650 500 800 Mbbls Mbbls Mbbls Mbbls NPV10 (MM) 14.7 9.9 4.7 650 Mbbls IRR (%) 62 42 24 BESC (/bbl) 51.09 58.63 71.38 Payout (Yrs) 1.7 2.3 3.5…
  22. Investor Update – Enerplus Corp – slide 22
    Enerplus Takeaway Capacity in Montana & North Dakota Cromer Balanced transportation strategy East through 2015: Coast by West Rail Swing Access Coast by volume to Rail Rail Clearbrook Pipeline Capacity Guernsey Mandan…
  23. Investor Update – Enerplus Corp – slide 23
    Low Decline Canadian Waterflood Assets Key Facts 6% 19% 6% OOIP (W.I.) 1.3 billion bbls 10% Recovery Factor to Date 24% 2014E 2P Reserves at Dec 31, 2013 87 MMBOE Production 9% Best Est. Contingent Resource 59 MMbbls 28% (Dec…
  24. Investor Update – Enerplus Corp – slide 24
    Free Cash Flow from Waterflood Assets 350 NOI: 326 NOI: NOI: 306 312 NOI: 138 NOI: 300 272 172 273 120 116 152 Average 50% 250 reinvestment delivering 5% Million 200 150 58% CAGR in 56% 58% 51% production 44%…
  25. Investor Update – Enerplus Corp – slide 25
    Core Natural Gas Assets
  26. Investor Update – Enerplus Corp – slide 26
    U.S. Core Gas: Marcellus Enerplus Land Key Facts Thickness Marcellus Well Net Acreage 57,500 acres 2P Reserves Dec 31, 601 Bcf 2013 Best Est. Contingent 1,340.3 Bcf Resource (Dec 31, 2013) Future Net Drilling 240 wells…
  27. Investor Update – Enerplus Corp – slide 27
    Marcellus: Delivering Production Growth Annual Production 180 180 Marcellus production 160 continues to exceed 140 expectations 120 MMcf/day 95 90% increase year-over- 100 year 80 60 Marcellus generated 40 41 15…
  28. Investor Update – Enerplus Corp – slide 28
    Marcellus: Delivering Reserves* Growth 2P: 601 600 2013 proved plus probable reserves increased by 168% 500 50% of corporate 2P natural Bcf of Natural Gas 400 gas reserves 300 2P: 225 37 net future drilling 1P: 200…
  29. Investor Update – Enerplus Corp – slide 29
    Marcellus: Superior Dry Gas Performance and Competitive Economics Tighter stage spacing and increased proppant continues to improve performance 2013 - 2014 Gross On-Streams EUR EUR EUR US4.50/Mcf 13 Bcf 12 Bcf 10 Bcf NPV10 (MM) 10.5…
  30. Investor Update – Enerplus Corp – slide 30
    Marcellus Sales Price Mix Q1 2014 55% of Q1 production delivered on TGP Z4 300 Transco, 45% on TGP however Spot: 39% sales mix paints a different picture Regional firm, must-take contracts Transco Z6 Transco Leidy NNY: of 70…
  31. Investor Update – Enerplus Corp – slide 31
    Building the Near-Term Marcellus Basis View 14 Incremental Takeaway Capacity 12 Incremental NE Demand 10 Incremental Export out of region Midpoint - Cume Estimated Production Growth 8 Bcf/d 6 4 2 0 Q1 2014…
  32. Investor Update – Enerplus Corp – slide 32
    Northeast US Pipeline Projects 12 Bcf of Projects Planned Project Owner Incremental Takeaway (Bcf/day) In Service REX Seneca Lateral KM 0.2 Q1 2014 ANR Lebanon Reversal TCPL 0.4 Q1 2014 Tenessee Rose Lake 300 Line KM 0.2 Q4 2014 1.9…
  33. Investor Update – Enerplus Corp – slide 33
    Core Canadian Natural GasDeep Basin Core growth area with approximately 450 potential net future drilling locations in the Duvernay Wilrich and Duvernay 85,000 net acres of undeveloped land, 160,000 net acres of 100% WI high…
  34. Investor Update – Enerplus Corp – slide 34
    Canadian GasDeep Basin (Wilrich) R21 R20 R19 R18 R17 R16 R15 R14W5 Contiguous land blocks in highly prospective regions 36 31 36 31 36 31 36 31 36 31 36 31 36 31 Key Facts T53 T53 - Edson smaller acreage position Key properties…
  35. Investor Update – Enerplus Corp – slide 35
    WilrichWell Performance 4,000 16-15-049-19W5 13-17-050-19W5 EUR EUR EUR 3,500 15-18-050-19W5 AECO 4.00/Mcf 7 Bcf 6 Bcf 5 Bcf 13-29-050-19W5 NPV10 (MM) 6.7 5.3 3.9 3,000 14-30-050-19W5 IRR (%) 46 38 30 Cumulative Production…
  36. Investor Update – Enerplus Corp – slide 36
    Duvernay ShaleWillesden Green R12W5 R11W5 R10W5 R9W5 R8W5 R7W5 R6W5 R5W5 R4W5 R3W5 85,000 net acres (100% W.I.) land Producing Wells Drilled Wells position built over past 3 years at Licensed…
  37. Investor Update – Enerplus Corp – slide 37
    Our Competitive Advantage Focused portfolio in top tier resource plays: Bakken, Marcellus, Deep Basin & Waterfloods Continued focus on capital disciplinedelivering approximately 10% production growth in 2014 with a target capital…
  38. Investor Update – Enerplus Corp – slide 38
    Supplemental Information
  39. Investor Update – Enerplus Corp – slide 39
    Drilling Inventory/Opportunity 2P & CR Inventory*: 650 Future Drilling Locations Core Waterfloods Marcellus 160 240 Deep Basin Fort Berthold 100 145 * 2P Reserves and Contingent Resources locations at December 31,…
  40. Investor Update – Enerplus Corp – slide 40
    Production Composition 2014E Production 2014E Crude Oil Composition U.S. Liquids U.S. Gas Canada Heavy 24% 31% 22% Canada Medium U.S. Light 11% 58% Canada Canada Gas Liquids 20% Canada Light 25% 9% 2014…
  41. Investor Update – Enerplus Corp – slide 41
    2014 Funds Flow Sensitivities Est. effect on Est. effect on 2014 Funds Flow 2014 Funds Flow per Share 2014 Sensitivities ( Million) (/share) Change of 5.00/bbl WTI crude oil 20.6 0.10 Change of 0.50/Mcf NYMEX natural gas 26.2 0.13…
  42. Investor Update – Enerplus Corp – slide 42
    Debt Composition as at March 31, 2014 Senior Bank Credit Facility - 1 billion Unused Notes 11 banks in Enerplus bank credit facility Capacity US770MM* 813MM CDN70MM Unsecured, covenant-based with current borrowing rate of less…
  43. Investor Update – Enerplus Corp – slide 43
    Senior Notes Maturities* Average interest rate of 5.5%** 700 643 600 500 400 Millions 300 200 96 100 51 50 0 2014 2015 2016 2017 2018 and beyond * As at March 31, 2014. US amounts converted at US/CDN 1.1053.…
  44. Investor Update – Enerplus Corp – slide 44
    Enerplus Share Ownership Investor Composition Geographic Composition Total Retail Total Institutional 65% 35% 21% 44% 42% 14% 58% 21% US & Other Retail Canadian Retail US & Other Institutional Canadian Institutional…
  45. Investor Update – Enerplus Corp – slide 45
    Board of Directors Douglas R. Martin, Chairman of the Board (1)(3) Mr. Martin, the Chairman of the Board of Directors of Enerplus, has been President of Charles Avenue Capital Corp., a private merchant banking company, since April 2000.…
  46. Investor Update – Enerplus Corp – slide 46
    Board of Directors continued Hilary Foulkes, Director (6)(12) Ms. Foulkes has more than 30 years of experience within the Canadian oil and gas industry focused in the areas of exploration, development and investment banking. She has held…
  47. Investor Update – Enerplus Corp – slide 47
    Board of Directors continued Elliott Pew, Director (2)(3) Mr. Pew, the incoming Chairman of Enerplus, is a co-founder of Common Resources and served as its Chief Operating Officer until the company was sold in May, 2010. He is currently a…
  48. Investor Update – Enerplus Corp – slide 48
    Investor Relations Contacts Jo-Anne M. Caza 1-800-319-6462 Vice-President, Corporate & Investor Relations investorrelationsenerplus.com 403-298-2273 jcazaenerplus.com www.enerplus.com The Dome Tower Suite 3000, 333 7th Ave SW…

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