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May 2015 Investor Presentation – Enerplus Corp

Enerplus Corp · May 5, 2015 · 55 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. May 2015 Investor Presentation – Enerplus Corp – slide 1
    ERF: TSX & NYSE Investor Update May 2015
  2. May 2015 Investor Presentation – Enerplus Corp – slide 2
    Our Strategy: Sustainable Growth & Income Operational Conservative Top Tier Assets Excellence Financial Strategy Top resource plays in Proven technical expertise Strong balance sheet North America Disciplined, returnfocused Hedging…
  3. May 2015 Investor Presentation – Enerplus Corp – slide 3
    Track Record: Significant Delivery of Organic Production Growth Production MBOE/day BOE/share Production growth of 15% YOY in 2014 103 (13% per share), driven by Fort 105 0.21 Berthold and the Marcellus 90 90 82 Achieved 2014…
  4. May 2015 Investor Presentation – Enerplus Corp – slide 4
    Track Record: Consistent Reserves Growth 2P Reserves(1) MMBOE BOE/share 2P reserves growth of 7% YOY in 2014 450 2.20 429 (6% per share) replacing 175% of 401 50% 400 production 48% 341 2.09 2.00 350 316 75 MMBOE of 2P reserves…
  5. May 2015 Investor Presentation – Enerplus Corp – slide 5
    Track Record: Continuous Improvement in F&D Costs 2P F&D and FD&A Costs(1)(2) /BOE Corporately, 2014 2P F&D cost split was: 25 24.21 Oil: 18.90/BOE 22.92 Gas: 0.65/Mcf 20 (3) 2014 recycle ratio of 2.7x 15 F&D 3 year: 14.26 Fort…
  6. May 2015 Investor Presentation – Enerplus Corp – slide 6
    Track Record: Continuous Improvement in Capital Efficiencies Capital Efficiencies(1) /BOE/day Strong operational focus driving 70,000 improvement in capital efficiencies 60,000 60,000 Significant efficiencies realized in Fort Berthold…
  7. May 2015 Investor Presentation – Enerplus Corp – slide 7
    Track Record: Funds Flow Growth Supported by Growing Production Funds Flow Millions /share Funds flow growth of 14% YOY in 2014 900 859 4.50 (12% per share) 800 754 4.00 2015E funds flow will be impacted by 4.20 700 645 lower…
  8. May 2015 Investor Presentation – Enerplus Corp – slide 8
    Track Record: Sustainability Adjusted Payout Ratio(1)(2)(3)(4) Millions APO Positioned to weather downturn in 1,200 200% commodity prices 174% 1,000 180% Re-establish growth as commodity 160% prices and costs improve 800 160%…
  9. May 2015 Investor Presentation – Enerplus Corp – slide 9
    Track Record: Maintaining Balance Sheet Strength Debt to Funds Flow (1)(2) Net Debt Debt/ Millions Funds Flow Maintaining strong financial discipline 1,400 3.5 Debt levels to remain relatively flat 1,209 1,200 1,064 1,135 3.0 13% of…
  10. May 2015 Investor Presentation – Enerplus Corp – slide 10
    2015 Capital Allocation: Disciplined Spending 2015 Capital Allocation (480 million) U.S. Gas Canadian Lower capital spending across all four 5% Gas 5% core areas has been reduced to preserve opportunities in the portfolio Dropped…
  11. May 2015 Investor Presentation – Enerplus Corp – slide 11
    2015: Performance to Date Well positioned to achieve 2015 guidance 2015 Targets(1) Q1 2015 Actuals Capital spending: 480MM 167MM On track capex weighted to 1H AA production: 93 100 MBOE/day 100.9 MBOE/day On track Production mix: 42…
  12. May 2015 Investor Presentation – Enerplus Corp – slide 12
    Funds Flow Protection 2015 & 2016 (1)(2) WTI Crude Oil Hedge Positions Q2/15 2H 2015 2016 % Production US/bbl % Production US/bbl % Production US/bbl Downside Protection Sold Swaps 54% US90.40 26% US93.86 7% US65.50 Purchased Put -…
  13. May 2015 Investor Presentation – Enerplus Corp – slide 13
    Attractive Valuation Key Trading, Financial and Operational Information Enterprise Value(1) 4 billion Price / 2015E Funds Flow(1)(2) 5.0x Monthly Dividend / Dividend Yield(1)(3) 0.05 per share / 4% Dividend as % of Funds Flow(2) 28%…
  14. May 2015 Investor Presentation – Enerplus Corp – slide 14
    Focused Portfolio with Significant Growth Potential 2015E Production: 20% of 2015E Production Long-life, low decline Liquids 43% Large discovered OOIP; 150 future drilling Natural locations and EOR potential Gas Primary, secondary…
  15. May 2015 Investor Presentation – Enerplus Corp – slide 15
    Core Oil Assets
  16. May 2015 Investor Presentation – Enerplus Corp – slide 16
    Operated Light Oil Assets in the Williston Basin 2015E Production: 26,000 28,000 BOE/day Sleeping Giant 20% Fort Berthold 80% 2014 2P Reserves(1): 145 MMBOE Sleeping Giant Fort Sleeping (Elm Coulee) Berthold Giant 15%…
  17. May 2015 Investor Presentation – Enerplus Corp – slide 17
    Fort Berthold, North Dakota Key Facts Discovered OOIP (operated) 22 35 MMbbls/1280 DSU Discovered OOIP (operated) 1.4 billion bbls Net Acreage 74,000 acres 2P Reserves at Dec 31, 2014(1) 123 MMBOE Best Est. Economic Contingent 115…
  18. May 2015 Investor Presentation – Enerplus Corp – slide 18
    Fort Berthold Delivering Growth Annual Production(1) Reserves(2) 2015 annual production expected to be flat YOY, with Replaced over 300% of 2014 production adding approximately 25% capital reduction from 2014 levels 24 MMBOE of 2P…
  19. May 2015 Investor Presentation – Enerplus Corp – slide 19
    Enerplus Concentrated Core Position & Room to Run The Core represents ND Acreage Quality ND Drilling Density Avg Long Laterals Peak Monthly Production By Township Total Wells per Township 10% of the basin Lower well density in our…
  20. May 2015 Investor Presentation – Enerplus Corp – slide 20
    Fort Berthold: Increasing to Average 7 Well Density/DSU Enerplus Hognose Successful TF2 Entire acreage prospective for Enerplus Bakken and 1st Bench Three Forks Swallowtail TF2 270 future drilling locations 8 75% are long…
  21. May 2015 Investor Presentation – Enerplus Corp – slide 21
    Improving Productivity through Completion Enhancements 2012 2013 2014 Completion Sliding sleeve Sliding sleeve and plug & perf Plug & perf Evolution 28-29 stages 34-42 stages 38-44 stages 270 lbs ceramic proppant per 750-1,000 lbs…
  22. May 2015 Investor Presentation – Enerplus Corp – slide 22
    Fort Berthold Completion Performance Improving Economics Fort Berthold Type Curves Type Well Economics(1)(2)(3) 50 1,200 Mbbl Type Curve WTI: US60/bbl 1,200 Mbbls 900 Mbbls 600 Mbbls 900 Mbbl Type Curve NYMEX: US3.25/Mcf (1,400 MBOE)…
  23. May 2015 Investor Presentation – Enerplus Corp – slide 23
    Fort Berthold Completion Evolution Increasing Production Rates Completion Costs/Stage 350 319 Despite larger fracs, the 300 242 switch to sand and USK 250 218 196 223 213 188 effective cost 200 management has helped…
  24. May 2015 Investor Presentation – Enerplus Corp – slide 24
    Fort Berthold: Improving Capital Efficiencies (1) 25,000 Reduction in well costs and significant increase in IP rates Capital Efficiencies (US/BOE/day) 19,500 20,000 17,000 driving top quartile 15,500 capital…
  25. May 2015 Investor Presentation – Enerplus Corp – slide 25
    Fort Berthold: Testing Density & Lower Benches Snakes Pad 8 Well Density & TF2 Butterflies/Turtles pad 8 Well Density & TF2 Fur Bearers pad 7 Well Density Bakken Enerplus down spacing test Three Forks (7 well density)…
  26. May 2015 Investor Presentation – Enerplus Corp – slide 26
    Fort Berthold: Proven Outperformance Continuously looking to improve performance: Stages/entry points Proppant Injection rate Fluid Geology may drive variability of optimum completion style by area Economic returns key…
  27. May 2015 Investor Presentation – Enerplus Corp – slide 27
    Fort Berthold Townships Bakken/TF Laterals (1) First 6 Months Oil Production Enerplus wells drilled without high volume completions Enerplus wells drilled with high volume completions First 6 Calendar Month Oil Production…
  28. May 2015 Investor Presentation – Enerplus Corp – slide 28
    Fort Berthold U.S. Crude Marketing U.S. Bakken: 540,000 bbls/day of regional pipe capacity actively Currently Available Capacity(1) utilized and another 200,000 bbls/day coming into service after 2016 Rail loading capacity is plentiful…
  29. May 2015 Investor Presentation – Enerplus Corp – slide 29
    Fort Berthold: Natural Gas and NGL Production Fort Berthold (Q1 2015 BOE/day) 6% 7% Gas and NGLs are gathered and marketed by our gatherer at market netback pricing Realized natural gas price is higher than NYMEX because of…
  30. May 2015 Investor Presentation – Enerplus Corp – slide 30
    Low Decline Canadian Waterflood Assets Key Facts Discovered OOIP 1.1 billion bbls Recovery Factor at Dec 31, 2014(1) 22% 2P Reserves at Dec 31, 2014(2) 66 MMBOE Best Est. Economic Contingent 59 MMBOE Resources Dec 31, 2014(2) EOR &…
  31. May 2015 Investor Presentation – Enerplus Corp – slide 31
    Waterflood - Brooks Overview Key Facts North Discovered OOIP 223 MMbbls Recovery Factor at Dec 31, 2014 28% (1) 2P Reserves at Dec 31, 2014 10.5 MMBOE Best Estimate Economic Contingent 0.8 MMBOE (1) Resources at Dec 31, 2014…
  32. May 2015 Investor Presentation – Enerplus Corp – slide 32
    Brooks South Hz Wells and Economics Brooks South Horizontal Wells Type Well Economics Cum. Oil MBOE WTI: US60/bbl US80/bbl 30 NYMEX: US3.25/Mcf US4.00/Mcf USD/CDN: 1.25 1.15 25 Capital (MM) 2.1 2.1 IP30 (BOE/day) 147 147 20 Reserves…
  33. May 2015 Investor Presentation – Enerplus Corp – slide 33
    Core Natural Gas Assets
  34. May 2015 Investor Presentation – Enerplus Corp – slide 34
    Marcellus NE Pennsylvania Enerplus Land Key Facts Thickness Marcellus Well Net Acreage 52,000 acres 2P Reserves Dec 31, 2014(1) 840 Bcf Best Est. Economic Contingent 1,400 Bcf Resources Dec 31, 2014(1) Future Net Drilling…
  35. May 2015 Investor Presentation – Enerplus Corp – slide 35
    Marcellus Delivering Growth Annual Production(1) Reserves(2) 2015 production expected to be almost flat YOY, despite 2P reserves increased 40% in 2014, replacing 450% roughly 75% capital reduction from 2014 levels of 2014 production…
  36. May 2015 Investor Presentation – Enerplus Corp – slide 36
    Marcellus: Superior Dry Gas Performance and Competitive Economics (1)(2) Tighter stage spacing and increased proppant continues to improve performance 2013 - 2014 Gross On-Streams EUR EUR US 4.00/Mcf 10 Bcf 15 Bcf IP30, MMcf/d…
  37. May 2015 Investor Presentation – Enerplus Corp – slide 37
    Marcellus Well Cost & Performance Evolution Total Well Cost 12,000 10,000 10,000 8,000 30 Day Capital Efficiency US Thousands 8,000 7,000 6,000 4,000 7,500 8,000 2,000 7,000 0 5,500 US/BOE/day 2012 2013 2014 6,000…
  38. May 2015 Investor Presentation – Enerplus Corp – slide 38
    Marcellus Sales Price Mix Q1 2015 Regional firm, must-take contracts of 140 MMcf/day in TGP Z4 300 place through Q3 2015 Spot: 38% (includes 10 MMcf/day of pipeline capacity), declining to Transco Z6 50 MMcf/day in Q2 2016 Transco…
  39. May 2015 Investor Presentation – Enerplus Corp – slide 39
    Northeast Pennsylvania Pipeline Projects: 8 Bcf/d of Projects Planned Incremental Takeaway Project Pipeline Owner Destination In Service (MMcf/day) Rose Lake 300 TGP KM 230 NE Flowing Transco - Northeast Connector Transco Williams…
  40. May 2015 Investor Presentation – Enerplus Corp – slide 40
    Northeast PA Marcellus Pipeline Infrastructure Future Takeaway Capacity Annual production growth could be capped at 1.5 Bcf/day based on the pace of expected pipeline additions in the NE Pa. Marcellus Should see basis relief by…
  41. May 2015 Investor Presentation – Enerplus Corp – slide 41
    Core Canadian Natural GasDeep Basin Core growth area in the Wilrich and Duvernay 160,000+ net acres of Duvernay high working interest 85,000 net acres of land undeveloped land, 100% WI Successful drilling results to date in…
  42. May 2015 Investor Presentation – Enerplus Corp – slide 42
    Canadian GasDeep Basin (Wilrich) Contiguous land blocks in highly prospective regions Key Facts Key properties Edson, Ansell, North Ansell Minehead, Hanlan - 2-well pad drilled in Q4 2014 with partners. Net Acreage 60,000 acres -…
  43. May 2015 Investor Presentation – Enerplus Corp – slide 43
    Wilrich Activity and Economics (1)(2) Operated Ansell 2-30 Wilrich pad NYMEX US4.00/Mcf Regional Sweet Spot was drilled and completed under USD/CDN 1.15 EUR EUR budget NPV10 (MM) 3.6 5.6 IRR 29% 41% Total cost of just under…
  44. May 2015 Investor Presentation – Enerplus Corp – slide 44
    Duvernay Shale - Willesden Green R12W5 R11W5 R10W5 R9W5 R8W5 R7W5 R6W5 R5W5 R4W5 R3W5 Producing Wells 85,600 net acres (100% W.I.) ENERPLUS Hz 15-8-46-9W5M On production 10/2014 Drilled Wells IP30 700 Boepd (58% liquids) Locations…
  45. May 2015 Investor Presentation – Enerplus Corp – slide 45
    Our Competitive Advantage Focused portfolio with significant future drilling inventory Demonstrated track record of delivering profitable growth in production, reserves and funds flow Strong operational capability with disciplined…
  46. May 2015 Investor Presentation – Enerplus Corp – slide 46
    Supplemental Information
  47. May 2015 Investor Presentation – Enerplus Corp – slide 47
    2015 Funds Flow Sensitivities Est. effect on 9 mos. Est. effect on 9 mos. 2015 Funds Flow 2015 Funds Flow per Share 2015 Sensitivities ( Million) (/share) Change of US5.00/bbl WTI crude oil 40 0.19 Change of US0.50/Mcf NYMEX natural…
  48. May 2015 Investor Presentation – Enerplus Corp – slide 48
    Debt Composition at March 31, 2015 Debt Composition Senior Notes Maturities(1) Bank Credit Facility - 1 billion Senior Unsecured Notes - CDN1,149 MM 11 banks in Enerplus bank credit facility Notes are rated NAIC 2 and rank equally…
  49. May 2015 Investor Presentation – Enerplus Corp – slide 49
    Reserves Composition Reserves Composition(1) Highlights MMBOE Continued reserves growth with solid 450 foundation of proved reserves 400 Marcellus: 33% of total 2P reserves 350 34% 35% 300 Fort Berthold: 29% of total 2P reserves…
  50. May 2015 Investor Presentation – Enerplus Corp – slide 50
    Track Record: Contingent Resources Economic Best Estimate Contingent Resources(1) MMBOE Contingent resources increased 900 86 MMBOE YOY in 2014 771 800 Large increase in Fort Berthold 700 contingent resources following significant…
  51. May 2015 Investor Presentation – Enerplus Corp – slide 51
    Fort Berthold Well Density Schematic 6 / 7 Well Density(1) 8 Well Density(1) TF 2 & 3 Upside(2) No Lower Three Forks Lower Three Forks TF3 & Additional Stand-Alone Locations Productive TF Wells 1) Assumes 15% recovery factor 51…
  52. May 2015 Investor Presentation – Enerplus Corp – slide 52
    ITG Research: Fort Berthold Offers Highest Bakken Recoveries Enerplus land position Source: ITG, Breaking Down the Bakken, December 2014 52
  53. May 2015 Investor Presentation – Enerplus Corp – slide 53
    ITG Research: ... And Among the Lowest Break-Evens Enerplus land position Source: ITG, Breaking Down the Bakken, December 2014 53
  54. May 2015 Investor Presentation – Enerplus Corp – slide 54
    Enerplus Share Ownership Investor Composition(1) Geographic Composition Total Retail Total Institutional 58% 42% 3% 5% 19% 42% 58% 56% 18% Retail Canadian Institutional Canada U.S. Europe & Other U.S. Institutional…
  55. May 2015 Investor Presentation – Enerplus Corp – slide 55
    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 Drew Mair The Dome Tower Manager, Investor…

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