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FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp

Enerplus Corp · Mar 13, 2014 · 43 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. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 1
    FirstEnergy/Societe Generale East Coast Energy Conference ERF - TSX & NYSE March 13, 2014
  2. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – 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 Competitive growth &…
  3. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 3
    2013Exceptional Performance Per Share 2013 Results Total or BOE Production 9% 6.5% Reserves* 17% 15% Funds Flow 17% 15% Finding & Development Cost* 11.28/BOE -53% Capital Efficiency 26,000/BOE/day -58% * Based on 2P company…
  4. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 4
    Demonstrated Annual Production Growth 100 90 90 82 80 75 MBOE/day 70 48 60 42 42 50 40 30 20 33 40 42 10 0 2011 2012 2013 Oil & Natural Gas Liquids Natural Gas 3
  5. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 5
    Delivering Funds Flow Growth per Share 4.00 3.76 3.29 3.19 Higher production volumes 3.00 and oil weighting has helped drive funds flow growth over per Share past three years 2.00 1.00 0.00 2011 2012 2013 4
  6. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 6
    Demonstrated 2P Reserves* Growth 450 406 400 346 350 322 300 MMBOE 49% 250 40% 40% 43% 43% 200 150 100 53% 55% 47% 50 0 2011 2012 2013 Liquids Crude Oil Natural Gas * Based on company interest reserves at…
  7. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 7
    Competitive Reserve Addition Costs F&D Costs FD&A Costs 30 30 26.26 25 24.21 25 22.92 20 /BOE 20 /BOE 3 year: 17.89 19.25 15 15 3 year: 11.28 14.66 10 10 8.36 5 5 0 0 2011 2012 2013 2011 2012 2013 *…
  8. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 8
    Enhanced Financial Flexibility 2.0 2.0 D/FF 1.8 D/FF 1.6x 1.7x 1.8 Strong financial flexibility 1.6 1.6 D/FF 1.4x driven by: 1.4 Debt to Funds Flow Ratio 1.4 1.2 Payout % 1.2 APO o Cash flow growth 1.0 1.0…
  9. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 9
    2014 Outlook ERF TSX & NYSE 2013 2014E Change Annual Average Production (BOE/day) 89,793 96,000-100,000 +9% Funds Flow (MM) 754 825 +9% Capital Expenditures (MM) 681 760 +12% Capital Efficiencies (/BOE/day)…
  10. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 10
    Concentrated Portfolio 2014E Geographic Production Split U.S. OilWilliston Basin Operated Bakken/Three Forks position with 145 net future U.S. 2014 Capital drilling locations 50% Canada 40% Upside potential via downspacing, lower…
  11. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 11
    Top Tier Oil Asset: Fort Berthold, North Dakota Key Facts Fort Berthold Indian Reservation OOIP 1722 MMbbls/1280 DSU OOIP (W.I.) 1 billion bbls Net Acreage 73,000 (114 sections) 2P Reserves at Dec 31, 2013 105.4 MMBOE Best Est.…
  12. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 12
    Fort Berthold Delivering Growth Annual Production Reserves 25 22 2P: 105.4 100 2P: 20 86.1 17 80 MBOE/day 15 2P: 56.2 MMBOE 12 60 10 40 2P: 5 22.4 1P: 1P: 5 20 1P: 43.6 49.6 1P: 28.2 11.6 0 0 2011 2012 2013…
  13. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 13
    Fort Berthold: Improved Performance through Completion Optimization EUR EUR EUR 800 650 500 Mbbls Mbbls Mbbls NPV10 (MM) 14.7 9.9 4.7 IRR (%) 62 42 24 BESC (/bbl) 51.09 58.63 71.38 Payout (Yrs) 1.7 2.3 3.5 Recycle Ratio 3.8…
  14. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 14
    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 net locations 7 years additional inventory…
  15. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 15
    U.S. Core Gas: Marcellus Marcellus Isopach Key Facts Net Acreage 57,500 acres 2P Reserves at Dec 31, 2013 601 Bcf Best Est. Contingent 1.3 Tcf Resource (Dec 31, 2013) Future Net Drilling Locations 240 wells Q4 2013 Production…
  16. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 16
    Marcellus Delivering Growth Reserves 2P: Annual Production 601 140 140 600 120 500 120 Bcf of Natural Gas 100 95 MMcf/day 400 80 300 2P: 60 224 2P: 41 200 154 40 2P: 117 21 100 1P: 20 1P: 1P: 1P: 411.4 52.2…
  17. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 17
    Marcellus: Superior Dry Gas Performance and Competitive Economics 2013 Gross On-Streams 13 Bcf EUR EUR EUR 13 12 10 US4.50/Mcf Bcf Bcf Bcf NPV10 (MM) 10.5 7.9 4.3 12 Bcf IRR (%) 72 51 28 BESC (/Mcf) 2.33 2.66 3.05 10 Bcf…
  18. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 18
    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…
  19. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 19
    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 - EdsonERF smaller acreage Key properties Edson,…
  20. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 20
    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…
  21. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 21
    Our Competitive Advantage Focused portfolio in top tier resource plays: Bakken, Marcellus, Deep Basin & Waterfloods Continued focus on capital disciplinedelivering 9% production growth in 2014 with target capital efficiencies…
  22. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 22
    Supplemental Information
  23. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 23
    Demonstrated Per Share Growth Production/share Reserves/share* 0.20 2.25 Production Per Thousand Shares 0.18 2.00 Reserves Per Thousand Shares 0.18 0.16 2.00 0.16 0.15 0.15 1.78 1.74 1.71 1.75 0.14 1.50 0.12 1.25…
  24. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 24
    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,…
  25. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 25
    Production Composition 2014E Production 2014E Crude Oil Composition U.S. U.S. Gas Liquids Canada Heavy 24% 26% 22% Canada Medium U.S. Light 11% 58% Canada Canada Gas Liquids 28% 22% Canada Light 9% Differential/Basis…
  26. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 26
    Funds Flow Protection Crude Oil Hedge Positions* Natural Gas Hedge Positions* 100% (/bbl) 100% (/Mcf) 90% 90% % of net production after royalties 80% % of net production after royalties 80% 70% 70% 70% 60% 60% at 50%…
  27. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 27
    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 29.1 0.14 Change of 0.50/Mcf NYMEX natural gas 28.8 0.14…
  28. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 28
    Debt Composition as at December 31, 2013 Senior Bank Credit Facility - 1 billion Notes* Unused Capacity US741MM 11 banks in Enerplus bank credit facility CDN70MM 786MM Unsecured, covenant-based with current borrowing rate of…
  29. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 29
    Senior Notes Maturities* Average interest rate of 5.8%** 700 620 600 500 Millions 400 300 200 94 100 49 48 0 2014 2015 2016 2017 2018 and beyond * As at December 31, 2013. US amounts converted at US/CDN 1.0636.…
  30. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 30
    Enerplus Share Ownership Investor Composition Geographic Composition Total Retail Total Institutional 65% 35% 20% 44% 41% 21% 59% 15% US & Other Retail US & Other Institutional Canadian Retail Canadian Institutional…
  31. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 31
    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 (Elm Coulee) Sleeping Fort Giant Berthold 20% Fort…
  32. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 32
    Evaluating Upside Potential at Fort Berthold EOG 2 Section Bakken Three Forks 277,000 bbl Density & Lower TF in approx. 7 months Snakes Pad Upper Three Forks (ERF 17.8% W.I.) Fort Berthold productive throughout EOG 2ndBench TF…
  33. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 33
    Improving Capital Efficiencies at Fort Berthold Capital Efficiency Total Well Costs 35,000 25 14 13.1 12.1 30 Day Cumulative Oil (Bbls) 30,000 12 Long Well Cost (USMM) Long Well Capital Efficiency 30,000 19.8 20…
  34. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 34
    Enerplus Results How Do We Compare Wells drilled without high volume completions Wells drilled with high volume completions 33
  35. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 35
    Takeaway Capacity Overbuilt in Montana & North Dakota Nov. 2013 Cromer production* 1.1 MMbbls/day East Pipe Rail Coast by West Rail Coast by Operationally Rail Available 53 515 Capacity Clearbrook 0 800 Operationally…
  36. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 36
    Free Cash Flow from Waterflood Assets 350 NOI: 326 NOI: 306 NOI: NOI: 138 NOI: 300 286 272 172 273 120 116 113 Average 55% 250 reinvestment Million 200 delivering 5% 150 58% CAGR in 61% 56% 58% production 44%…
  37. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 37
    Marcellus Takeaway Capacity 60% of production sold on Tennessee Line 300 Wyoming Pipeline 40% of production sold on Transco Leidy December 2013 production averaged 170 MMcf/day Regional firm, must-take contracts of 6570…
  38. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 38
    Building the Near-Term Marcellus Basis View 12 Incremental Take-Away Capacity 10 Incremental NE Demand Incremental Export out of Region 8 Midpoint Production Estimate Bcf/day 6 4 2 0 Q1 2014 Q2 2014 Q3…
  39. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 39
    13 Bcf of Projects Planned Project Owner Incremental Takeaway (Bcf/day) In Service REX Backhaul 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 NE Connector Transco 0.1 Q4 2014 West…
  40. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 40
    WilrichWell Performance 5 bcf Type Curve 6 Bcf Type Curve EUR EUR EUR 7 Bcf Type Curve AECO 4.00/Mcf 7 Bcf 6 Bcf 5 Bcf 3,500 16-15-049-19W5 15-18-050-19W5 NPV10 (MM) 6.7 5.3 3.9 14-30-050-19W5 3,000 13-29-050-19W5 IRR (%) 46 38…
  41. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 41
    Wilrich Drilling Cost Improvement 58% reduction drilling days First 8 wells Achieved 40% cost reduction Drilling Days (Spud to TD) Drilling Costs (Spud to TD) HZ 1 55 HZ 3 9 50 HZ 1 HZ 2 8 HZ 4 45 HZ…
  42. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 42
    Wilrich Completion Performance 18 Completions Costs vs. 30 Day IP 16.6 16 46% improvement in 14 completion costs due to: 12 11.5 10 o Elimination of CO2 Millions and N2 8 o Lower power 6.0 6 5.6 consumption o Less…
  43. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Enerplus Corp – slide 43
    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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