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AUGUST 2014 INVESTOR UPDATE – Enerplus Corp

Enerplus Corp · Aug 14, 2014 · 52 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. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 1
    Investor Update August 14, 2014 ERF TSX & NYSE
  2. AUGUST 2014 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. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 3
    2014 Focus Operational execution Expected production growth of 14% Target capital efficiencies…
  4. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 4
    Q2 2014 ResultsIncreased Production Guidance and Lower Costs 2014 Guidance ERF TSX & NYSE Q2 2014 2014 Guidance Revisions Average Production (BOE/day) 103,987 100,000-104,000 Guidance increased 4% Production mix (volumes) 44,000…
  5. AUGUST 2014 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 330 net future 25% 2014 Capital drilling locations U.S. 40% Upside potential if higher recovery factor, additional…
  6. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 6
    Significant Future Drilling Inventory to Support Growth 830 Future Drilling Locations Core Waterfloods Marcellus 160 240 Deep Basin Fort Berthold 100 330 * Based on 2P reserves and contingent resource locations at…
  7. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 7
    Demonstrated Per Share Growth Production/share Funds Flow/share 0.20 4.31 4.50 0.18 0.18 0.16 4.00 3.76 BOE Per Thousand Shares 0.16 0.15 3.50 3.29 0.14 Per Share 3.00 0.12 2.50 0.10 2.00 0.08 0.06 1.50 0.04…
  8. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 8
    Demonstrated Growth Annual Production Reserves** 102 450 100 90 406 90 400 82 80 346 75 350 322 58 306 MBOE/day 70 300 43% MMBOE 48 49% 60 42 250 40% 42 43% 50 47% 200 40 150 30 100 49% 53% 55% 47% 20 33…
  9. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 9
    Sustainable Growth & Dividend Above average funds flow growth driving sustainable dividend 2012 2013 2014E Funds Flow (MM) 645 754 879 (1) Capital Expenditures (MM) 853 681 800 Net Acquisitions & Divestitures (MM) (91) (120)…
  10. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 10
    Funds Flow Protection WTI Crude Oil Hedges* Natural Gas Hedge Positions* Rest of 2014 Rest of 2014 AECO Swaps 4.25/Mcf 32% 50% 11% NYMEX Collars US95.42/bbl US4.30 - 5.08/Mcf 11% 68% 28% NYMEX Swaps US4.14/Mcf ** 12%…
  11. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 11
    Core Oil Assets
  12. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 12
    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…
  13. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 13
    U.S. Core Oil: Fort Berthold, North Dakota Key Facts OOIP 20 42 MMbbls/1280 DSU OOIP (W.I.) 1.5 billion bbls Net Acreage 73,000 acres (114 sections) 2P Reserves at Dec 31, 2013 105 MMBOE Best Estimate Contingent 136 MMBOE…
  14. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 14
    Fort Berthold Delivering Growth Annual Production Reserves 25 2P: 22 105.4 100 2P: 20 86.1 17 80 MBOE/day 15 2P: MMBOE 12 56.2 60 10 40 2P: 5 22.5 1P: 1P: 5 20 1P: 43.7 49.6 1P: 28.0 11.7 0 0 2011 2012 2013…
  15. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 15
    Fort Berthold Future Growth Potential FTB NOI* and Production 2010-2019 800 50,000 45,000 700 40,000 600 35,000 500 Million CAD 30,000 BOE/Day 400 25,000 20,000 300 15,000 200 10,000 100 5,000 - - 2010 2011…
  16. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 16
    Fort Berthold: 250% Increase in Contingent Resource Original 2014 Assumption Evaluation Increase OOIP per DSU* Bakken 8 12 MMbbls 8 16 MMbbls TF1 8 10 MMbbls 10 16 MMbbls TF2 n/a 2 20 MMbbls Total 16 22 million bbls 20 42 million…
  17. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 17
    Fort Berthold Well Density Schematic 6 / 7 Well Density* 8 Well Density* TF 2 &3 Upside** No Lower Three Forks Lower Three Forks TF3 & Additional Stand-Alone Locations Productive TF Wells * Assumes 15% recovery factor. 16 ** Super…
  18. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 18
    Fort Berthold: Increasing to Average 7 Wells/DSU Enerplus Hognose Successful TF2 Northwest Enerplus Highest estimate of OOIP Butterflies TF2 Drilling Includes TF2 8 8 well density Central/West Well density ranging from 6 8…
  19. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 19
    Fort Berthold: Encouraging Enerplus High Density Tests 200 Snakes Pad 8 Well Density & TF2 160 Snakes Pad Fur Bearers Pad Fur Bearers pad 7 Well Density 120 Cum. Oil (Mbbls) 40 2 6 8 Months on Production Bakken…
  20. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 20
    Fort Berthold: 127% Increase in Drilling Inventory Original View New View 184 new locations added 4 wells/ Avg. 7 wells/ Two thirds of locations are Locations DSU DSU long laterals BakkenLong 53 124 Three ForksLong 66 89 Average 7…
  21. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 21
    Improving Productivity through Completion Enhancements Cum. Oil (Mbbls) per 1000 Lateral Feet Months 20
  22. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 22
    Fort Berthold Completion Performance Improving Economics* Old Type Curve New Type Curve High EUR Low EUR High EUR Low EUR 800 Mbbls 500 Mbbls 800 Mbbls 530 Mbbls (950 MBOE) (600 MBOE) (950 MBOE) (635 MBOE) 30 Day Cum. Prod (bbls)…
  23. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 23
    Fort Berthold Completion Evolution Increasing Production Rates 350 Completion Costs/Stage 317 300 Despite larger fracs, the 250 240 213 220 switch to sand and effective 195 USK 200 cost management has 150 helped reduce…
  24. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 24
    Fort Berthold: Improving Capital Efficiencies* 15,000 12,000 Reduction in well costs and significant 10,000 increase in IP rates Capital Efficiency* 10,000 (US/BOE/day) 8,500 driving top quartile 7,000 6,000…
  25. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 25
    Fort Berthold Completions Enhancements Leading to Best in Basin Well Results E+ Best Bakken E+ Best Three Forks Peak Calendar Month Cumulative Production* (bbls) Enerplus wells drilled without high volume completions…
  26. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 26
    Fort Berthold U.S. Crude Marketing Total Industry Bakken Production Take-Away Capacity: 550,000 bbls/day of regional pipe capacity currently Available Capacity available and another 400,000-450,000 bbls/day coming into service after…
  27. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 27
    Fort Berthold: Natural Gas and NGL Production Fort Berthold (Q2 2014 BOE/day) 1,136 1,441 Gas and NGLs are gathered and marketed by our gatherer at market netback pricing Realized natural gas price is higher than NYMEX because…
  28. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 28
    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 Estimate Contingent 59 MMbbls 28% Resource Dec…
  29. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 29
    Free Cash Flow from Waterflood Assets NOI: NOI: 350 NOI: 329 NOI: 320 301 NOI: 287 300 132 266 137 179 172 Significant free cash 250 124 flow generation with reinvestment Million 200 60% typically around 55% 150…
  30. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 30
    Core Natural Gas Assets
  31. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 31
    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 Estimate Contingent 1,340 Bcf Resource Dec 31, 2013 Future Net Drilling 240 wells…
  32. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 32
    Marcellus Delivering Growth Reserves 2P: Annual Production 601 180-200 200 600 180 500 160 Bcf of Natural Gas 140 400 MMcf/day 120 95 100 300 2P: 225 80 2P: 1P: 200 2P: 154 411 60 41 117 40 21 100 1P: 20 1P:…
  33. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 33
    Marcellus: Superior Dry Gas Performance and Competitive Economics Tighter stage spacing and increased proppant continues to improve performance 5.0 2013 - 2014 Gross On-Streams 1 4.5 US 4.50/MMcf 12 Bcf EUR 13 Bcf EUR 16 Bcf EUR…
  34. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 34
    Marcellus Sales Price Mix Q2 2014 TGP Z4 300 Spot: 30% 60% of Q2 production delivered on Transco, 40% on TGP, however, sales mix paints a different picture Transco Z6 Transco Leidy NNY: Spot: 3% Regional firm, must-take contracts…
  35. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 35
    Northeast US Pipeline Projects: 11.5 Bcf of Projects Planned Project Pipeline Owner Incremental Takeaway Destination In Service (MMcf/day) Southeast Mainline Reversal Projects ANR TCPL 1,150 Gulf Coast Q4 2014 1,450 TEAM South TETCO…
  36. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 36
    Northeast Pa. Marcellus Pipeline Infrastructure Future Takeaway Capacity Production growth could be capped at 1.5 Bcf/day based on the pace of expected pipeline additions in the NE Pa. Marcellus Could see basis relief by…
  37. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 37
    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…
  38. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 38
    Canadian GasDeep Basin (Wilrich) Contiguous land blocks in highly prospective regions Key Facts Edson smaller acreage position Key properties Edson, Ansell, Minehead, - Infrastructure available Hanlan - Significant competitor…
  39. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 39
    Wilrich Activity Plan to continue to develop Tier 1 EUR EUR EUR AECO 4.00/Mcf 7 Bcf 6 Bcf 5 Bcf lands in the near-term NPV10 (MM) 6.7 5.3 3.9 Results have varied across the IRR (%) 46 38 30 play with the most prospective Payout…
  40. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 40
    Duvernay ShaleWillesden Green R12W5 R11W5 R10W5 R9W5 R8W5 R7W5 R6W5 R5W5 R4W5 R3W5 85,000 net acre (100% W.I.) land ENERPLUS 13-7-45-5W5M Rig Released: 8/30/2013 position built over past 3 years at Vertical Cored ENERPLUS HZ…
  41. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 41
    Our Competitive Advantage Focused portfolio in top tier resource plays: Bakken/Three Forks, Marcellus, Deep Basin & Waterfloods Continued focus on capital disciplinedelivering 14% production growth in 2014 with a target capital…
  42. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 42
    Supplemental Information
  43. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 43
    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 3 year: 15 15 14.66 11.28 10 10 8.36 5 5 0 0 2011 2012 2013 2011 2012 2013 *…
  44. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 44
    Production Composition 2014E Production 2014E Crude Oil Composition U.S. Gas U.S. Liquids 33% 25% Canada Heavy 22% Canada Medium 11% U.S. Light Canada 58% Canada Gas Liquids 24% 18% Canada Light 9% 2014…
  45. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 45
    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 12.9 0.06 Change of 0.50/Mcf NYMEX natural gas 21.3 0.10…
  46. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 46
    Debt Composition as at June 30, 2014 Bank Credit Facility - 1 billion 11 banks in Enerplus bank credit facility Senior Unsecured, covenant-based with current Unused Notes Capacity US706MM* borrowing rate of less than 3% CDN70MM…
  47. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 47
    Senior Notes Maturities* Average interest rate of 5.8%** 700 622 600 500 Millions 400 300 200 94 100 48 12 0 2014 2015 2016 2017 2018 and beyond * As at June 30, 2014. US amounts converted at US/CDN 1.0676. 46…
  48. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 48
    Enerplus Share Ownership Investor Composition Geographic Composition Total Retail Total Institutional 58% 42% 25% 41% 42% 58% 17% 17% US & Other Retail Canadian Retail US & Other Institutional Canadian Institutional…
  49. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 49
    Enerplus Board of Directors Elliott Pew, Chairman of the Board(1)(2) Mr. Pew, 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…
  50. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 50
    Enerplus Board of Directors continued Hilary Foulkes, Director (5)(11) 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…
  51. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 51
    Enerplus Board of Directors continued Donald J. Nelson, Director (3)(9) Mr. Nelson has over 40 years of experience in the oil and gas industry, and is the president of Fairway Resources Inc., a private consulting services firm. Prior to…
  52. AUGUST 2014 INVESTOR UPDATE – Enerplus Corp – slide 52
    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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