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August 2015 Investor Presentation – Enerplus Corp

Enerplus Corp · Aug 14, 2015 · 54 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 2015 Investor Presentation – Enerplus Corp – slide 1
    ERF: TSX & NYSE Investor Update August 2015
  2. August 2015 Investor Presentation – Enerplus Corp – slide 2
    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. August 2015 Investor Presentation – Enerplus Corp – slide 3
    Track Record: Organic Production Growth Production(1) MBOE/day BOE/share 11% CAGR 2011 2014 105 103 100 - 104 0.21 Growth driven by Fort Berthold and 90 the Marcellus 90 82 75 0.18 2015 production guidance is 0.18 0.17 75…
  4. August 2015 Investor Presentation – Enerplus Corp – slide 4
    Track Record: Consistent Reserves Growth 2P Reserves(1) MMBOE BOE/share 9% CAGR 2010 - 2014 450 429 2.20 401 50% 1P reserves represent 66% of 2P at 400 48% year-end 2014, with PDP at 74% of 1P 341 2.09 2.00 350 300 316 40% 1.98…
  5. August 2015 Investor Presentation – Enerplus Corp – slide 5
    Track Record: Reduction 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 Berthold 2P…
  6. August 2015 Investor Presentation – Enerplus Corp – slide 6
    Track Record: 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 and the…
  7. August 2015 Investor Presentation – Enerplus Corp – slide 7
    Strong Performance Relative to Peers 2014 2P F&D Costs (including FDC)(1) 2014 Capital Efficiencies(1) /BOE /BOE/day 25 60,000 49,000 22 22 22 21 20 50,000 40,000 38,000 20 36,000 17 33,000 17 32,000…
  8. August 2015 Investor Presentation – Enerplus Corp – slide 8
    Track Record: Sustainability Adjusted Payout Ratio(1)(2)(3)(4) Millions APO Reduction in capital spending and 1,200 200% dividend in 2015 to more appropriate 174% 180% levels 1,000 160% APO, inclusive of A&D, is projected to 800…
  9. August 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 1,200 1,135 2.5 Debt levels have remained relatively flat 1,064 1,022 with…
  10. August 2015 Investor Presentation – Enerplus Corp – slide 10
    2015 Capital Allocation: Disciplined Spending 2015 Capital Allocation (540 million) U.S. Gas Capital spending reduced by 30% from Canadian 5% Gas 5% 2014 levels Capital allocation focused on profitability Canadian Oil 25%…
  11. August 2015 Investor Presentation – Enerplus Corp – slide 11
    Crude Oil Hedging Summary Q3 2015 Q4 2015 1H 2016 2H 2016 Hedge position as % of forecasted 25% 34% 34% production(1) 45% 55% Hedged 75% 66% 66% Unhedged Volume Price Volume Price Volume Price Volume Price (bbl/d) (US/bbl)…
  12. August 2015 Investor Presentation – Enerplus Corp – slide 12
    Natural Gas Hedging Summary Q3 2015 Q4 2015 FY 2016 Hedge position as % of 9% forecasted 38% production(1) 43% 57% 62% Hedged Unhedged 91% Volume Price Volume Price Volume Price (Mcf/d) (US/Mcf) (Mcf/d) (US/Mcf) (Mcf/d) (US/Mcf)…
  13. August 2015 Investor Presentation – Enerplus Corp – slide 13
    2015: Guidance & Performance to Date Well positioned to achieve 2015 revised guidance 2015 Guidance(1) Revised Guidance First Half of 2015 Capital spending: 540MM 540MM 315MM AA production: 97 103 MBOE/day 100 104 MBOE/day 104.2…
  14. August 2015 Investor Presentation – Enerplus Corp – slide 14
    Attractive Valuation Key Trading, Financial and Operational Information Enterprise Value(1) 2.7 billion Price / 2015E Funds Flow(1)(2) 3.0x Monthly Dividend / Dividend Yield(1)(3) 0.05 per share / 8% Dividend as % of Funds Flow(2) 27%…
  15. August 2015 Investor Presentation – Enerplus Corp – slide 15
    Focused Portfolio with Significant Growth Potential 2015E Production: 20% of 2015E Production Long-life, low decline Liquids Natural 44% Large discovered OOIP; 150 future drilling locations and EOR potential Gas 56% Primary,…
  16. August 2015 Investor Presentation – Enerplus Corp – slide 16
    Core Oil Assets
  17. August 2015 Investor Presentation – Enerplus Corp – slide 17
    Operated Light Oil Assets in the Williston Basin 2015E Production: 31,000 33,000 BOE/day Sleeping Giant 15% Fort Berthold 85% 2014 2P Reserves(1): 145 MMBOE Sleeping Giant Fort Sleeping (Elm Coulee) Berthold Giant 15%…
  18. August 2015 Investor Presentation – Enerplus Corp – slide 18
    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…
  19. August 2015 Investor Presentation – Enerplus Corp – slide 19
    Fort Berthold Delivering Growth Annual Production(1) Reserves(2) 2015 annual production expected to grow 23% YOY, Replaced over 300% of 2014 production adding with capital spending in line with 2014 levels 24 MMBOE of 2P reserves at…
  20. August 2015 Investor Presentation – Enerplus Corp – slide 20
    Fort Berthold: North Dakota Well Performance Acreage position and completion design driving best in basin well performance Average First 6 Months Cumulative Oil Production per Well All long lateral wells in North Dakota brought on…
  21. August 2015 Investor Presentation – Enerplus Corp – slide 21
    Fort Berthold: 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…
  22. August 2015 Investor Presentation – Enerplus Corp – slide 22
    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…
  23. August 2015 Investor Presentation – Enerplus Corp – slide 23
    Fort Berthold: 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…
  24. August 2015 Investor Presentation – Enerplus Corp – slide 24
    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)…
  25. August 2015 Investor Presentation – Enerplus Corp – slide 25
    Fort Berthold Completion Evolution Increasing Production Rates Completion Costs/Stage 350 319 300 Despite larger fracs, the 250 242 219 223 214 switch to sand and USK 197 188 200 effective cost management 150 has helped…
  26. August 2015 Investor Presentation – Enerplus Corp – slide 26
    Fort Berthold: Improving Capital Efficiencies (1) 25,000 Reduction in well costs and significant 19,500 20,000 increase in IP rates Cap Efficiency (K/BOE/day) 17,000 15,500 driving top quartile 15,000 capital…
  27. August 2015 Investor Presentation – Enerplus Corp – slide 27
    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…
  28. August 2015 Investor Presentation – Enerplus Corp – slide 28
    Fort Berthold U.S. Crude Marketing 540,000 bbls/day of regional pipe capacity actively utilized and another 200,000 bbls/day coming into Industry U.S. Bakken service after 2016 Currently Available Capacity: Rail loading capacity is…
  29. August 2015 Investor Presentation – Enerplus Corp – slide 29
    Fort Berthold: Natural Gas and NGL Production Fort Berthold (Q2 2015 BOE/day) 11% Gas and NGLs are gathered and 8% marketed by our gatherer at market netback pricing Realized natural gas price is higher than NYMEX because of…
  30. August 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. August 2015 Investor Presentation – Enerplus Corp – slide 31
    Waterflood Medicine Hat Glauc C Unit Med Hat Glauc C - Net Crude Oil Production Polymer pilot injection began in BOE/day 5,000 Polymer Pilot May 2012 4,500 injection begins 5 injectors 4,000 Initial production increase 3,500 in…
  32. August 2015 Investor Presentation – Enerplus Corp – slide 32
    Waterflood Brooks Overview Key Facts North Discovered OOIP 223 MMbbls Recovery Factor at May 31, 2015 28% (1) 2P Reserves at Dec 31, 2014 10.6 MMBOE (2) Cumulative Oil Production to Date 62 MMbbls 2015E Production 3,485 BOE/day…
  33. August 2015 Investor Presentation – Enerplus Corp – slide 33
    Core Natural Gas Assets
  34. August 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. August 2015 Investor Presentation – Enerplus Corp – slide 35
    Marcellus Delivering Growth Annual Production(1) Reserves(2) 2015 production expected be almost flat YOY, despite 2P reserves increased 40% in 2014, replacing 450% roughly 75% capital reduction from 2014 levels of 2014 production (3)…
  36. August 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 US4.00/Mcf 10 Bcf 15 Bcf IP30, Mmcf/d 8.3…
  37. August 2015 Investor Presentation – Enerplus Corp – slide 37
    Marcellus Well Cost & Performance Evolution Total Well Cost 30 Day Capital Efficiency 12,000 10,000 10,000 8,000 US K 8,000 7,000 8,000 7,500 6,000 7,000 4,000 2,000 6,000 0 5,250 2012 2013 2014 5,000 /BOE/day 4,250…
  38. August 2015 Investor Presentation – Enerplus Corp – slide 38
    Marcellus Sales Price Mix Q2 2015 Regional firm, must-take contracts of 140 MMcf/day in TGP Z4 300 place through Q3 2015 Spot: 41% (includes 10 MMcf/day of pipeline capacity), declining to Transco Z6 55 MMcf/day in Q2 2016 Transco…
  39. August 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. August 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. August 2015 Investor Presentation – Enerplus Corp – slide 41
    Core Canadian Natural GasDeep Basin Core growth area in the Wilrich and Duvernay 145,000 net acres of Duvernay high working interest 71,000 net acres of land undeveloped land, 100% WI Successful drilling results to date in…
  42. August 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 50,000 acres -…
  43. August 2015 Investor Presentation – Enerplus Corp – slide 43
    Wilrich Activity and Economics (1)(2) Operated Cumulative Production Type Well Economics MMcf Regional Sweet 900 Sweet Spot Type Curve Regional Type Curve NYMEX US4.00/Mcf 5 Bcf Spot 6 Bcf 800 06-19-50-19W5 USD/CDN 1.15 EUR EUR…
  44. August 2015 Investor Presentation – Enerplus Corp – slide 44
    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…
  45. August 2015 Investor Presentation – Enerplus Corp – slide 45
    Supplemental Information
  46. August 2015 Investor Presentation – Enerplus Corp – slide 46
    Debt Composition at June 30, 2015 Debt Composition Senior Notes Maturities(1) Bank Credit Facility - 1 billion Senior Unsecured Notes - CDN1,041 MM 11 banks in Enerplus bank credit facility Notes are rated NAIC 2 and rank equally with…
  47. August 2015 Investor Presentation – Enerplus Corp – slide 47
    2015 Funds Flow Sensitivities Est. effect on 6 mos. Est. effect on 6 mos. 2015 Funds Flow 2015 Funds Flow per Share 2015 Sensitivities ( Million) (/share) Change of US5.00/bbl WTI crude oil 29 0.14 Change of US0.50/Mcf NYMEX natural…
  48. August 2015 Investor Presentation – Enerplus Corp – slide 48
    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…
  49. August 2015 Investor Presentation – Enerplus Corp – slide 49
    Contingent Resources 2014 Economic Best Estimate Contingent Resources (MMBOE) Wilrich Contingent resources increased Deep Gas 40 86 MMBOE YOY in 2014 Fort Berthold 115 Large increase in Fort Berthold Canadian contingent…
  50. August 2015 Investor Presentation – Enerplus Corp – slide 50
    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…
  51. August 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. August 2015 Investor Presentation – Enerplus Corp – slide 52
    Enerplus Share Ownership Investor Composition(1) Geographic Composition Total Retail Total Institutional 59% 41% 1% 5% 18% 23% 43% 52% 59% U.S. Institutional Retail Canada U.S. Europe & Other Canadian Institutional…
  53. August 2015 Investor Presentation – Enerplus Corp – slide 53
    Enerplus Board of Directors Elliott Pew, Chairman of the Board Mr. Pew has over thirty five years of diverse experience in the oil and gas industry, most recently as Co-Founder and Chief Operating Officer for Common Resources, a private…
  54. August 2015 Investor Presentation – Enerplus Corp – slide 54
    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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