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September 2015 Investor Presentation – Enerplus Corp

Enerplus Corp · Sep 8, 2015 · 49 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. September 2015 Investor Presentation – Enerplus Corp – slide 1
    ERF: TSX & NYSE Investor Update September 2015
  2. September 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. September 2015 Investor Presentation – Enerplus Corp – slide 3
    Track Record: Organic Production Growth Production growth driven by North Dakota and the Marcellus Production Growth(1) 2015E Production by Product & Location(1) 11% CAGR 2011 2014 BOE/day 100,000 - 104,000 105,000 44% Natural Gas…
  4. September 2015 Investor Presentation – Enerplus Corp – slide 4
    Track Record: Consistent Reserves Growth 2P Reserves Growth(1) 2014 Reserves by Category & Location(1)(2) 9% CAGR 2010 2014 MMBOE 34% PDP 450 429 401 49% Other Proved 400 2.09 Probable 350 341 316 1.98 17% 300 300 250 1.74 1.70…
  5. September 2015 Investor Presentation – Enerplus Corp – slide 5
    Track Record: Improving F&D and On-Stream Costs 2014 recycle ratio of 2.7x Strong operational focus driving improvement in capital efficiencies 2P F&D and FD&A Costs(1) Capital Efficiencies(2) /BOE /BOE/day 25 24.21 70,000 22.92…
  6. September 2015 Investor Presentation – Enerplus Corp – slide 6
    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 20 38,000 36,000 17 17 33,000 32,000…
  7. September 2015 Investor Presentation – Enerplus Corp – slide 7
    Sustainability and Conservative Balance Sheet Adjusted payout ratio, inclusive of A&D, is projected to remain below 100% in 2015 Q2 2015 total net debt 1.1 billion Sustainability(1)(2)(3) Balance Sheet Strength(4) Net Debt Debt/…
  8. September 2015 Investor Presentation – Enerplus Corp – slide 8
    2015 Capital Allocation Disciplined Spending Capital spending reduced by 30% from 2014 levels Majority of capital being directed to oil properties 2015 Capital Allocation (540 million) Drilling Activity - First Half 2015(1) Wells…
  9. September 2015 Investor Presentation – Enerplus Corp – slide 9
    Hedging Summary Crude Oil Hedging Summary(1) Natural Gas Hedging Summary(1) % of forecast production 25% 45% 34% 34% 57% 38% 9% hedged 16,000 104 180 4.5 14,000 91 160 4.0 NYMEX Price Hedged (US/Mcf) 140 3.5 WTI Price…
  10. September 2015 Investor Presentation – Enerplus Corp – slide 10
    2015 Guidance: Well Positioned 2015 Guidance and Performance to Date 2015 Revised First Half 2015 Guidance Guidance(1) Actuals Capital Spending 540 MM 540 MM 315 MM AA Production (BOE/d) 97,000 103,000 100,000 104,000 104,200 Crude Oil…
  11. September 2015 Investor Presentation – Enerplus Corp – slide 11
    Attractive Valuation Key Trading, Financial and Operational Data Ticker Symbol (TSX & NYSE) ERF Market Capitalization(1) 1.6 billion Enterprise Value(1) 2.8 billion Price / Funds Flow Ratio(1)(2) 3.0x Monthly Dividend 0.05 per share…
  12. September 2015 Investor Presentation – Enerplus Corp – slide 12
    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,…
  13. September 2015 Investor Presentation – Enerplus Corp – slide 13
    Core Oil Assets
  14. September 2015 Investor Presentation – Enerplus Corp – slide 14
    Williston Basin Operated Light Oil Assets Williston Basin (North Dakota & Montana) 2015E Production 31,000 33,000 BOE/day Sleeping Giant 15% Fort Berthold 85% 2014 2P Reserves(1) 145 MMBOE Sleeping Giant Sleeping Fort…
  15. September 2015 Investor Presentation – Enerplus Corp – slide 15
    Fort Berthold Overview Fort Berthold, North Dakota Key Facts Discovered OOIP(1) 22 35 MMbbls/1280 DSU Discovered OOIP(1) 1.4 billion bbls Net Acreage 74,000 acres Average Working Interest 90% 2P Reserves(2) 123 MMBOE Contingent…
  16. September 2015 Investor Presentation – Enerplus Corp – slide 16
    Fort Berthold Delivering Growth 2015 production expected to grow over 20% YOY, with capital spending in-line with 2014 Replaced over 300% of 2014 production at a 2P F&D cost of 16.87/BOE(1) Annual Production(2) Reserves(3) 2P:…
  17. September 2015 Investor Presentation – Enerplus Corp – slide 17
    North Dakota Well Performance vs Peers 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 stream…
  18. September 2015 Investor Presentation – Enerplus Corp – slide 18
    Fort Berthold Concentrated Core Position & Room to Run The Core represents ND Acreage Quality ND Drilling Density 10% of the basin Avg Long Laterals Peak Monthly Production By Township Total Wells per Township Lower well density…
  19. September 2015 Investor Presentation – Enerplus Corp – slide 19
    Fort Berthold Well Density Well Density and Prospectivity Enerplus Hognose Successful TF2 Entire acreage prospective for Bakken and 1st Bench Three Forks Enerplus Swallowtail TF2 270 future drilling locations 8 75% are long…
  20. September 2015 Investor Presentation – Enerplus Corp – slide 20
    Fort Berthold Improving Productivity through Completion Design Bakken 2 Mile Laterals Three Forks 2 Mile Laterals 1200 Mbbls 1200 Mbbls 500,000 500,000 900 Mbbls 900 Mbbls 600 Mbbls 450,000 450,000 600 Mbbls 2013 & 2014 High…
  21. September 2015 Investor Presentation – Enerplus Corp – slide 21
    Fort Berthold Completion Evolution 400 Completion Cost/Stage 319 Despite larger fracs, 300 the switch to sand 242 219 223 214 and improving USK 197 188 200 efficiencies has helped reduce 100 completion costs 0 70…
  22. September 2015 Investor Presentation – Enerplus Corp – slide 22
    Fort Berthold Improving Capital Efficiencies Reduction in well costs and large increase in IP rates driving top quartile capital efficiencies(1) 25,000 19,500 Cap Efficiency (K/BOE/day) 20,000 17,000 15,500 15,000…
  23. September 2015 Investor Presentation – Enerplus Corp – slide 23
    New Completion Design Driving Outperformance Recent high pump rate, high volume completions driving outperformance in lower EUR areas Fort Berthold Recent Completions - IP 30 Rates 1,800 1,706 bbl/d (Bakken) 1,600 1,616 bbl/d…
  24. September 2015 Investor Presentation – Enerplus Corp – slide 24
    Fort Berthold Economics Fort Berthold Type Curves Type Curve Economics 50 1,200 Mbbl Type Curve EUR (Mbbl) 1,200 900 600 Monthly Oil Production (Mbbl) 45 900 Mbbl Type Curve EUR (MBOE) 1,400 1,050 700 40 600 Mbbl Type Curve 35…
  25. September 2015 Investor Presentation – Enerplus Corp – slide 25
    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…
  26. September 2015 Investor Presentation – Enerplus Corp – slide 26
    Fort Berthold U.S. Crude Oil Marketing U.S. Bakken: Currently Available Capacity(1) 540,000 bbls/day of regional pipe capacity actively utilized and another 200,000 bbls/day coming into service after 2016 Pipe Rail loading capacity…
  27. September 2015 Investor Presentation – Enerplus Corp – slide 27
    Fort Berthold Natural Gas and NGL Production Q2 2015 Fort Berthold Production Mix Gas and NGLs are gathered and marketed by our gatherer at market 11% netback pricing 8% Oil Realized natural gas price is higher than Gas NYMEX…
  28. September 2015 Investor Presentation – Enerplus Corp – slide 28
    Low Decline Canadian Waterflood Assets Canadian Waterflood Assets Key Facts Discovered OOIP 1.1 billion bbls Recovery factor(1) 22% 2P Reserves(2) 66 MMBOE Contingent Resources(3) 59 MMBOE Future Net Drilling Locations 153 wells…
  29. September 2015 Investor Presentation – Enerplus Corp – slide 29
    Waterflood Medicine Hat Glauc C Unit Polymer pilot injection began in May 2012 (5 injectors) Initial production increase in September 2012 Second project to begin in Q4 of 2015 following pilot success (12 injectors) Med Hat Glauc C -…
  30. September 2015 Investor Presentation – Enerplus Corp – slide 30
    Core Natural Gas Assets
  31. September 2015 Investor Presentation – Enerplus Corp – slide 31
    Marcellus NE Pennsylvania Marcellus Acreage, Pennsylvania Key Facts Enerplus Land Net Acreage 52,000 acres Thickness Marcellus Well Average Working Interest 28% 2P Reserves(1) 840 Bcf Contingent Resources(2) 1,400 Bcf Future…
  32. September 2015 Investor Presentation – Enerplus Corp – slide 32
    Marcellus Delivering Growth 2015 production expected be almost flat YOY, despite 75% capital reduction from 2014 Replaced 450% of 2014 production at a 2P F&D cost of 0.50/BOE(1) Annual Production(2) Reserves(3) 200 188 190 2P: 900…
  33. September 2015 Investor Presentation – Enerplus Corp – slide 33
    Marcellus Economics Marcellus Type Curves Type Curve Economics 4.0 15 Bcf Type Curve EUR (Bcf) 10 15 3.5 10 Bcf Type Curve Avg Cum Production (Bcf) IP30 (MMcf/d) 8.3 11.0 2014 Onstream Actuals 3.0 YTD 2015 Onstream Actuals 23…
  34. September 2015 Investor Presentation – Enerplus Corp – slide 34
    Marcellus Well Cost & Performance Evolution Total Well Cost IP 30 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…
  35. September 2015 Investor Presentation – Enerplus Corp – slide 35
    Marcellus Sale Price Mix Q2 2015 Regional firm, must-take contracts of 140 MMcf/day TGP Z4 300 in place through Q3 2015 Spot: 41% (includes 10 MMcf/day of pipeline capacity), declining Transco Z6 to 55 MMcf/day in Q2 2016 Transco…
  36. September 2015 Investor Presentation – Enerplus Corp – slide 36
    Northeast Pennsylvania Pipeline Projects More than 8 Bcf/day 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…
  37. September 2015 Investor Presentation – Enerplus Corp – slide 37
    Northeast PA Marcellus Pipeline Infrastructure Future Takeaway Capacity Annual production growth could be capped at 1.5 Bcf/day over the next 2 years based on the pace of expected pipeline additions in the NE Pa. Marcellus…
  38. September 2015 Investor Presentation – Enerplus Corp – slide 38
    Core Canadian Natural Gas Deep Basin Deep Basin Acreage Core growth area in the Wilrich and Duvernay 145,000 net acres of high working interest Duvernay land 71,000 net acres of undeveloped land, Successful drilling results…
  39. September 2015 Investor Presentation – Enerplus Corp – slide 39
    Core Canadian Natural Gas Deep Basin Contiguous Land Blocks in Highly Prospective Regions Key Facts Key Properties Edson, Ansell, Minehead, Hanlan North Ansell Net Acreage 50,000 acres - 2-well pad drilled in Q4 2014 with partners. 2P…
  40. September 2015 Investor Presentation – Enerplus Corp – slide 40
    Wilrich Activity and Economics Operated Cumulative Production Type Curve Economics(1)(2)(3) MMcf Regional Sweet Spot 900 Sweet Spot Type Curve EUR (Bcf) 5 6 Regional Type Curve 800 06-19-50-19W5 IP30 (MMcf/day) 6.2 7.3 08-19-50-19W5…
  41. September 2015 Investor Presentation – Enerplus Corp – slide 41
    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…
  42. September 2015 Investor Presentation – Enerplus Corp – slide 42
    Supplemental Information
  43. September 2015 Investor Presentation – Enerplus Corp – slide 43
    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…
  44. September 2015 Investor Presentation – Enerplus Corp – slide 44
    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…
  45. September 2015 Investor Presentation – Enerplus Corp – slide 45
    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)…
  46. September 2015 Investor Presentation – Enerplus Corp – slide 46
    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)…
  47. September 2015 Investor Presentation – Enerplus Corp – slide 47
    Fort Berthold Townships First 6 Months Oil Production(1) Enerplus wells drilled without high volume completions Enerplus wells drilled with high volume completions First 6 Calendar Month Oil Production (bbls) 40% improvement…
  48. September 2015 Investor Presentation – Enerplus Corp – slide 48
    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 2)…
  49. September 2015 Investor Presentation – Enerplus Corp – slide 49
    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…

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