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June 2016 Investor Update – Enerplus Corp

Enerplus Corp · Jun 2, 2016 · 37 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. June 2016 Investor Update – Enerplus Corp – slide 1
    ERF: TSX & NYSE Investor Update June 2016
  2. June 2016 Investor Update – Enerplus Corp – slide 2
    Core Strategy Core growth positions in top resource plays Top Tier North Dakota Bakken/Three Forks and Marcellus Assets Supported by low-decline, high-margin assets with EOR upside Track record of delivering on production and cost…
  3. June 2016 Investor Update – Enerplus Corp – slide 3
    2016 Outlook Strengthen balance sheet: debt reduction and increased financial flexibility 2016 Reduce cost structure and enhance profitability and capital efficiency Priorities Continued strong operational execution and technical…
  4. June 2016 Investor Update – Enerplus Corp – slide 4
    2016 First Quarter Highlights Continued strong operational performance Production guidance unchanged despite announcing 2,300 BOE/d divestment in April Company crude oil and NGL production weighting increased to 46% (45,000 bbl/d) Two…
  5. June 2016 Investor Update – Enerplus Corp – slide 5
    2016 Guidance Update May 2016 Guidance Update(1) February 2016 Guidance(2) Capital Spending 200MM 200MM Average Production (BOE/d) 90,000 94,000 90,000 94,000 Average Liquids (bbls/d) 43,000 45,000 43,000 45,000 Operating Costs…
  6. June 2016 Investor Update – Enerplus Corp – slide 6
    Top Tier Asset Portfolio 2016E Capital Allocation Canadian Oil 15,000 17,000 BOE/d 2016E Production (MM) Waterfloods 20 Long-life, low decline 50 Large discovered OOIP; 93 future net drilling locations and EOR potential 52% 48%…
  7. June 2016 Investor Update – Enerplus Corp – slide 7
    Portfolio Repositioning Continued Optimization and Improved Concentration Improved portfolio focus: fewer, larger positions 3 areas now represent 95% of reserves 11,000 BOE/d of non-core production divested since Q4 2015 Cumulative…
  8. June 2016 Investor Update – Enerplus Corp – slide 8
    F&D and Capital Efficiencies: Continued Improvement Improving efficiencies and F&D costs with majority of spending directed to crude oil projects 2P F&D and FD&A Costs(1) Capital Efficiencies(2) % of spending directed to crude…
  9. June 2016 Investor Update – Enerplus Corp – slide 9
    Delivering Cost Reductions Millions Operating Expenses /BOE Ongoing focus on efficiencies and cost reductions 100 10.00 is driving down operating costs 90 Divestment of non-core properties with higher 9.00 80 operating costs has also…
  10. June 2016 Investor Update – Enerplus Corp – slide 10
    Strengthening Balance Sheet Net Debt(2) Leverage Debt/ (Millions) Funds Flow Non-core divestment proceeds have significantly 3.0x reduced debt levels 1,200 Total debt, net of cash of 993 million 2.5x 1,000 2.3x 2.0x (Mar 31, 2016)…
  11. June 2016 Investor Update – Enerplus Corp – slide 11
    Hedging Summary Crude Oil Hedging Summary(1) Natural Gas Hedging Summary(1) % of forecast production 41% 39% 33% 34% 23% 16% hedged(2) 14,000 70 80 3.00 70 NYMEX Price Hedged (US/Mcf) 12,000 60 WTI Price Hedged (US/bbl)…
  12. June 2016 Investor Update – Enerplus Corp – slide 12
    Williston Basin Light Oil Assets Williston Basin (North Dakota & Montana) Production (BOE/d) (1) 35,000 Fort Berthold 30,000 Sleeping Giant 25,000 20,000 15,000 10,000 5,000 - 2010 2011 2012 2013 2014 2015 2016E 2P Reserves…
  13. June 2016 Investor Update – Enerplus Corp – slide 13
    Fort Berthold Overview Fort Berthold, North Dakota Key Facts Discovered OOIP(1) 22 35 MMbbls/1280 DSU Discovered OOIP(1) 1.4 billion bbls Recovery Factor 15% Net Acreage 72,500 acres 2P Reserves(2) 144 MMBOE Contingent Resources(3)…
  14. June 2016 Investor Update – Enerplus Corp – slide 14
    Fort Berthold Core Position; Low Existing Well Density 100% of Enerplus Acreage is in the Core Significant Inventory Remains Higher Acreage Quality Density Avg Long Laterals Peak Monthly Production By Township Higher MARGINAL…
  15. June 2016 Investor Update – Enerplus Corp – slide 15
    Fort Berthold Well Density Schematic Entire acreage prospective for Bakken and 1 st Bench Three Forks 8 236 future drilling locations 2nd Bench of Three Forks concentrated in the NW portion of acreage 6,7,8 6 / 7 Well Density(1)…
  16. June 2016 Investor Update – Enerplus Corp – slide 16
    Fort Berthold Completions A Step Change in Productivity Fort Berthold Well Results - Cumulative Oil (bbls) Year Proppant Stages Lbs/ft 350,000 1,200 Mbbl EUR Type Curve 2012 Ceramic 23-29 300 900 Mbbl EUR Type Curve 2014-2016 wells…
  17. June 2016 Investor Update – 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 NDIC Data All long lateral wells in North Dakota brought…
  18. June 2016 Investor Update – Enerplus Corp – slide 18
    Enerplus Bakken Position: Among the Lowest Breakeven Costs in Lower 48(1) Enerplus 2014 2015 North Dakota wells in Fort Berthold had, on average, among the lowest breakeven costs in the lower 48 and the lowest among all Bakken…
  19. June 2016 Investor Update – Enerplus Corp – slide 19
    Enerplus Bakken Position Compared to Other Oil Plays: Highest IP Rates(1) and Competitive Capital Efficiencies Average Well Results Across Oil Plays by Leading Operator(2) (2014 to 2015) IP30 Capital 5,700 6,100 4,300 5,700 5,900 6,800…
  20. June 2016 Investor Update – Enerplus Corp – slide 20
    Fort Berthold Crude Oil, Gas & NGL Marketing ERF Transportation Split Enerplus maintains a balanced approach to marketing commitments 60% 12,500 bbls/day of firm sales to end users 40% and mid marketers who have firm pipeline…
  21. June 2016 Investor Update – Enerplus Corp – slide 21
    Low Decline Canadian Waterflood Assets Canadian Waterflood Assets Key Facts Discovered OOIP 1.1 billion bbls Recovery factor(1) 23% 2P Reserves(2) 67 MMBOE Contingent Resources(3) 35 MMBOE Future Net Drilling Locations 93 wells (30…
  22. June 2016 Investor Update – Enerplus Corp – slide 22
    Waterflood Medicine Hat Glauc C Unit Polymer pilot injection began in May 2012 (5 injectors) 2nd polymer project injection began in Q4 2015 (12 injectors) Additional projects currently planned for 2017 and 2018 Med Hat Glauc C - Net…
  23. June 2016 Investor Update – Enerplus Corp – slide 23
    Marcellus NE Pennsylvania Marcellus Acreage, Pennsylvania Key Facts Enerplus Land Net Acreage 47,000 acres Thickness Marcellus Well 2P Reserves(1) 841 Bcf Contingent Resources(2) 803 Bcf Future Net Drilling Locations 128 wells…
  24. June 2016 Investor Update – Enerplus Corp – slide 24
    Marcellus Well Performance and Economics Marcellus Type Curves Type Curve Economics(1)(2)(3) 5.0 15 Bcf Type Curve EUR (Bcf) 10 15 10 Bcf Type Curve 12 IP30 (MMcf/d) 8.3 11.0 4.5 2014 Onstream Actuals IRR Pretax (%) 8% 19% 42…
  25. June 2016 Investor Update – Enerplus Corp – slide 25
    Marcellus Northeast PA Pipeline Infrastructure Future Takeaway Capacity In the near-term, production capacity is limited by the amount of available pipeline egress in the region At current rig count, constrained or curtailed…
  26. June 2016 Investor Update – Enerplus Corp – slide 26
    Marcellus - Low Spending Until Margins Improve Continued low levels of spending to continue until pricing improves Potential for significant cash flow generation as basis tightens Marcellus Capital Spending Indicative Cash Margins…
  27. June 2016 Investor Update – Enerplus Corp – slide 27
    Marcellus Market Exposure, Sales & Transport Commitments Q1 2016 Actual Sales Committed Sales & Transport(1) 180 TGP Z4 300 160 Spot: 45% 140 '000s Dth/day 120 Transco Z6 Transco NNY: 100 Leidy Spot: 9% Dominion 21% 80…
  28. June 2016 Investor Update – Enerplus Corp – slide 28
    Our Competitive Advantage Top-tier assets Demonstrated track record of delivering profitable growth in production, reserves and funds flow Strong operational capability with disciplined capital allocation and focus on improving…
  29. June 2016 Investor Update – Enerplus Corp – slide 29
    Supplemental Information
  30. June 2016 Investor Update – Enerplus Corp – slide 30
    2015 Proved Plus Probable Reserves MMBOE 450 Replaced 108% of 2015 production 406 400 Added 42 MMBOE of proved plus 350 probable (2P) reserves(1) 300 Well performance in North Dakota and the Marcellus drove significant positive…
  31. June 2016 Investor Update – Enerplus Corp – slide 31
    Crude Oil Hedging Summary Q2 2016 2H 2016 2017 Hedge position as % of forecasted 39% 33% 41% production(1) Hedged 59% 61% 67% Unhedged Volume Price Volume Price Volume Price (bbl/d) (US/bbl) (bbl/d) (US/bbl) (bbl/d) (US/bbl)…
  32. June 2016 Investor Update – Enerplus Corp – slide 32
    Natural Gas Hedging Summary Apr - Oct 2016 Nov - Dec 2016 2017 Hedge position as % of 23% 16% forecasted 34% production(1) Hedged 66% 77% 84% Unhedged Volume Price Volume Price Volume Price (Mcf/d) (US/Mcf) (Mcf/d) (US/Mcf)…
  33. June 2016 Investor Update – Enerplus Corp – slide 33
    2016 Funds Flow Sensitivities Est. effect on 9 Months Est. effect on 9 Months 2016 Funds Flow 2016 Funds Flow per Share 2016 Nine Month Sensitivities ( Million) (/share) Change of 5.00/bbl WTI crude oil 49 0.24 Change of 0.50/Mcf…
  34. June 2016 Investor Update – Enerplus Corp – slide 34
    Fort Berthold Takeaway Capacity 3,500 Regional pipeline and refining capacity exceeds 3,000 850,000 bbls/d(1) 2,500 Less than 350,000 bbls/d of regional production must '000s bbls/day 2,000 utilize rail for egress(2)…
  35. June 2016 Investor Update – Enerplus Corp – slide 35
    Northeast Pennsylvania Pipeline Projects 6.5 Bcf/day of Projects Planned Incremental Takeaway Project Pipeline Owner Destination In Service (MMcf/day) Transco - Leidy Southeast Transco Williams In Service Southeast In Service…
  36. June 2016 Investor Update – Enerplus Corp – slide 36
    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…
  37. June 2016 Investor Update – Enerplus Corp – slide 37
    Enerplus Board of Directors continued Robert B. Hodgins, Director Mr. Hodgins has been an independent businessman since November 2004. Prior to that, Mr. Hodgins served as the Chief Financial Officer of Pengrowth Energy Trust (a TSX and…

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