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September 2016 Investor Update – Enerplus Corp

Enerplus Corp · Sep 3, 2016 · 40 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 2016 Investor Update – Enerplus Corp – slide 1
    ERF: TSX & NYSE Investor Update September 2016
  2. September 2016 Investor Update – Enerplus Corp – slide 2
    About Enerplus TSX, NYSE ERF Market Capitalization C2.2 billion Canadian Oil Waterfloods Net Debt(1) C0.7 billion Production(3): 16,600 BOE/d Enterprise Value C3.0 billion 2016E Total Production 92 94 MBOE/d 2016E Liquids Production…
  3. September 2016 Investor Update – Enerplus Corp – slide 3
    Investment Highlights Well positioned to re-establish growth Strong balance sheet Improved netbacks through cost reductions and narrowing differentials Industry leading capital efficiencies Strong & focused portfolio Fort Berthold…
  4. September 2016 Investor Update – Enerplus Corp – slide 4
    Portfolio Evolution Improved Concentration Over 1.2 billion of net divestment proceeds since 2010, focusing the portfolio Three areas now represent 90% of company production and 95% of 2P reserves Cumulative Production 2P…
  5. September 2016 Investor Update – Enerplus Corp – slide 5
    2016 Outlook & Q2 Highlights Strong 2016 annual production guidance of 92 94 MBOE/day (from 90 94 MBOE/day) Operational Performance Q4 2016E production of 89,000 BOE/d 45% debt reduction since YE 2015 Balance Sheet Undrawn C800MM…
  6. September 2016 Investor Update – Enerplus Corp – slide 6
    Strong Balance Sheet & Liquidity Position Significant Liquidity Available: Credit Facility Undrawn & Cash in the Bank Balance Sheet Overview Senior Notes Repayment Schedule(1)(2) At June 30, 2016 C Millions Senior notes…
  7. September 2016 Investor Update – Enerplus Corp – slide 7
    Margin Improvement Cost Reductions Driving Margin Improvement Operating costs have fallen even as proportion of company liquids production has increased Cost focus Divested properties with higher operating costs Reduction in staff…
  8. September 2016 Investor Update – Enerplus Corp – slide 8
    High Quality, Efficient Assets 2015 3-Year Average 2P F&D(1) 2015 Capital Efficiencies(2) Strong capital efficiencies; 90% of capital focused Consistently delivering competitive F&D costs on crude oil projects driven by the…
  9. September 2016 Investor Update – Enerplus Corp – slide 9
    Hedging Summary WTI & NYMEX Crude Oil Hedging Summary(1) Natural Gas Hedging Summary(1) 100% 70 100% 3.00 90% 90% % Production Hedged, net of royalties(2) 60 % Production Hedged, net of royalties(2) 2.50 WTI Price…
  10. September 2016 Investor Update – Enerplus Corp – slide 10
    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…
  11. September 2016 Investor Update – Enerplus Corp – slide 11
    Fort Berthold Overview Tier 1 Acreage Position Fort Berthold, North Dakota Key Facts Discovered OOIP(1) 22 35 MMbbls/1280 DSU Discovered OOIP(1) 1.4 billion bbls Net Acreage 72,500 acres 2P Reserves(2) 144 MMBOE Contingent…
  12. September 2016 Investor Update – Enerplus Corp – slide 12
    Fort Berthold Well Results High Intensity Completions Delivering Strong Well Performance 350,000 900 MBO Type Curve 2014-2016 completions (42 wells) Stages: 36-42 1200 MBO Type Curve Proppant: White sand 300,000 Proppant volume:…
  13. September 2016 Investor Update – Enerplus Corp – slide 13
    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…
  14. September 2016 Investor Update – Enerplus Corp – slide 14
    Enerplus Fort Berthold 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…
  15. September 2016 Investor Update – Enerplus Corp – slide 15
    Fort Berthold Well Economics Fort Berthold Type Curves Type Curve Economics(1)(2)(3) 1,800 Oil (MBO) 1,200 900 Oil Equivalent (MBOE) 1,400 1,050 1,200 Mbbl Type Curve 900 Mbbl Type Curve 1,600 30 Day Cum Oil Prod (bbls) 48,118…
  16. September 2016 Investor Update – Enerplus Corp – slide 16
    Density Overview 8 Well Density 8 - 11 Well Density No Lower Three Forks Lower Three Forks Stand-Alone Locations Productive P+DP/P+PUDbooked proved developed and undeveloped locations(1) Best estimate contingent resources(2)…
  17. September 2016 Investor Update – Enerplus Corp – slide 17
    Fort Berthold Inventory Significant Running Room With Existing Inventory Op + Operated NonOp Only Operated Operated Operated Well Well Years Years Years Count Count Inventory Inventory Inventory Well Status Location Category Net…
  18. September 2016 Investor Update – Enerplus Corp – slide 18
    Well Density and Lower Three Forks Further Upside Potential From Higher Drilling Density 10 Wells 11 Wells High Density Units Enerplus current density plans: Current well counts In offsetting DSUs 4 Bakken wells, 4 Three Forks wells…
  19. September 2016 Investor Update – Enerplus Corp – slide 19
    Bakken Differential Differentials continue to improve as North Dakota production falls and rail competes against pipe for barrels Enerplus Bakken Crude Oil Differential to WTI -4.00 -6.00 -8.00 US/bbl -10.00…
  20. September 2016 Investor Update – Enerplus Corp – slide 20
    Industry Bakken Oil Production & Takeaway Capacity Williston Basin pipeline egress capacity will exceed forecast production with completion of Dakota Access The Sandpiper capacity would increase competition for barrels, however, the…
  21. September 2016 Investor Update – Enerplus Corp – slide 21
    Enerplus Bakken Marketing Portfolio Enerplus is well positioned to take advantage of the tightening basin differentials We plan to layer in additional term sales over time Enerplus Bakken Crude Oil Marketing Commitments 20,000…
  22. September 2016 Investor Update – Enerplus Corp – slide 22
    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…
  23. September 2016 Investor Update – Enerplus Corp – slide 23
    Marcellus Well Performance and Economics Marcellus Type Curves Type Curve Economics(1)(2)(3) 5.0 15 Bcf Type Curve Gas (Bcf) 10 15 10 Bcf Type Curve 11 4.5 IP30 (MMcf/d) 8.3 11.0 2014 Onstream Actuals 95 57 2015 Onstream Actuals…
  24. September 2016 Investor Update – Enerplus Corp – slide 24
    Marcellus Original Gas In Place and Well Density 128 Net undrilled locations on 1000 spacing 33 P+PUD(1) 100 Bcf/sq. mi. 95 CR(2) 500 spacing has 150 Bcf/sq. mi. potential for 140 additional net 50 Bcf/sq. mi. locations(3)…
  25. September 2016 Investor Update – Enerplus Corp – slide 25
    Marcellus Differential Lower NE PA production combined with weaker NYMEX prices and additional egress has resulted in a tightening of Marcellus basis since mid-2015 We expect the differentials to continue to tighten as additional…
  26. September 2016 Investor Update – Enerplus Corp – slide 26
    NE Pennsylvania Market Fundamentals BCF/day The white space below Actual production exceeds production US/MMBtu the green line reflects implied by rig counts and rig efficiency 12 5.00 curtailed volume industry is beginning to work…
  27. September 2016 Investor Update – Enerplus Corp – slide 27
    Marcellus NE Pennsylvania 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…
  28. September 2016 Investor Update – Enerplus Corp – slide 28
    Marcellus Potential Cash Margin Improvement Potential for significant cash flow generation as basis tightens Industry currently working through curtailed production and DUC inventories Indicative Basis Improvement and Cash Margin…
  29. September 2016 Investor Update – Enerplus Corp – slide 29
    Enerplus Marcellus Marketing Portfolio 200 Enerplus Committed Sales and Transport 180 160 140 '000 Dth/day 120 100 80 60 40 20 0 TETCO M3 Leidy/TGP NYMEX Equiv. Transco Zone 6 NNY Term Sales & Transport - 2017 Term…
  30. September 2016 Investor Update – Enerplus Corp – slide 30
    Canadian Waterflood Portfolio Large oil in place, low decline, stable production High netback assets have delivered over 750MM in free cash flow since 2010 Advancing technologies for waterflood, polymer flood, gel treatments; possible…
  31. September 2016 Investor Update – Enerplus Corp – slide 31
    Medicine Hat Glauc C Unit Polymer Flooding Polymer flooding delivering strong production performance in initial two projects Potential for two additional polymer projects in the future with multiple backfill phases in each project…
  32. September 2016 Investor Update – Enerplus Corp – slide 32
    Canadian Waterfloods Long-Life, Low-Decline Assets Delivering Strong Free Cash Flow Strong free cash flow generating assets; supporting growth opportunities Generated over C750 million in free cash flow from 2010 - 2015 400 900…
  33. September 2016 Investor Update – Enerplus Corp – slide 33
    Supplemental Information
  34. September 2016 Investor Update – Enerplus Corp – slide 34
    2016 Guidance Update August 2016 Guidance May 2016 Guidance February 2016 Update(1) Update Guidance Capital Spending 215MM 200MM 200MM Average Production (BOE/d) 92,000 94,000 90,000 94,000 90,000 94,000 Average Liquids (bbls/d)…
  35. September 2016 Investor Update – Enerplus Corp – slide 35
    2016 Funds Flow Sensitivities Est. effect on 6 Months Est. effect on 6 Months 2016 Funds Flow 2016 Funds Flow per Share 2016 Six Month Sensitivities ( Million) (/share) Change of 5.00/bbl WTI crude oil 28 0.12 Change of 0.50/Mcf NYMEX…
  36. September 2016 Investor Update – Enerplus Corp – slide 36
    Track Record of Disciplined Growth Debt & dividend adjusted production per share CAGR from 2011 2015: 10% Debt & Dividend Adjusted Production Per Share 110,000 0.210 100,000 0.190 Debt & Dividend Adjusted Production 0.170…
  37. September 2016 Investor Update – Enerplus Corp – slide 37
    Deleveraged Balance Sheet in Low Commodity Price Enhanced financial flexibility 45% reduction in debt, net of cash since year-end 2015 Debt net of cash(1) Debt/ (Millions) Funds Flow WTI 98/bbl WTI 93/bbl WTI 49/bbl WTI: 40/bbl 3.5x…
  38. September 2016 Investor Update – Enerplus Corp – slide 38
    Crude Oil Hedging Summary 2H 2016 2017 Hedge position as % of forecasted 39% 39% production(1) Hedged 61% 61% Unhedged Volume Price Volume Price (bbl/d) (US/bbl) (bbl/d) (US/bbl) 3 Way Collars Sold Puts 12,000 45.09 12,000…
  39. September 2016 Investor Update – Enerplus Corp – slide 39
    Natural Gas Hedging Summary Jul - Oct 2016 Nov - Dec 2016 2017 Hedge position as % of 22% 20% forecasted 33% production(1) Hedged 67% Unhedged 78% 80% Volume Price Volume Price Volume Price (Mcf/d) (US/Mcf) (Mcf/d) (US/Mcf)…
  40. September 2016 Investor Update – Enerplus Corp – slide 40
    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…

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