Corporate Strategy FOCUS: Top tier assets; effective capital allocation strategy; profitable growth EXECUTION: DISCIPLINED, Leverage the strong operational & technical knowledge of our staff to achieve leading results…
Enerplus Investor Day Themes Well positioned to re-establish growth Industry leading capital efficiencies Strong financial position Improving netbacks through cost reductions, narrowing differentials and commodity price improvement…
High Quality, Efficient Assets 2015 3-Year Avg F&D, including FDC(1) 2015 Capital Efficiencies(2) Strong capital efficiencies, particularly given 90% Consistently delivering competitive F&D costs of capital focused on crude oil…
Driving Costs Down Netback Improvement with Strategic Asset Divestments and Strong Operational Execution Divesting of properties with higher operating costs Strong operational execution is driving operating costs lower even as…
Deleveraged Balance Sheet Significant Financial Flexibility Strong Foundation for Growth Proactive steps to improve balance sheet position: cost reductions, reduced spending, non core asset sales, and equity financing Debt…
Netback Improvement Combination of lower cost structure and narrowing Bakken and Marcellus differentials providing powerful torque to a recovery in prices 20 70 18 60 16 50 Cash Netback (/boe) 14 WTI (US/bbl) 12…
Track Record of Disciplined Growth Production CAGR(1) from 2011 2015: 9% Debt & dividend adjusted production CAGR from 2011 2015: 10% Debt & Dividend Adjusted Production Per Share 120,000 0.250 Debt & Dividend Adjusted…
Managing Leverage Debt levels kept relatively constant during a period of strong production growth Decline in funds flow caused debt / funds flow ratio to increase above 2 times Net Debt Debt/ (Millions) Funds Flow WTI US98/bbl WTI…
2016 Priorities Strengthen balance sheet: debt reduction and increased financial flexibility Reduce cost structure and enhance profitability and capital efficiency Flexibility to increase spending levels if supported by sustained…
Deleveraged Balance Sheet in Low Commodity Price Enhanced financial flexibility Approximately 45% reduction in net debt expected at June 30, 2016 Net Debt(1) Debt/ (Millions) Funds Flow WTI US98/bbl WTI US93/bbl WTI US49/bbl Q1…
Balance Sheet Overview Significant Liquidity Available: Credit Facility Undrawn on a Pro Forma basis(1) CDN800 million(1) unsecured bank credit Senior facility will be undrawn at June 30, 2016 Notes Undrawn Amount 691MM(2)…
Senior Notes Reduced Term Debt by 32% Repurchased US267 million (YTD 2016) of the face value at prices between 90% and par Expected savings of CDN16.9 million(2) in interest expense on an annualized basis, or CDN0.50/BOE Millions(1)…
Dividend Strategy The dividend remains an Historic & Estimated Dividend Payout Ratio important part of our Millions Payout Ratio shareholder return strategy and 1,000 100% provides additional discipline to capital allocation…
Profitability Over the Long-Term Sustainable Growth Leading capital Maintain strong efficiencies balance sheet Competitive & & decline continuing to disciplined improve netback spending Debt adjusted production and cash…
Asset Overview Ray Daniels Senior VP, Operations
Top Tier Asset Portfolio Core growth positions supported by free cash flow generating assets Strategic optionality for oil and natural gas development dependent upon commodity prices Canadian Oil Waterfloods Support Assets 15,000…
Portfolio Evolution Portfolio increasingly focused on three areas that now represent 90% of company production Over 60% of capital over the last five years directed to North Dakota and the Marcellus Production CAGR(1) from North…
North Dakota Nate Fisher VP, U.S. Development & Geosciences
Fort Berthold Introduction Fort Berthold, North Dakota Premier Foundation for Growth Top acreage position Best in-class Well performance Capital efficiencies Break-evens Low well density, significant running room Production…
Fort Berthold Position Core Acreage, Excellent Wells 100% of Enerplus Acreage is in the Core Fort Berthold Well Results 350,000 1,200 Mbbl Type Curve Acreage Quality 2014-2016 wells Avg Long Laterals Peak Monthly Production By…
Fort Berthold Top-Tier Capital Efficiencies 30 Drilling Days Two Mile Laterals Capital Cost per Long Well 10 25 8 Days 20 US MM 6 15 4 10 5 2 0 0 Enerplus Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer…
Enerplus Fort Berthold vs. Other Plays Competitive with the Best-of-the-Best Average Well Results Across Oil Plays by Leading Operator(2) (2014 to 2015) IP30 Capital US5,100 US5,400 US4,300 US5,700 US5,900 US6,800 US6,200 Efficiency…
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…
Density Overview Acreage where Lower Three Forks is not targeted Previous Density Plan Full Development Planning 6 / 7 Well Density 8 Well Density No Lower Three Forks No Lower Three Forks Stand-Alone Locations Stand-Alone…
Density Overview Acreage with Potential for Lower Three Forks wells Previous Density Plan Full Development Planning 8 Well Density 8 - 11 Well Density Lower Three Forks Lower Three Forks Productive Productive P+DP/P+PUD booked…
Fort Berthold Well Density Enerplus Fur Bearers Higher Density DSU 1st & 2nd Bakken Wells: Fox & Prairie Dog (Dec 2013) 3rd & 4th Bakken Wells: Raccoon & Muskrat (Apr 2016) All wells similar performance and on 1200 MBO trend No…
Fort Berthold Inventory Significant Running Room Op + Operated NonOp Only Operated Operated Operated Well Well Years Years Years Count Count Inventory Inventory Inventory Well Status Location Category Net Gross 1 Rig 2 Rigs 3…
Well Density and Lower Three Forks Further Upside Potential High Density Units Current well counts Enerplus current density plans: In offsetting DSUs 4 Bakken wells, 4 Three Forks wells Enerplus very early in development Current…
Fort Berthold Development Plan Indicative View to 2020 - Robust Growth Potential Approximately 50% of identified remaining inventory(1) would be used by 2020 in high case 70,000 60,000 50,000 40,000 BOE/Day 30,000…
Marcellus Nate Fisher VP, U.S. Development & Geosciences
Marcellus - Introduction Marcellus Acreage, NE Pennsylvania Exceptional Dry Gas Play Enerplus Land Core of NE PA Marcellus Thickness Marcellus Well Industry leading well performance Low well density Significant running room…
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 12 IP30 (MMcf/d) 8.3 11.0 4.5 2014 Onstream Actuals 42 IRR Pretax (%) 12% 26%…
Marcellus Continued Efficiency Gains and Cost Improvement Efficiency Gains and Lower Costs Drive Down Total Well Cost per Lateral Length Lateral Lateral Length Drill Cost/Lateral Ft Feet US 000s 7,000 1,000 6,000 800 5,000…
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 net 50 Bcf/sq. mi. locations(3) Very high…
Marcellus Development Plan Indicative View to 2020 - Significant Running Room Approximately 50% of identified remaining inventory(1) would be used by 2020 in high case 300 250 200 MMcf/day 150 100 50 -…
Montana Nate Fisher VP, U.S. Development & Geosciences
Montana Sleeping Giant Field Sleeping Giant, Montana Low decline cash flow generator Minimal capital requirements Strong free cash flow Low decline of 15% Significant OOIP with secondary recovery potential, EOR tests ongoing 160…
Canadian Waterfloods John Hoffman VP, Canadian Operations
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…
Canadian Waterfloods Predictable, Low Risk Production Stable production, low decline 25,000 20,000 Other Brooks BOE/day 15,000 Waterflood portfolio high-graded with over 7,000+ BOE/d divested since 2010…
Canadian Waterfloods Delivering Free Cash Flow Strong free cash flow(1) generating assets, supporting growth opportunities Generated over 750 million in free cash flow from 2010 - 2015 WTI (US/bbl): 80 95 94 98 93 49 50(2) 400…
Medicine Hat Glauc C Unit Asset Overview Strong Production from Waterflood and Polymer with Significant Future Potential Medicine Hat Unit Key Facts Q1 2016 Production (BOE/d) 3,458 Oil (bbl/d) 3,408 Gas (Mcf/d) 295 Avg Working…
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…
SE Saskatchewan Ratcliffe Asset Overview Strong Netback, High Margin Asset Ratcliffe Key Facts Q1 2016 Oil Production (bbls/d) 3,050 Freda Lake Unit Avg Working Interest(1) 95% Discovered OOIP(2) (MMBOE) 135 Cum Production at Dec…
SE Saskatchewan Ratcliffe Strong Well Performance Enerplus is delivering top quartile well performance in Ratcliffe trend Better deliverability driven by longer laterals, reservoir and quality injection performance Ratcliffe Three…
Marketing & Risk Management Eric Le Dain Senior VP, Corporate Development, Commercial
Bakken Differential Differentials continue to improve as North Dakota production falls and rail competes against pipe for barrels We expect the differentials to remain around the US(7.00)/bbl level even as WTI prices increase…
Industry Bakken Oil Production & Takeaway Capacity Williston Basin pipeline egress capacity will exceed forecast production with completion of Dakota Access Additional Sandpiper capacity increases competition for barrels kbpd…
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 20,000 Enerplus Bakken Crude Oil Marketing Commitments…
Marcellus Differential
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 As NYMEX strengthens through the balance of 2016, we expect realized…
NE Pennsylvania Market Fundamentals Bcf/Day Actual production exceeds production US/MMBtu 12 implied by rig counts and rig efficiency 4.00 37 rigs 29 rigs industry is beginning to work through the curtailed volume inventory 3.00…
Marcellus Northeast PA Pipeline Infrastructure Future Takeaway Capacity At current rig count, constrained or curtailed production behind pipe is required to augment base production levels to fill takeaway capacity Additional basis…
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…
Canadian Differentials Risk Canadian crude differentials Forecast a slight widening versus current levels, as Canadian crude oil production continues to grow and rail is still required to clear the WCSB: We generally financially hedge…
Risk Management Strategy WTI & NYMEX Overriding Manage commodity price risk to reduce volatility of funds flow Objective Key considerations include price views, protecting economics and leverage 100% 80% Price lines We…
Hedging Summary WTI & NYMEX Crude Oil Hedging Summary(1) Natural Gas Hedging Summary(1) 100% 70 100% 3.00 % Production Hedged, net of royalties(2) 90% 90% % Production Hedged, net of royalties(2) 60 NYMEX Price Hedged…
Portfolio & Capital Allocation Strategy Eric Le Dain Senior VP, Corporate Development, Commercial
Portfolio Repositioning Continued Optimization and Improved Concentration Improved Portfolio Focus: Fewer, Larger Positions Cumulative Net A&D Production 11,000 BOE/d of non-core production divested since Q4 2015 Proceeds(1) (BOE/day)…
Portfolio Optimization Corporate metrics significantly improved through core asset performance and divestment of high cost assets Enhance Organizational Improve capital Reduce Strengthen profitability / efficiencies…
Portfolio Capital Efficiency High Quality Assets Driving Strong Capital Efficiencies Continued improvement in capital efficiencies expected in 2017; capital allocation is expected to be increasingly weighted to U.S. assets Capital to…
Oil versus Gas Capital Allocation Oil volumes have been driving majority of revenue Capital allocation is to Fort Berthold oil first, then to waterflood oil and Marcellus gas 120,000 Production, Spending & Revenue 100% 90% 100,000…
Outlook & Summary Ian C. Dundas President & Chief Executive Officer
2016 Guidance Declining through year, largely due to 11,000 BOE/d of non-core production Annual Avg. Production divested Q4 2015 Q2 2016 90,000 94,000 BOE/d Q4 2016 production forecast of 88,000 BOE/d post divestments Liquids…
Outlook Flexible Capital Scenarios 2016 2019 120,000 US60/bbl, US3.50/Mcf…
Why Invest in Enerplus Core positions in top resource plays (Bakken/Three Forks and Marcellus) High Quality Significant organic growth potential Assets Supported by low decline, high margin waterflood assets Track record of…
Natural Gas Hedging Summary Apr - Oct 2016 Nov - Dec 2016 2017 Hedge position as % of 23% 18% forecasted 34% production(1) Hedged 66% 77% 82% Unhedged Volume Price Volume Price Volume Price (Mcf/d) (US/Mcf) (Mcf/d) (US/Mcf)…
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…
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 0.21 Change of 0.50/Mcf NYMEX…
Enerplus Board of Directors Biographies 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…
Enerplus Board of Directors Biographies 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…
Investor Relations Contacts Drew Mair 1-800-319-6462 Manager, Investor Relations investorrelationsenerplus.com 403-298-1707 dmairenerplus.com www.enerplus.com Krista M. S. Norlin The Dome Tower Sr. Investor Relations Analyst…
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