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January 2017 Investor Update – Enerplus Corp

Enerplus Corp · Jan 31, 2017 · 33 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. January 2017 Investor Update – Enerplus Corp – slide 1
    ERF: TSX & NYSE Investor Update January 31, 2017
  2. January 2017 Investor Update – Enerplus Corp – slide 2
    About Enerplus TSX, NYSE ERF Market Cap C2.7 billion Canadian Oil Waterfloods Production(3): 14,700 BOE/d Net Debt(1) C0.7 billion Enterprise Value C3.4 billion 2017E Total Production 86 90 MBOE/d Williston Basin Production(3):…
  3. January 2017 Investor Update – Enerplus Corp – slide 3
    Key Messages Positioned for profitable and sustainable growth Strong balance sheet Reduced cost structure driving margin expansion Top quartile capital efficiencies Strong & focused portfolio Core Bakken position at Fort Berthold…
  4. January 2017 Investor Update – Enerplus Corp – slide 4
    Production Growth Three Year Outlook Disciplined, Profitable Growth 30% total company production Annual Production Outlook MBOE/day growth through 2019(1) 125 10% CAGR(1) 70% liquids growth(1) 110 North Dakota production to…
  5. January 2017 Investor Update – Enerplus Corp – slide 5
    2017 Outlook Driving Crude Oil Production Growth Budget focused on high rate-of-return North Dakota growth Maintaining balance sheet strength: spending to be approximately balanced with funds flow 2017 Capital Allocation Expected…
  6. January 2017 Investor Update – Enerplus Corp – slide 6
    Strong Balance Sheet & Liquidity Position Significant Financial Flexibility Debt, net of Cash Net debt reduced 45% since YE 2015(1) C millions Senior notes outstanding: 729.1MM(2) 1,400 1,216 Cash available: 75MM 1,200 1,000 800…
  7. January 2017 Investor Update – Enerplus Corp – slide 7
    Reduced Cost Structure Driving Margin Improvement Strong cost focus and efficiency improvements Divestment of properties with higher operating costs Reduced staff levels with more focused asset base Debt reduction has significantly…
  8. January 2017 Investor Update – Enerplus Corp – slide 8
    High Quality Assets, Capital Efficient Operations Consistently delivering competitive F&D Strong capital efficiencies; 85% of capital costs driven by North Dakota and Marcellus focused on crude oil projects 2015 3-Year Average 2P…
  9. January 2017 Investor Update – Enerplus Corp – slide 9
    Hedging Summary Protecting Cash Flow Crude Oil Hedging Summary(1)(2) Natural Gas Hedging Summary(1)(2) bbls/day; WTI US/bbl Mcf/day; NYMEX US/Mcf 20,000 80,000 60.33 18,000 x 50.61 16,000 x 61.14 39.62 60,000 14,000 x 50.29 12,000 x…
  10. January 2017 Investor Update – Enerplus Corp – slide 10
    Williston Basin North Dakota & Montana - Light Oil Assets Fort Berthold Q3 2016 production: 24,000 BOE/day(1) 2017E production expectations ND production is expected to grow 50% from beginning of 2017 to Q4 Fort Berthold…
  11. January 2017 Investor Update – Enerplus Corp – slide 11
    Fort Berthold Overview Tier 1 Acreage Position Key Details Net Acreage (operated) 65,500 acres 2P Reserves(1) 144 MMBOE Contingent Resources(1) 97 MMBOE Future Drilling Locations(2) 550 Gross (465 Net) Operated drilling rigs 2…
  12. January 2017 Investor Update – Enerplus Corp – slide 12
    Fort Berthold Efficiencies Focused on Continuous Improvement Drilling Efficiency Gains Long Lateral Wells Improving Total Well Costs Drilling Days vs Depth (ft) Spud to Rig Release Drill, Complete, Tie-in & Facilities (USMM) Days 0 2 4…
  13. January 2017 Investor Update – Enerplus Corp – slide 13
    Fort Berthold Well Performance High Intensity Completions High intensity completion design (1,000 lbs/ft. of proppant) driving strong performance Wells generating 30% 55% IRRs at WTI US50/bbl(1) Enerplus Bakken Well Performance(2)…
  14. January 2017 Investor Update – Enerplus Corp – slide 14
    North Dakota Well Performance vs Peers Basin Leading Well Productivity Core acreage position and high intensity completions driving strong productivity Average First 6 Months Oil Production Per Well Cumulative barrels of oil…
  15. January 2017 Investor Update – Enerplus Corp – slide 15
    Fort Berthold Type Curves and Well Economics Fort Berthold Type Curves Well / Economic Assumptions Barrels of oil per day Lateral length 10,000 ft. 1,800 1,600 1,200 MBO Type Curve (1,400 MBOE) Proppant loading 1,000 lbs/lateral ft 1,400…
  16. January 2017 Investor Update – Enerplus Corp – slide 16
    Fort Berthold Well Density and Inventory Significant Resource Opportunity Planning for higher density in the Middle Bakken Increasing to 6 Middle Bakken wells/DSU (compared to 4 previously) Well spacing and completions design tests…
  17. January 2017 Investor Update – Enerplus Corp – slide 17
    Industry Bakken Oil Production & Takeaway Capacity Declining basin production and strong local refinery demand narrowing differentials Potential for further differential improvement as pipeline egress increases Williston Basin…
  18. January 2017 Investor Update – Enerplus Corp – slide 18
    Marcellus Core Acreage Position in NE Pennsylvania Enerplus Land Key Details Marcellus Well Net Acreage 40,000 acres Thickness 2P Reserves(1) 841 Bcf Contingent Resources(1) 803 Bcf Future Net Drilling Locations(2) 128…
  19. January 2017 Investor Update – Enerplus Corp – slide 19
    Marcellus Well Results Continued Strong Performance Completion design continuing to shift to higher proppant volumes 2,000 lbs/ft. Average Cumulative Gas Production(1)(2) Bcf 8 Lat. Length Lateral Less length Than 4,000' <…
  20. January 2017 Investor Update – Enerplus Corp – slide 20
    Marcellus Type Curves & Well Economics Marcellus Type Curves Well / Economic Assumptions MMcf of gas per day Lateral Length 5,500 ft. 12 15 Bcf Type Curve Proppant Loading 1,600 lbs/lateral ft. 10 10 Bcf Type Curve 8 Well Cost…
  21. January 2017 Investor Update – Enerplus Corp – slide 21
    NE Pennsylvania Pipeline Projects 5.8 Bcf per day of Projects Planned Incremental Takeaway Project Pipeline Owner Destination In Service (MMcf/day) Atlantic Bridge Algonquin Spectra 133 NE Q4 2017 Connecticut Expansion TGP KM 72 NE…
  22. January 2017 Investor Update – Enerplus Corp – slide 22
    Marcellus NE PA Pipeline Infrastructure Future Takeaway Capacity At current rig count, DUC completions are helping fill the gap between productive capacity and regional market takeaway capacity Expecting basis differential improvement…
  23. January 2017 Investor Update – Enerplus Corp – slide 23
    Marcellus Potential for Significant Cash Flow with Improving NYMEX & Tightening Basis At current production levels, cash margin of US1.00/Mcf in 2017 would represent US70MM in annual cash flow Indicative Basis Improvement and Cash…
  24. January 2017 Investor Update – Enerplus Corp – slide 24
    Enerplus Marcellus Marketing Portfolio Enerplus Committed Sales and Transport MMcf per day 160 140 120 100 80 60 40 20 - 2017 2018 2019 Discount to Discount to Discount to NYMEX(1) % of Q3 16 NYMEX(1) % of Q3 16…
  25. January 2017 Investor Update – Enerplus Corp – slide 25
    Canadian Waterflood Portfolio Large Oil in Place, Low Decline, Stable Production Key Details Discovered OOIP(1) (bbls) 1.1 billion 2P Reserves(2) (MMBOE) 58 Contingent Resources(2) (MMBOE) 35 Future Net Drilling Locations(3) 93…
  26. January 2017 Investor Update – Enerplus Corp – slide 26
    Canadian Waterfloods Ante Creek Strong Secondary Recovery Potential Waterflood portfolio optimization Acquired production of 3,800 BOE/day High-netback, light oil production Ability to operationalize asset within Enerplus waterflood…
  27. January 2017 Investor Update – Enerplus Corp – slide 27
    Medicine Hat Glauc C Unit Polymer Flooding Polymer flooding delivering strong production performance in initial two projects Potential for additional polymer projects with multiple backfill phases to extend stable production 4-2…
  28. January 2017 Investor Update – Enerplus Corp – slide 28
    Why Invest in Enerplus Positioned for profitable, sustainable growth Strong financial position High quality asset base Top quartile capital efficiencies Proven operational execution Margin expansion through lower cost…
  29. January 2017 Investor Update – Enerplus Corp – slide 29
    Supplemental Information
  30. January 2017 Investor Update – Enerplus Corp – slide 30
    2017 Guidance(1) Capital Spending C450 million Annual Average Production 86,000 90,000 BOE/d Q4 Average Production 92,000 97,000 BOE/d Annual Average Liquids Production 40,000 43,000 bbls/d Q4 Average Liquids Production 45,000 50,000…
  31. January 2017 Investor Update – Enerplus Corp – slide 31
    2017 Funds Flow Sensitivities Est. effect on 12 Months Est. effect on 12 Months 2017 Funds Flow 2017 Funds Flow per Share ( Million) (/share) Change of 5.00/bbl WTI crude oil 60 0.25 Change of 0.50/Mcf NYMEX natural gas 40 0.19…
  32. January 2017 Investor Update – Enerplus Corp – slide 32
    2016 Guidance November 2016 August 2016 May 2016 February 2016 Guidance Update Guidance Update Guidance Update Guidance Capital Spending 215MM 215MM 200MM 200MM Average Production 93,000 92,000 94,000 90,000 94,000 90,000 94,000…
  33. January 2017 Investor Update – Enerplus Corp – slide 33
    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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