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March 2017 Corporate Presentation – Enerplus Corp

Enerplus Corp · Mar 9, 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. March 2017 Corporate Presentation – Enerplus Corp – slide 1
    Corporate Presentation March 2017
  2. March 2017 Corporate Presentation – Enerplus Corp – slide 2
    About Enerplus TSX, NYSE ERF Market Cap C3.0 billion Canadian Oil Waterfloods Net Debt(1) C0.4 billion Production(2): 12,500 BOE/d Enterprise Value C3.4 billion Williston Basin High quality drilling inventory Production(2): 27,000…
  3. March 2017 Corporate Presentation – Enerplus Corp – slide 3
    Production Growth Three Year Outlook Disciplined, Profitable Growth 30% total company production growth Annual Production Outlook MBOE/day through 2019(1) 10% CAGR(1) 115 70% liquids growth(1) North Dakota production to 100…
  4. March 2017 Corporate Presentation – Enerplus Corp – slide 4
    2017 Outlook Driving Crude Oil Production Growth Budget focused on high rate-of-return North Dakota liquids growth Spending to be approximately balanced with funds flow 2017 Capital Allocation Expected Production Growth C millions…
  5. March 2017 Corporate Presentation – Enerplus Corp – slide 5
    Margin Expansion Stronger Cash Flow Generation Lower cost structure and Margin Improvement 2017E vs 2014 C/BOE narrowing differentials are driving margin expansion 5.00/BOE 2.10 MARGIN EXPANSION 2.80/BOE forecast aggregate…
  6. March 2017 Corporate Presentation – Enerplus Corp – slide 6
    Balance Sheet & Liquidity Position Significant Financial Strength Debt, net of cash & restricted cash Net debt reduced 70% since YE 2015(1) C millions Senior notes outstanding: 745.6 MM(2) 1,400 1,216 Cash: 393.3 MM(1) 1,200 1,000…
  7. March 2017 Corporate Presentation – Enerplus Corp – slide 7
    Strong F&D and Capital Efficiencies Consistently delivering top quartile F&D costs driven by North Dakota and the Marcellus 80% of capital allocation to crude oil projects from 2014 2017 F&D(1) 3-YEAR AVERAGE: Q4 Capital…
  8. March 2017 Corporate Presentation – Enerplus Corp – slide 8
    Hedging Summary Protecting Cash Flow Crude Oil Hedging Summary(1)(2) Natural Gas Hedging Summary(1)(2)(3) bbls/day; WTI US/bbl Mcf/day; NYMEX US/Mcf % HEDGED(3) 59% 74% 46% 15% 15% % HEDGED(3) 25% 20,000 80,000 60.33 18,000 x…
  9. March 2017 Corporate Presentation – Enerplus Corp – slide 9
    Williston Basin North Dakota & Montana - Light Oil Assets Fort Berthold, ND Q4 2016 production: 22,000 BOE/d(1) Targeting 50% production growth from beginning of 2017 to fourth quarter Fort Sleeping Giant, MT Berthold Q4 2016…
  10. March 2017 Corporate Presentation – Enerplus Corp – slide 10
    Fort Berthold, North Dakota Bakken / Three Forks Tier 1 Acreage Position Key Details Net Acreage (operated) 65,500 acres 2P Reserves(1) 139 MMBOE Contingent Resources(2) 120 MMBOE Future Drilling Locations(3) 524 Gross (457 Net)…
  11. March 2017 Corporate Presentation – Enerplus Corp – slide 11
    Fort Berthold Efficiencies Focused on Continuous Improvement Total well cost with high intensity completion (10MM lbs. of proppant) down 40% since 2014 Cost performance driven by efficiencies and supply chain savings Sustainable costs…
  12. March 2017 Corporate Presentation – Enerplus Corp – slide 12
    Fort Berthold Well Performance High Intensity Completions High intensity completion driving strong performance Wells generating 40% 80% IRRs at WTI US55/bbl(1) Enerplus Bakken Well Performance(2) Enerplus Three Forks Well…
  13. March 2017 Corporate Presentation – Enerplus Corp – slide 13
    North Dakota Well Performance vs Peers Basin Leading Well Productivity Enerplus is delivering among the best well performance in the Bakken Core acreage position and high intensity completions driving strong productivity Average…
  14. March 2017 Corporate Presentation – Enerplus Corp – slide 14
    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…
  15. March 2017 Corporate Presentation – Enerplus Corp – slide 15
    Fort Berthold Well Density and Inventory Significant Resource Opportunity Current development plan based on 10 wells per drilling spacing unit (DSU) Well spacing and completions design tests ongoing to optimize development Maximize…
  16. March 2017 Corporate Presentation – Enerplus Corp – slide 16
    Fort Berthold Significant Running Room Low existing well density Large remaining opportunity set is well defined Gross Locations(1) Wells Drilled & Future Drilling Locations 33% of remaining locations 800 700 46% of remaining…
  17. March 2017 Corporate Presentation – Enerplus Corp – slide 17
    Industry Bakken Oil Production & Takeaway Capacity Basin expected to be significantly over-piped upon DAPL completion Enerplus is well positioned to take advantage of expected differential improvement Forecasting US(4.50)/bbl…
  18. March 2017 Corporate Presentation – Enerplus Corp – slide 18
    Marcellus Core Acreage Position in NE Pennsylvania Key Details Net Acreage 39,000 acres 2P Reserves(1) 895 Bcf Contingent Resources(2) 837 Bcf Future Net Drilling Locations(3) 129 Net Acreage located in NE PA dry gas core…
  19. March 2017 Corporate Presentation – Enerplus Corp – slide 19
    Marcellus Potential for Significant Free Cash Flow Generation The strength in NYMEX prices and improving Marcellus basis is supporting higher capital spending levels in 2017 Significant increase in cash flow expected in 2017 Capital…
  20. March 2017 Corporate Presentation – Enerplus Corp – slide 20
    Marcellus Well Results Continued Strong Performance Well performance continuing to track at or above type curve expectations Average Cumulative Gas Production(1)(2) Bcf 8 Lateral Lat. length Length < 4,000 Less Than 4,000' 13…
  21. March 2017 Corporate Presentation – Enerplus Corp – slide 21
    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…
  22. March 2017 Corporate Presentation – Enerplus Corp – slide 22
    NE Pennsylvania Pipeline Projects Significant Takeaway Expansion Planned Large slate of projects planned to further debottleneck NE PA production NE Pennsylvania Pipeline Projects 2019 MMcf/day 2018 +1.0 Bcf/day +4.3 Bcf/day…
  23. March 2017 Corporate Presentation – Enerplus Corp – slide 23
    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…
  24. March 2017 Corporate Presentation – Enerplus Corp – slide 24
    Marcellus Marketing Portfolio Leidy Basis (below NYMEX) Enerplus Committed Sales and Transport In-Basin Pricing (US/Mcf) MMcf per day -0.50 160 -0.70 140 -0.90 120 100 -1.10 80 -1.30 60 -1.50 40 -1.70 20 -1.90 - Q1 Q3 Q1 Q3 Q1 Q3…
  25. March 2017 Corporate Presentation – Enerplus Corp – slide 25
    Canadian Waterflood Portfolio Large Oil in Place, Low Decline, Stable Production Key Details Discovered OOIP(1) (bbls) 0.9 billion 2P Reserves(2) (MMBOE) 51 Contingent Resources(3) (MMBOE) 34 Average Decline Rate (%) 14 ANTE…
  26. March 2017 Corporate Presentation – Enerplus Corp – slide 26
    Canadian Waterflood Portfolio Cost Structure Enhancements Supporting Strong Cash Flow Generation Cost focus, efficiencies, and portfolio optimization are driving improved cost structure Modest capital to maintain production levels,…
  27. March 2017 Corporate Presentation – Enerplus Corp – slide 27
    Canadian Waterfloods Ante Creek Strong Secondary Recovery Potential Acquired 3,800 BOE/d in Q4 2016 High netback, light oil producing asset Waterflood expansion project with opportunity to more than double crude oil production…
  28. March 2017 Corporate Presentation – Enerplus Corp – slide 28
    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…
  29. March 2017 Corporate Presentation – Enerplus Corp – slide 29
    Why Invest in Enerplus Focused on profitable, sustainable growth Strong financial position High quality asset base Top quartile capital efficiencies Proven operational execution Margin expansion Attractive valuation 29
  30. March 2017 Corporate Presentation – Enerplus Corp – slide 30
    Supplemental Information
  31. March 2017 Corporate Presentation – Enerplus Corp – slide 31
    2017 Guidance(1) Capital Spending C450 million Annual Average Production 81,000 85,000 BOE/d Q4 Average Production 86,000 91,000 BOE/d Annual Average Liquids Production 38,500 41,500 bbls/d Q4 Average Liquids Production 43,000 48,000…
  32. March 2017 Corporate Presentation – Enerplus Corp – slide 32
    2017 Adjusted Funds Flow Sensitivities Est. effect on 12 Months Est. effect on 12 Months 2017 Adjusted 2017 Adjusted Funds Flow(1) Funds Flow(1) per Share ( Million) (/share) Change of 5.00/bbl WTI crude oil 58 0.24 Change of…
  33. March 2017 Corporate Presentation – 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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