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May 2017 Corporate Presentation – Enerplus Corp

Enerplus Corp · May 11, 2017 · 32 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. May 2017 Corporate Presentation – Enerplus Corp – slide 1
    Corporate Presentation May 2017
  2. May 2017 Corporate Presentation – Enerplus Corp – slide 2
    Enerplus Strategy TSX, NYSE ERF Market Cap C2.4 billion Canadian Oil Waterfloods Net Debt(1) C0.5 billion Production(2): 13,600 BOE/d Enterprise Value C2.9 billion Key Messages Williston Basin Production(2): 25,100 BOE/d Top…
  3. May 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) 85% of capital allocated to crude oil…
  4. May 2017 Corporate Presentation – Enerplus Corp – slide 4
    2017 Outlook Driving Crude Oil Production Growth Budget focused on high rate-of-return North Dakota crude oil growth Strong liquids growth entry to exit (25%) 2017 Capital Allocation Forecast Liquids Production C millions Mbbl/day…
  5. May 2017 Corporate Presentation – Enerplus Corp – slide 5
    Managing Risk Well Positioned to Execute Profitable Growth Strategy Strong Financial Position Cash Flow Protection Capital Cost Protection 2017E Debt to Cash Flow(1) 2017 Crude Oil Hedges 2017 North Dakota Capital Protected 3.6x %…
  6. May 2017 Corporate Presentation – Enerplus Corp – slide 6
    Margin Improvement Lower Costs and Tighter Differentials Driving Expansion Cash Margin(2) C/BOE 5.00/BOE 40.00 13.97 15.69 REDUCTION 35.00 13.16 14.83 in Cash Costs(1) 30.00 9.45 12.04 8.92 25.00 4.42 4.69 8.28 6.39 50% 20.00…
  7. May 2017 Corporate Presentation – Enerplus Corp – slide 7
    Balance Sheet & Liquidity Position Significant Financial Strength Net debt reduced 70% since YE 2015(1) No significant debt maturities until 2020 Senior notes outstanding: 740 MM(2) 4 MM drawn on the 800 MM bank credit Leverage…
  8. May 2017 Corporate Presentation – Enerplus Corp – slide 8
    Balance Sheet Strength Financial Position Among the Strongest In Peer Group Significant financial flexibility Enerplus is committed to maintaining a strong balance sheet Net Debt / 2017E Cash Flow(1) 9.0x 8.0x 7.0x 6.0x 5.0x…
  9. May 2017 Corporate Presentation – Enerplus Corp – slide 9
    Continued Capital Efficiency Improvement Generated Strong F&D and Capital Efficiencies Consistently delivering top quartile F&D costs driven by North Dakota and the Marcellus Capital efficiencies expected to improve through 2017 80%…
  10. May 2017 Corporate Presentation – Enerplus Corp – slide 10
    Williston Basin North Dakota & Montana - Light Oil Assets Fort Berthold, ND Q1 2017 production: 20,840 BOE/d Two operated rigs Sleeping Giant, MT Q1 2017 production: 4,220 BOE/d Fort Minimal capital expenditures; low Berthold…
  11. May 2017 Corporate Presentation – Enerplus Corp – slide 11
    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)…
  12. May 2017 Corporate Presentation – Enerplus Corp – slide 12
    Fort Berthold Activity Update Recent Completions Elements pad 3 wells (2 BK, 1 TF1) Lateral length: 2-mile (1 well) Peak 30-day rate: 1,723 BOE/d Lateral length: 1-mile (2 wells) Peak 30-day average rates: 1,514 BOE/d Hudson pad 1…
  13. May 2017 Corporate Presentation – Enerplus Corp – slide 13
    Fort Berthold Efficiencies Focused on Continuous Improvement Total well cost (10MM lbs. of proppant) down 40% since 2014 Cost performance driven by efficiencies and supply chain savings Sustainable costs with 75% of 2017 North Dakota…
  14. May 2017 Corporate Presentation – Enerplus Corp – slide 14
    North Dakota Well Performance vs Peers Basin Leading Well Productivity Based on public data, Enerplus has been delivering among the best well performance in the Bakken Average First Six Months Oil Production Per Well Cumulative…
  15. May 2017 Corporate Presentation – Enerplus Corp – slide 15
    Fort Berthold Well Results High Intensity Completions Delivering Strong Performance Continuing to test and evolve completions to maximize capital efficiencies and economics 300,000 2014-2017 completions (52 wells) 250,000…
  16. May 2017 Corporate Presentation – Enerplus Corp – slide 16
    Fort Berthold Well Performance High Intensity Completions Base completion design (1,000 lbs/ft proppant) driving strong performance Wells generating 40% 80% IRRs at WTI US55/bbl(1) Enerplus Bakken Well Performance(2) Enerplus Three…
  17. May 2017 Corporate Presentation – Enerplus Corp – slide 17
    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…
  18. May 2017 Corporate Presentation – Enerplus Corp – slide 18
    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…
  19. May 2017 Corporate Presentation – Enerplus Corp – slide 19
    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…
  20. May 2017 Corporate Presentation – Enerplus Corp – slide 20
    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…
  21. May 2017 Corporate Presentation – Enerplus Corp – slide 21
    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…
  22. May 2017 Corporate Presentation – Enerplus Corp – slide 22
    Marcellus Well Results Continued Strong Performance Well performance continuing to track at or above type curve expectations Average Cumulative Gas Production(1)(2) Bcf 13 8 Lat. Length Lateral Less length Than 4,000' < 4,000…
  23. May 2017 Corporate Presentation – Enerplus Corp – slide 23
    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…
  24. May 2017 Corporate Presentation – Enerplus Corp – slide 24
    Marcellus Significant Free Cash Flow Generation Regional natural gas prices reconnecting to NYMEX Improved price differential and strong production expected to drive significant increase in cash flow Henry Hub vs. Marcellus Capital…
  25. May 2017 Corporate Presentation – Enerplus Corp – slide 25
    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 +4.2 Bcf/day…
  26. May 2017 Corporate Presentation – Enerplus Corp – slide 26
    Marcellus Marketing Portfolio Leidy Basis (below NYMEX) Enerplus Portfolio Estimated Differential (using Q117 production) In-Basin Pricing (US/Mcf) MMcf per day -0.50 160 140 -0.70 120 -0.90 100 -1.10 80 60 -1.30 40 -1.50 20 -…
  27. May 2017 Corporate Presentation – Enerplus Corp – slide 27
    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 CREEK…
  28. May 2017 Corporate Presentation – Enerplus Corp – slide 28
    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,…
  29. May 2017 Corporate Presentation – Enerplus Corp – slide 29
    Why Invest in Enerplus Focused on profitable, sustainable growth Top quartile capital efficiencies Proven operational execution High quality asset base Margin expansion Strong financial position Attractive valuation 29
  30. May 2017 Corporate Presentation – Enerplus Corp – slide 30
    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…
  31. May 2017 Corporate Presentation – Enerplus Corp – slide 31
    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 Basis differential has improved in 2017…
  32. May 2017 Corporate Presentation – Enerplus Corp – slide 32
    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…

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