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November 2017 Corporate Presentation – Enerplus Corp

Enerplus Corp · Nov 13, 2017 · 31 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. November 2017 Corporate Presentation – Enerplus Corp – slide 1
    Corporate Presentation November 2017
  2. November 2017 Corporate Presentation – Enerplus Corp – slide 2
    Enerplus Overview TSX, NYSE ERF Market Cap C3.1 billion Canadian Oil Waterfloods Net Debt(1) C0.4 billion Production(2): 11,600 BOE/d Enterprise Value C3.5 billion Key Messages Williston Basin Production(2): 31,000 BOE/d Balance…
  3. November 2017 Corporate Presentation – Enerplus Corp – slide 3
    2017 Capital Program Driving High-Return Crude Oil Production Growth Budget focused on high rate-of-return North Dakota crude oil growth 25% liquids growth (Q1 to Q4) 2017 Capital Allocation 2017 Liquids Production C millions…
  4. November 2017 Corporate Presentation – Enerplus Corp – slide 4
    Production Growth Three Year Outlook Disciplined, Profitable Growth 10% total company production Annual Production Outlook MBOE/day CAGR, 20% liquids production CAGR(1) 115 10% CAGR(1) Plan grounded in returns based capital…
  5. November 2017 Corporate Presentation – Enerplus Corp – slide 5
    Margin Improvement Lower Costs and Tighter Differentials Driving Margin Expansion Strong cost focus and divestment of higher cost assets driving cost structure reductions Narrowing Bakken and Marcellus differentials supporting…
  6. November 2017 Corporate Presentation – Enerplus Corp – slide 6
    Step Change in Cash Flow Generation Structural Cost and Pricing Improvements Delivering Strong Cash Flow 2017 cash netback is similar to Q4 2014 when WTI was 70/bbl and NYMEX 4/Mcf 25 WTI 80 73.15 24/bbl reduction in 70 20 WTI…
  7. November 2017 Corporate Presentation – Enerplus Corp – slide 7
    Balance Sheet & Liquidity Position Significant Financial Strength Strong liquidity position: no significant debt maturities until 2020 Net debt reduced by 75% since 2015(1) Cash balance: 349 MM, Senior notes outstanding: 667 MM(2),…
  8. November 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 Source: BMO comps at strip pricing Nov…
  9. November 2017 Corporate Presentation – 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 % HEDGED(3) 72% 58% 65% 76% 83% 36% 36% % HEDGED(3) 25% 13% 25,000 80,000 61.10…
  10. November 2017 Corporate Presentation – Enerplus Corp – slide 10
    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 80% of capital allocation to crude oil projects from 2014…
  11. November 2017 Corporate Presentation – Enerplus Corp – slide 11
    Williston Basin North Dakota & Montana - Light Oil Assets Fort Berthold, ND Acreage concentrated in the core Low well density vs surrounding acreage Two operated rigs in 2017 Q3 2017 production: 27,200 BOE/d Oct 2017 production:…
  12. November 2017 Corporate Presentation – Enerplus Corp – slide 12
    Fort Berthold, North Dakota Bakken / Three Forks Tier 1 Acreage Position Key Details Net Acreage (operated) 65,500 acres Average WI (%) 81% Q3 2017 Production (BOE/day) 27,210 % Crude Oil, NGL & Gas (at Q3) 83%, 7%, 10% 2P Reserves…
  13. November 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 Drilling Efficiency Gains Long Lateral Wells…
  14. November 2017 Corporate Presentation – Enerplus Corp – slide 14
    Enerplus Completion Evolution High Intensity Completions Driving Strong Well Results Continued focus on completions optimization Completion design guided by economic returns and capital efficiency Enerplus Well Performance Enerplus…
  15. November 2017 Corporate Presentation – Enerplus Corp – slide 15
    Basin Leading Well Productivity Consistently Strong Performance Enerplus continues to deliver consistent, top decile performance Avg. First 3-Months Cumulative Oil Production Per 1,000 Lateral (2016 2017, all wells) Barrels of oil…
  16. November 2017 Corporate Presentation – Enerplus Corp – slide 16
    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…
  17. November 2017 Corporate Presentation – Enerplus Corp – slide 17
    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…
  18. November 2017 Corporate Presentation – Enerplus Corp – slide 18
    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…
  19. November 2017 Corporate Presentation – Enerplus Corp – slide 19
    Industry Bakken Oil Production & Takeaway Capacity Pipeline takeaway and refining exceeds existing basin production by over 200,000 bbls/day Forecasting approximately US(2.00)/bbl differential to WTI for Q4 2017 North Dakota…
  20. November 2017 Corporate Presentation – Enerplus Corp – slide 20
    Marcellus Core Acreage Position in NE Pennsylvania Key Details Net Acreage 39,000 acres Average WI (%) 11% Q3 2017 Production (MMcf/day) (4) 190 % Crude Oil, NGL & Gas (at Q3) 0%, 0%, 100% 2P Reserves (Bcf)(1) 895 Contingent…
  21. November 2017 Corporate Presentation – Enerplus Corp – slide 21
    Marcellus Well Results Continued Strong Performance Well performance continuing to track at or above type curve expectations Average Cumulative Gas Production(1)(2) Bcf 10 Lateral Lat. length Length Less< 4,000 Than 4,000' 16…
  22. November 2017 Corporate Presentation – Enerplus Corp – slide 22
    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…
  23. November 2017 Corporate Presentation – Enerplus Corp – slide 23
    Marcellus Basis Improvement to Drive an Increase in Free Cash Flow Low cost operations consistently delivering free cash flow, with further margin expansion expected in 2018 Enerplus Capital Spending & Net Marcellus Cash Margin…
  24. November 2017 Corporate Presentation – Enerplus Corp – slide 24
    Marcellus/Utica Pipeline Projects Meaningful Expansion Projects Will Debottleneck the Region Combined 10 Bcf/d of pipeline projects expected in-service across Northeast Pennsylvania and Southwest Marcellus/Utica by end of 2018 NE…
  25. November 2017 Corporate Presentation – Enerplus Corp – slide 25
    Marcellus Marketing Portfolio Marcellus Marketing Portfolio Expected Pricing Exposure(1)(2) MMcf/d Based on YTD 2017 production volumes 250 Thousands ERF YTD 2017 Gross Marcellus Production TZ6 Non-NY Gulf Coast 200 Other…
  26. November 2017 Corporate Presentation – Enerplus Corp – slide 26
    Canadian Waterflood Portfolio Large Oil in Place, Low Decline, Stable Production Key Details Discovered OOIP(1) (bbls) 0.9 billion Average WI (%) 88% Q3 2017 Production (BOE/day) 11,588 % Crude Oil, NGL & Gas (at Q3) 86%, 2%, 13%…
  27. November 2017 Corporate Presentation – Enerplus Corp – slide 27
    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,…
  28. November 2017 Corporate Presentation – Enerplus Corp – slide 28
    Why Invest in Enerplus Key Messages Balance sheet among the strongest in peer group High rate of return drilling inventory Top quartile capital efficiencies Strong operational track record Returns focused Profitable,…
  29. November 2017 Corporate Presentation – Enerplus Corp – slide 29
    Supplemental Information
  30. November 2017 Corporate Presentation – Enerplus Corp – slide 30
    Reducing Leverage and Abandonment Liabilities Net debt reduced 75% since YE 2015(1) Senior notes outstanding: 667 MM(2) and cash of 349 MM Divestment activity has reduced ARO by 64% since YE 2014 Debt, net of cash (1)(2) Asset…
  31. November 2017 Corporate Presentation – Enerplus Corp – slide 31
    2017 Guidance(1) Capital Spending C450 million Annual Average Production 84,000 BOE/d Q4 Average Production 86,000 88,000 BOE/d Annual Average Liquids Production 40,500 bbls/d Q4 Average Liquids Production 45,000 46,000 bbls/d…

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