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January 2018 Corporate Presentation – Enerplus Corp

Enerplus Corp · Jan 8, 2018 · 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 2018 Corporate Presentation – Enerplus Corp – slide 1
    Corporate Presentation January 2018
  2. January 2018 Corporate Presentation – Enerplus Corp – slide 2
    Enerplus Overview TSX, NYSE ERF Market Cap C3.0 billion Canadian Oil Waterfloods Net Debt(1) C0.4 billion Production(2): 11,600 BOE/d Enterprise Value C3.4 billion Key Messages Williston Basin Production(2): 31,000 BOE/d Balance…
  3. January 2018 Corporate Presentation – Enerplus Corp – slide 3
    Executing Profitable Growth Driving High-Return Crude Oil Production Growth Plan grounded in returns Liquids Production Growth Mbbl/day 20% based capital allocation 60 CAGR(1) Underpinned by high-return 50 drilling inventory in…
  4. January 2018 Corporate Presentation – Enerplus Corp – slide 4
    2018 Capital Allocation Disciplined Focus on Value and Returns Capital program and dividends 2018E Capital Allocation(1) funded within cash flow C535-585 Million At US50-55/bbl WTI and US3.00/Mcf NYMEX 5% OTHER ASSETS Focused on…
  5. January 2018 Corporate Presentation – Enerplus Corp – slide 5
    Enerplus Forecast Returns vs North American E&Ps Expected to Significantly Outperform Enerplus expected to generate significantly higher returns than industry average based on third party analysis Forecast Return On Capital Employed…
  6. January 2018 Corporate Presentation – Enerplus Corp – slide 6
    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…
  7. January 2018 Corporate Presentation – Enerplus Corp – slide 7
    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 US70/bbl and NYMEX US4/Mcf 25 WTI 80 73.15 24/bbl reduction in 70 20…
  8. January 2018 Corporate Presentation – Enerplus Corp – slide 8
    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…
  9. January 2018 Corporate Presentation – Enerplus Corp – slide 9
    Balance Sheet & Liquidity Position Significant Financial Strength Net debt reduced by 75% since 2015 (1) Cash balance: 349 MM, Senior notes outstanding: 667 MM(2), undrawn 800 MM bank credit facility Strong liquidity position: no…
  10. January 2018 Corporate Presentation – Enerplus Corp – slide 10
    Balance Sheet Strength Financial Position Among the Strongest In Peer Group Enerplus is committed to maintaining a strong balance sheet Net Debt / 2018E Cash Flow Source: BMO comps at strip pricing Nov 29, 2017(1) 8.0x 7.0x 6.0x…
  11. January 2018 Corporate Presentation – Enerplus Corp – slide 11
    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% 56% 62% 65% 71% 44% 44% % HEDGED(3) 25% 16% 25,000 80,000 20,000…
  12. January 2018 Corporate Presentation – Enerplus Corp – slide 12
    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 & 2018 Q3 2017 production: 27,200 BOE/d Oct 2017…
  13. January 2018 Corporate Presentation – Enerplus Corp – slide 13
    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…
  14. January 2018 Corporate Presentation – Enerplus Corp – slide 14
    Fort Berthold Efficiencies Focused on Continuous Improvement Continued improvement in drilling efficiencies and more pad development is driving 30% increase in wells drilled year-over-year Meaningful production growth forecast in…
  15. January 2018 Corporate Presentation – Enerplus Corp – slide 15
    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…
  16. January 2018 Corporate Presentation – Enerplus Corp – slide 16
    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…
  17. January 2018 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. January 2018 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. January 2018 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. January 2018 Corporate Presentation – Enerplus Corp – slide 20
    Industry Bakken Oil Production & Takeaway Capacity Pipeline takeaway and refining exceeds existing basin production by over 200,000 bbls/day Forecasting US(2.50)/bbl differential to WTI for 2018 North Dakota Production and Takeaway…
  21. January 2018 Corporate Presentation – Enerplus Corp – slide 21
    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…
  22. January 2018 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 10 Lateral Lat. length Length Less< Than 4,0004,000' 16 9…
  23. January 2018 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. January 2018 Corporate Presentation – Enerplus Corp – slide 24
    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 Marcellus Capital Spending & Marcellus Cash Margin…
  25. January 2018 Corporate Presentation – Enerplus Corp – slide 25
    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…
  26. January 2018 Corporate Presentation – Enerplus Corp – slide 26
    Marcellus Marketing Portfolio Marcellus Marketing Portfolio Expected Pricing Exposure(1) MMcf/d Based on Q1-Q3 2017 production volumes 250 Thousands ERF Q1-Q3 2017 Gross Marcellus Production TZ6 Non-NY Gulf Coast 200 Other…
  27. January 2018 Corporate Presentation – Enerplus Corp – slide 27
    Canadian Oil Waterflood Portfolio Large Oil in Place, Low Decline Production High netback, free cash flow generating assets Activity focused on waterflood optimization and expansion, and ongoing polymer flooding Discovered OOIP(1)…
  28. January 2018 Corporate Presentation – Enerplus Corp – slide 28
    Canadian Oil Waterflood Portfolio High-Margin, Stable Production Free Cash Flow Generation - Waterflood Portfolio(1)(2) Portfolio optimized to focus C Million, Cumulative Free Cash Flow from Retained Assets (Unhedged) on highest…
  29. January 2018 Corporate Presentation – Enerplus Corp – slide 29
    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,…
  30. January 2018 Corporate Presentation – Enerplus Corp – slide 30
    Supplemental Information
  31. January 2018 Corporate Presentation – Enerplus Corp – slide 31
    2018 Guidance(1) 2018 Capital Spending C535 - 585 million Annual Average Production 86,000 - 91,000 BOE/d Annual Average Crude Oil & NGL Production 46,000 - 50,000 bbls/d Average Royalty & Production Tax Rate (2) 25% Operating…
  32. January 2018 Corporate Presentation – Enerplus Corp – slide 32
    2017 Guidance(1) 2017 Capital Spending C450 million Annual Average Production 84,000 BOE/d Q4 Average Production 86,000 - 88,000 BOE/d Annual Average Crude Oil & NGL Production 40,500 bbls/d Q4 Average Crude Oil & NGL Production…
  33. January 2018 Corporate Presentation – Enerplus Corp – slide 33
    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…

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