Enerplus Overview TSX, NYSE ERF Market Cap C3.6 billion Canadian Oil Waterfloods Net Debt(1) C0.4 billion Production(2): 10,700 BOE/d Enterprise Value C4.0 billion Key Messages Williston Basin Robust light oil growth out of North…
Executing Profitable Growth Driving High-Return Crude Oil Production Growth Plan grounded in returns Liquids Production Growth based capital allocation Mbbl/day 20% 60 CAGR(1) Underpinned by high-return 50 drilling inventory in…
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…
Cash Margin Expansion 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…
Cash Margin Expansion Meaningful Improvement Structural improvements to Enerplus pricing realizations and cost structure have helped increase its unhedged cash margin(1) by 12/BOE % of Realized Price(2) 26% 30% 35% 41% 41% 36% 45%…
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 Feb 21, 2018(1) 9.0x 8.0x 7.0x…
Reserves Strong Organic Replacement at Competitive Costs Replaced 189% of 2P Organic Reserves Replacement(1) 2P Finding & Development Costs (/boe)(2) 2017 production 189% 414% in North Dakota 9.68 8.44 132% in Marcellus 126% 108%…
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 2018 Q4 2017 production: 35,474 BOE/d Fort Berthold…
Fort Berthold, North Dakota Bakken / Three Forks Tier 1 Acreage Position Key Details Net Acreage (operated) 65,600 acres Average WI (%) 84% Q4 2017 Production (BOE/day) 35,474 % Crude Oil, NGL & Gas (at Q4) 84%, 6%, 10% 2P Reserves…
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…
Enerplus Completion Evolution High Intensity Completions Driving Strong Well Results Early adopters of higher intensity completions Completion design guided by economic returns and capital efficiency Enerplus Operated Well…
Top Decile Well Productivity Consistently Strong Performance Enerplus continues to deliver consistent, top decile performance Avg. First 3-Months Cumulative Oil Production(1)(2) Barrels of oil, production per 1,000 lateral (2016-2017…
Fort Berthold Significant Running Room Low existing well density Large remaining opportunity set is well defined Gross Locations(1) 38% of remaining Wells Drilled & Future Drilling Locations locations 800 700 36% of remaining…
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…
Marcellus Core Acreage Position in NE Pennsylvania Key Details Net Acreage 36,200 acres Average WI (%) 11% Q4 2017 Production (MMcf/day) 193 % Crude Oil, NGL & Gas (at Q4) 0%, 0%, 100% 2P Reserves (Bcf)(1) 918 Contingent…
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 Lat. Length Lateral…
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…
Marcellus/Utica Pipeline Projects Meaningful Expansion Projects Will Debottleneck the Region Combined 5.5 Bcf/d of additional pipeline projects expected in-service across Northeast Pennsylvania and Southwest Marcellus/Utica during Q2…
Marcellus Marketing Portfolio Marcellus Marketing Portfolio Expected Pricing Exposure(1) MMcf/d Based on 2017 production volumes 250 TZ6 Non-NY Gulf Coast ERF 2017 Gross Marcellus Production 200 Other Leidy Monthly/Daily sales 100%…
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)…
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…
Why Invest in Enerplus Key Messages Robust light oil growth out of North Dakota Differentiated margin expansion Fully funded plan; free cash flow under strip prices Balance sheet among the strongest in peer group…
Supplemental Information
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…
Reducing Leverage and Abandonment Liabilities Net debt reduced 70% since YE 2015(1) Senior notes outstanding: 672 MM(2) and cash of 347 MM Divestment activity has reduced ARO by 60% since YE 2014 Debt, net of cash (1)(2) Asset…
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