Enerplus Overview TSX, NYSE ERF Market Cap C3.1 billion Canadian Oil Waterfloods Net Debt(1) C0.4 billion Production(2): 9,670 BOE/d Enterprise Value C3.5 billion Key Messages Williston Basin Robust light oil growth out of North…
Q3 2018 - Highlights STRONG RETURNS ON CAPITAL AND PROFITABLE GROWTH Production guidance increased to upper end of range Outlook on track Expecting 22% YOY liquids growth Capital budget unchanged at 585 million Capital & cost…
2018 Update Light Oil Growth, Capital Discipline and Free Cash Flow Liquids production tracking high end of the guidance range projecting 22% YOY growth No significant change to capital plan outlook remains within original budget…
Strong Returns, Free Cash Flow and Competitive Oil Growth Comparison to North American Peers(1) Return on Capital Employed(2) Free Cash Flow Yield(2) Liquids Production Growth(2) 2018E 2018E 2018E / 2017 1 1 1 ERF 17% 4 5% 4 22% 2 2…
Executing Profitable Growth Driving High-Return Bakken Oil Production Growth Plan grounded in returns Light Oil Production Growth Liquids Production (Mbbl/d) 20% based capital allocation CAGR(1) 60 Underpinned by high-return 50…
Cash Margin Expansion Strong Cost Control and Tighter Differentials Driving Margin Expansion Lowering Cost Structure While Increasing Improved Realized Pricing from Tighter Bakken & Oil Production Weighting Marcellus differentials C/BOE…
Balance Sheet Strength Financial Position Among the Strongest In Peer Group Strong Financial Flexibility Net Debt / 2018E Cash Flow(1) 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.6x 2.0x 2.0x 0.4x 0.0x Peer 11 Peer 28…
Balance Sheet & Liquidity Position Significant Financial Strength Balance Sheet & Liquidity Position (Sept 30, 2018) Enerplus strong balance sheet C provides meaningful financial Cash (MM) 348 flexibility and supports the Senior Notes…
Hedging Summary Protecting Capital Program Economics Hedging program designed to protect economics of capital program (90% oil weighted) Utilizing 3-way collar structures to protect downside with upside participation Crude Oil…
Williston Basin North Dakota & Montana - Light Oil Assets WILLISTON BASIN NORTH DAKOTA & MONTANA Fort Berthold, ND Tier 1 acreage position High return light oil production growth Attracts 75% of companys capital Q3 production 43,390…
Fort Berthold, North Dakota Bakken / Three Forks Tier 1 Acreage Position Acreage position concentrated in core of play BAKKEN POSITION FORT BERTHOLD, NORTH DAKOTA 65,600 net acres Top quartile well performance in the basin…
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 Focus on Continuous Improvement Driving Modifications to Completions Design Aiming to maximize economics through: Achieving similar well performance at lower proppant intensity (and lower cost) Improving…
Top Quartile Well Productivity Core Acreage and Completion Design Delivering Top Quartile Performance Cumulative Oil Production per 1,000 Lateral Feet(1)(2) Barrels of oil, North Dakota wells since 2014 through Sept 2018 80,000 WELL…
Fort Berthold Significant Running Room Low existing well density Large remaining opportunity set is well defined Gross Locations(1)(2) Wells Drilled & Future Drilling Locations 800 10 wells/ DSU 700 600 7 wells/ DSU 500 500 400…
Industry Bakken Oil Production & Takeaway Capacity Basin has significant takeaway optionality with pipeline egress and rail capacity Bakken Crude Oil Production and Takeaway Capacity Mbbl/d 3,000 Total basin egress 2,500 2,000…
Enerplus Bakken Realized Oil Price Differential Bakken differentials have significantly Enerplus Realized Bakken Oil Price Differential US/bbl strengthened with improved egress out of basin 0 Q4 2018 differentials expected to be…
Marcellus Core Acreage Position in NE Pennsylvania Non-operated position in Marcellus dry gas core MARCELLUS POSITION NE PENNSYLVANIA 36,000 net acres Q3 2018 production: 210 MMcf/d Low cost, highly productive inventory 10 year…
Marcellus Cash Margin Expansion Driven by Improved Regional Pricing 2018 Marcellus cash margin expected Differential Improvement Increasing Free Cash Flow Marcellus Cash Margin (US/Mcf) to improve by US1/Mcf since 2015 3.50…
Marcellus Well Results Performance Continuing to Track at or Above Expectations Capital Efficient and Highly Productive Drilling Inventory Average Cumulative Production per Well (Bcf)(1) 12 Lateral Lat. length Length…
Marcellus Takeaway Expansion and Price Differential Additional Pipeline Projects to Further Support Improved Pricing Marcellus / Utica Incremental Takeaway Projects MMcf/d 18,000 10 BCF/d Southwest INCREMENTAL Penn East 15,000…
Canadian Oil Waterflood Portfolio Large Oil in Place, Low Decline Production Assets under water or polymer flooding CANADIAN WATERFLOODS Significant resource: 0.8 bn bbls OOIP(1)(2) Low decline oil production ANTE CREEK ( )…
Investment Thesis Track record of disciplined capital allocation and strong returns Robust light oil growth out of North Dakota Differentiated margin expansion Fully funded plan Balance sheet among the strongest in peer…
Supplemental Information
Guidance and Capital Allocation 2018 GUIDANCE(1) 2018 E&D CAPITAL ALLOCATION(4) Capital Spending C585 million Q4 Crude Oil & NGL Production 53,500 - 54,500 bbls/d 5% OTHER ASSETS Annual Average Production 92,500 - 93,000 BOE/d 10%…
Reserves Strong Organic Replacement at Competitive Costs Replaced 189% of 2P Organic Reserves Replacement(1) 2P Finding & Development Costs (C/boe)(2) 2017 production 189% 414% in North Dakota 9.68 8.44 132% in Marcellus 126%…
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