Company overview Concentrated position in the Bakken core 10 years drilling inventory at current pace High-return oil production growth CDN WATERFLOODS 9,700 Boe/d (93% oil) 9% to 13% annual liquids growth 2019-2021 Positioned for…
OUTLOOK THROUGH 2021 Focused on returns, competitive oil growth and free cash flow Light Oil Production Growth (1) Growth outlook underpinned by Liquids production (Mbbl/d) North Dakota development 80 2019E liquids production growth…
TRACK RECORD Disciplined capital allocation and strong returns Return on capital employed (1) Cash flow growth Free cash flow(1) Return of capital C Millions C Millions C Millions 17% 15% 754 300MM 23% 100MM 3-year average ROCE…
R E T U R N O N C A P I T A L E M P L O Y E D (1) Delivering robust corporate level returns Track record of outsized returns vs. S&P 500 25% Enerplus 23% S&P 500 20% S&P 500 Energy 18% Return on Capital Employed 15% 10% 10%…
STRONG FINANCIAL FLEXIBILITY Significant debt reduction and accelerating cash flow Adjusted Funds Flow vs Debt Net of Cash (1) 1,400 120 Adjusted funds flow Debt net of cash DEBT REDUCTION Adjusted funds flow and debt 1,200…
STRENGTHENED CORPORATE PRICE DIFFERENTIALS Strong realizations driven by infrastructure expansion Improved Oil Price Differential Improved Natural Gas Price Differential Corporate oil price differential vs. WTI (US/bbl) Corporate natural…
COMMODITY HEDGING SUMMARY Protecting capital program economics Hedging program designed to protect economics of capital program 60% of 2019 net oil production is protected at 55/bbl WTI, with participation up to 65/bbl WTI Crude Oil…
2019 CAPITAL ALLOCATION Returns-focused oil growth and positioned for free cash flow High-Margin, Profitable Oil Growth 2019 Capital Allocation 2019 liquids production growth rate(1) C millions(2) NORTH DAKOTA WATERFLOODS +11% (vs.…
WILLISTON BASIN OVERVIEW North Dakota and Montana light oil assets WILLISTON BASIN OVERVIEW Divide Sheridan Burke SLEEPING GIANT, MT Williams FORT BERTHOLD, ND Modest capital expenditures Tier 1 acreage position NORTH…
FORT BERTHOLD BAKKEN / THREE FORKS OVERVIEW Tier 1 acreage position ERF BAKKEN POSITION FORT BERTHOLD, ND Acreage position concentrated in the core of the play 65,600 net acres Mckenzie Top quartile basin well performance FORT…
FORT BERTHOLD ACTIVITY HIGHLIGHTS Strong well performance across land position FORT BERTHOLD ACTIVITY HIGHLIGHTS 2017/2018 Consistently strong well results across acreage Landforms: 4 wells Avg 6 mo. cum./well: 207 mboe footprint…
FORT BERTHOLD DRILLING INVENTORY Significant running room to support high-return growth Low existing well density and large remaining opportunity High-Return Inventory(1) Gross operated inventory locations Low Existing Well Density(2)…
FORT BERTHOLD WELL PRODUCTIVITY Core acreage and completion design delivering top quartile performance Cumulative Oil Production per 1,000 Lateral Feet(1) Barrels of oil, North Dakota wells since 2014 through 2018 80,000 WELL…
NORTH DAKOTA COMPLETION EVOLUTION Focus on continuous improvement Aiming to maximize economics through: Achieving similar well performance at lower proppant intensity (and lower cost) Improving well performance at higher proppant…
Enerplus Bakken realized oil price differential Bakken differentials have significantly strengthened Enerplus Realized Bakken Oil Price Differential US/bbl with improved egress out of basin 0 2019 differential guidance is US4.00/bbl…
MARCELLUS OVERVIEW Core acreage position in the Marcellus dry gas window Non-operated position in Marcellus dry gas core MARCELLUS POSITION NE PENNSYLVANIA 34,500 net acres Q4 2018 production: 211 MMcf/d Bradford Susquehanna Low…
MARCELLUS MARGIN IMPROVMENT Cash margin expansion driven by improved regional pricing Marcellus cash margin has improved by Differential Improvement Increasing Cash Flow Marcellus cash margin (US/Mcf) US1/Mcf since 2015 3.50 3.11…
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 11 Lat. Length Less Than 4,000' WELL…
MARCELLUS TAKEAWAY EXPANSION AND PRICING DIFFERENTIALS Additional pipeline projects to further support pricing Marcellus / Utica Incremental Takeaway Projects MMcf/d 18,000 Penn East Southwest 15,000 Atlantic Coast Northeast Mountain…
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) Low decline oil production ANTE CREEK Portfolio…
EMERGING OPPORTUNITY DJ BASIN Northern extension of Wattenberg field DJ BASIN 39,000 net acres in NW Weld County WYOMING Low entry price achieved through leasing and farm-in activity COLORADO 2017 Maple well (Codell) 1-year…
INVESTMENT HIGHLIGHTS Returns and value focused Track record of disciplined capital allocation and strong returns 15% cash flow CAGR (3-year) CDN WATERFLOODS C300 million in cumulative free cash flow(1) (3-year) 9,700 Boe/d (93% oil)…
SUPPLEMENTAL INFORMATION 25
2019 guidance and capital allocation 2019 GUIDANCE(1) 2019 CAPITAL ALLOCATION(1) Capital Spending C565 - C635MM North Dakota 80% Marcellus 7.5% Annual Average Production 94,000 - 100,000 BOE/d Canadian waterfloods 7.5% Annual Average…
Reconciliation of return on capital employed (CDN millions) 2016 2017 2018 Net Income 397.4 237.0 378.3 Add: Interest expense 45.4 38.7 36.8 Add: Income tax expense (current and deferred) (237.2) 82.0 103.2 Net income before interest…
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