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Annual General Meeting – Enerplus Corp

Enerplus Corp · May 9, 2014 · 38 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. Annual General Meeting – Enerplus Corp – slide 1
    Annual General Meeting May 9, 2014 ERF TSX & NYSE
  2. Annual General Meeting – Enerplus Corp – slide 2
    Enerplus Proven Strategy Focused, top tier Strong financial resource plays & flexibility mature assets with low decline Deliver sustainable, profitable growth and income to Disciplined, investors return-based capital Competitive…
  3. Annual General Meeting – Enerplus Corp – slide 3
    2013Exceptional Performance 2013 Results Total Production per share 9% 6.5% Reserves* per share 17% 15% Funds Flow per share 17% 15% Finding & Development Cost* per BOE 11.28 -53% Capital Efficiency 26,000/BOE/day -58% * Based…
  4. Annual General Meeting – Enerplus Corp – slide 4
    2013 Total Return - Canadian Peers 65% 58% Enerplus Total Return: 58% CAD 45% 45% 44% 42% 48% USD 26% 25% 25% 17% 14% 13% 13% 9% 8% 6% 5% 3% 0% -3% -4% -5% -9% -18% -33% -15% -35% Source: Bloomberg December 31, 2013…
  5. Annual General Meeting – Enerplus Corp – slide 5
    Improved Sustainability 2.0 2.0 D/FF 1.8 D/FF 1.7x 1.8 1.6x D/FF 1.6 1.6 1.4x Debt to Funds Flow Ratio 1.4 1.4 D/FF* 1.2x Payout % 1.2 1.2 APO 1.0 1.0 212% APO 174% 0.8 0.8 0.6 APO APO* 0.6 114% 111% 0.4…
  6. Annual General Meeting – Enerplus Corp – slide 6
    2014 Focus Operational execution Production growth of approximately 10% Target capital efficiencies…
  7. Annual General Meeting – Enerplus Corp – slide 7
    Q1 2014 Results on Track ERF TSX & NYSE Q4 2013 Q1 2014 2014 Guidance Average Production (BOE/day) 94,167 98,821 96,000-100,000 Capital Expenditures (MM) 223 218 800 Funds Flow (MM) 181 221 - Debt-to-Funds Flow Ratio* 1.4x 1.3x -…
  8. Annual General Meeting – Enerplus Corp – slide 8
    Core Areas 2014E Production by Core Area U.S. OilWilliston Basin U.S. Oil Operated Bakken/Three Forks position with 145 net future 25% 2014 Capital drilling locations U.S. 40% Upside potential via downspacing, additional Three Forks…
  9. Annual General Meeting – Enerplus Corp – slide 9
    Operated Light Oil Assets in the Williston Basin 2014E Production: 28,000 BOE/day Sleeping Giant 20% Fort Berthold 80% 2013 2P Reserves*: 131 MMBOE Sleeping Giant Fort Sleeping (Elm Coulee) Berthold Giant 20% Dunn…
  10. Annual General Meeting – Enerplus Corp – slide 10
    Evaluating Upside Potential at Fort Berthold Snakes Pad Snakes (Downspacing & Lower Three Forks) 8 well density test & Lower TF Hognose (2nd Bench) Best E+ Three Forks well drilled to date Turtles/Butterflies 60,000 bbls oil in 26…
  11. Annual General Meeting – Enerplus Corp – slide 11
    North Dakota Bakken/Three Forks ResultsHow does Enerplus compare E+ Best Bakken E+ Best Peak Calendar Month Cumulative Production* (bbls) Three Forks Enerplus wells drilled without high volume completions Enerplus wells…
  12. Annual General Meeting – Enerplus Corp – slide 12
    U.S. Core Gas: Marcellus Enerplus Land Key Facts Thickness Marcellus Well Net Acreage 57,500 acres 2P Reserves Dec 31, 601 Bcf 2013 Best Est. Contingent 1,340 Bcf Resource (Dec 31, 2013) Future Net Drilling 240 wells…
  13. Annual General Meeting – Enerplus Corp – slide 13
    Marcellus: Superior Dry Gas Performance and Competitive Economics Tighter stage spacing and increased proppant continues to improve performance 2013 - 2014 Gross On-Streams US4.50/Mcf EUR EUR EUR 13 Bcf 12 Bcf 10 Bcf NPV10 (MM)…
  14. Annual General Meeting – Enerplus Corp – slide 14
    Low Decline Canadian Waterflood Assets Key Facts 6% 19% 6% OOIP (W.I.) 1.3 billion bbls 10% Recovery Factor to Date 24% 2014E 2P Reserves at Dec 31, 2013 87 MMBOE Production 9% Best Est. Contingent Resource 59 MMbbls 28% (Dec…
  15. Annual General Meeting – Enerplus Corp – slide 15
    Canadian GasDeep Basin (Wilrich) R21 R20 R19 R18 R17 R16 R15 R14W5 Contiguous land blocks in highly prospective regions 36 31 36 31 36 31 36 31 36 31 36 31 36 31 Key Facts T53 T53 - Edson smaller acreage position Key properties…
  16. Annual General Meeting – Enerplus Corp – slide 16
    Duvernay ShaleWillesden Green R12W5 R11W5 R10W5 R9W5 R8W5 R7W5 R6W5 R5W5 R4W5 R3W5 85,000 net acres (100% W.I.) land Producing Wells Drilled Wells position built over past 3 years at Licensed…
  17. Annual General Meeting – Enerplus Corp – slide 17
    Market Sentiment Improving YTD 2014 total return of 29%* Current analyst consensus: 14 buys, 2 holds, 0 sells Average target price of 25.13/share Institutional ownership 35% * TSX as of May 7, 2014 17
  18. Annual General Meeting – Enerplus Corp – slide 18
    Board of Directors Update Retiring: Douglas R. Martin, Chairman of the Board David P. OBrien, Director Incoming Chairman of the Board: Elliott Pew Additions to the Board: Hilary A. Foulkes Michael R. Culbert 18
  19. Annual General Meeting – Enerplus Corp – slide 19
    Our Competitive Advantage Focused portfolio in top tier resource plays: Bakken, Marcellus, Deep Basin & Waterfloods Continued focus on capital disciplinedelivering approximately 10% production growth in 2014 with a target capital…
  20. Annual General Meeting – Enerplus Corp – slide 20
    Supplemental Information
  21. Annual General Meeting – Enerplus Corp – slide 21
    Demonstrated Reserves Growth per Share(1) 2.25 2.00 2.00 1.78 1.74 Reserves Per Thousand Shares 1.71 1.75 1.50 1.25 1.00 0.75 0.50 0.25 - 2010 2011 2012 2013 (1) Proved plus probable company interest reserves…
  22. Annual General Meeting – Enerplus Corp – slide 22
    Competitive Reserve Addition Costs F&D Costs* FD&A Costs* 30 30 26.26 25 24.21 25 22.92 20 /BOE 20 /BOE 3 year: 17.89 19.25 15 15 3 year: 11.28 14.66 10 10 8.36 5 5 0 0 2011 2012 2013 2011 2012 2013 *…
  23. Annual General Meeting – Enerplus Corp – slide 23
    Drilling Inventory/Opportunity 2P & CR Inventory*: 650 Future Drilling Locations Core Waterfloods Marcellus 160 240 Deep Basin Fort Berthold 100 145 * 2P Reserves and Contingent Resources locations at December 31,…
  24. Annual General Meeting – Enerplus Corp – slide 24
    Production Composition 2014E Production 2014E Crude Oil Composition U.S. Liquids U.S. Gas Canada Heavy 24% 31% 22% Canada Medium U.S. Light 11% 58% Canada Canada Gas Liquids 20% Canada Light 25% 9% 2014…
  25. Annual General Meeting – Enerplus Corp – slide 25
    Top Tier Oil Asset: Fort Berthold, North Dakota Key Facts OOIP 1722 MMbbls/1280 DSU OOIP (W.I.) 1 billion bbls Net Acreage 73,000 (114 sections) 2P Reserves at Dec 31, 2013 105 MMBOE Best Est. Contingent 39 MMBOE Resource at Dec…
  26. Annual General Meeting – Enerplus Corp – slide 26
    Fort Berthold Delivering Growth Annual Production Reserves 25 22 2P: 105.4 100 2P: 20 86.1 17 80 MBOE/day 15 2P: MMBOE 12 56.2 60 10 40 2P: 5 22.5 1P: 1P: 5 20 1P: 43.7 49.6 1P: 28.0 11.7 0 0 2011 2012 2013…
  27. Annual General Meeting – Enerplus Corp – slide 27
    Fort Berthold: Improved Performance through Completion Optimization EUR EUR EUR 800 650 500 800 Mbbls Mbbls Mbbls Mbbls NPV10 (MM) 14.7 9.9 4.7 650 Mbbls IRR (%) 62 42 24 BESC (/bbl) 51.09 58.63 71.38 Payout (Yrs) 1.7 2.3 3.5…
  28. Annual General Meeting – Enerplus Corp – slide 28
    Enerplus Takeaway Capacity in Montana & North Dakota Cromer Balanced transportation strategy East through 2015: Coast by West Rail Swing Access Coast by volume to Rail Rail Clearbrook Pipeline Capacity Guernsey Mandan…
  29. Annual General Meeting – Enerplus Corp – slide 29
    Marcellus Delivering Growth Reserves 2P: Annual Production 601 180 600 180 160 500 140 Bcf of Natural Gas 120 400 MMcf/day 95 100 300 2P: 80 225 2P: 60 200 154 2P: 41 117 40 21 100 1P: 20 1P: 1P: 1P: 411 52…
  30. Annual General Meeting – Enerplus Corp – slide 30
    Marcellus Sales Price Mix Q1 2014 TGP Z4 300 Spot: 39% 55% of Q1 production delivered on Transco, 45% on TGP Transco Z6 however sales mix paints a Transco Leidy NNY: Spot: different picture 4% Dominion 15% South: Regional firm,…
  31. Annual General Meeting – Enerplus Corp – slide 31
    Building the Near-Term Marcellus Basis View 14 Incremental Takeaway Capacity 12 Incremental NE Demand Incremental Export out of region 10 Midpoint - Cume Estimated Production Growth 8 Bcf/d 6 4 2 0 Q1 2014…
  32. Annual General Meeting – Enerplus Corp – slide 32
    Northeast US Pipeline Projects 12 Bcf of Projects Planned Project Owner Incremental Takeaway (Bcf/day) In Service REX Seneca Lateral KM 0.2 Q1 2014 ANR Lebanon Reversal TCPL 0.4 Q1 2014 Tenessee Rose Lake 300 Line KM 0.2 Q4 2014 1.9…
  33. Annual General Meeting – Enerplus Corp – slide 33
    WilrichWell Performance 4,000 16-15-049-19W5 13-17-050-19W5 EUR EUR EUR 3,500 15-18-050-19W5 AECO 4.00/Mcf 7 Bcf 6 Bcf 5 Bcf 13-29-050-19W5 NPV10 (MM) 6.7 5.3 3.9 3,000 14-30-050-19W5 Cumulative Production (MMcf) IRR (%) 46…
  34. Annual General Meeting – Enerplus Corp – slide 34
    Funds Flow Protection WTI Crude Oil Hedges* Natural Gas Hedge Positions* Rest of 2014 Rest of 2014 9% AECO Swaps 4.23/Mcf 36% 53% 8% NYMEX Collars US94.24/bbl US4.30 - 5.08/Mcf 64% 30% NYMEX Swaps US4.14/Mcf** 12% C4.125…
  35. Annual General Meeting – Enerplus Corp – slide 35
    2014 Funds Flow Sensitivities Est. effect on Est. effect on 2014 Funds Flow 2014 Funds Flow per Share 2014 Sensitivities ( Million) (/share) Change of 5.00/bbl WTI crude oil 20.6 0.10 Change of 0.50/Mcf NYMEX natural gas 26.2 0.13…
  36. Annual General Meeting – Enerplus Corp – slide 36
    Debt Composition as at March 31, 2014 Senior Bank Credit Facility - 1 billion Unused Notes 11 banks in Enerplus bank credit facility Capacity US770MM* 813MM CDN70MM Unsecured, covenant-based with current borrowing rate of less…
  37. Annual General Meeting – Enerplus Corp – slide 37
    Enerplus Share Ownership Investor Composition Geographic Composition Total Retail Total Institutional 65% 35% 21% 44% 42% 14% 58% 21% US & Other Retail Canadian Retail US & Other Institutional Canadian Institutional…
  38. Annual General Meeting – Enerplus Corp – slide 38
    Investor Relations Contacts Jo-Anne M. Caza 1-800-319-6462 Vice-President, Corporate & Investor Relations investorrelationsenerplus.com 403-298-2273 jcazaenerplus.com www.enerplus.com The Dome Tower Suite 3000, 333 7th Ave SW…

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