SEPTEMBER 2019 CORPORATE PRESENTATION ERF: TSX & NYSE
Company overview Concentrated position in the Bakken core 10 years drilling inventory at current pace High-return oil production growth CDN WATERFLOODS 9,200 Boe/d (92% oil) 10% to 13% annual liquids growth 2019-2021 Positioned…
TRACK RECORD Disciplined capital allocation and strong returns Return on capital employed (1) Cash flow from operations Free cash flow(1) Return of capital C Millions C Millions C Millions 17% 23% 17% 739 300MM 100MM 3-year average…
Q2 2019 Update 2019 OUTLOOK ON TRACK 2019 production guidance increased to 99-102 Mboe/d Profitable growth YoY liquids production growth of 10% (15% on per share basis)(1) 2019 capital range narrowed to 610-630MM on optimized…
2019 CAPITAL ALLOCATION Returns-focused oil growth and positioned for free cash flow High-Margin, Profitable Oil Growth 2019 Capital Allocation 2019e liquids production growth rate(1) C millions(2) +15% NORTH DAKOTA MARCELLUS (vs.…
RETURN OF CAPITAL - SHARE REPURCHASES Compelling value underpinning share repurchases Share repurchases represent compelling capital Meaningful Share Count Reduction (2) allocation opportunity 30 10% of shares Share repurchases…
RETURN OF CAPITAL - SHARE REPURCHASES Increasing interest in Companys reserves at an attractive cost Acquiring increased interest in low-risk, high-quality reserves at discount to finding & development cost Implies a 2P recycle ratio of…
OUTLOOK THROUGH 2021 Focused on returns, profitable oil growth and free cash flow Light Oil Production Growth (1) Growth outlook underpinned by Liquids production (Mbbl/d) North Dakota development 10% Liquids production growth(2) 80…
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 1Bn…
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Committed to strong ESG performance ENVIRONMENTAL SOCIAL GOVERNANCE Commitment to minimize our Safety is our priority Sound corporate governance is impacts to the environment fundamental to…
COMMODITY HEDGING SUMMARY Protecting capital program economics Hedging program designed to protect economics of capital program 65% of RoY 2019 net oil production is protected at 55/bbl WTI, with participation up to 65/bbl WTI Crude…
WILLISTON BASIN OVERVIEW North Dakota and Montana light oil assets FORT BERTHOLD, ND WILLISTON BASIN OVERVIEW Tier 1 acreage position Divide Sheridan Burke High-return oil production growth Williams Attracts 80% of companys…
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 CAPITAL EFFICIENCY IMPROVEMENTS Strong execution delivering capital efficiency gains Efficiencies, lower costs and optimizations are reducing well costs by 10% compared to 2018 levels Total well costs currently averaging…
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 2019 WELL ECONOMICS(2)…
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…
NORTH DAKOTA GAS PROCESSING Enerplus remains well positioned relative to gas processing Enerplus remains well positioned relative to NORTH DAKOTA GAS PROCESSING gas processing with expansion of third- party gas plant Williams Little…
BAKKEN PRODUCTION AND TAKEAWAY CAPACITY Improved oil price differentials and constructive outlook Bakken differentials have meaningfully Bakken Crude Oil Production and Takeaway Capacity(1) strengthened with improved basin egress…
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 Q2 2019 production: 237 MMcf/d Bradford Susquehanna Low…
MARCELLUS MARGIN IMPROVMENT Cash margin expansion driven by improved regional pricing Improved differentials and low transport cost Differential Improvement Increasing Cash Flow Marcellus cash margin (US/Mcf) supporting margin despite…
MARCELLUS WELL RESULTS Capital efficient and highly productive drilling inventory Marcellus well performance 2017-2019 Average cumulative production per well(1) 8 WELL ECONOMICS(2) Lateral Length < 5,000 ft 40 wells 7 NYMEX Gas…
MARCELLUS TAKEAWAY EXPANSION Additional pipeline projects to further support pricing Marcellus / Utica Natural Gas Production vs. Takeaway(1) 10 Bcf/d of pipeline Bcf/d Southwest Marcellus pipelines expansion has been added Northeast…
MARCELLUS NATURAL GAS PRICING Enerplus 2019 Marcellus Pricing Exposure Full-year 2019 differential 2019 Pricing Exposure Enerplus Realized Marcellus Differential(2) guidance of US0.35/mcf % of expected Marcellus sales(1) US/Mcf,…
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 during downturn in 2015/16 Significant…
INVESTMENT HIGHLIGHTS Returns and value focused Track record of disciplined capital allocation and strong returns 17% cash flow CAGR (3-year) CDN WATERFLOODS C300 million in cumulative free cash flow(1) (3-year) 9,200 Boe/d (92% oil)…
SUPPLEMENTAL INFORMATION 30
2019 guidance and capital allocation 2019 GUIDANCE 2019 CAPITAL ALLOCATION(3) Capital Spending C610 - C630MM (from 590 630MM) North Dakota 75% Annual Average Total Production 99,000 102,000 BOE/d (from 97,000 to 101,000 BOE/d) Marcellus…
Board of Directors Elliott Pew, Chairman of the Board Robert B. Hodgins Previously Co-Founder and Chief Operating Officer for Common Resources, Previously Chief Financial Officer of Pengrowth Energy Trust, prior thereto he prior thereto…
Summary of operational and financial metrics 6 Mos Ended Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Q2 2019 June 30, 2019 Average Benchmark Prices WTI Crude Oil (US/bbl) 51.92 48.29 48.20 55.40…
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 and…
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