NOVEMBER 2019 CORPORATE PRESENTATION ERF: TSX & NYSE
Company overview Concentrated position in the Bakken core 10 years drilling inventory at current pace CDN WATERFLOODS High-return oil production growth 9,200 Boe/d (92% oil) 9-10% annual liquids growth in 2019 (15% on a per share…
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…
Q3 2019 Update 2019 OUTLOOK ON TRACK YoY liquids production growth of 9-10% Profitable growth Liquids growth enhanced to 15% on a per share basis Capital spending on budget; guidance tightened to 625MM (from 610-630MM) Capital…
2019 CAPITAL ALLOCATION Returns-focused oil growth and positioned for free cash flow (1) High-Margin, Profitable Oil Growth 2019e Capital Allocation 2019e liquids production growth rate C millions +15% NORTH DAKOTA (vs. 2018)…
RETURN OF CAPITAL - SHARE REPURCHASES Compelling value underpinning share repurchases Acquiring an increased interest in low-risk, high-quality reserves at a discount to finding & development cost Acquiring Increased Interest in…
BALANCE SHEET & LIQUIDITY POSITION Balance sheet strength a competitive advantage Strong balance sheet provides meaningful Significant Liquidity US millions - Cash, credit facility and senior notes (Sept 30, 2019) financial…
OUTLOOK THROUGH 2021 Focused on returns, profitable oil growth and free cash flow Light Oil Production Growth (1) Growth outlook underpinned by North Liquids production (Mbbl/d) Dakota development 9-10% Liquids production growth 80…
RETURN ON CAPITAL EMPLOYED Track record of outsized returns vs. S&P 500 Return On Capital Employed (1) 25% 23% Enerplus 20% S&P 500 18% S&P 500 Energy 15% 10% 10% 9% 8% 7% 7% 5% 5% 0% 2016 2017 2018 -1% -5% 1) Return…
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Committed to strong ESG performance ENVIRONMENT 5 YEARS Proactively reducing the environmental impacts of our operations keeps OF SUSTAINABILITY REPORTING us ahead of increasing regulation and…
WILLISTON BASIN OVERVIEW North Dakota and Montana Bakken / Three Forks FORT BERTHOLD, ND WILLISTON BASIN OVERVIEW Tier 1 acreage position Divide Sheridan Burke High-return oil production growth Williams Attracts 75% 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 PERFORMANCE Maintaining strong well performance at lower cost Cumulative Oil Production per Well Well Economics(1) Enerplus two-mile lateral well performance WTI Oil Price 50/bbl 60/bbl Payout: 2.4 yrs 1.4 yrs 500…
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 Q3 2019 production: 228 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 40 wells Well Economics(2) Lateral Length < 5,000 ft 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 26
2019 guidance updates and capital allocation 2019 GUIDANCE 2019 CAPITAL ALLOCATION(3) Capital Spending C625MM (from 610 630MM) North Dakota 75% Annual Average Total Production 100,000 101,000 BOE/d (from 99,000 - 102,000 BOE/d)…
COMMODITY HEDGING SUMMARY Protecting capital program economics CRUDE OIL HEDGES (WTI)(1) Collars Structures Period Volume Sold Put Purchased Put Sold Call (mbbl/d) (US/bbl) (US/bbl) (US/bbl) Q4 2019 24.5 44.64 54.81 65.99 Jan 1 Dec…
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…
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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