JANUARY 2020 INVESTOR PRESENTATION ERF: TSX & NYSE
Company overview Concentrated position in the Bakken core High quality drilling inventory with running room CDN WATERFLOODS High return oil production growth 9,200 BOE/d (92% oil) High single-digit liquids growth rate (enhanced on a…
TRACK RECORD High return growth, free cash flow and low leverage High return liquids growth Focus on free cash flow Return of capital Low financial leverage Production, MBOE/d Free cash flow(1)(2), C millions C millions Net debt to…
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…
2020 CAPITAL ALLOCATION Returns-focused oil growth and positioned for strong free cash flow 2020e Capital Allocation HIGH RETURN GROWTH C millions NORTH DAKOTA 7% liquids production growth (12% per share)(1) Bakken half-cycle well…
OUTLOOK THROUGH 2022 Sustainable, high return growth and free cash flow generation Combination of high return growth, free cash Liquids Production Growth(1) flow(2) and low financial leverage Crude oil and natural gas liquids…
BALANCE SHEET & LIQUIDITY POSITION Balance sheet strength a competitive advantage Resilient financial position Significant Liquidity US millions - Cash, credit facility and senior notes (Sept 30, 2019) Only debt outstanding is senior…
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…
ENVIRONMENT, SOCIAL & GOVERNANCE Strategic focus areas ENVIRONMENT GHG Emissions Water Management Reduce GHG emissions intensity through Manage water use by exploring innovative technological innovation and operational opportunities…
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 Attracting 83% 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 Track record of continued efficiency gains Aiming to deliver further improvement in 2020 with targeted well costs US400K lower…
FORT BERTHOLD DRILLING INVENTORY 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) 500 410…
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: 2.2 yrs 1.3 yrs 500…
BAKKEN PRODUCTION AND TAKEAWAY CAPACITY Balanced supply & takeaway with constructive outlook Growing basin production, combined Bakken Crude Oil Production and Takeaway Capacity(1) with narrower Brent-WTI spread, is MMbbl/d expected to…
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 Cash margin supported by low cost structure, competitive basis Low cost structure and Marcellus Cash Margin US/Mcf competitive natural gas price differential is supporting margins 3.50 3.11 3.08 despite lower NYMEX…
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 NATURAL GAS PRICING Enerplus 2020 Marcellus Pricing Exposure Weak winter natural 2020e Pricing Exposure Enerplus Realized Marcellus Differential(2) gas demand YTD is % of expected Marcellus sales(1) US/Mcf, average portfolio…
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 Significant oil in place through all…
EMERGING OPPORTUNITY DJ BASIN Well performance tracking expectations 2019 wells tracking expectations Enerplus DJ Basin Well Performance Cumulative oil production per well (bbl), 2-mile lateral wells Various completion designs tested…
INVESTMENT HIGHLIGHTS Returns and value focused Disciplined capital allocation and strong returns 16% liquids production CAGR (3-year) C300 million in cumulative free cash flow(1) (3-year) CDN WATERFLOODS 9,200 BOE/d (92% oil) 17%…
SUPPLEMENTAL INFORMATION 25
2019 guidance 2019 guidance Capital allocation and drilling & completion activity(3) Capital Spending C625MM Capital Net wells Net wells Asset allocation drilled onstream Annual Average Total Production 100,000 101,000 BOE/d North…
2020 guidance 2020 guidance Capital allocation and drilling & completion activity(3) Capital Spending C520 - 570MM Capital Net wells Net wells Asset allocation drilled onstream Annual Average Total Production 96,000 100,000 BOE/d…
COMMODITY HEDGING SUMMARY Price risk management CRUDE OIL HEDGES (WTI)(1) Swaps Put Spreads Three-way Collars Period Volume Sold Swap Volume Sold Put Purchased Put Volume Sold Put Purchased Put Sold Call (Mbbl/d) (US/bbl) (Mbbl/d)…
Board of Directors Elliott Pew, Chairman of the Board Hillary A. Foulkes Over 36 years of diverse experience in the oil and gas industry, most recently as Over 30 years of oil and gas industry experience. In 2019, she retired from her…
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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