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Investor Update – Enerplus Corp

Enerplus Corp · Jan 20, 2014 · 41 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. Investor Update – Enerplus Corp – slide 1
    Investor Update ERF - TSX & NYSE January 20, 2014
  2. Investor Update – Enerplus Corp – slide 2
    Enerplus Proven Strategy Focused, top tier Strong financial resource plays & flexibility mature assets with low decline Prudent balance sheet management Bakken, Marcellus, Deep Deliver Active hedging program Basin, Waterfloods…
  3. Investor Update – Enerplus Corp – slide 3
    2014 Outlook ERF TSX & NYSE 2013E 2014E Change Annual Average Production (BOE/day) 89,000 98,000 +10% Oil & Liquids Weighting 48% 48% - Capital Expenditures (millions) 685 760 +11% Operating Expenses (/BOE) 10.70 10.25 -4% Cash…
  4. Investor Update – Enerplus Corp – slide 4
    Four Core Areas 2014E Geographic Production Split U.S. OilWilliston Basin 2014 Capital Operated Bakken/Three Forks positions with +130 future U.S. drilling locations 50% Canada 40% Upside potential through downspacing, lower TF and…
  5. Investor Update – Enerplus Corp – slide 5
    Demonstrated Organic Growth Expect to deliver 10% production growth in 2014 Annual Production Production/share 98 100 89 0.20 90 82 0.18 0.18 80 75 0.16 0.16 0.15 0.15 MBOE/day 51 70 46 0.14 60 42 42 0.12 50 0.10…
  6. Investor Update – Enerplus Corp – slide 6
    Delivering Reserves Growth Total Reserves* Crude Oil Reserves* 400 225 346 MMBOE 192 350 200 MMbbls 322 MMBOE 171 306 MMBOE MMbbls 300 175 150 MMbbls 150 250 47% 43% 40% MMBOE MMbbls 125 200 100 150 75 100 50 49%…
  7. Investor Update – Enerplus Corp – slide 7
    Delivering Funds Flow Growth 2014E Funds Flow expected to grow by 5% 800* 800 765* 700 644 600 574 Increased oil production has Millions 500 helped drive funds flow growth over past three years 400 300 D/FF: 1.2x…
  8. Investor Update – Enerplus Corp – slide 8
    Financial Flexibility APO 212% 2.1 Financial flexibility improving APO 1.8 174% through: Cash flow growth 1.5 APO* APO* 115% 120% Cost control and capital 1.2 discipline 0.9 1.6 1.7 1.5 1.5 Divestments D/FF: D/FF: D/FF: 0.6…
  9. Investor Update – Enerplus Corp – slide 9
    2014 Funds Flow Protection Crude Oil Hedge Positions* Natural Gas Hedge Positions* (/bbl) (/Mcf) 80% 70% 70% 60% % of net after royalty production % of net after royalty production 60% 59% 50% 50% 40% 34% 40% 2% at…
  10. Investor Update – Enerplus Corp – slide 10
    Core Oil Assets
  11. Investor Update – Enerplus Corp – slide 11
    Operated Light Oil Assets in the Williston Basin Williston Basin assets estimated to contribute approximately 200 MM of free cash flow in 2014 2014E Production: 28,000 BOE/day Sleeping Giant 28% Fort Berthold 72% Sleeping…
  12. Investor Update – Enerplus Corp – slide 12
    Top Tier Oil Asset: Fort Berthold, North Dakota Key Facts Fort Berthold Indian Reservation OOIP* 1722 MMbbls/1280 DSU OOIP* (W.I.) 1 billion bbls Net Acreage 73,000 (114 sections) 2P Reserves at Dec 31, 2012 86.1 MMBOE Best Est.…
  13. Investor Update – Enerplus Corp – slide 13
    Fort Berthold: Delivering Organic Oil Growth 25 Production 20 2014E annual production growth of 33% to +22,000 BOE/day 15 MBOE/day Continue 2 rig program in 2014; 10 Expect 20 - 25 net wells drilled 5 and completed - 2011…
  14. Investor Update – Enerplus Corp – slide 14
    Significant Running Room YE 2P + CR (EUR) 130 net undrilled locations 6 years inventory 2P recovery factor 14% Downspacing Upside 150 net additional locations 8 years additional inventory Additional localized upside Depends…
  15. Investor Update – Enerplus Corp – slide 15
    Evaluating Upside Potential EOG 2 Section Bakken 218,000 bbl Density & Lower TF Three Forks in 6 months (ERF 17.8% W.I.) Snakes Pad Upper Three Forks Fort Berthold productive throughout EOG 2ndBench TF Reservation 250,000 bbl acreage…
  16. Investor Update – Enerplus Corp – slide 16
    Fort Berthold Well Cost Structure Continues To Improve Drilling costs decreasing Average cost 4.4 million* Average of 28 days Most recent completions optimization has resulted in a 22% capital efficiency improvement Cost per…
  17. Investor Update – Enerplus Corp – slide 17
    2013 Enerplus ResultsHow We Compare Peak Calendar Month Oil Production* Bakken E+ Wells Three Forks E+ Wells Wells drilled without high volume completions Early 2013 Wells drilled with high * Bbls volume completions…
  18. Investor Update – Enerplus Corp – slide 18
    2013 Completion OptimizationImproved Performance with Increased Frac Stages and White Sand EUR EUR EUR 800 650 500 Mbbls Mbbls Mbbls NPV (MM) 14.7 9.9 4.7 IRR (%) 62 42 24 BESC (/bbl) 51.09 58.63 71.38 Payout (Yrs) 1.7 2.3 3.5…
  19. Investor Update – Enerplus Corp – slide 19
    Takeaway Capacity Overbuilt in Montana /North Dakota Cromer Sept production*: 1.0 MMbbls/day East Coast by Pipe Rail West Rail Coast by Rail 53 Clearbrook 0 Combined Capacity: 1.3 MMbbls/day Guernsey Mandan Gulf 1.3…
  20. Investor Update – Enerplus Corp – slide 20
    Low Decline Canadian Waterflood Assets Key Facts 6% 19% 6% OOIP (W.I.) 1.4 billion bbls 10% Recovery Factor to Date 23% 9% 2P Reserves (Dec 31, 2012) 94.5 MMBOE 28% (29% recovery) 19% 3% Best Est. Contingent Resource 60…
  21. Investor Update – Enerplus Corp – slide 21
    Medicine Hat Glauc C: Future Development Opportunity Key Facts OOIP 224 MMBOE Recovery Factor to Date 9% Cumulative Production 20 MMbbls 2P Reserves (Dec 31, 2012) 21.1 MMBOE Best Est. Contingent IOR 1.5 MMBOE Resource (Dec 31,…
  22. Investor Update – Enerplus Corp – slide 22
    Medicine Hat Glauc C Polymer Project: Growing Confidence Incremental Waterflood / Polymer Flood Forecast Gross Production Polymer project capital cost in line with original estimate of 12 million IRR 50% and BESC WTI US40.00/bbl…
  23. Investor Update – Enerplus Corp – slide 23
    Success of IOR/EOR at Medicine Hat 80 4,500 70 4,000 60 3,500 3,000 50 34 MM BOE/day Million 2,500 40 16 MM 16 MM 2,000 30 11 MM 1,500 20 1,000 66% 50% 17 MM 61% 10 67% 500 21% 0 - 2009 2010 2011 2012 2013E…
  24. Investor Update – Enerplus Corp – slide 24
    Core Natural Gas Assets
  25. Investor Update – Enerplus Corp – slide 25
    U.S. Core GasMarcellus Key Facts Marcellus Isopach Net Acreage 60,000 acres 2P Reserves (Dec 31, 2012) 225 Bcf Best Est. Contingent Resource 1.3 Tcf (Dec 31, 2012) Future Drilling Locations 250 Q3 2013 Production 83 MMcf/day…
  26. Investor Update – Enerplus Corp – slide 26
    Marcellus: Delivering Organic Growth 140 Production 140 2014E annual production of 120-140 MMcf/day 120 120 +40% of 2014E corporate natural gas MMcf/day 100 80 production 60 10 net non-op wells waiting on completion and/or 40…
  27. Investor Update – Enerplus Corp – slide 27
    MarcellusSuperior Dry Gas Performance and Competitive Economics 2013 On-Streams US 4.00/MMBtu EUR EUR EUR 13 12 10 13 Bcf Bcf Bcf Bcf NPV (MM) 8.3 5.8 2.8 IRR (%) 60 41 22 12 Bcf BESC (/MMBtu) 2.33 2.66 3.05 10 Bcf US…
  28. Investor Update – Enerplus Corp – slide 28
    Marcellus Takeaway Capacity Tennessee Line 300 Wyoming Pipeline Transco Regional firm, must-take contracts of 6570 MMcf/day 85% of Q3 production priced at Dominion South Point or Transco Non NY 2014 Forecast NYMEX basis…
  29. Investor Update – Enerplus Corp – slide 29
    Core Canadian Natural GasDeep Basin Core growth area with approximately 450 potential future drilling locations in the Wilrich Duvernay and Duvernay 85,000 net acres of undeveloped land, 160,000 net acres of 100% WI high working…
  30. Investor Update – Enerplus Corp – slide 30
    Canadian GasDeep Basin (Wilrich) R21 R20 R19 R18 R17 R16 R15 R14W5 36 Contiguous land blocks in highly prospective regions 31 36 31 36 31 36 31 36 31 36 31 36 31 Key Facts T53 T53 - EdsonERF smaller acreage 1 6 1 6 1 6 1…
  31. Investor Update – Enerplus Corp – slide 31
    WilrichPositive Drilling 5.0 Bcf Type Curve 6.0 Bcf Type Curve 5.0 Bcf Well 6.0 Bcf Well 7.0 Bcf Well 7.0 Bcf Type Curve Pay NPV Pay NPV Pay NPV 100/16-15-049-19W5/00 AECO IRR out 10% IRR out 10% IRR out 10% 100/13-29-050-19W5/00…
  32. Investor Update – Enerplus Corp – slide 32
    Duvernay ShaleWillesden Green R12W5 R11W5 R10W5 R9W5 R8W5 R7W5 R6W5 R5W5 R4W5 R3W5 85,000 net acres (100% W.I.) at a Producing Wells Drilled Wells cost…
  33. Investor Update – Enerplus Corp – slide 33
    Our Competitive Advantage Focused portfolio in top tier resource plays: Bakken, Marcellus, Deep Basin & Waterfloods Continued focus on capital disciplinedelivering 10% production growth in 2014 with a target capital efficiency…
  34. Investor Update – Enerplus Corp – slide 34
    Supplemental Information
  35. Investor Update – Enerplus Corp – slide 35
    Drilling Inventory/Opportunity 2P & CR Inventory*: Unrisked Inventory*: 600 Locations 750 Locations Core Waterfloods Deep Basin Bakken Marcellus 200 450 150 200 Other Fort Marcellus Waterflood Deep Basin Berthold 45 65 100…
  36. Investor Update – Enerplus Corp – slide 36
    Inventory Profitability of Total Locations* where Recycle Ratio is Greater than 2.0x 700 600 500 400 Locations of Well 300 200 100 0 2.00 3.00 4.00 5.00 Aeco Pricing (/GJ) 100/bbl WTI 85/bbl WTI 70/bbl WTI *…
  37. Investor Update – Enerplus Corp – slide 37
    Production Composition 2014E Production 2014E Crude Oil Composition U.S. U.S. Gas Liquids 24% 26% Canada Heavy 22% Canada Medium U.S. Light Canada 11% 58% Canada Gas Liquids 28% 22% Canada Light 9% 36
  38. Investor Update – Enerplus Corp – slide 38
    2014 Capital Budget Est. effect on Est. effect on 2014 Funds Funds Flow per 2014 Sensitivities Flow Share (November 26, 2013*) ( Million) (/share) Change of 5.00/bbl WTI crude oil 31.3 0.15 Change of 0.50/Mcf NYMEX natural gas…
  39. Investor Update – Enerplus Corp – slide 39
    Debt Composition as at Sept 30, 2013 Senior Notes* Bank Credit Facility - 1 billion Unutilized US728MM 11 banks in Enerplus bank credit facility Capacity CAD70MM 815MM Unsecured, covenant-based with current borrowing rate of less…
  40. Investor Update – Enerplus Corp – slide 40
    Senior Notes Maturities* Average interest rate of 5.8%** 700 585 600 500 Millions 400 300 200 91 100 46 45 11 0 2013 2014 2015 2016 2017 2018 and beyond * As at September 30, 2013, US amounts converted at 1…
  41. Investor Update – Enerplus Corp – slide 41
    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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