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April 2022 Bakken Day – Enerplus Corp

Enerplus Corp · Apr 12, 2022 · 46 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. April 2022 Bakken Day – Enerplus Corp – slide 1
    Advantaged Basin Differentiated Bakken Platform April 12, 2022 TSX & NYSE: ERF
  2. April 2022 Bakken Day – Enerplus Corp – slide 2
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  3. April 2022 Bakken Day – Enerplus Corp – slide 3
    Todays presenters Ian Dundas President & CEO Ian has been President & CEO since July 1, 2013, after joining the company in 2002 as Vice President of Business Development. In 2010, Ians role expanded to that of Executive Vice-President.…
  4. April 2022 Bakken Day – Enerplus Corp – slide 4
    Who we are Results driven culture MARKET CAPITALIZATION 2022E PRODUCTION LISTED ON Shared values and strong collaboration US3.0 98,000 Innovation & technology application driving continuous improvement BILLION BOE/D Safe and…
  5. April 2022 Bakken Day – Enerplus Corp – slide 5
    Board of Directors Hilary A. Foulkes (Director since February 2014) Mark A. Houser (Director since March 2022) Audit & Risk Management Committee Board Chair Compensation & Human Resources Committee Reserves, Safety & Social…
  6. April 2022 Bakken Day – Enerplus Corp – slide 6
    Key takeaways from todays presentation Enerplus North Dakota Production The Bakken is an advantaged Basin MBOE/d Substantial remaining drilling inventory 70 10,000 drilling locations at or below 60/bbl WTI; 5,000 at or below 50/bbl…
  7. April 2022 Bakken Day – Enerplus Corp – slide 7
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  8. April 2022 Bakken Day – Enerplus Corp – slide 8
    2022: disciplined plan, positioned for free cash flow growth Key figures Product mix Bakken focused capital budget % of 2022e production 2022e capital spending TOTAL PRODUCTION 95.5-100.5 MBOE/D Williston Basin Crude oil Natural…
  9. April 2022 Bakken Day – Enerplus Corp – slide 9
    2022 capital allocation and excess cash flow at 85 WTI 2022e adjusted funds flow Based on 85/bbl WTI & 5.00/Mcf NYMEX 2022e capex: 370-430MM 1,200 6% annual production growth(2) 1,075 644 3-5% annual organic production growth…
  10. April 2022 Bakken Day – Enerplus Corp – slide 10
    Attractive free cash flow yield 2022e free cash flow sensitivities (1)(2) Free cash flow growth(3) 2022e vs 2021 900 30% FREE CASH FREE CASH 800 23% FLOW FLOW/SHARE 25% 700 21% Free cash flow ( millions) Free cash flow…
  11. April 2022 Bakken Day – Enerplus Corp – slide 11
    Return of capital to shareholders 5-year return of capital track record Approach to return of capital 2017 - 2021 Share repurchases 699 million Prioritize when intrinsic value, based on Based on current market conditions, 60%…
  12. April 2022 Bakken Day – Enerplus Corp – slide 12
    Bakken focused five-year outlook Bakken focused five-year outlook expected to generate Five-year production and free cash flow outlook 2.3bn of free cash flow(1) at 70/bbl WTI (2) 120 2.5 Cumulative free cash flow ( billions) 80%…
  13. April 2022 Bakken Day – Enerplus Corp – slide 13
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  14. April 2022 Bakken Day – Enerplus Corp – slide 14
    Substantial inventory remaining in the Bakken Gross remaining drilling locations in the Williston Basin based on breakeven WTI prices(1) 20,000 25 years of inventory remaining 18,000 18,000 16,000 14,000 12,000 14 years of…
  15. April 2022 Bakken Day – Enerplus Corp – slide 15
    Indicative performance of 50 & 60 WTI breakeven wells Expected well performance of a 50 & 60 WTI breakeven well(1) Payout periods and NPVs at 60, 80, 100 per barrel WTI Enerplus Core locations 250 expected to deliver superior…
  16. April 2022 Bakken Day – Enerplus Corp – slide 16
    Core Bakken is competitive with the best N.A. oil plays Third-party data: Breakeven WTI oil prices across North American oil plays(1)(2) Source: Enverus Intelligence Research 60 Little Knife & FBIR areas represent 85% of Enerplus…
  17. April 2022 Bakken Day – Enerplus Corp – slide 17
    Focus areas and development plan over next 24 months Williams Expect to drill 100 gross (80 net) 1 pad Enerplus operated acreage operated wells in 2022/2023 Enerplus non-op acreage Drilling activity focus: Williams Mountrail 80%…
  18. April 2022 Bakken Day – Enerplus Corp – slide 18
    Safe, responsible operations focused on continuous improvement Safety Emissions Efficiencies & Technology Keeping people safe at work is Progressing toward our goal of a Apply technology to drive the most important thing we do…
  19. April 2022 Bakken Day – Enerplus Corp – slide 19
    Focus on emissions reduction Primary emissions sources are from Enerplus source of Williston Basin 2021 GHG emissions Scope 1 & 2 CO2e storage tanks, engines and associated gas emissions 32% Stationary combustion 46% Associated gas…
  20. April 2022 Bakken Day – Enerplus Corp – slide 20
    Emissions reduction innovation: integration of VRUs NDIC (1) gas capture targets Case study: Enerplus 8-well Furbearers pad Onstream October 2021 100% 97% Furbearers pad 18 30 Installation of vapor recovery 95% units boosts gas to…
  21. April 2022 Bakken Day – Enerplus Corp – slide 21
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  22. April 2022 Bakken Day – Enerplus Corp – slide 22
    Substantial core acreage, large remaining undrilled opportunity set Lightly drilled acreage Acreage in core & extended core Substantial sub-50/bbl WTI inventory Drilling density: wells per DSU Productivity: 6 month BOE/1K foot lateral…
  23. April 2022 Bakken Day – Enerplus Corp – slide 23
    Enerplus has outsized core inventory relative to production Third-party data: Top Bakken operators - remaining drilling inventory ranked by breakeven WTI price (1)(2) Source: Enverus Intelligence Research Mcap 10bn…
  24. April 2022 Bakken Day – Enerplus Corp – slide 24
    Deep drilling inventory supports sustainable outlook 1,000 Inventory upsides 900 Lower return locations that offer 800 250 upside through stimulation advances, well cost improvements, sustained high oil prices Decade Net…
  25. April 2022 Bakken Day – Enerplus Corp – slide 25
    CORE DRILLING INVENTORY FBIR Expected average well performance (1) Inventory Distribution Payout period and NPV10 at 60, 80, 100 per barrel WTI Net future drilling locations 300 WTI NPV10 MM 100 19 EXTENDED 670 FBIR 250 80 13…
  26. April 2022 Bakken Day – Enerplus Corp – slide 26
    Strong well results offsetting Enerplus lightly drilled southern acreage NOTABLE OFFSET OPERATOR WELLS (2021) Notable offset wells - three-month cumulative oil production (1) Mbbl Enerplus operated acreage 120 Enerplus non-op acreage…
  27. April 2022 Bakken Day – Enerplus Corp – slide 27
    CORE DRILLING INVENTORY Little Knife Expected average well performance (1) Inventory Distribution Payout period and NPV10 at 60, 80, 100 per barrel WTI Net future drilling locations 300 WTI NPV10 MM 100 19 670 250 EXTENDED 80 13…
  28. April 2022 Bakken Day – Enerplus Corp – slide 28
    CORE DRILLING INVENTORY Eastern Williams Expected average well performance (1) Inventory Distribution Payout period at 60, 80, 100 per barrel WTI Net future drilling locations 300 WTI NPV10 MM Eastern Williams 100 17 EXTENDED 670…
  29. April 2022 Bakken Day – Enerplus Corp – slide 29
    EXTENDED CORE DRILLING INVENTORY Murphy Creek Expected average well performance (1) Inventory Distribution Payout period at 60, 80, 100 per barrel WTI Net future drilling locations 300 WTI NPV10 MM 100 11 EXTENDED 670 250 80 7…
  30. April 2022 Bakken Day – Enerplus Corp – slide 30
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  31. April 2022 Bakken Day – Enerplus Corp – slide 31
    Operational execution driving lower costs, stronger returns Total well costs 34% (MM) Reduction driven primarily by efficiencies 8.6 Strong track record of drilling and completion efficiency gains driving cost structures lower…
  32. April 2022 Bakken Day – Enerplus Corp – slide 32
    Drilling evolution Demonstrated exceptional performance Spud to rig release record of 9 days (2021 average 12 days) Two-mile lateral section drilling record of 31 on-bottom hours (2021) Technology application and process innovation…
  33. April 2022 Bakken Day – Enerplus Corp – slide 33
    Completions evolution Significant frac efficiency improvement Increased monthly pumping hours by 70% since 2019 Stages/day increased 160% since 2018 Optimized pad layout Allows for improved efficiency and simultaneous operations…
  34. April 2022 Bakken Day – Enerplus Corp – slide 34
    Frac system innovation: produced water integration Reducing fresh water used in completion operations Enerplus - water used in well completions (North Dakota) ESG FOCUS AREA - WATER MANAGEMENT Enerplus began to introduce produced…
  35. April 2022 Bakken Day – Enerplus Corp – slide 35
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  36. April 2022 Bakken Day – Enerplus Corp – slide 36
    Williston Basin crude oil pipelines & Enerplus sales portfolio Williston Basin oil takeaway(1) Enerplus Bakken crude oil sales portfolio In-Basin Markets Mid Con/USGC Cushing Clearbrook 100% 80% 60% 40% 20% 0% Q1 '21 Q2 '21…
  37. April 2022 Bakken Day – Enerplus Corp – slide 37
    Bakken oil price strength supported by spare pipeline capacity Enerplus Bakken oil price differential vs WTI (/bbl) Oil price diffs (0.50) (2.15) (3.72) (3.78) (3.98) (5.39) 2022 Basin not expected to test egress capacity.…
  38. April 2022 Bakken Day – Enerplus Corp – slide 38
    Ample natural gas infrastructure Williston Basin gas gathering and processing infrastructure (1) Williston Basin sales gas vs takeaway(2) Gas processing capacity in-basin estimated at 4 bcf/d vs gas Sales gas egress via Northern Border…
  39. April 2022 Bakken Day – Enerplus Corp – slide 39
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  40. April 2022 Bakken Day – Enerplus Corp – slide 40
    Summary & key messages The Bakken has: Substantial remaining drilling inventory A supportive regulatory environment A constructive oil price differential outlook Enerplus is a differentiated Bakken platform with: Over a decade…
  41. April 2022 Bakken Day – Enerplus Corp – slide 41
    Agenda 1 2 3 4 Company overview and Financial highlights Operations overview Differentiated Bakken key messages and capital allocation acreage position Ian Dundas Jodi Jenson Labrie Wade Hutchings Nathan Fisher President & CEO SVP & CFO…
  42. April 2022 Bakken Day – Enerplus Corp – slide 42
    APPENDIX 43
  43. April 2022 Bakken Day – Enerplus Corp – slide 43
    Williston Basin regional geology FORT BERTHOLD LITTLE KNIFE MURPHY CREEK WILLIAMS COUNTY Development Middle Bakken, Upper Middle Bakken, Upper Middle Bakken Middle Bakken formations and Middle Three Forks Three Forks Potential…
  44. April 2022 Bakken Day – Enerplus Corp – slide 44
    2022 guidance 2022 ANNUAL GUIDANCE Bakken focused capital budget 2022e capital spending Capital spending (USMM) 370 - 430 Total production (Mboe/d) 95.5 100.5 Liquids production (Mbbl/d) 58.0 62.0 Williston Basin Average production…
  45. April 2022 Bakken Day – Enerplus Corp – slide 45
    COMMODITY HEDGING SUMMARY Price risk management CRUDE OIL HEDGES (WTI)(1)(2) Swaps Collars Period Purchased Volume Swaps Volume Sold Put Sold Call Put (Mbbl/d) (US/bbl) (Mbbl/d) (US/bbl) (US/bbl) (US/bbl) Jan 1 Jun 30, 2022 -…
  46. April 2022 Bakken Day – Enerplus Corp – slide 46
    Contacts Investor Relations Contacts Drew Mair Manager, Investor Relations & Corporate Planning 403-298-1707 Krista Norlin Sr. Investor Relations Analyst 403-298-4304 Email: investorrelationsenerplus.com 48

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