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Investor Update – Enerplus Corp

Enerplus Corp · Nov 10, 2014 · 53 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
    ERF: TSX & NYSE Investor Update November 10, 2014
  2. Investor Update – Enerplus Corp – slide 2
    Enerplus Proven Strategy Sustainable, Disciplined Strong Organic Capital Financial Growth & Allocation Position Income Robust, economically Debt-to-funds flow ratio of Significant organic drilling grounded capital 1.3x*…
  3. Investor Update – Enerplus Corp – slide 3
    Strong Per Share Growth Production/share Funds Flow/share 0.20 0.18 4.50 4.16 0.18 0.16 4.00 3.76 0.16 0.15 BOE per Share 3.50 3.29 0.14 Per Share 3.00 0.12 2.50 0.10 2.00 0.08 0.06 1.50 0.04 1.00 0.02…
  4. Investor Update – Enerplus Corp – slide 4
    Sustainable Growth & Dividend Strong funds flow growth supporting sustainable dividend 2012 2013 2014E Funds Flow (MM) 645 754 854 (1) Capital Expenditures (MM) 853 681 830 Net Acquisitions & Divestitures (MM) (91) (120) (208)…
  5. Investor Update – Enerplus Corp – slide 5
    Q3 2014 ResultsContinued Performance Low-end of production guidance increased by 2,000 BOE/day 102,000 104,000 BOE/day annual average estimate in 2014, despite the sale of 3,500 BOE/day of non-core divestments Non-core divestments two…
  6. Investor Update – Enerplus Corp – slide 6
    Funds Flow Protection WTI Crude Oil Hedge Positions* Natural Gas Hedge Positions* Rest of 2014 Rest of 2014 AECO Swaps C4.25/Mcf 36% 51% 10% NYMEX Collars US95.29/bbl 11% US4.30 - 5.08/Mcf 64% 28% NYMEX Swaps US4.14/Mcf ***…
  7. Investor Update – Enerplus Corp – slide 7
    Core Areas U.S. Gas 10
  8. Investor Update – Enerplus Corp – slide 8
    Significant Organic Growth Potential Core Additional Upside: Waterfloods Fort Berthold Primary Drilling Fort Berthold Downspacing opportunities Secondary Recovery Tertiary Recovery 16 years Duvernay 85,000 net acres prospective…
  9. Investor Update – Enerplus Corp – slide 9
    Core Oil Assets
  10. Investor Update – Enerplus Corp – slide 10
    Operated Light Oil Assets in the Williston Basin 2014E Production: 28,000 BOE/day Sleeping Giant 20% Fort Berthold 80% 2013 2P Reserves*: 131 MMBOE Sleeping Giant Fort Sleeping (Elm Coulee) Berthold Giant 20% Dunn…
  11. Investor Update – Enerplus Corp – slide 11
    U.S. Core Oil: Fort Berthold, North Dakota Key Facts Discovered OOIP 20 42 MMbbls/1280 DSU Discovered OOIP (W.I.) 1.5 billion bbls Net Acreage 73,000 acres (114 sections) 2P Reserves at Dec 31, 2013 105 MMBOE Best Est. Economic…
  12. Investor Update – Enerplus Corp – slide 12
    Fort Berthold Delivering Growth Annual Production Reserves 25 2P: 22 105.4 100 2P: 20 86.1 17 80 MBOE/day 15 2P: MMBOE 12 56.2 60 10 40 2P: 5 22.5 1P: 1P: 5 20 1P: 43.7 49.6 1P: 28.0 11.7 0 0 2011 2012 2013…
  13. Investor Update – Enerplus Corp – slide 13
    Consistent Production Growth in Fort Berthold 30,000 2014E AA: 22,000 BOE/day 25,500 25,000 2013 AA: 16,500 BOE/day 20,790 22,359 20,000 18,035 18,206 18,310 15,169 Boe/day 15,000 14,576 10,000 5,000 - Q1 2013 Q2…
  14. Investor Update – Enerplus Corp – slide 14
    Fort Berthold: 250% Increase in Contingent Resources Original 2014 Assumption Evaluation Increase Discovered OOIP per DSU* Bakken 8 12 MMbbls 8 16 MMbbls TF1 8 10 MMbbls 10 16 MMbbls TF2 n/a 2 20 MMbbls Total 16 22 million bbls 20…
  15. Investor Update – Enerplus Corp – slide 15
    Fort Berthold: 127% Increase in Drilling Inventory Original View New View 184 new locations added 4 wells/ Avg. 7 wells/ Two thirds of locations are Locations DSU DSU long laterals BakkenLong 53 124 Three ForksLong 66 89 Average 7…
  16. Investor Update – Enerplus Corp – slide 16
    Fort Berthold Well Density Schematic 6 / 7 Well Density* 8 Well Density* TF 2 &3 Upside** No Lower Three Forks Lower Three Forks TF3 & Additional Stand-Alone Locations Productive TF Wells * Assumes 15% recovery factor. 19 ** Super…
  17. Investor Update – Enerplus Corp – slide 17
    Fort Berthold: Increasing to Average 7 Wells/DSU Enerplus Hognose Successful TF2 Northwest Enerplus Highest estimate of discovered OOIP Butterflies TF2 Drilling Includes TF2 8 8 well density Central/West Well density ranging…
  18. Investor Update – Enerplus Corp – slide 18
    Fort Berthold: Encouraging Enerplus High Density Tests 300 Snakes Pad 8 Well Density & TF2 250 Snakes Pad Butterflies/Turtles* pad 8 Well Density & TF2 200 Cum. Oil (Mbbls) Fur Bearers pad 7 Well Density Fur Bearers…
  19. Investor Update – Enerplus Corp – slide 19
    Improving Productivity through Completion Enhancements 22
  20. Investor Update – Enerplus Corp – slide 20
    Fort Berthold Completion Performance Improving Economics* Old Type Curve New Type Curve High EUR Low EUR High EUR Low EUR 800 Mbbls 500 Mbbls 800 Mbbls 530 Mbbls (950 MBOE) (600 MBOE) (950 MBOE) (635 MBOE) 30 Day Cum Prod (bbls)…
  21. Investor Update – Enerplus Corp – slide 21
    Fort Berthold Completion Evolution Increasing Production Rates 350 Completion Costs/Stage 319 300 Despite larger fracs, the 250 241 215 221 216 switch to sand and USK 200 195 effective cost 150 management has helped 100…
  22. Investor Update – Enerplus Corp – slide 22
    Fort Berthold: Improving Capital Efficiencies* 25,000 20,500 Reduction in well 20,000 18,000 costs and significant Capital Efficiency (K/BOE/day) 15,500 increase in IP rates 15,000 driving top quartile 11,500 capital…
  23. Investor Update – Enerplus Corp – slide 23
    Fort Berthold Completions Enhancements Leading to Best in Basin Well Results First Six Calendar Months E+ Best First 6 Calendar Month Liquids Production* (bbls) Bakken E+ Best Enerplus wells drilled without high volume…
  24. Investor Update – Enerplus Corp – slide 24
    Fort Berthold Completions Enhancements Leading to Best in Basin Well Results E+ Best Bakken Peak Calendar Month E+ Best Three Forks Peak Calendar Month Cumulative Production* (bbls) Enerplus wells drilled without high volume…
  25. Investor Update – Enerplus Corp – slide 25
    Fort Berthold U.S. Crude Marketing 540,000 bbls/day of regional pipe capacity currently available and another 200,000 bbls/day coming into service after 2016 Available Capacity Rail loading capacity is plentiful with 1.2 MMbbls…
  26. Investor Update – Enerplus Corp – slide 26
    Fort Berthold: Natural Gas and NGL Production Fort Berthold (Q3 2014 BOE/day) 6% 7% Gas and NGLs are gathered and marketed by our gatherer at market netback pricing Realized natural gas price is higher than NYMEX because of…
  27. Investor Update – Enerplus Corp – slide 27
    Low Decline Canadian Waterflood Assets Key Facts Discovered OOIP (W.I.) 1.3 billion bbls Recovery Factor * to Date 24% 2P Reserves at Dec 31, 2013 87 MMBOE Best Est. Economic Contingent 59 MMbbls Resources Dec 31, 2013 EOR & IOR…
  28. Investor Update – Enerplus Corp – slide 28
    Free Cash Flow from Waterflood Assets NOI: 350 NOI: NOI: 320 301 NOI: 287 NOI: 300 266 179 172 272 Significant free cash 137 250 124 77 flow generation with reinvestment around Million 200 55% annually 72% 150 53%…
  29. Investor Update – Enerplus Corp – slide 29
    Brooks Overview R14 R13 R12 R11W4 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 Key Facts 29 28 27 26 25 30 29 28 27 26 25 30 29 28 S 27 26 25 30 29 20 21 22 23 24 19 20 21 22 North 23 24 19 20 21 22 S…
  30. Investor Update – Enerplus Corp – slide 30
    Core Natural Gas Assets
  31. Investor Update – Enerplus Corp – slide 31
    U.S. Core Gas: Marcellus Enerplus Land Key Facts Thickness Marcellus Well Net Acreage 53,300 acres 2P Reserves Dec 31, 2013 601 Bcf Best Est. Economic Contingent 1,340 Bcf Resources Dec 31, 2013 Future Net Drilling Locations 240 wells…
  32. Investor Update – Enerplus Corp – slide 32
    Marcellus Delivering Growth Reserves 2P: Annual Production 601 180-200 200 600 180 500 160 Bcf of Natural Gas 140 400 MMcf/day 120 95 100 300 2P: 225 80 2P: 1P: 200 2P: 154 411 60 41 117 40 21 100 1P: 20 1P: 1P: 146 52 93 - 0 2011 2012…
  33. Investor Update – Enerplus Corp – slide 33
    Marcellus Production Growth 300 2014E AA: 190 MMcf/day 250 200 190 189 187 MMcf/day 179 150 2013 AA: 95 MMcf/day 131 100 88 83 79 50 - Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 (Est) Total Marcellus Production…
  34. Investor Update – Enerplus Corp – slide 34
    Marcellus: Superior Dry Gas Performance and Competitive Economics Tighter stage spacing and increased proppant continues to improve performance EUR EUR EUR EUR 2013 - 2014 Gross On-Streams US 4.50/Mmbtu 8 Bcf 12 Bcf 13 Bcf 16 Bcf…
  35. Investor Update – Enerplus Corp – slide 35
    Marcellus Well Cost & Performance Evolution Total Well Cost 12,000 10,000 10,000 8,000 30 Day Capital Efficiency Thousands 8,000 7,000 6,000 4,000 7,500 8,000 2,000 7,000 0 5,500 /BOE/day 2012 2013 2014 6,000…
  36. Investor Update – Enerplus Corp – slide 36
    Marcellus Sales Price Mix Q3 2014 Regional firm, must-take TGP Z4 300 contracts of 80 MMcf/day Spot: 34% plus 10 MMcf/day of pipeline capacity out of the Transco Z6 region held through 2015, Transco Leidy NNY: Spot: 3% with…
  37. Investor Update – Enerplus Corp – slide 37
    Northeast U.S. Pipeline Projects: 8 Bcf of Projects Planned Project Pipeline Owner Incremental Takeaway Destination In Service (MMcf/day) Rose Lake 300 TGP KM 230 NE* Q4 2014 330 Transco - Northeast Connector Transco Williams 100 NE…
  38. Investor Update – Enerplus Corp – slide 38
    Northeast Pa. Marcellus Pipeline Infrastructure Future Takeaway Capacity Production growth could be capped at 1.5 Bcf/day based on the pace of expected pipeline additions in the NE Pa. Marcellus Could see basis relief by…
  39. Investor Update – Enerplus Corp – slide 39
    Core Canadian Natural GasDeep Basin Core growth area with approximately 450 potential net future drilling locations in the Duvernay Wilrich and Duvernay 85,000 net acres of undeveloped land, 160,000 net acres of 100% WI high…
  40. Investor Update – Enerplus Corp – slide 40
    Canadian GasDeep Basin (Wilrich) Contiguous land blocks in highly prospective regions Key Facts Key properties Edson, Ansell, Minehead, North Ansell CORE FOCUS Hanlan - Finishing 2-well pad in Q4 2014 with partners. Net Acreage…
  41. Investor Update – Enerplus Corp – slide 41
    Wilrich Activity Operated activity for Q4 2014 EUR EUR EUR AECO 4.00/Mcf 7 Bcf 6 Bcf 5 Bcf Commencement of three-well NPV10 (MM) 6.7 5.3 3.9 pad in Ansell IRR (%) 46 38 30 Non-operated activity Payout (years) 2.0 2.4 2.8 IP30…
  42. Investor Update – Enerplus Corp – slide 42
    Duvernay ShaleWillesden Green R12W5 R11W5 R10W5 R9W5 R8W5 R7W5 R6W5 R5W5 R4W5 R3W5 85,600 net acres (100% W.I.) Producing Wells ENERPLUS Hz 15-8-46-9W5M On production 10/2014 Drilled Wells Core analysis from 4 vertical tests IP30…
  43. Investor Update – Enerplus Corp – slide 43
    Our Competitive Advantage Focused portfolio in top tier resource plays: Bakken/Three Forks, Marcellus, Deep Basin & Waterfloods Continued focus on capital disciplinedelivering 13% production/share growth in 2014 with a target capital…
  44. Investor Update – Enerplus Corp – slide 44
    Supplemental Information
  45. Investor Update – Enerplus Corp – slide 45
    Demonstrated Growth Annual Production Reserves** 103 450 100 90 406 400 90 82 346 80 75 350 322 306 MBOE/day 59 300 43% 70 MMBOE 48 49% 60 42 250 40% 43% 42 47% 50 200 40 150 30 100 49% 53% 55% 47% 20 33…
  46. Investor Update – Enerplus Corp – slide 46
    Competitive Reserve Addition Costs F&D Costs* FD&A Costs* 30 30 26.26 25 24.21 25 22.92 20 /BOE 20 /BOE 3 year: 17.89 19.25 3 year: 15 15 14.66 11.28 10 10 8.36 5 5 0 0 2011 2012 2013 2011 2012 2013 *…
  47. Investor Update – Enerplus Corp – slide 47
    2014 Funds Flow Sensitivities Est. effect on Est. effect on 2014 Funds Flow 2014 Funds Flow per Share 2014 Sensitivities ( Million) (/share) Change of 5.00/bbl WTI crude oil 5.5 0.03 Change of 0.50/Mcf NYMEX natural gas 8.0 0.04…
  48. Investor Update – Enerplus Corp – slide 48
    Debt Composition at September 30, 2014 Bank Credit Facility - 1 billion 11 banks in Enerplus bank credit facility Unsecured, covenant-based with current Senior Notes* Unused US966MM borrowing rate of less than 3% Capacity…
  49. Investor Update – Enerplus Corp – slide 49
    Senior Notes Maturities Average interest rate of 5.3%* 160 147 140 130 130 124 124 120 97 Millions 100 80 80 60 51 51 45 45 40 20 12 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 * US…
  50. Investor Update – Enerplus Corp – slide 50
    Enerplus Share Ownership Investor Composition Geographic Composition Total Retail Total Institutional 60% 40% 21% 36% 44% 20% 56% 24% US & Other Retail Canadian Retail US & Other Institutional Canadian Institutional…
  51. Investor Update – Enerplus Corp – slide 51
    Enerplus Board of Directors Elliott Pew, Chairman of the Board(1)(2) Mr. Pew, Chairman of Enerplus, is a co-founder of Common Resources and served as its Chief Operating Officer until the company was sold in May, 2010. He is currently a…
  52. Investor Update – Enerplus Corp – slide 52
    Enerplus Board of Directors continued Glen D. Roane, Director (4)(5) Mr. Roane is a corporate director and currently serves as a director of Enerplus, Badger Daylighting Ltd., Logan International Inc., SilverBirch Energy Corporation and…
  53. Investor Update – Enerplus Corp – slide 53
    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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