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INVESTOR PRESENTATION – Enerplus Corp

Enerplus Corp · Jan 12, 2015 · 51 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 PRESENTATION – Enerplus Corp – slide 1
    ERF: TSX & NYSE Investor Update January 12, 2015
  2. INVESTOR PRESENTATION – Enerplus Corp – slide 2
    Our Strategy: Sustainable Growth & Income Operational Conservative Top Tier Assets Excellence Financial Strategy Top resource plays in Proven technical expertise Strong balance sheet North America Disciplined, returnfocused Hedging…
  3. INVESTOR PRESENTATION – Enerplus Corp – slide 3
    Track Record of Growth Production/share Funds Flow/share 0.20 0.19 0.18 4.50 4.14 0.18 0.16 4.00 3.76 0.15 0.15 3.61 Funds Flow ( per Share) 0.16 3.50 3.19 3.29 0.14 BOE per Share 3.00 0.12 2.50 0.10 0.08 2.00…
  4. INVESTOR PRESENTATION – Enerplus Corp – slide 4
    Track Record of Reserves Growth Reserves* Reserves/share* 2.25 2.00 450 2.00 MBOE Per Thousand Shares 406 1.78 1.71 1.74 400 1.75 346 350 322 1.50 306 300 43% MMBOE 49% 1.25 250 40% 43% 47% 1.00 200 0.75 150…
  5. INVESTOR PRESENTATION – Enerplus Corp – slide 5
    Track Record of Attractive F&D 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 *…
  6. INVESTOR PRESENTATION – Enerplus Corp – slide 6
    Track Record of Improving Capital Efficiencies 70 60 60 Strong operational focus Capital Efficiency (K/BOE/day) driving improvement in 50 capital efficiencies 40 Significant efficiencies 35 realized in Williston 30 26…
  7. INVESTOR PRESENTATION – Enerplus Corp – slide 7
    Sustainable Business Model Funds flow growth & improving capital efficiency support a sustainable business 2012 2013 2014E 2015E Funds Flow (MM)(1) 645 754 849 745 Capital Expenditures (MM) 853 681 830 635 Net Acquisitions &…
  8. INVESTOR PRESENTATION – Enerplus Corp – slide 8
    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 CDN70MM…
  9. INVESTOR PRESENTATION – Enerplus Corp – slide 9
    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…
  10. INVESTOR PRESENTATION – Enerplus Corp – slide 10
    2015 Outlook 2015 Targets Affordable capital program Capital Spending 635 million 25% reduction in capital AA Production 103,000 108,000 BOE/day Return-based capital allocation Production Growth 0 5% Production growth Capital…
  11. INVESTOR PRESENTATION – Enerplus Corp – slide 11
    Focused Portfolio with Significant Growth Potential 2015E Production: 20% of 2015E Production Significant free cash flow, low decline Liquids Natural 44% Large discovered OOIP; 160 future drilling locations and EOR potential Gas…
  12. INVESTOR PRESENTATION – Enerplus Corp – slide 12
    Operated Light Oil Assets in the Williston Basin 2015E Production: 28,000 30,000BOE/day Sleeping Giant 20% Fort Berthold 80% 2013 2P Reserves*: 131 MMBOE Sleeping Giant Fort Sleeping (Elm Coulee) Berthold Giant 20%…
  13. INVESTOR PRESENTATION – Enerplus Corp – slide 13
    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 Contingent 136…
  14. INVESTOR PRESENTATION – Enerplus Corp – slide 14
    Fort Berthold Delivering Growth Annual Production Reserves 30 2P: 105.4 23-25 2P: 25 100 22 24 86.1 20 80 MBOE/day 17 2P: MMBOE 60 56.2 15 12 10 40 2P: 5 22.5 1P: 1P: 5 20 1P: 43.7 49.6 1P: 28.0 11.7 0 0 2011…
  15. INVESTOR PRESENTATION – Enerplus Corp – slide 15
    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. 16 **…
  16. INVESTOR PRESENTATION – Enerplus Corp – slide 16
    Fort Berthold: Increasing to Average 7 Well Density/DSU Enerplus Hognose Entire acreage prospective for Successful TF2 Enerplus Swallowtail TF2 Bakken and 1st Bench of Three Forks 8 330 future drilling locations 6,7,8 2/3…
  17. INVESTOR PRESENTATION – Enerplus Corp – slide 17
    Fort Berthold: Encouraging Enerplus High Density Tests 350 Snakes Pad 8 Well Density & TF2 300 Butterflies/Turtles pad 8 Well Density & TF2 250 Fur Bearers pad 200 7 Well Density Cum. Oil (Mbbls) TF1 100 TF2…
  18. INVESTOR PRESENTATION – Enerplus Corp – slide 18
    Improving Productivity through Completion Enhancements 19
  19. INVESTOR PRESENTATION – Enerplus Corp – slide 19
    Fort Berthold Completion Performance Improving Economics* 800 Mbbls 530 Mbbls US70.00/bbl (950 MBOE) (635 MBOE) 30 Day Cum Prod (bbls) 43,000 31,000 1st Year Cum Prod (bbls) 243,000 165,000 NPV 10% (MM) 7.42 0.48 IRR Btax (%) 41%…
  20. INVESTOR PRESENTATION – Enerplus Corp – slide 20
    Fort Berthold Completion Evolution Increasing Production Rates Completion Costs/Stage 350 319 Despite larger fracs, the 300 241 switch to sand and 250 USK 215 195 220 209 effective cost 200 management has helped 150…
  21. INVESTOR PRESENTATION – Enerplus Corp – slide 21
    Fort Berthold: Improving Capital Efficiencies* 25,000 19,500 Reduction in well 20,000 costs and significant Cap Efficiency (K/BOE/day) 17,000 15,500 increase in IP rates 15,000 driving top quartile 11,500 capital…
  22. INVESTOR PRESENTATION – Enerplus Corp – slide 22
    ITG Research: Bakken Core Offers Highest Recoveries... Enerplus land position Source: ITG, Breaking Down the Bakken, December 2014. 23
  23. INVESTOR PRESENTATION – Enerplus Corp – slide 23
    ITG Research: ... And the Lowest Break-Evens Enerplus land position Source: ITG, Breaking Down the Bakken, December 2014. 24
  24. INVESTOR PRESENTATION – Enerplus Corp – slide 24
    Fort Berthold Townships Peak Calendar Month Oil FBIR Townships Peak Calendar Month Oil Peak Calendar Month Cumulative Production* (bbls) Enerplus wells drilled without high volume completions Enerplus wells drilled with high…
  25. INVESTOR PRESENTATION – Enerplus Corp – slide 25
    Fort Berthold Townships First 6 Months Oil Production FBIR Townships - First Six Months Oil First 6 Calendar Month Oil Production* (bbls) Enerplus wells drilled without high volume completions Enerplus wells drilled with high…
  26. INVESTOR PRESENTATION – Enerplus Corp – slide 26
    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 Currently Available Capacity Rail loading capacity is plentiful with 1.2…
  27. INVESTOR PRESENTATION – Enerplus Corp – slide 27
    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…
  28. INVESTOR PRESENTATION – Enerplus Corp – slide 28
    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…
  29. INVESTOR PRESENTATION – Enerplus Corp – slide 29
    Free Cash Flow from Waterflood Assets 350 NOI: NOI: 301 NOI: NOI: 300 NOI: 287 267 136 272 263 156 250 105 77 121 NOI: Million 195 200 40 72% 150 61% 55% 80% 54% 100 46% 50 0 2010 2011 2012 2013 2014E*…
  30. INVESTOR PRESENTATION – Enerplus Corp – slide 30
    Brooks Overview Key Facts North Discovered OOIP 223 MMbbls Recovery Factor to Date 27% 2P Reserves at Dec 31, 2013 9 MMBOE Best Estimate Contingent Resource 1.7 MMBOE Dec 31, 2013 Cumulative Oil Production to Date 61 MMbbls…
  31. INVESTOR PRESENTATION – Enerplus Corp – slide 31
    Brooks: Type Curve Economics* EUR US70.00/bbl 125 MBOE IP30 (BOE/day) 150 2015 development plan % Oil 75% NPV10 (MM) 0.4 23 well program IRR, Btax 20% Total capital of 60 million Payout (years) 3.0 Capital (MM) 2.1 BESC (US/bbl)…
  32. INVESTOR PRESENTATION – Enerplus Corp – slide 32
    Marcellus NE Pennsylvania 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…
  33. INVESTOR PRESENTATION – Enerplus Corp – slide 33
    Marcellus Delivering Growth Annual Production Reserves 2P: 601 600 240 190-230 220 180-200 500 200 Bcf of Natural Gas 180 190 180 400 160 MMcf/day 140 300 2P: 120 225 100 95 2P: 1P: 200 2P: 154 411 80 117 60…
  34. INVESTOR PRESENTATION – 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 4.00/MMBtu 8 Bcf 12 Bcf 13 Bcf 16 Bcf IP30…
  35. INVESTOR PRESENTATION – 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 PRESENTATION – Enerplus Corp – slide 36
    Marcellus Sales Price Mix Q4 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 PRESENTATION – Enerplus Corp – slide 37
    Northeast Pennsylvania Pipeline Projects: 8 Bcf of Projects Planned Incremental Takeaway Project Pipeline Owner Destination In Service (MMcf/day) Rose Lake 300 TGP KM 230 NE Flowing Transco - Northeast Connector Transco Williams 100…
  38. INVESTOR PRESENTATION – 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 PRESENTATION – 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 PRESENTATION – Enerplus Corp – slide 40
    Canadian GasDeep Basin (Wilrich) Contiguous land blocks in highly prospective regions Key Facts Key properties Edson, Ansell, Minehead, North Ansell Hanlan - Finishing 2-well pad in Q4 2014 with partners. Net Acreage (acres) 60,000…
  41. INVESTOR PRESENTATION – Enerplus Corp – slide 41
    Wilrich Activity Commenced drilling our first EUR EUR EUR AECO 4.00/Mcf 5 Bcf 6 Bcf 7 Bcf three-well pad in Ansell NPV10 (MM) 3.9 5.3 6.7 Expected on-stream in early IRR 30% 38% 46% Q2 2015 Payout (years) 2.8 2.4 2.0 IP30…
  42. INVESTOR PRESENTATION – Enerplus Corp – slide 42
    Duvernay ShaleWillesden Green R12W5 R11W5 R10W5 R9W5 R8W5 R7W5 R6W5 R5W5 R4W5 R3W5 Producing 85,600 net acres (100% W.I.) ENERPLUS Hz 15-8-46-9W5M On production 10/2014 Wells IP30 700 Boepd (58% liquids) Drilled Wells Core analysis…
  43. INVESTOR PRESENTATION – Enerplus Corp – slide 43
    Our Competitive Advantage Focused portfolio with significant future drilling inventory Demonstrated track record of delivering affordable growth in production, reserves and funds flow Strong operational capability with disciplined…
  44. INVESTOR PRESENTATION – Enerplus Corp – slide 44
    Strong Production Growth Annual Production 105.5 110 103 100 90 90 82 75 80 MBOE/day 59 59 70 48 60 42 42 50 40 30 20 46.5 33 40 42 44 10 0 2011 2012 2013 2014E* 2015E** Oil & Natural Gas Liquids Natural…
  45. INVESTOR PRESENTATION – Enerplus Corp – slide 45
    Funds Flow Protection in 2015 WTI Crude Oil Hedge Positions* Natural Gas Hedge Positions* First half of 2015 First half of 2015 64% unhedged 5% NYMEX Collars (Q1) US4.53 - 5.53/Mcf US93.58/bbl** 47% hedged 31% NYMEX Swaps 53%…
  46. INVESTOR PRESENTATION – Enerplus Corp – slide 46
    2015 Funds Flow Sensitivities Est. effect on Est. effect on 2015 Funds Flow 2015 Funds Flow per Share 2015 Sensitivities ( Million) (/share) Change of 5.00/bbl WTI crude oil 42 0.20 Change of 0.50/Mcf NYMEX natural gas 28 0.14 Change…
  47. INVESTOR PRESENTATION – Enerplus Corp – slide 47
    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…
  48. INVESTOR PRESENTATION – Enerplus Corp – slide 48
    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…
  49. INVESTOR PRESENTATION – Enerplus Corp – slide 49
    Fort Berthold Completions Enhancements Leading to Best in Basin Well Results North Dakota Peak Calendar Month Oil Peak Calendar Month Cumulative Production* (bbls) Enerplus wells drilled without high volume completions Enerplus…
  50. INVESTOR PRESENTATION – Enerplus Corp – slide 50
    Fort Berthold Completions Enhancements Leading to Best in Basin Well Results North Dakota - First Six Months Oil First 6 Calendar Month Oil Production* (bbls) Enerplus wells drilled without high volume completions Enerplus wells…
  51. INVESTOR PRESENTATION – Enerplus Corp – slide 51
    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…

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