Skip to main content Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp Investor Presentation | Shale Experts
Loading...
Pm

Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp

Enerplus Corp · Dec 6, 2012 · 34 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. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 1
    Bank of America Merrill Lynch 2012 Global Energy Conference The Game Plan November 2012
  2. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 2
    Corporate Overview Focused on delivering a combination of moderate organic growth and income to investors Current yield 8% Own a portfolio of oil and gas properties in some of the best resource plays in North America: early stage…
  3. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 3
    Corporate Profile Ticker Symbol (TSX & NYSE) ERF Enterprise Value (1) 3.5 billion Average Daily Trading Value (through Q3 2012) 49 million 2012E Average Daily Production 82,000 BOE/day 2012E Exit Production 85,000 88,000 BOE/day…
  4. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 4
    Our Assets 2012E Production Waterfloods 20% Deep Tight Waterfloods Oil Gas 23% 18% Montney, Stacked Mannville and Duvernay 9% Marcellus 6% Shale Gas Other 24% Oil Other Gas Marcellus Shale Bakken/Three Forks 3
  5. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 5
    Delivering Organic Production Growth Adjusted annual production 85,000 90,000 88,000 guidance to 82,000 BOE/day in 79,190 82,108 81,573 2012 due to slow down in 80,000 77,221 73,245 Marcellus activity 70,000 Expected annual…
  6. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 6
    Improved Financial Flexibility Strategic steps taken in 2012 to manage our balance sheet: Debt composition* 330 million equity issue in February 405 million private placement of long-term Senior Notes US744MM & debt in May…
  7. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 7
    Protecting our Cash Flow Crude Oil Hedge Positions* Natural Gas Hedge Positions* 100% 100% % of net after royalty production % of net after royalty production 80% 80% 60% 60% 40% 40% 63% 58% 20% 20% 17% 7% 0% 0%…
  8. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 8
    Fort Berthold Leads the Charge in Oil Growth Current Operated and Non-Operated Locations Key Facts Net Acreage (90% WI) 70,000 (110 sections) 2011 P+P Reserves 55.4 MMBOE 2011 Contingent Res. Est. 49 MMBOE Future Drilling Locations…
  9. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 9
    Fort Berthold Operations Update Currently have 66 net operated wells on production with two thirds tied in to gathering system Expect to have 4 more wells producing by year end Reduced size of fracs and amount of fluid/proppant…
  10. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 10
    Fort Berthold Well Results To Date Short Well Performance Long Well Performance 180 3 300 1 2 Cumulative Production (mbbls) 160 250 4 Cumulative Production (mbbls) 140 4 5 5 6 120 5 200 6 7 100 10 7 150 16 7 80…
  11. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 11
    Fort Berthold Economics 80% WTI Strip Price - Oct 11, 2012 70% 2013 94.35 2014 92.16 2015 89.27 60% Bakken Long Well 2016 87.30 800 Mbbl EUR 2017 86.24 50% Rate of Return* 40% 30% 20% Three Forks Long Well 560…
  12. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 12
    Delivering Organic Oil Growth at Fort Berthold 14,000 12,000 10,000 8,000 BOE/day 6,000 4,000 2,000 - Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 11
  13. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 13
    Low Decline Canadian Waterflood Assets Key Facts OOIP* 1.2 billion barrels (net) P+P Reserves (YE 2011*) 82 million barrels net (26% recovery) Recovery to date* 22% Best Est. Contingent 53.5 million barrels Resources* Average…
  14. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 14
    Stable Crude Oil Production Base from Waterfloods 25 Sold 2,800 non-core BOE/day Low base decline of 12% 20 50% of net operating income reinvested to MBOE/day 15 maintain production 10 2012E annual production: 5 17,000…
  15. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 15
    Marcellus: Retaining Leases for Future Value Capture 2012 activity driven by focus on lease retention in non-operated counties Bradford, Susquehanna and Lycoming 80% of drilling activity in 7-11 Bcf areas with IRRs of 15% - 30%*…
  16. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 16
    Northeast Pennsylvania Well Performance 2,500 2,000 Cumulative Production (MMcfe) 1,500 1,000 500 0 0 50 100 150 200 250 300 350 400 Producing Days Susquehanna Actuals Bradford Actuals E Lycoming Actuals W…
  17. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 17
    Marcellus Economics 45% NYMEX STRIP PRICING - 10-11-12 2013 4.06 7 mm well cost 2014 4.31 40% 2015 4.48 2016 4.66 2017 4.86 35% 8 mm well cost 30% Rate of Return 25% 20% 9 mm well cost 15% 10% 5% 0% 5.0 6.0…
  18. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 18
    An Abundance of Deep Gas Opportunity Approximately 175,000 net acres of Montney Potential high working interest land throughout 33,000 net acres of undeveloped land the region Includes 100% working interest in approximately…
  19. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 19
    Duvernay Emerging as a Top Quality Liquids-Rich Resource Play Analogous rock characteristics to the Eagleford Key Facts Prolific over-pressured Devonian source rock Key Properties Willesden Green, AB (56 MPa) Net Acreage 72,000 acres…
  20. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 20
    Duvernay Shale Willesden Green ERF Vt Well 11-26-045-09W5 RR Oct. 26, 2012 Q1 2013 ERF Proposed Hz 11-27-044-09W5 19
  21. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 21
    Why Enerplus Demonstrating organic production growth Significant inventory of oil and gas opportunities in portfolio to deliver future growth in reserves and production Strong financial position with significant unutilized credit…
  22. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 22
    Supplemental Information The Game Plan
  23. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 23
    175% Organic Reserve Replacement in 2011 2P reserves increased by 5% 350 306 MMBOE 322 MMBOE Replaced 300% of our oil 300 production, growing 2P oil 250 43% reserves by 14% 47% NPV of reserves increased by MMBOE 200…
  24. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 24
    Competitive Finding & Development Costs F&D Cost/BOE(1) FD&A Cost/BOE(1) 30 25 75% Oil* 83% Oil* 23.84 25 26.59 61% Oil* 20 26.26 20.32 20 22.68 15 17.89 /BOE /BOE 15 10 10 5 5 0 0 Enerplus Oil weighted All…
  25. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 25
    North Dakota Takeaway Capacity North Dakota Does not include: Enbridge Sandpiper looping of existing line (200 bbls/d to Superior) or Saddle Butte High Prairie line 24 (200 bbls/d to Clearbrook) which is not yet approved.
  26. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 26
    Bakken Oil Differentials 4 Oil sold into pipeline Oil sold into rail at Bakken basket price 0 -4 -8 -12 Recent benefit of rail deliveries vs. pipeline in 2012 -16 * Diffs do not reflect cost of trucking -20 Jan Feb Mar Apr…
  27. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 27
    Multi-Year Drilling Inventory at Fort Berthold (Year End 2011) 140 130 120 36 100 78 80 42 60 Locations Contingent Resource Locations 40 52 52 20 0 YE 2011 Booked Net P+P-UD Bakken Contingent Net Three Forks…
  28. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 28
    Fort Berthold Well Spacing (1280 acres per drill spacing unit) 2P (EUR) 2P + CR (EUR) Potential Upside Bakken Bakken Middle Middle 800 800 800 800 Lower Bakken Lower Bakken Lower Bakken Three Three…
  29. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 29
    Stacked Mannville Key Facts Key properties Pine Creek to Hanlan Net Acreage (acres) 70,000 acres (110 sections) Future HZ Drilling 100 - 200 Locations Expected EUR/Well 4.0 - 6.0 Bcfe Acquiring and utilizing 3D seismic…
  30. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 30
    Deep Gas: Wilrich Type Curve and Performance 5.0 Bcf Well 6.0 Bcf Well Positive Drilling Results Pay NPV Pay NPV 1,600 AECO IRR out 10% IRR out 10% Cumulative Production (MMcf) (/Mcf) % (Yrs) (MM) % (Yrs) (MM) 1,400 1 Well…
  31. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 31
    Montney Cameron/Julienne Creek Key Facts Key Properties Cameron/Julienne Creek Progress/Petronas Net Acreage 33,000 acres (+50 sections) North Montney JV Estimated OGIP 150 Bcf/section (Lily) Future Hz Drilling 350 - 400…
  32. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 32
    Deep Gas: Upper Montney Type Curve Economics 4.0 Bcf Well 5.0 Bcf Well 6.0 Bcf Well NPV NPV NPV AECO IRR Payout 10% IRR Payout 10% IRR Payout 10% (/Mcf) % (Years) (MM) % (Years) (MM) % (Years) (MM) 4.00 25 3.5 2.5 40 2.6 4.3 57 2.0…
  33. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 33
    Stock Dividend Program (SDP) Benefits: All shareholders are now eligible to participate Shareholders can elect to receive cash dividends or Enerplus shares 5% discount to current market price and no fees or commissions Participation…
  34. Bank of America Merrill Lynch 2012 Global Energy Conference – Enerplus Corp – slide 34
    Investor Relations Contacts Jo-Anne M. Caza Vice President, Corporate & Investor Relations 403-298-2273 jcazaenerplus.com Garth Doll Manager, Investor Relations 403-298-1218 gdollenerplus.com 1-800-319-6462…

From the store

Browse maps, data & reports in the Shale Experts store