CAPP Investment Symposium The Game PlanDecember 2012
Corporate Overview North American oil and gas producer delivering a combination of growth and income to investors Balanced and diversified portfolio of oil and gas properties in some of the best resource plays in North America:…
Corporate Profile Ticker Symbol (TSX & NYSE) ERF Enterprise Value (1) 3.7 billion Average Daily Trading Value (through Q3 2012) 49 million 2013E Average Daily Production 82,000 85,000 BOE/day 2013E Exit Production 84,000 88,000…
2013 Outlook Funds flow growth of 11% Debt-adjusted funds flow grows 6% per share Reduced capital spending by 20% Reduced spending on Marcellus gas 85% of spend on oil and liquids plays Focused on improving capital efficiencies…
Guidance Overview Operations and Expenses* 2012E 2013E Change Capital Expenditures ( millions) 850 685 -20% Annual Average Production (BOE/day) 82,000 82,000 85,000 +2% Oil & Liquids Weighting 49% 50% +1% Exit Production (BOE/day)…
Our Assets 2013E Production Waterfloods 18% Deep Tight Gas Oil Montney, Stacked 28% 17% Mannville and Duvernay Waterfloods 4% 13% Marcellus Shale Gas Other 20% Oil Other Gas Marcellus Shale Bakken/Three Forks 6
Continuing to Deliver Organic Growth Expect annual growth of 2% in 2013 84,000 90,000 85,000 88,000 82,000 85,000 88,000 Crude oil production expected to 80,000 75,332 81,573 82,000 grow by 2.5% over 2012 70,000 Fort…
Cash Flow Protection 2013 Crude Oil & Natural Gas Hedge Positions* Crude oil hedges on 57% of 2013 100% production Fixed price swaps averaging % of net after royalty production 80% US100.84/bbl Natural gas hedges on 23% of…
Top Tier Light Oil Play in North Dakota 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…
Delivering Organic Oil Growth at Fort Berthold 2013 capital program: 340 million of capital spending planned for 2013 20,000 90% of capital focused on drilling and 18,000 completions 16,000 2 rig program; expect to drill and…
Fort Berthold Well Results to Date 3 1 2 4 4 5 5 6 5 6 7 10 7 16 7 18 1 12 18 1 19 wells 21 2 2 wells 4 3 5 4 6 8 wells 6 wells (400 Mbbls of oil, 55 MBOE of liquids and gas) (800 Mbbls of oil, 105 MBOE of…
Fort Berthold Economics 80% WTI (US/bbl) Forward Price 70% Bakken Long Well Nov. 26, 2012 905 MBOE EUR 2013 90.39 60% 2014 90.29 2015 88.55 2016 87.16 50% Rate of Return* 2017 86.40 40% 30% 20% Three Forks Long…
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…
Consolidating Ownership at Sleeping Giant Key Facts Acquired original 70% working 2011 P+P Reserves* 32.4 MMBOE interest in 2005 Current Production* 7,300 BOE/day Reserves booked to 14% recovery factor Current Operated and…
Low Decline Canadian Waterflood Assets Key Facts OOIP* 1.2 billion barrels (WI) P+P Reserves (YE 2011*) 82 million barrels net (26% recovery) Recovery to date* 22% Best Est. Contingent 53.5 million barrels Resources* Average Oil…
Crude Oil Waterfloods: Key Focus in 2013 Enhanced Oil Recovery: Medicine Hat and Giltedge - encouraging initial response in both fields and continuing polymer injection for further evaluation Increased Oil Recovery: Medicine Hat -…
Marcellus: Reduced Spending on Dry Gas 2013 capital program of 80 million, 50% reduction from 2012 Virtually all spending is non-operated focused on opportunities with robust economics Susquehanna - 35% IRR Bradford - 25% IRR EXCO…
Northeast Pennsylvania Average Well Performance * Production data as of October 31, 2012 18
Marcellus Economics 45% 7 mm well cost 40% 35% 8 mm well cost 30% Rate of Return 25% 9 mm well cost 20% 15% 10% 5% 0% 5.0 6.0 7.0 8.0 9.0 10.0 11.0 EUR (bcf) 19
Deep Gas - Wilrich Key Facts Key properties Ansell, Minehead, Hanlan Net Acreage (acres) 70,000 acres (110 sections) Future HZ Drilling 100 - 200 Locations Expected EUR/Well 4.0 - 6.0 Bcfe 2013 capital program of 40 million…
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…
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…
Duvernay Shale Willesden Green 23
Why Enerplus Significant inventory of oil and gas opportunities in portfolio to deliver future growth in reserves and production Strong financial position with significant unutilized credit capacity Upside exposure to improving…
Supplemental Information The Game Plan
2013 Capital Budget Pricing and Sensitivity 2013 Forward Prices: as of Nov 26, 2012 Oil - WTI (US/bbl) 90.39 Oil Edmonton Par (/bbl) 85.73 Gas NYMEX (US/Mcf) 3.96 Gas AECO (/Mcf) 3.57 2013 Sensitivities Est. effect on 2013 Funds…
Sleeping Giant Purchase vs. Manitoba Asset Sale (Based on internal evaluations and November 23, 2012 pricing) Sleeping Giant Manitoba Purchase Price [M] * 131,000 220,000 Working Interest [%] 90% (post transaction) 52% Funds flow…
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…
North Dakota Takeaway Capacity North Dakota 30
Crude Oil Differentials Increased production, pipeline constraints, unplanned refinery maintenance and reduced light oil uptakes by Midwest refiners caused widening of oil differentials in 2012 Expect differentials to be 1 to 2/bbl…
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 500+ Locations…
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…
Enerplus Share Ownership Investor Composition Geographic Composition Total Institutional 13% 31% 17% Total Retail 69% 35% 18% 65% 52% US/Intl Institutional Canadian Institutional Canada US and Other US/Intl Retail…
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