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Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp

Enerplus Corp · Sep 13, 2011 · 57 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. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 1
    Peters & Co. 2011 North American Oil and Gas Conference September 13, 2011 The Game Plan Ian C. Dundas, Executive Vice President and Chief Operating Officer
  2. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 2
    Enerplus Overview North American oil and gas producer focused on providing growth and income Current yield of over 7% 10 15% production growth expected through 2012 Diversified portfolio of oil and gas properties throughout High…
  3. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 3
    Our Assets Low decline, cash generating 45% oil assets & liquids 62% oil Growing land & liquids position in liquids rich region Significant growth potential in Bakken Oil and Marcellus 75% oil Shale Gas & liquids *…
  4. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 4
    Growth Potential Fort Berthold: 74,000 net acres Total contingent resources of over 500 MMBOE is almost 2x existing booked reserves Growth potential of 20,000 BOE/day in 4 years Additional upside potential in Three Forks…
  5. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 5
    Production Outlook Production growth of 10 15% 100 90 over next 2 years 80 5% debt-adjusted growth/year 70 beyond 2012 Oil Oil Oil Oil Oil 60 45% 50% 50 43% 47% 48% Oil production increases by 40 over 20% through 2012…
  6. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 6
    Crude Oil
  7. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 7
    North Dakota Bakken & Three Forks Potential Key Facts Net Acreage 74,500 (116 sections) 2P Reserves (Dec. 31, 2010) 22.4 million BOE Bakken Contingent Resource 60 million BOE 90 drilling locations Upside potential from the Three…
  8. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 8
    Significant Future Production Growth from Fort Berthold Manageable growth, self-funding in 1 2 years Growth potential of 20,000 25,000 500 Capital 25,000 BOE/day by 2014 Net Op Income 20,000 Production 400 Over 1 billion of…
  9. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 9
    Economics are Exceeding Type Curve Long laterals are 30% ahead of the avg type well estimate Short laterals are 45% ahead of the avg type well estimate Long Laterals (9,000 ft. 24 frac stages), 8.5 MM/well Type Actual Curve 5 Well…
  10. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 10
    Natural Gas
  11. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 11
    Marcellus Shale Gas Overview 65,000 net operated acres with 90% working interest 45,000 net non-operated acres Long lease tenure with 20% avg. working interest Focused on delineation in 2011 Major non-op partners: EXCO (22%…
  12. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 12
    Future Production Growth in the Marcellus Sizeable resource capture provides opportunity for material development Current contingent resource 180 Capital 300 estimate of 2.3 Tcf Net Op Income (MM) 150 Production 250 would triple…
  13. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 13
    Improving Marcellus Performance 90% of recent wells in the NE PA area are outperforming 6 Bcfe type curve NE PA Well Performance Nearly 60 gross wells on 1,400,000 production in NE Pennsylvania Cumulative Production (Mcf)…
  14. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 14
    Summary
  15. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 15
    Positioned to Deliver Growth and Income High quality, diversified portfolio of low decline and growth potential assets Potential to double reserves through identified contingent resources in Bakken, Marcellus and Current yield of…
  16. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 16
    Supplemental Information The Game Plan
  17. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 17
    Corporate Profile Enterprise Value (1) 5.7 billion Average Daily Trading Value (Q2 2011) 41 million 2011 Average Daily Production Guidance 76,000 78,000 BOE/day 2011 Exit Production Guidance 81,000 84,000 BOE/day Oil and…
  18. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 18
    Q2 Results Impacted By Weather, But Still On Track Production of 75,383 BOE/day, held at Q1 2011 level 145 million capital spending severe weather delayed execution of drilling programs Closed sale of a portion of our non-operated…
  19. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 19
    Revised 2011 Guidance Adjusted for Marcellus sale and impact of weather delays Increasing capital spending replacing exit volumes and building incremental production in 2012 Inflation, weather impacts in H1 2011 and increased costs…
  20. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 20
    Hedging The following is a summary of the financial contracts in place at July 27, 2011 expressed as a percentage of our forecasted net production volumes: Crude Oil (US/bbl) April 1, 2011 January 1, 2012 December 31, 2011 December…
  21. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 21
    2010 Year-End Reserves Summary Majority of decline in 2010 due to Oil Gas Properties Properties Total dispositions P+P Reserves (MMBOE) (Bcfe) (MMBOE) Development capital delivering Opening results Balance 171.8 1,039 344.9 All-in…
  22. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 22
    Attractive Valuation Enterprise Value* per BOE of Production Q2 2011 300,000 Peer Average: 111,821 250,000 EV/BOE/day 200,000 150,000 100,000 74,508 50,000 0 EXCO Continental EOG Ultra ARC…
  23. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 23
    Attractive Valuation Price to Cash Flow* per share 18 16 Peer Average: 7.7x 14 P:CF per share 12 10 7.9 8 6 4 2 0 Range Baytex ARC PetroBakken Whiting Talisman NAL Cabot Brigham Crescent…
  24. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 24
    Attractive Valuation Debt to Annualized Q2 Cash Flow* 3.0 Peer Average: 1.5x 2.5 2.0 D:CF 1.5 1.0 0.7 x 0.5 0.0 Range ARC Baytex Whiting Talisman NAL Cabot PetroBakken Crescent Point…
  25. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 25
    Attractive Valuation Yield at August 31, 2011 9.0% 8.0% Peer Average: 3.3% 7.5% 7.0% 6.0% % Yield 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Ultra Brigham EQT EOG ARC EXCO Baytex Pengrowth…
  26. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 26
    Supplemental Bakken Information
  27. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 27
    Fort Berthold Drilling Strategy 4 rigs currently under contract: 2 walking rigs for 2 years 2 conventional rigs through Q4 2011 and Q1 2012 Service contracts in place support execution Frac services and proppant agreements 2011…
  28. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 28
    Bakken & Three Forks Geology Middle Bakken Upper Three Forks Geological Age Mississippian Devonian Depth 10,500 11,000 ft 10,600 11,000 ft Thickness 35 45 ft 30 45 ft Porosity 5 - 6% 6 - 10% Overpressure 0.6 0.8 psi/ft 0.6 0.8…
  29. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 29
    Well Timelines 7 10 months Well application / permit Site Build Drilling Completion approval 4 - 6 months 1 - 2 months 1 month/well 1 month Environmental assessment Cannot begin Multi-well pads Have secured 42 required on…
  30. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 30
    Enerplus Well Design Methodology Typical rigs are 1,000 1,600 hp with top drive to improve performance; 2 of the rigs in the fleet are self moving (walkers) Measured depth of horizontal wells are 20,000 (TVD 10,700) and drill in…
  31. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 31
    Fort Berthold Production Gathering & Transportation Enerplus has committed to a field gathering system at the Fort Berthold Reservation which will: Aggregate production at a central collection point off the Reservation that will…
  32. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 32
    Fort Berthold Well Costs Long Laterals Short Laterals Drilling 2.8 MM Drilling 2.4 MM Completion Completion 5.7 MM 3.3 MM Total Cost 8.5 MM Total Cost 5.7 MM Completions - 125,000 lbs of proppant/stage, 1.3 - 1.5 MM for…
  33. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 33
    U.S. Bakken Infrastructure Capacity 800,000 Current U.S. Bakken Plains Bakken Proposal 700,000 Keystone XL Market Link 50k production is 400 600,000 100k MBOE/day Belle Fourche Proposal 500,000 Enbridge Bakken 60k 500…
  34. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 34
    Supplemental Waterflood Information
  35. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 35
    Waterflood Upside - Improving and Enhancing Oil Recovery Contingent Resource Total 2010 YE 2P (MMBOE) OOIP Recovered Reserves Asset (MMBOE) (MMBOE) (MMBOE) IOR EOR Total Medicine Hat, AB 217 17 16.5 6.5 21.7 28.2 Giltedge, AB 126 16…
  36. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 36
    The Stages of Oil Recovery Stage Implications Waterflood Hold production steady, grow recovery Injecting high pressure water Facilities in place Maintenance costs increasing with age Improved Oil Recovery (IOR) Grow production &…
  37. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 37
    Low Decline, Crude Oil Waterfloods Key Facts P+P Reserves (Dec 31, 2010) 83.7 MMBOE (booked to 27%) Best Est. Contingent Resources 60.5 MMBOE Recovery to date 21% Average Oil Quality 30 API 2011E Annual Production 13.5 15.0…
  38. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 38
    Polymer Flood Polymer is chemical additive that increases viscosity of injected water Reduces residual oil saturation Improves sweep efficiency Works best with heavier crudes in high permeability reservoirs with low waterflood…
  39. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 39
    Giltedge EOR Project Area Key Facts OOIP 126 MMBOE Recovery Factor to Date 13% Polymer Cumulative Production 16.4 MMBOE Project Area P+P Reserves (Dec 31, 2010) 10.4 MMBOE (booked to 21%) Best Est. Contingent Resource 16.6 MMBOE…
  40. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 40
    Giltedge Production History Production maintained over last decade 3000 2500 2000 Oil Production (BOE/day) 1500 1000 Expected Production Response from Polymer project (BOE/day) 500 Pool Base Production (BOE/day)…
  41. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 41
    Freda/Skinner/Neptune, SK - Ratcliffe & Bakken Approximately 115,000 net acres of Ratcliffe rights Majority overlay Bakken rights Oungre/Ratcliffe zones at a 1,600 - 1,800 metre depth Current Ratcliffe production 1,900 BOE/day…
  42. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 42
    Freda Lake Ratcliffe Unit Key Facts Freda Lake Ratcliffe Voluntary Unit 1 OOIP 55 MMBOE 99.86% WI Recovery Factor to Date 14% Cumulative Production 8 MMBOE P+P Reserves (Dec. 31, 2010) 10.2 MMBOE (booked to 31%) Best Est.…
  43. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 43
    Freda Lake Ratcliffe Unit Production Up to 14 more HZ wells to drill in the unit 2,500 Verticals & Horizontals - Oil Rate Vertical Wells Only - Oil Rate 2,000 Expected Production Oil Production (BOE/day) Water Injector…
  44. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 44
    Supplemental Marcellus Information
  45. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 45
    Marcellus Well Economics 4.0 Bcf Well 5.0 Bcf Well 6.0 Bcf Well * Assumes long-run 80% well cost of 6.0 MM NYMEX Payout NPV 12% Payout NPV 12% Payout NPV 12% /MMbtu IRR (Years) (MM) IRR (Years) (MM) IRR (Years) (MM) 6.00 27% 3.4…
  46. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 46
    2011 Marcellus Plans 2011 capital program of 195 Non-operated activity focused in NE PA region: EXCO currently running 3 rigs, expect to increase to 5 rigs in Q1 of 2012 with all activity Over 40% focused in Lycoming County…
  47. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 47
    Marcellus Well Timeline 6 8 months Well application / permit Waiting on Frac Site Build Drilling Fracing approval Crews 45 60 days in PA 45 90 days 25 35 30 - 60 days 7 - 14 days days/well 30 45 days in WV Cannot begin…
  48. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 48
    Moving Natural Gas Out of the Marcellus Enerplus has taken several steps to ensure we can move our growing Marcellus gas production to market: Entered into longer term (5 years +) firm must take contracts with creditworthy…
  49. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 49
    Supplemental Deep Basin Information
  50. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 50
    Liquids Rich Natural Gas Large, long tenure, high working interest land holdings Montney Potential 33,000 net acres of undeveloped land Over 110,000 net acres of high working interest undeveloped land with liquids rich gas…
  51. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 51
    Stacked Mannville Geology Stacked cretaceous horizons provide vertical risk mitigation and multiple horizontal targets Cardium Notikewin Wilrich Bluesky Gething Cadomin * Indicative geologic section 50
  52. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 52
    Stacked Mannville Key Facts Key properties Pine Creek to Hanlan Net Acreage (acres) 60,000 total (42,000 undeveloped) Future HZ Drilling Locations 100 - 200 Expected EUR/Well* 2.8 - 4.0 Bcfe Acquiring and utilizing 3D…
  53. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 53
    Montney b-66-B well Pink Mountain Mntn Licenses Key Facts 94-G-2 Mntn Production Key Properties Cameron / ERF Well License Julienne Creek ERF 3D Seismic Net Acreage (acres) 28,000 Future Hz Drilling Locations 50 150 Enerplus…
  54. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 54
    Stacked Mannville Type Curve Economics Target Cadomin + 1 up hole completion Bluesky or Wilrich Raw gas 2.8 Bcf Well 4.0 Bcf Well recovered AECO Payout NPV 12% Payout NPV 12% (/Mcf) IRR% (Years) (MM) IRR% (Years) (MM) 6.00 30…
  55. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 55
    Montney Type Curve Economics 3.5 Bcf Well 4.5 Bcf Well 5.5 Bcf Well NPV NPV NPV AECO IRR Payout 12% IRR Payout 12% IRR Payout 12% (/Mcf) % (Years) (MM) % (Years) (MM) % (Years) (MM) 6.00 27 2.7 2.1 45 1.8 3.9 64 1.4 5.7 5.00 18…
  56. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 56
    Disclaimers For information regarding the primary contingencies which currently prevent the classification of our disclosed contingent resources associated with our Marcellus shale gas assets as reserves and the positive and negative…
  57. Peters & Co 2011 North American Oil and Gas Conference – Enerplus Corp – slide 57
    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…

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