Enerplus drives growth from high-quality oil and gas assets
Alberta-based crude oil and natural gas producer focuses on North Dakota project and expands footprint in Asia
Advances in hydraulic fracturing have helped unlock North America’s shale oil and gas resources, and Asian investors are keeping tabs on how the shale revolution is unfolding in Canada and the United States.
For Alberta-based crude oil and natural gas producer Enerplus, generating competitive returns for its shareholders means delivering exceptional operational performance and maintaining its robust financial strength.
“Our balance sheet is a strategic asset and we were able to strengthen it during a depressed commodity price environment by reducing our capital spending, divesting non-core assets, and completing a successful equity financing,” says Ian Dundas, president and CEO.
Over the next three years, Enerplus expects to deliver a 10 per cent compound annual growth rate (CAGR) on its total production and a 20 per cent CAGR on its liquids production. Enerplus also pays a monthly dividend to investors with a current yield of 1.1 per cent.
Enerplus holds premier oil and natural gas assets in Canada and the United States with annual production of more than 80,000 barrels of oil equivalent (boe) per day. The company’s projects are in three core areas: the Bakken/Three Forks shale oil play in North Dakota, the Marcellus shale gas play in Pennsylvania, and a portfolio of crude oil waterflood assets in Canada.
The company is investing the majority of its C$450 million capital budget this year at its project in North Dakota where it is operating a two-rig drilling programme. Enerplus produces more than 20,000 boe per day from its North Dakota project, with plans to increase production to more than 60,000 boe per day within the next few years.
Enerplus’ shares are publicly traded on the Toronto Stock Exchange and New York Stock Exchange, and the company’s current market capitalisation is approximately C$2.7 billion. The majority of the company’s shareholders are based in North America, and Enerplus is keen on expanding its footprint in Asia.