All financial information contained within this news release
has been prepared in accordance with U.S. GAAP, except as noted
under "Non-GAAP Measures". This news release includes
forward-looking statements and information within the meaning of
applicable securities laws. Readers are advised to review the
"Forward-Looking Information and Statements" at the conclusion of
this news release. A full copy of Enerplus' First Quarter 2019
Financial Statements and MD&A are available on the Company's
website at www.enerplus.com, under its SEDAR profile at
www.sedar.com and on the EDGAR website at www.sec.gov.
CALGARY, May 10, 2019 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX & NYSE: ERF) today reported
its first quarter 2019 operating and financial results. First
quarter 2019 cash flow from operating activities was $109.0 million and adjusted funds flow was
$168.8 million. First quarter net
income was $19.2 million, or
$0.08 per share, and adjusted net
income was $72.5 million, or
$0.30 per share.
HIGHLIGHTS
- Strong pricing in the Bakken and Marcellus helped drive first
quarter adjusted funds flow of $168.8
million
- 2019 production guidance increased to 97,000 to 101,000 BOE per
day with 53,500 to 56,000 barrels per day of liquids
production
-
- Mid-point implies 10% year-over-year liquids production growth
(13% per share)
- Oil growth underway with second quarter liquids production
expected to be approximately 15% higher than the first quarter
- Visibility to meaningful free cash flow in the second half of
2019 based on current forward commodity prices
- Repurchased approximately $35
million of the Company's stock year-to-date with plans to
accelerate share repurchases, based on current market
conditions
- 2019 capital spending guidance range narrowed to $590 to $630
million (from $565 to
$635 million) following the continued
optimization of operational plans
- Significant financial flexibility; total debt net of cash was
$363.8 million leading to a net debt
to adjusted funds flow ratio of 0.5 times
"Our 2019 plans remain on track," stated Ian C. Dundas, President and Chief Executive
Officer. "As anticipated, we saw production decline in the first
quarter as a result of our 2018 investment profile which was
front-half weighted. However, the growth we had projected as we
moved past the first quarter is now well underway. With solid
operational momentum established, we anticipate robust growth going
forward."
Dundas continued, "With our operational plan delivering
sustainable, double-digit oil production growth, we will continue
to maintain capital spending discipline and prioritize free cash
flow generation and return of capital to shareholders. With this in
mind, and given our strong liquidity position and the compelling
value we currently see in our shares, we plan to accelerate share
repurchases under our normal course issuer bid. Additionally, we
plan to allocate a meaningful percentage of our expected free cash
flow in the second half of the year towards share repurchases,
based on current market conditions."
FIRST QUARTER FINANCIAL AND OPERATIONAL SUMMARY
Production
Production in the first quarter averaged
88,583 BOE per day, including oil and natural gas liquids
production of 45,488 barrels per day (90% oil). First quarter
production declined 9% from the prior quarter as a result of the
Company's 2018 investment profile which included only modest
capital activity in the fourth quarter.
With strong well performance in North
Dakota and the Marcellus driving growth and momentum into
the second quarter, Enerplus remains well positioned relative to
its 2019 production targets. The Company is increasing its annual
production guidance to 97,000 to 101,000 BOE per day (from 94,000
to 100,000 BOE per day) including liquids production of 53,500 to
56,000 barrels per day (from 52,500 to 56,000 barrels per day).
Second quarter production is expected to average 97,500 to
100,000 BOE per day, with liquids production of 51,500 to 53,000
barrels per day.
Adjusted Funds Flow and Adjusted Net Income
First
quarter adjusted funds flow was $168.8
million compared to $214.3
million in the fourth quarter of 2018. First quarter
adjusted net income was $72.5 million
($0.30 per share) compared to
$102.2 million ($0.42 per share) in the fourth quarter of 2018.
The quarter-over-quarter decreases in adjusted funds flow and
adjusted net income were primarily due to lower oil production in
the first quarter. Adjusted funds flow in the fourth quarter also
benefitted from a $27.2 million
Alternative Minimum Tax refund.
Pricing Realizations and Cost Structure
Enerplus'
realized Bakken oil price differential averaged US$3.25 per barrel below WTI in the first
quarter, an improvement from US$5.60
per barrel below WTI in the prior quarter due to the return of
normal refining activity levels in the U.S. Midwest. For the
remainder of 2019, Enerplus has fixed physical differential sales
of approximately 19,000 barrels per day of Bakken oil production at
US$1.90 per barrel below WTI,
including a portion which is sold directly into the US Gulf Coast
that utilizes the Company's firm capacity on the Dakota Access
Pipeline. Enerplus' remaining production is sold on a monthly basis
into the highest netback markets available. The Company is
maintaining its annual average Bakken differential guidance of
US$4.00 per barrel below WTI.
The Company's first quarter realized Marcellus natural gas price
differential was US$0.13 per Mcf
above NYMEX, compared to US$0.34
below NYMEX during the prior quarter. The premium differential to
NYMEX in the quarter was driven by strong weather-related demand
and the Company's fixed physical basis sales at markedly higher
levels than the settled benchmarks. Increased takeaway capacity
from additional pipelines brought into service also supported the
strong first quarter Marcellus pricing. Differentials have weakened
following the first quarter due to the seasonality of pricing and
demand in the northeastern U.S. markets. Enerplus expects its
realized differentials for the remainder of the year to moderate
from the first quarter and is maintaining its full year average
Marcellus differential guidance of US$0.30 per Mcf below NYMEX.
First quarter operating expenses were $8.75 per BOE, an increase from $6.99 per BOE in the fourth quarter largely due
to lower first quarter production. With production growth underway
following the first quarter decline, operating costs per BOE are
expected to be lower during the remainder of 2019. The Company is
maintaining its full year operating cost guidance of $8.00 per BOE.
First quarter transportation and cash general and administrative
("G&A") expenses were both largely in line with the Company's
annual 2019 guidance. First quarter transportation costs were
$3.92 per BOE and cash G&A
expenses were $1.55 per BOE.
Enerplus' 2019 guidance for these items remains unchanged.
Capital Expenditures and Balance Sheet
Position
Exploration and development capital spending in the
first quarter was $160.8 million and
was associated with drilling 17.1 net wells and bringing 6.8 net
wells on production across the Company's operations. Capital
spending is expected to increase in the second quarter primarily
due to a higher number of well completions in North Dakota compared to the first
quarter.
Enerplus has narrowed its 2019 capital budget range to
$590 to $630
million (from $565 to
$635 million previously) following
the continued optimization of its operational plans in North Dakota. The Company expects to complete
and bring approximately 35 net operated wells on production in 2019
at Fort Berthold.
Total debt net of cash at March 31,
2019 was $363.8 million. Total
debt was comprised of $682.8 million
of senior notes outstanding. The Company was undrawn on its
$800 million bank credit facility and
had a cash balance of $319.0 million.
Enerplus' net debt to adjusted funds flow ratio was 0.5 times at
the quarter-end.
Share Repurchase
During the first quarter, the Company
repurchased 1.7 million shares at an average share price of
$11.43 for a cost of $19.8 million under its normal course issuer bid
("NCIB"). In total, including repurchases made subsequent to the
end of the first quarter and up to May 8,
2019, the Company has repurchased 3.0 million shares in 2019
at an average share price of $11.61
for total consideration of $34.8
million.
Enerplus renewed its NCIB commencing on March 26, 2019 for a period of twelve months. The
NCIB renewal allows the Company to repurchase up to 16.7 million
shares, representing approximately $190
million based on its most recent closing share price.
ASSET ACTIVITY
Average Daily Production(1)
|
Three months ended
March 31, 2019
|
|
Crude Oil
(Mbbl/d)
|
Natural Gas
Liquids
(Mbbl/d)
|
Natural
gas
(MMcf/d)
|
Total
Production
(Mboe/d)
|
Williston
Basin
|
31.3
|
3.4
|
25.2
|
38.9
|
Marcellus
|
-
|
-
|
209.0
|
34.8
|
Canadian
Waterfloods
|
8.8
|
0.1
|
3.1
|
9.4
|
Other(2)
|
1.0
|
0.9
|
21.3
|
5.5
|
Total
|
41.1
|
4.4
|
258.6
|
88.6
|
(1)
|
Table may not add due
to rounding.
|
(2)
|
Comprises DJ Basin
and non-core properties in Canada.
|
Summary of Wells Brought On-Stream(1)
|
Three months ended
March 31, 2019
|
|
|
Operated
|
|
|
Non-Operated
|
|
|
|
|
|
|
|
Gross
|
Net
|
|
Gross
|
Net
|
Williston
Basin
|
3
|
3.0
|
|
1
|
0.5
|
Marcellus
|
-
|
-
|
|
13
|
1.9
|
Canadian
Waterfloods
|
1
|
1.0
|
|
-
|
-
|
Other(2)
|
-
|
-
|
|
2
|
0.5
|
Total
|
4
|
4.0
|
|
16
|
2.8
|
(1)
|
Table may not
add due to rounding.
|
(2)
|
Comprises DJ Basin and non-core properties in Canada.
|
Williston
Basin
Williston Basin
production averaged 38,916 BOE per day (80% oil) during the first
quarter of 2019, down from 47,420 BOE in the prior quarter. The
sequential quarterly decline was due to modest capital activity in
the fourth quarter of 2018 during which Enerplus brought one well
on production. First quarter Williston Basin production was comprised of
35,889 BOE per day in North Dakota
and 3,027 BOE per day in Montana.
In the first quarter, Enerplus brought a three-well (100%
working interest) pad on production at Fort Berthold. The average
peak 30-day production rate per well was 1,900 BOE per day (74%
oil, on a three-stream basis) with an average completed lateral
length of 9,600 feet per well.
The Company drilled 15 gross operated wells (95% average working
interest) in the first quarter.
Marcellus
Marcellus production averaged 209 MMcf per
day during the first quarter, approximately flat from the previous
quarter.
Thirteen gross non-operated wells (14% average working interest)
were brought on-stream during the quarter. The average peak 30-day
production rate per well was 22 MMcf per day with an average
completed lateral length per well of 7,700 feet.
The Company participated in drilling nine gross non-operated
wells (2% average working interest) during the first quarter.
2019 Guidance Updates
The Company has revised its 2019 production and capital spending
guidance ranges, with changes noted in the table below. In
addition, production guidance for the second quarter of 2019 has
been provided.
2019 Guidance
Capital
spending
|
$590 to
$630 million (from $565 to $635 million)
|
Average annual
production
|
97,000 to 101,000
BOE/day (from 94,000 to 100,000 BOE/day)
|
Average annual crude
oil and natural gas liquids production
|
53,500 to 56,000
bbls/day (from 52,500 to 56,000 bbls/d)
|
Q2 2019
production
|
97,500 to 100,000
BOE/d
|
Q2 2019 liquids
production
|
51,500 to 53,000
bbls/day
|
Average royalty and
production tax rate
|
25%
|
Operating
expense
|
$8.00/BOE
|
Transportation
expense
|
$4.00/BOE
|
Cash G&A
expense
|
$1.50/BOE
|
2019 Full-Year Differential/Basis Outlook
(1)
U.S. Bakken crude oil
differential (compared to WTI crude oil)
|
US$(4.00)/bbl
|
Marcellus natural gas
sales price differential (compared to NYMEX natural gas)
|
US$(0.30)/Mcf
|
(1)
|
Excluding transportation costs.
|
Risk Management
Enerplus continues to manage price risk through commodity
hedging. Enerplus has an average of 24,170 barrels per day of crude
oil protected for the remainder of 2019 and 16,000 barrels per day
protected in 2020.
For natural gas, Enerplus has 90,000 Mcf per day of natural gas
production protected from April 1 to October
31, 2019.
Commodity Hedging Detail (As at May 8, 2019)
|
|
|
|
WTI Crude Oil
(US$/bbl)
|
NYMEX Natural
Gas
(US$/Mcf)
|
|
Apr 1 – Jun
30,
2019
|
Jul 1, – Sep
30,
2019
|
Oct 1, – Dec
31,
2019
|
Jan 1, – Dec
31,
2020
|
Apr 1 – Oct
31,
2019
|
Swaps
|
|
|
|
|
|
Sold Swaps
|
-
|
-
|
-
|
-
|
$2.85
|
Volume (bbls/d or
Mcf/d)
|
-
|
-
|
-
|
-
|
90,000
|
|
|
|
|
|
|
Three-Way
Collars
|
|
|
|
|
|
Sold Puts
|
$44.50
|
$44.64
|
$44.64
|
$46.88
|
-
|
Volume (bbls/d or
Mcf/d)
|
23,500
|
24,500
|
24,500
|
16,000
|
-
|
|
|
|
|
|
|
Purchased
Puts
|
$54.59
|
$54.81
|
$54.81
|
$57.50
|
-
|
Volume (bbls/d or
Mcf/d)
|
23,500
|
24,500
|
24,500
|
16,000
|
-
|
|
|
|
|
|
|
Sold Calls
|
$65.52
|
$65.95
|
$65.99
|
$72.50
|
-
|
Volume (bbls/d or
Mcf/d)
|
23,500
|
24,500
|
24,500
|
16,000
|
-
|
(1)
|
The total average
deferred premium spent on the three-way collars is US$1.59/bbl from
April 1, 2019 to December 31, 2020.
|
Q1 2019 Conference Call Details
A conference call hosted by Ian C.
Dundas, President and CEO will be held at 9:00 AM MT (11:00 AM
ET) today to discuss these results. Details of the
conference call are as follows:
|
|
Date:
|
Friday, May 10,
2019
|
Time:
|
9:00 AM MT (11:00 AM
ET)
|
Dial-In:
|
587-880-2171
(Alberta)
|
|
1-888-390-0546 (Toll
Free)
|
Conference
ID:
|
61757440
|
Audiocast:
|
https://event.on24.com/wcc/r/1981813/7620DBA091F49B654D572072C9A79E1E
|
To ensure timely participation in the conference call, callers
are encouraged to dial in 15 minutes prior to the start time to
register for the event. A telephone replay will be available for 30
days following the conference call and can be accessed at the
following numbers:
Replay
Dial-In:
|
1-888-390-0541 (Toll
Free)
|
Replay
Passcode:
|
757440 #
|
SELECTED FINANCIAL AND OPERATING RESULTS
SELECTED FINANCIAL
RESULTS
|
|
Three months
ended
March 31,
|
|
|
2019
|
|
2018
|
Financial
(000's)
|
|
|
|
|
|
|
Net Income
|
|
$
|
19,158
|
|
$
|
29,637
|
Cash Flow from
Operating Activities
|
|
|
108,951
|
|
|
159,300
|
Adjusted Funds
Flow(4)
|
|
|
168,755
|
|
|
155,162
|
Dividends to
Shareholders - Declared
|
|
|
7,162
|
|
|
7,320
|
Total Debt Net of
Cash(4)
|
|
|
363,771
|
|
|
291,978
|
Capital
Spending
|
|
|
160,793
|
|
|
151,472
|
Property and Land
Acquisitions
|
|
|
3,025
|
|
|
12,272
|
Property
Divestments
|
|
|
466
|
|
|
6,970
|
Net Debt to Adjusted
Funds Flow Ratio(4)
|
|
|
0.5x
|
|
|
0.5x
|
|
|
|
|
|
|
|
Financial per
Weighted Average Shares Outstanding
|
|
|
|
|
|
|
Net Income -
Basic
|
|
$
|
0.08
|
|
$
|
0.12
|
Net Income -
Diluted
|
|
|
0.08
|
|
|
0.12
|
Weighted Average
Number of Shares Outstanding (000's) - Basic
|
|
|
238,922
|
|
|
243,874
|
Weighted Average
Number of Shares Outstanding (000's) - Diluted
|
|
|
241,298
|
|
|
249,191
|
|
|
|
|
|
|
|
Selected Financial
Results per BOE(1)(2)
|
|
|
|
|
|
|
Oil & Natural Gas
Sales(3)
|
|
$
|
44.70
|
|
$
|
42.91
|
Royalties and
Production Taxes
|
|
|
(10.48)
|
|
|
(10.41)
|
Commodity Derivative
Instruments
|
|
|
1.32
|
|
|
1.33
|
Cash Operating
Expenses
|
|
|
(8.75)
|
|
|
(7.02)
|
Transportation
Costs
|
|
|
(3.92)
|
|
|
(3.52)
|
Cash General and
Administrative Expenses
|
|
|
(1.55)
|
|
|
(1.72)
|
Cash Share-Based
Compensation
|
|
|
(0.17)
|
|
|
(0.25)
|
Interest, Foreign
Exchange and Other Expenses
|
|
|
(0.68)
|
|
|
(1.05)
|
Current Income Tax
Recovery/(Expense)
|
|
|
0.69
|
|
|
(0.01)
|
Adjusted Funds
Flow(4)
|
|
$
|
21.16
|
|
$
|
20.26
|
SELECTED OPERATING
RESULTS
|
|
Three months
ended
March 31,
|
|
|
2019
|
|
2018
|
Average Daily
Production(2)
|
|
|
|
|
|
|
Crude Oil
(bbls/day)
|
|
|
41,105
|
|
|
37,443
|
Natural Gas Liquids
(bbls/day)
|
|
|
4,383
|
|
|
4,085
|
Natural Gas
(Mcf/day)
|
|
|
258,568
|
|
|
261,310
|
Total
(BOE/day)
|
|
|
88,583
|
|
|
85,080
|
|
|
|
|
|
|
|
% Crude Oil and
Natural Gas Liquids
|
|
|
51%
|
|
|
49%
|
|
|
|
|
|
|
|
Average Selling
Price (2)(3)
|
|
|
|
|
|
|
Crude Oil (per
bbl)
|
|
$
|
66.56
|
|
$
|
69.67
|
Natural Gas Liquids
(per bbl)
|
|
|
19.15
|
|
|
28.13
|
Natural Gas (per
Mcf)
|
|
|
4.38
|
|
|
3.50
|
|
|
|
|
|
|
|
Net Wells
Drilled
|
|
|
17
|
|
|
14
|
(1)
|
Non-cash
amounts have been excluded.
|
(2)
|
Based on
Company interest production volumes. See "Presentation of
Production Information" below.
|
(3)
|
Before
transportation costs, royalties, and commodity derivative
instruments.
|
(4)
|
These non-GAAP
measures may not be directly comparable to similar measures
presented by other entities. See "Non-GAAP Measures" section in
this news release.
|
|
|
Three months
ended
March 31,
|
Average Benchmark
Pricing
|
|
2019
|
|
2018
|
WTI crude oil
(US$/bbl)
|
|
$
|
54.90
|
|
$
|
62.87
|
Brent (ICE) crude oil
(US$/bbl)
|
|
|
63.90
|
|
|
67.18
|
NYMEX natural gas –
last day (US$/Mcf)
|
|
|
3.10
|
|
|
3.00
|
USD/CDN average
exchange rate
|
|
|
1.33
|
|
|
1.26
|
Share Trading
Summary
|
|
CDN(1) - ERF
|
|
U.S.(2) - ERF
|
For the three
months ended March 31, 2019
|
|
(CDN$)
|
|
(US$)
|
High
|
|
$
|
12.55
|
|
$
|
9.47
|
Low
|
|
$
|
10.12
|
|
$
|
7.44
|
Close
|
|
$
|
11.20
|
|
$
|
8.41
|
(1)
|
TSX and
other Canadian trading data combined.
|
(2)
|
NYSE and
other U.S. trading data combined.
|
|
|
|
|
|
|
2019 Dividends per Share
|
|
|
CDN$
|
|
US$(1)
|
First Quarter
Total
|
|
$
|
0.03
|
$
|
0.02
|
Total Year to
Date
|
|
$
|
0.03
|
$
|
0.02
|
(1)
|
CDN$
dividends converted at the relevant foreign exchange rate on
the payment date.
|
Currency and Accounting Principles
All amounts in
this news release are stated in Canadian dollars unless otherwise
specified. All financial information in this news release has been
prepared and presented in accordance with U.S. GAAP, except as
noted below under "Non-GAAP Measures".
Barrels of Oil Equivalent
This news release also
contains references to "BOE" (barrels of oil equivalent). Enerplus
has adopted the standard of six thousand cubic feet of natural gas
to one barrel of oil (6 Mcf: 1 bbl) when converting natural gas to
BOEs. BOEs may be misleading, particularly if used in isolation.
The foregoing conversion ratios are based on an energy equivalency
conversion method primarily applicable at the burner tip and do not
represent a value equivalency at the wellhead. Given that the value
ratio based on the current price of oil as compared to natural gas
is significantly different from the energy equivalent of 6:1,
utilizing a conversion on a 6:1 basis may be misleading.
Presentation of Production Information
Under U.S.
GAAP oil and gas sales are generally presented net of royalties and
U.S. industry protocol is to present production volumes net of
royalties. Under Canadian industry protocol oil and gas sales and
production volumes are presented on a gross basis before deduction
of royalties. To continue to be comparable with its Canadian peer
companies, the summary results contained within this news release
presents Enerplus' production and BOE measures on a before royalty
company interest basis. All production volumes and revenues
presented herein are reported on a "company interest" basis, before
deduction of Crown and other royalties, plus Enerplus' royalty
interest.
Readers are cautioned that the average initial production
rates contained in this news release are not necessarily indicative
of long-term performance or of ultimate recovery.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable securities laws. The use of any of the
words "expect", "anticipate", "continue", "estimate", "guidance",
"ongoing", "may", "will", "project", "plans", "budget", "strategy"
and similar expressions are intended to identify forward-looking
information. In particular, but without limiting the foregoing,
this news release contains forward-looking information pertaining
to the following: expected 2019, including second quarter, average
production volumes, timing thereof and the anticipated production
mix; the proportion of our anticipated oil and gas production that
is hedged and the effectiveness of such hedges in protecting our
adjusted funds flow; the results from our drilling program and the
timing of related production; oil and natural gas prices and
differentials and our commodity risk management program in 2019 and
in the future; expectations regarding our realized oil and natural
gas prices; future royalty rates on our production and future
production taxes; anticipated cash G&A, share-based
compensation and financing expenses; expected operating and
transportation costs; our anticipated shares repurchases under
current and future normal course issuer bids; capital spending
levels in 2019 and impact thereof on our production levels and land
holdings; the amount of our future abandonment and reclamation
costs and asset retirement obligations; future environmental
expenses; our future royalty and production and U.S. cash taxes;
future debt and working capital levels and net debt to adjusted
funds flow ratio and adjusted payout ratio, financial capacity,
liquidity and capital resources to fund capital spending and
working capital requirements; our future acquisitions and
dispositions, expecting timing thereof and use of proceeds
therefrom; and the amount of future cash dividends that we may pay
to our shareholders.
The forward-looking information contained in this news
release reflects several material factors and expectations and
assumptions of Enerplus including, without limitation: that we will
conduct our operations and achieve results of operations as
anticipated; that our development plans will achieve the expected
results; that lack of adequate infrastructure will not result in
curtailment of production and/or reduced realized prices beyond our
current expectations; current commodity price, differentials and
cost assumptions; the general continuance of current or, where
applicable, assumed industry conditions; the continuation of
assumed tax, royalty and regulatory regimes; the accuracy of the
estimates of our reserve and contingent resource volumes; the
continued availability of adequate debt and/or equity financing and
adjusted funds flow to fund our capital, operating and working
capital requirements, and dividend payments as needed; the
continued availability and sufficiency of our adjusted funds flow
and availability under our bank credit facility to fund our working
capital deficiency; the availability of third party services; and
the extent of our liabilities. In addition, our updated 2019
guidance contained in this news release is based on the rest of the
year prices of: a WTI price of US$60.00/bbl, a NYMEX price of US$2.75/Mcf, and a USD/CDN exchange rate of 1.33.
Enerplus believes the material factors, expectations and
assumptions reflected in the forward-looking information are
reasonable but no assurance can be given that these factors,
expectations and assumptions will prove to be correct
The forward-looking information included in this news release
is not a guarantee of future performance and should not be unduly
relied upon. Such information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information including, without limitation:
continued low commodity prices environment or further volatility in
commodity prices; changes in realized prices of Enerplus' products;
changes in the demand for or supply of our products; unanticipated
operating results, results from our capital spending activities or
production declines; curtailment of our production due to low
realized prices or lack of adequate infrastructure; changes in tax
or environmental laws, royalty rates or other regulatory matters;
changes in our capital plans or by third party operators of our
properties; increased debt levels or debt service requirements;
inability to comply with debt covenants under our bank credit
facility and outstanding senior notes; inaccurate estimation of our
oil and gas reserve and contingent resource volumes; limited,
unfavourable or a lack of access to capital markets; increased
costs; a lack of adequate insurance coverage; the impact of
competitors; reliance on industry partners and third party service
providers; and certain other risks detailed from time to time in
our public disclosure documents (including, without limitation,
those risks identified in our Annual Information Form, our Annual
MD&A and Form 40-F as at December
31, 2018).
The forward-looking information contained in this news
release speak only as of the date of this news release. Enerplus
does not undertake any obligation to publicly update or revise any
forward-looking information contained herein, except as required by
applicable laws.
NON-GAAP MEASURES
In this news release, we use the terms "adjusted funds flow",
"free cash flow", "net debt to adjusted funds flow ratio" and
"total debt net of cash" as measures to analyze operating
performance, leverage and liquidity. "Adjusted funds flow" is
calculated as net cash generated from operating activities but
before changes in non-cash operating working capital and asset
retirement obligation expenditures. "Net debt to adjusted funds
flow ratio" is calculated as total debt net of cash and restricted
cash, divided by a trailing 12 months of adjusted funds flow.
"Total debt net of cash" is calculated as senior notes plus any
outstanding bank credit facility balance, minus cash and restricted
cash. Free cash flow is defined as "Adjusted funds flow less
exploration and development capital spending". Calculation of these
terms is described in Enerplus' MD&A under the "Liquidity and
Capital Resources" section.
Enerplus believes that, in addition to net earnings and other
measures prescribed by U.S. GAAP, the terms "adjusted funds flow",
"free cash flow", "net debt to adjusted funds flow", and "total
debt net of cash" are useful supplemental measures as they provide
an indication of the results generated by Enerplus' principal
business activities. However, these measures are not measures
recognized by U.S. GAAP and do not have a standardized meaning
prescribed by U.S. GAAP. Therefore, these measures, as defined by
Enerplus, may not be comparable to similar measures presented by
other issuers. For reconciliation of these measures to the most
directly comparable measure calculated in accordance with U.S.
GAAP, and further information about these measures, see disclosure
under "Non-GAAP Measures" in Enerplus' First Quarter 2019
MD&A.
Electronic copies of Enerplus Corporation's First Quarter 2019
MD&A and Financial Statements, along with other public
information including investor presentations, are available on its
website at www.enerplus.com. Shareholders may, upon request,
receive a printed copy of the Company's audited financial
statements at any time. For further information, please contact
Investor Relations at 1-800-319-6462 or email
investorrelations@enerplus.com.
Follow @EnerplusCorp on Twitter at
https://twitter.com/EnerplusCorp.
Ian C. Dundas
President & Chief Executive Officer
Enerplus Corporation
SOURCE Enerplus Corporation