CALGARY, March 21, 2018 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX and NYSE: ERF) announces
acceptance by the Toronto Stock Exchange (the "TSX") of a Notice of
Intention to Make a Normal Course Issuer Bid (the "Bid").
Pursuant to the Bid, Enerplus proposes to purchase through the
facilities of the TSX, the New York Stock Exchange and/or
alternative Canadian trading systems, from time to time over the
next 12 months, if considered advisable, up to 17,095,598 common
shares, being 7% of public float of Enerplus (within the meaning
under the TSX rules) as of March 15,
2018.
Enerplus believes that, from time to time, the market price of
its common shares trade in a price range that does not adequately
reflect their underlying value. Accordingly, Enerplus has concluded
that the repurchase of common shares for cancellation may represent
an attractive investment that will increase the proportionate
interest in the Company of, and be advantageous to, all of the
Company's remaining shareholders.
"Our fully funded capital plans are expected to drive
competitive crude oil production and cash flow growth over the next
several years," said Ian C. Dundas,
President and Chief Executive Officer. "In addition, our balance
sheet remains among the strongest in the North American peer group,
having ended 2017 with a net debt to adjusted funds flow ratio of
0.6 times. With our significant liquidity, including $347 million of cash on our balance sheet at
December 31, 2017, and strong growth
outlook, we believe repurchasing common shares may represent a
compelling capital allocation opportunity."
The Bid will be effected in accordance with the TSX's normal
course issuer bid rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of
1934, as amended, which contain restrictions on the number of
common shares that may be purchased on a single day, subject to
certain exceptions for block purchases, based on the average daily
trading volumes of Enerplus' common shares on the applicable
exchange. Subject to exceptions for block purchases, Enerplus will
limit daily purchases of common shares on the TSX in connection
with the Bid to no more than 25% (317,274 common shares) of the
average daily trading volume of the common shares on the TSX
(1,269,098 common shares) during any trading day. Common shares
purchased under the Bid will be cancelled.
Enerplus is authorized to make purchases during the period of
March 26, 2018 to March 25, 2019 or until such earlier time as the
Bid is completed or terminated at the option of Enerplus. Purchases
under the Bid will be made through open market purchases at market
price, as well as by other means as may be permitted by applicable
securities regulatory authorities, including private agreements.
Any purchases made by private agreement under an issuer bid
exemption order issued by a securities regulatory authority will be
at a discount to the prevailing market price as provided in any
exemption order.
Enerplus intends to enter into an automatic purchase plan with a
broker which will enable Enerplus to provide standard instructions
and purchase common shares on the open market during self-imposed
blackout periods. Outside of these black-out periods, common shares
may be purchased in accordance with management's discretion.
About Enerplus
Enerplus Corporation is a responsible developer of high quality
crude oil and natural gas assets in Canada and the
United States committed to creating value for its
shareholders through a disciplined capital investment strategy.
Forward-Looking Statements
Certain statements and other information included in this
press release constitute "forward-looking information" within the
meaning of applicable Canadian securities legislation or constitute
"forward-looking statements" within the meaning of applicable U.S.
securities legislation (collectively, the "forward-looking
statements"). All statements in this press release, other
than those relating to historical information or current
conditions, are forward-looking statements, including, but not
limited to, Enerplus' intention to commence a Bid and the timing,
methods and quantity of any purchases of common shares under the
Bid.
These forward-looking statements are subject to a number of
risks and uncertainties, many of which are beyond our control,
which could cause actual results to differ materially from such
forward-looking statements. All of the forward-looking statements
are qualified by the assumptions that are stated or inherent in
such forward-looking statements, including the availability of cash
for repurchases of common shares under the Bid, the existence of
alternative uses for Enerplus' cash resources and compliance with
applicable laws and regulations pertaining to a Bid. Although
Enerplus believes that these assumptions are reasonable, this list
is not exhaustive of the factors that may affect any of the
forward-looking statements and the reader should not place an undue
reliance on these assumptions and such forward-looking
statements.
Events or circumstances that could cause actual results to
differ materially from those in the forward-looking statements,
include, but are not limited to: general economic, market and
business conditions, and other risk factors detailed from time to
time in Enerplus reports filed with the Canadian securities
regulators and the Securities and Exchange Commission in
the United States.
Enerplus disclaims any intention or obligation to update or
revise any forward-looking statements in this press release as a
result of new information or future events, except as may be
required under applicable U.S. federal securities laws or
applicable Canadian securities legislation.
Non-GAAP Measures
In this press release, Enerplus uses the term "net debt to
adjusted funds flow" as a measure to analyze 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" is calculated as
total debt net of cash, including restricted cash, divided by
adjusted funds flow. This measure is not recognized by U.S. GAAP
and does not have a standardized meaning prescribed by U.S. GAAP.
Therefore, this measure, as defined by Enerplus, may not be
comparable to similar measures presented by other issuers. For
reconciliation of this measure to the most directly comparable
measure calculated in accordance with U.S. GAAP, and further
information about this measure, see disclosure under "Non-GAAP
Measures" in Enerplus' Management's Discussion & Analysis for
the year ended December 31,
2017.
Ian C. Dundas
President & Chief Executive Officer
Enerplus Corporation
SOURCE Enerplus Corporation