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 2020
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 8, 2020 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX & NYSE: ERF) today announced
financial and operating results for the first quarter of 2020. The
Company reported first quarter 2020 cash flow from operating
activities of $122.7 million and
adjusted funds flow of $113.2
million. First quarter net income was $2.9 million, or $0.01 per share and adjusted net income was
$21.1 million, or $0.09 per share.
HIGHLIGHTS
- Achieved first quarter production of 98,209 BOE per day,
including liquids of 54,390 barrels per day
- Maintained low financial leverage; net debt to adjusted funds
flow ratio was 0.8 times at quarter-end
- Strong liquidity with cash of $142
million and an undrawn US$600
million bank credit facility at quarter-end
- Robust commodity hedging position with forecast hedging gains
of approximately $150 million in
2020, based on recent forward strip oil prices
- Solid execution resulted in an 11% reduction to well costs year
to date in North Dakota, compared
to 2019
- Lower expected run rate cash costs driven by workflow
improvements and reduced cash compensation for Enerplus' Board of
Directors, executives and employees
- Significant operational flexibility to reduce production levels
to protect against selling oil at negative margins and preserve
shareholder value
- Advantaged position for future capital deployment with 27 net
drilled uncompleted wells in inventory in North Dakota
"Under extremely challenging conditions, Enerplus delivered a
solid operational quarter which has left the company well
positioned to navigate the ongoing market uncertainty," commented
Ian C. Dundas, President and Chief
Executive Officer of Enerplus. "We remain focused on protecting our
people and supporting our communities, while delivering strong
safety and operational performance across our business. The
decisive actions we have taken over the last few months to reduce
spending and lower our cost structure have enhanced our resilience.
The resourcefulness of our people has been key to our ability to
respond quickly."
RESPONSE TO COVID-19
In response to the coronavirus ("COVID-19") pandemic, Enerplus
introduced additional measures to enhance employee and community
safety, while ensuring the continuity of its business. The Company
directed all staff who are able to work from home to do so, and
adopted new working practices through leveraging technology and
strong collaboration. At its field operations, Enerplus implemented
procedures to allow for effective physical distancing for employees
and contractors. Enerplus' senior leadership team has been
operating under a dedicated emergency response plan, including
increased engagements with the Company's Board of Directors, to
address short term needs and plan for longer term business
continuity.
FIRST QUARTER SUMMARY
Production
Production in the first quarter of 2020 was
98,209 BOE per day, an increase of 11% compared to the same period
a year ago, and 9% lower than the prior quarter. Crude oil and
natural gas liquids production in the first quarter of 2020 was
54,390 barrels per day, an increase of 20% compared to the same
period a year ago, and 9% lower than the prior quarter. The lower
quarter-over-quarter production was due to the Company's 2019
investment profile with limited capital activity in the fourth
quarter, along with Enerplus' decision to shut-in, abandon and
reclaim its non-core natural gas asset at Tommy Lakes in
Canada in the first quarter of
2020.
Financial Highlights
Enerplus reported adjusted funds
flow for the first quarter of 2020 of $113.2
million compared to $168.8
million in the first quarter of 2019. The Company reported
adjusted net income for the first quarter of 2020 of $21.1 million ($0.09 per share) compared to $72.5 million ($0.30 per share) in the first quarter of 2019.
The year-over-year decrease in adjusted funds flow and adjusted net
income was due to lower crude oil and natural gas prices in the
first quarter of 2020.
Enerplus' first quarter 2020 realized Bakken oil price
differential was US$5.26 per barrel
below WTI, compared to US$3.25 per
barrel below WTI in the first quarter of 2019. The wider Bakken
differential was primarily a function of the year-over-year
production growth in the basin. The Company's realized Marcellus
natural gas price differential was US$0.38 per Mcf below NYMEX during the first
quarter of 2020 compared to US$0.13
per Mcf above NYMEX in the first quarter of 2019. The wider
year-over-year Marcellus differential was driven by low winter
natural gas demand in the first quarter of 2020.
In the first quarter of 2020, Enerplus' operating costs were
$8.84 per BOE, transportation costs
were $3.95 per BOE and cash general
and administrative expenses were $1.37 per BOE.
Exploration and development capital spending in the first
quarter was $163.6 million. The
Company also spent $2.5 million
repurchasing 340,434 shares and paid $6.7
million in dividends during the first quarter. As
previously announced, Enerplus has suspended its share repurchase
program given the deterioration in market conditions in order to
prioritize the Company's financial strength and liquidity.
Enerplus ended the first quarter of 2020 with a strong balance
sheet and significant liquidity. The Company had total debt of
$656.7 million, cash of $142.1 million and was undrawn on its
US$600 million bank credit facility.
The Company's net debt to adjusted funds flow ratio was 0.8 times
at quarter-end.
Asset Activity
Williston Basin production averaged 49,521 BOE
per day (80% oil) during the first quarter of 2020, an increase of
27% compared to the same period a year ago, and 8% lower than the
prior quarter. The Company drilled 18 gross operated wells (99%
average working interest) and brought 11 gross operated wells (82%
average working interest) on production during the first
quarter.
The Company's operational performance in North Dakota has tracked ahead of expectations
year to date. Drilling cycle times have averaged 11 days per well
for 10,000 foot laterals (spud to rig release), with eight of the
last 11 wells drilled in 10 days or less. This compares to
Enerplus' 2019 average of 12.6 days per well. The Company's 2020
well completion operations have also outperformed expectations.
Combined, this strong drilling and completion execution resulted in
an average well cost of US$6.8
million year to date, an 11% reduction compared to the
Company's 2019 average.
Marcellus production averaged 216 MMcf per day during the first
quarter of 2020, an increase of 3% compared to the same period in
2019, and 7% lower than the prior quarter. The Company participated
in drilling 15 gross non-operated wells (7% average working
interest) and brought 10 gross non-operated wells (4% average
working interest) on production during the quarter.
Canadian waterflood production averaged 8,209 BOE per day (94%
crude oil) during the first quarter of 2020, a decrease of 12%
compared to the same period in 2019, and 4% lower than the prior
quarter. The Company drilled 10 producer/injector wells (100%
working interest) at its Giltedge field in the first quarter.
OUTLOOK
Enerplus has taken proactive steps to preserve shareholder value
as a result of the significant decline in crude oil prices. As
previously announced, the Company has reduced its 2020 capital
budget by 45%, to $300 million and
lowered its cost structure through workflow improvements, vendor
service cost reductions, project deferrals and reduced cash
compensation for its Board of Directors, executives and
employees.
Enerplus also began reducing production levels across its
Williston basin and Canadian
operations in April to protect against selling oil at negative
margins. The Company's April production was approximately 91,500
BOE per day, including 49,700 barrels per day of crude oil and
natural gas liquids, exceeding the Company's April outlook. In May,
Enerplus began curtailing further production. Currently, the
Company estimates that approximately 25% of its liquids volumes are
curtailed, which excludes its recently completed seven-well pad in
North Dakota that the Company has
chosen not to produce until oil prices improve. Based on current
regional pricing dynamics, Enerplus does not anticipate curtailing
production beyond current levels through the rest of the second
quarter.
Capital activity and production expectations in Enerplus'
Marcellus natural gas position remain unchanged relative to the
Company's original 2020 plans. Enerplus expects its Marcellus
production to average approximately 185 to 200 MMcf per day through
the remaining three quarters of 2020. The Company also expects its
full year 2020 Marcellus natural gas price differential to average
US$0.45 per Mcf below NYMEX.
Notwithstanding the potential variability in production levels
in 2020 due to curtailments, the Company estimates its 2020 unit
operating expenses will average approximately $8.25 per BOE, compared to its original forecast
of $8.50 per BOE.
As previously announced, the Company has withdrawn its 2020
corporate guidance as a result of the significant ongoing
uncertainty in oil prices.
Enerplus will remain disciplined with its production management
and capital allocation during this period of heightened oil price
volatility. The Company currently has 27 net operated drilled
uncompleted wells in inventory in North
Dakota enabling rapid future capital deployment.
Average Daily Production(1)
|
Three months ended
March 31, 2020
|
|
Crude Oil
(Mbbl/d)
|
Natural
Gas
Liquids
(Mbbl/d)
|
Natural
gas
(MMcf/d)
|
Total
Production
(Mboe/d)
|
Williston
Basin
|
39.8
|
4.6
|
30.8
|
49.5
|
Marcellus
|
-
|
-
|
216.0
|
36.0
|
Canadian
Waterfloods
|
7.7
|
0.1
|
2.6
|
8.2
|
Other(2)
|
1.5
|
0.7
|
13.5
|
4.5
|
Total
|
49.0
|
5.3
|
262.9
|
98.2
|
(1)
|
Table may not add due
to rounding.
|
(2)
|
Comprises DJ Basin
and non-core properties in Canada.
|
Summary of Wells Drilled(1)
|
Three months ended
March 31, 2020
|
|
Operated
|
|
Non-Operated
|
|
Gross
|
Net
|
|
Gross
|
Net
|
Williston
Basin
|
18
|
17.9
|
|
3
|
1.1
|
Marcellus
|
-
|
-
|
|
15
|
1.1
|
Canadian
Waterfloods
|
10
|
10.0
|
|
-
|
-
|
Other(2)
|
5
|
4.4
|
|
1
|
0.0
|
Total
|
33
|
32.2
|
|
19
|
2.2
|
(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, 2020
|
|
Operated
|
|
Non-Operated
|
|
Gross
|
Net
|
|
Gross
|
Net
|
Williston
Basin
|
11
|
9.0
|
|
7
|
1.9
|
Marcellus
|
-
|
-
|
|
10
|
0.4
|
Canadian
Waterfloods
|
-
|
-
|
|
-
|
-
|
Other(2)
|
-
|
-
|
|
1
|
0.0
|
Total
|
11
|
9.0
|
|
18
|
2.2
|
(1)
|
Table may not add due
to rounding.
|
(2)
|
Comprises DJ Basin
and non-core properties in Canada.
|
PRICE RISK MANAGEMENT
Enerplus has an average of 24,800 barrels per day of crude oil
hedged through financial derivative contracts for the remainder of
2020.
In addition to its financial derivative contracts, Enerplus has
fixed physical differential sales agreements for approximately
13,000 barrels of oil per day at an estimated price of WTI less
US$5.00 per barrel for the remainder
of 2020.
Commodity Derivatives (As at May 7, 2020)
|
|
|
|
|
|
|
|
|
WTI Crude Oil (US$/bbl)(1)(2)
|
|
|
|
|
Apr 1, 2020
–
|
Jul 1, 2020
–
|
Oct 1, 2020 –
|
|
|
|
|
Jun 30,
2020
|
Sep
30, 2020
|
Dec
31, 2020
|
Swaps
|
|
|
|
|
|
|
Volume
(bbls/d)
|
|
|
|
9,500
|
7,000
|
—
|
Sold Swaps
|
|
|
|
$ 57.37
|
$ 36.02
|
—
|
Put
Spreads(2)
|
|
|
|
|
|
|
Volume
(bbls/d)
|
|
|
|
16,000
|
16,000
|
16,000
|
Sold Puts
|
|
|
|
$ 46.88
|
$ 46.88
|
$ 46.88
|
Purchased
Puts
|
|
|
|
$ 57.50
|
$ 57.50
|
$ 57.50
|
Three Way
Collars(2)
|
|
|
|
|
|
|
Volume
(bbls/d)
|
|
|
|
—
|
5,000
|
5,000
|
Sold Puts
|
|
|
|
—
|
$ 48.00
|
$ 48.00
|
Purchased
Puts
|
|
|
|
—
|
$ 56.25
|
$ 56.25
|
Sold Calls
|
|
|
|
—
|
$ 65.00
|
$ 65.00
|
(1)
|
The sold puts on the
put spreads settle annually at the end of 2020.
|
(2)
|
The total average
deferred premium on outstanding hedges is US$1.67/bbl from April 1,
2020 to December 31, 2020.
|
Q1 2020 CONFERENCE CALL DETAILS
A conference call hosted by Ian C.
Dundas, President and CEO will be held at 9:00 AM MT (11:00 AM
ET) today to discuss these results. Details of the
conference call are as follows:
Date:
|
Friday, May 8,
2020
|
Time:
|
9:00 AM MT (11:00 AM
ET)
|
Dial-In:
|
587-880-2171
(Alberta)
|
|
1-888-390-0546 (Toll
Free)
|
Conference
ID:
|
66390411
|
Audiocast:
|
https://produceredition.webcasts.com/starthere.jsp?ei=1301001&tp_key=869ca52830
|
To ensure timely participation in the conference call, callers
are encouraged to join 15 minutes prior to the start time to
register for the event. A telephone replay will be available for 30
days following the conference call and can be accessed at the
following numbers:
Replay
Dial-In:
|
1-888-390-0541 (Toll
Free)
|
Replay
Passcode:
|
390411 #
|
SELECTED FINANCIAL
RESULTS
|
|
Three months
ended
March 31,
|
|
|
2020
|
|
2019
|
Financial (CDN$,
thousands, except ratios)
|
|
|
|
|
|
|
Net Income
|
|
$
|
2,876
|
|
$
|
19,158
|
Adjusted Net
Income(4)
|
|
|
21,089
|
|
|
72,458
|
Cash Flow from
Operating Activities
|
|
|
122,739
|
|
|
108,951
|
Adjusted Funds
Flow(4)
|
|
|
113,227
|
|
|
168,755
|
Dividends to
Shareholders - Declared
|
|
|
6,670
|
|
|
7,162
|
Total Debt Net of
Cash(4)
|
|
|
514,620
|
|
|
363,771
|
Capital
Spending
|
|
|
163,625
|
|
|
160,793
|
Property and Land
Acquisitions
|
|
|
2,256
|
|
|
3,025
|
Property
Divestments
|
|
|
5,578
|
|
|
466
|
Net Debt to Adjusted
Funds Flow Ratio(4)
|
|
|
0.8x
|
|
|
0.5x
|
|
|
|
|
|
|
|
Financial per
Weighted Average Shares Outstanding
|
|
|
|
|
|
|
Net Income -
Basic
|
|
$
|
0.01
|
|
$
|
0.08
|
Net Income -
Diluted
|
|
|
0.01
|
|
|
0.08
|
Weighted Average
Number of Shares Outstanding (000's) - Basic
|
|
|
222,357
|
|
|
238,922
|
Weighted Average
Number of Shares Outstanding (000's) - Diluted
|
|
|
223,300
|
|
|
241,298
|
|
|
|
|
|
|
|
Selected Financial
Results per BOE(1)(2)
|
|
|
|
|
|
|
Oil & Natural Gas
Sales(3)
|
|
$
|
31.96
|
|
$
|
44.70
|
Royalties and
Production Taxes
|
|
|
(8.16)
|
|
|
(10.48)
|
Commodity Derivative
Instruments
|
|
|
3.69
|
|
|
1.32
|
Cash Operating
Expenses
|
|
|
(8.84)
|
|
|
(8.75)
|
Transportation
Costs
|
|
|
(3.95)
|
|
|
(3.92)
|
Cash General and
Administrative Expenses
|
|
|
(1.37)
|
|
|
(1.55)
|
Cash Share-Based
Compensation
|
|
|
0.31
|
|
|
(0.17)
|
Interest, Foreign
Exchange and Other Expenses
|
|
|
(0.97)
|
|
|
(0.68)
|
Current Income Tax
Recovery
|
|
|
—
|
|
|
0.69
|
Adjusted Funds
Flow(4)
|
|
$
|
12.67
|
|
$
|
21.16
|
|
|
|
|
|
|
SELECTED OPERATING
RESULTS
|
|
Three months
ended
March 31,
|
|
|
2020
|
|
2019
|
Average Daily
Production(2)
|
|
|
|
|
|
|
Crude Oil
(bbls/day)
|
|
|
49,044
|
|
|
41,105
|
Natural Gas Liquids
(bbls/day)
|
|
|
5,346
|
|
|
4,383
|
Natural Gas
(Mcf/day)
|
|
|
262,913
|
|
|
258,568
|
Total
(BOE/day)
|
|
|
98,209
|
|
|
88,583
|
|
|
|
|
|
|
|
% Crude Oil and
Natural Gas Liquids
|
|
|
55%
|
|
|
51%
|
|
|
|
|
|
|
|
Average Selling
Price (2)(3)
|
|
|
|
|
|
|
Crude Oil (per
bbl)
|
|
$
|
51.30
|
|
$
|
66.56
|
Natural Gas Liquids
(per bbl)
|
|
|
12.72
|
|
|
19.15
|
Natural Gas (per
Mcf)
|
|
|
2.08
|
|
|
4.38
|
|
|
|
|
|
|
|
Net Wells
Drilled
|
|
|
34
|
|
|
17
|
(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
|
|
2020
|
|
2019
|
WTI crude oil
(US$/bbl)
|
|
$
|
46.17
|
|
$
|
54.90
|
Brent (ICE) crude oil
(US$/bbl)
|
|
|
50.96
|
|
|
63.90
|
NYMEX natural gas –
last day (US$/Mcf)
|
|
|
1.95
|
|
|
3.10
|
USD/CDN average
exchange rate
|
|
|
1.34
|
|
|
1.33
|
|
|
|
|
|
|
|
|
|
|
Share Trading
Summary
|
|
CDN(1) - ERF
|
|
U.S.(2) - ERF
|
For the three
months ended March 31, 2020
|
|
(CDN$)
|
|
(US$)
|
High
|
|
$
|
9.55
|
|
$
|
7.35
|
Low
|
|
$
|
1.62
|
|
$
|
1.15
|
Close
|
|
$
|
2.07
|
|
$
|
1.48
|
(1)
|
TSX and other
Canadian trading data combined.
|
(2)
|
NYSE and other
U.S. trading data combined.
|
2020 Dividends per Share
|
|
CDN$
|
|
US$(1)
|
First Quarter
Total
|
|
$
|
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 disclosure requirements and industry
practice, oil and gas sales and production volumes are presented on
a gross basis before deduction of royalties. All production volumes
and oil and gas sales presented herein are reported on a "company
interest" basis, before deduction of Crown and other royalties,
plus Enerplus' royalty interest. All references to "liquids" in
this news release include light and medium crude oil, heavy oil and
tight oil (all together referred to as "crude oil") and natural gas
liquids on a combined basis.
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 capital spending levels in 2020 and
impact thereof on our production levels and land holdings; expected
production volumes; expected operating strategy in 2020, including
the proportion of Enerplus' production that may be curtailed and
the effect of such curtailment on its properties, operations and
financial position; 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, our commodity risk management program in
2020 and expected hedging gains; expectations regarding our
realized oil and natural gas prices; expected operating costs; our
anticipated shares repurchases under future normal course issuer
bids; potential future asset and goodwill impairments, as well as
relevant factors that may affect such impairments; 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; deferred income taxes, our tax
pools and the time at which we may pay Canadian 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; expectations regarding our ability to comply with
debt covenants under our bank credit facility and outstanding
senior notes; expectations regarding repayment of our outstanding
senior notes, including sources of funds therefor; Enerplus' costs
reduction initiatives and the expected cost savings therefrom in
2020; 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 and/or low commodity
price environment 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; our
ability to comply with our debt covenants; the availability of
third party services; and the extent of our liabilities. In
addition, our expected 2020 capital expenditures and operating
strategy described in this news release is based on the rest of the
year prices and exchange rate of: a WTI price of US$22.80/bbl, a NYMEX price of US$2.23/Mcf, and a USD/CDN exchange rate of 1.40.
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. Current
conditions, economic and otherwise, render assumptions, although
reasonable when made, subject to greater uncertainty.
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 instability, or further deterioration, in global economic
and market environment, including from COVID-19; continued
low commodity prices environment or further decline and/or
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 MD&A, our
Annual Information Form, our Annual MD&A and Form 40-F as at
December 31, 2019).
The forward-looking information contained in this news
release speaks only as of the date of this news release, and we do
not assume any obligation to publicly update or revise such
forward-looking information to reflect new events or circumstances,
except as may be required pursuant to applicable laws.
NON-GAAP MEASURES
In this news release, we use the terms "adjusted funds flow",
"adjusted net income", "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 cash flow generated from operating activities but
before changes in non-cash operating working capital and asset
retirement obligation expenditures. "Adjusted net income" is
calculated as net income adjusted for unrealized derivative
instrument gain/loss, unrealized foreign exchange gain/loss, the
tax effect of these items and the impact of statutory changes to
the Company's corporate tax rate. "Net debt to adjusted funds flow
ratio" is calculated as total debt net of cash and cash
equivalents, 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 cash
equivalents. Calculation of these terms is described in Enerplus'
MD&A under the "Non-GAAP Measures" section.
Enerplus believes that, in addition to net earnings and other
measures prescribed by U.S. GAAP, the terms "adjusted funds flow",
"adjusted net income", "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
2020 MD&A.
Electronic copies of Enerplus Corporation's First Quarter 2020
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.
Follow @EnerplusCorp on Twitter at
https://twitter.com/EnerplusCorp.
Ian C. Dundas
President & Chief Executive Officer
Enerplus Corporation
SOURCE Enerplus Corporation