CALGARY, AB, April 29, 2021 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX: ERF) (NYSE: ERF) today
announced that it has increased and extended its senior, unsecured
bank credit facility to US$900
million with a maturity date of October 31, 2025; incorporating
sustainability-linked performance targets to establish a
Sustainability-Linked Credit Facility ("SLL Credit Facility") with
no changes to its existing pricing grid or covenant package.
"We continuously look to further integrate the Company's
environmental, social and governance ("ESG") goals and targets into
all aspects of our business," said Jodi
Jenson Labrie, Senior Vice-President and Chief Financial
Officer. "As the first North American exploration and production
company to link ESG performance targets to its principal revolving
credit facility, we are further demonstrating our commitment to
developing our resources responsibly, safely and profitably.
Furthermore, our SLL Credit Facility aligns with the performance
metrics in our balanced executive compensation scorecard and we
expect it to enhance our access to credit markets and support our
cost of capital in the future. In addition, the increase of our SLL
Credit Facility to US$900 million,
from US$600 million, provides
Enerplus with ample liquidity to close our recent asset acquisition
and support our ongoing business activities."
The senior unsecured SLL Credit Facility incorporates ESG-linked
incentive pricing terms which reduce or increase the borrowing
costs by up to 5 basis points as Enerplus' sustainability
performance targets ("SPT") are exceeded or missed, respectively.
The SPTs are based on the following ESG goals of the company:
- GHG Emissions: continuous progress toward Enerplus'
stated goal of a 50% reduction in corporate Scope 1 and 2
greenhouse gas emissions intensity by 2030, using 2019 as a
baseline and measurement based on Enerplus' annual internal
targets
- Water Management: achieve a 50% reduction in freshwater
usage in corporate well completions by 2025 or earlier compared to
2019, with progress to be measured on an annual basis over the life
of the SLL Credit Facility
- Health & Safety: achieve and maintain a 25%
reduction in the Company's Lost Time Injury Frequency, based on a
trailing 3-year average, relative to a 2019 baseline
CIBC acted as Sole Bookrunner, Sole Lead Arranger and
Sustainability Structuring Agent for the transaction.
About Enerplus
Enerplus is an independent North American oil and gas
exploration and production company focused on creating long-term
value for its shareholders through a disciplined capital allocation
strategy and a commitment to safe, responsible operations.
FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements contained in this news release constitute
forward-looking information and statements (collectively,
"forward-looking statements"). These statements relate to future
events or future performance. All statements other than statements
of historical fact are forward-looking statements. Forward-looking
statements contained in this news release include, but are not
limited to, statements with respect to: the SPT relating to the SLL
Credit Facility; Enerplus' commitment to, and expectations
regarding, reaching such SPTs; the effect of Enerplus achieving, or
failing to achieve, its SPTs on its financing costs; and the
maturity of the SLL Credit Facility.
The forward-looking information contained in this news
release reflects several material factors, expectations and
assumptions including, without limitation: that we will
conduct our operations and achieve results of operations as
anticipated, including those associated with our ESG initiatives;
the availability of technology and processes to achieve ESG
targets; anticipated completion, including timing, of Enerplus'
acquisition of assets in the Williston Basin from Hess Corporation
(the "Williston Asset Acquisition") and its expected impact on
Enerplus' operations and financial results; the accuracy of the
estimates of our reserve and contingent resource volumes;
anticipated capital spending levels and the availability of
liquidity and capital resources to fund capital spending and
working capital requirements; estimated commodity price,
differentials and cost assumptions; the general continuance of
current or, where applicable, assumed economic and industry
conditions, including a maintained industry focus on ESG; the
continuation of assumed tax, royalty and regulatory regimes and the
outcome of regulatory decisions; the continued availability and
sufficiency of adequate debt and/or equity financing and adjusted
funds flow; the ability to achieve some or all of the expected
benefits from the SLL Credit Facility, including the effect of
reductions or increases in Enerplus' borrowing costs, obtaining
access to credit markets or supporting cost of capital in 2021 and
the future; and the extent of our liabilities. We
believe 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, including as a result of the continued
uncertainty regarding the impact of the COVID-19 pandemic;
inability to comply with debt covenants under the SLL Credit
Facility and outstanding senior notes; changes in law, including
environmental laws or other regulatory matters; unanticipated
operating results, results from our capital spending activities or
production declines; changes in the demand for or supply of, or
realized prices of, our products; failure to complete the Williston
Asset Acquisition in accordance with its terms or at all and
failure to realize the anticipated benefits of the Williston Asset
Acquisition or the acquisition of Bruin E&P HoldCo, LLC;
inaccurate estimation of our oil and gas reserve and contingent
resource volumes; curtailment of our production; increased debt
levels or debt service requirements; limited, unfavourable or a
lack of access to capital markets; increased costs; and certain
other risks detailed from time to time in our public disclosure
documents (including, without limitation, those risks and
contingencies described under "Risk Factors and Risk Management" in
Enerplus' 2020 MD&A and in our other public filings).
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.
For further information, including financial and operating
results and the Company's most recent ESG report and investor
presentations, please visit Enerplus' website at www.enerplus.com.
Shareholders may, upon request, obtain a hard copy of Enerplus'
complete audited financial statements free of charge. For further
information, please contact Investor Relations at 1-800-319-6462 or
email investorrelations@enerplus.com.
SOURCE Enerplus Corporation