All financial information contained within this news release
has been prepared in accordance with U.S. GAAP. 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. Readers are also referred to
"Non-GAAP and Other Financial Measures" at the end of this news
release for information regarding the presentation of the
financial and operational information in this news release, as well
as the use of certain financial measures that do not have standard
meaning under U.S. GAAP and "Notice Regarding Information Contained
in this News Release", "Non-GAAP Measures" in Enerplus' third
quarter 2022 MD&A for supplementary financial measures, which
information is incorporated by reference to this news release. A
copy of Enerplus' 2022 interim and 2021 annual Financial Statements
and associated MD&A are or will be available on our website at
www.enerplus.com, under our profile on SEDAR at www.sedar.com and
on the EDGAR website at www.sec.gov. All amounts in this news
release are stated in United
States dollars unless otherwise specified.
CALGARY,
AB, Nov. 3, 2022 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX: ERF) (NYSE: ERF) today
announced financial and operating results for the third quarter of
2022, a 10% increase to its quarterly dividend to $0.055 per share and updated 2022 guidance. The
Company reported third quarter 2022 cash flow from operating
activities and adjusted funds flow of $409.9
million and $355.6 million,
respectively, compared to $182.2
million and $203.1 million,
respectively, in the third quarter of 2021. Cash flow from
operating activities and adjusted funds flow increased from the
same period in 2021 primarily due to higher realized commodity
prices and production.
HIGHLIGHTS
- Third quarter total production was 107,808 BOE per day (up 15%
from the prior quarter) and liquids production was 68,382 barrels
per day (up 20% from the prior quarter)
- Adjusted funds flow was $355.6
million in the third quarter, which exceeded capital
spending of $114.5 million,
generating free cash flow(1) of $241.1 million
- Total return of capital to shareholders during the third
quarter was $123.3 million,
comprising share repurchases of $111.8
million and dividends of $11.5
million
- Increased the quarterly dividend by 10% to $0.055 per share (from $0.05 per share)
- 2022 liquids production guidance was increased by 1,000 barrels
per day at the midpoint due to continued strong operational
performance; annual liquids production growth now tracking
approximately 10%
- 2022 capital spending guidance was set to $430 million (from the previous range of
$400 – $440
million)
- Fourth quarter production guidance is 105,000 to 110,000 BOE
per day, including liquids production of 64,000 to 68,000 barrels
per day.
(1) This is a non-GAAP financial
measure. Refer to "Non-GAAP and Other Financial Measures" section
for more information.
|
"Our operating momentum continued through the third quarter with
liquids production increasing 20% quarter-over-quarter and strong
volumes expected through the end of the year," said Ian C. Dundas, President and CEO. "This
performance has driven another positive production guidance update
while annual capital spending is forecast inside our previously
stated range. The result of this execution has been robust free
cash flow generation which has allowed us to reduce our net debt by
almost 40% and return over $270
million to shareholders through the first nine months of
2022. We remain well positioned to continue with these initiatives
in the fourth quarter and into 2023."
THIRD QUARTER SUMMARY
Production in the third quarter of 2022 was 107,808 BOE per day,
an increase of 15% compared to the prior quarter and 9% higher than
the same period a year ago. Crude oil and natural gas liquids
production in the third quarter of 2022 was 68,382 barrels per day,
an increase of 20% compared to the prior quarter and 8% higher than
the same period a year ago. Production increased from the previous
quarter and prior year period primarily due to the Company's
development activity in North
Dakota.
Enerplus reported third quarter 2022 net income of $305.9 million, or $1.28 per share (diluted), compared to net income
of $98.1 million, or $0.38 per share (diluted), in the same period in
2021. Adjusted net income(1) for the third quarter of
2022 was $207.9 million, or
$0.87 per share (diluted), compared
to $87.5 million, or $0.34 per share (diluted), during the same period
in 2021. Net income and adjusted net income were higher compared to
the prior year period primarily due to higher realized commodity
prices and production during the third quarter of 2022.
(1) This is a non-GAAP financial
measure. Refer to "Non-GAAP and Other Financial Measures" section
for more information.
|
Enerplus' third quarter 2022 realized Bakken crude oil price
differential was $2.41 per barrel
above WTI, compared to $2.26 per
barrel below WTI in the third quarter of 2021. Bakken crude oil
prices continued to trade at premiums relative to WTI due to excess
pipeline capacity in the region and strong physical prices for
crude oil delivered to the U.S. Gulf Coast. Given the constructive
outlook for Bakken crude oil prices and strong realizations year to
date, Enerplus expects its 2022 realized average Bakken crude oil
price differential to be $1.25 per
barrel above WTI, compared to $1.00
per barrel above WTI, previously.
The Company's realized Marcellus natural gas price differential
widened to $0.99 per Mcf below NYMEX
during the third quarter of 2022, compared to $0.45 per Mcf below NYMEX in the third quarter of
2021. The Company's realized natural gas price was $6.53 per Mcf in the third quarter of 2022, an
increase from $3.00 per Mcf in the
same period in 2021 due to the increase in NYMEX natural gas prices
in 2022. Enerplus continues to expect its full-year 2022 Marcellus
natural gas price differential to average $0.75 per Mcf below NYMEX.
In the third quarter of 2022, Enerplus' operating expenses were
$10.47 per BOE, compared to
$9.76 per BOE during the third
quarter of 2021. The Company continues to expect full-year 2022
operating expenses to average $10.00
per BOE.
Capital spending totaled $114.5
million in the third quarter of 2022. The Company ended the
third quarter of 2022 with total debt of $433.2 million and cash of $42.2 million.
During the third quarter of 2022, Enerplus announced its
intention to increase its expected 2022 return of capital to at
least 60% of free cash flow commencing in the second half of 2022
and continuing through 2023, an increase from 50% of free cash flow
in the first half of 2022. Enerplus also previously announced an
increase to the expected minimum return of capital level to
$425 million for 2022. In the third
quarter, Enerplus paid $11.5 million
in dividends and repurchased 7.9 million shares under its
normal course issuer bid ("NCIB") at an average price of
$14.13 per share, for total
consideration of $111.8 million.
During the nine months ended September 30,
2022, a total of $271.3
million was returned to shareholders through dividends and
share repurchases.
Subsequent to September 30, 2022
and up to November 2, 2022, Enerplus
repurchased 2.7 million shares under its NCIB at an average price
of $16.00 per share, for total
consideration of $43.7 million.
Enerplus has also increased its quarterly dividend by 10% to
$0.055 per share payable on
December 15, 2022.
ASSET DETAIL
North Dakota production
averaged 73,188 BOE per day during the third quarter of 2022, an
increase of 25% compared to the prior quarter and 16% compared to
the same period a year ago. Enerplus drilled eight gross operated
wells (83% working interest) during the third quarter and brought
eight operated wells (96% working interest) on production.
Marcellus production averaged 165 MMcf per day during the third
quarter of 2022, an increase of 7% compared to the same period in
2021 and 2% lower than the prior quarter.
2022 GUIDANCE UPDATE
Capital spending guidance in 2022 has been updated to
$430 million from the prior range of
$400 to $440
million.
Annual production guidance has been revised to 99,750 to 101,000
BOE per day from the prior range of 97,500 to 101,500 BOE per day,
representing an increase of 875 BOE per day at the midpoint. Annual
liquids production guidance has been revised to 61,500 to 62,500
barrels per day from the prior range of 59,500 to 62,500 barrels
per day, representing an increase of 1,000 barrels per day at the
midpoint.
Fourth quarter volumes are expected to remain strong despite the
two announced divestments of the Company's Canadian assets, one of
which closed on October 31, 2022,
with the other expected to close in December
2022. Enerplus is providing fourth quarter 2022 production
guidance of 105,000 to 110,000 BOE per day, including liquids
production of 64,000 to 68,000 barrels per day.
Enerplus' 2022 Bakken crude oil price differential guidance has
been strengthened to $1.25 per barrel
above WTI, from $1.00 per barrel
above WTI previously.
A summary of Enerplus' updated 2022 guidance is provided in the
tables below and includes the impact of the two announced Canadian
asset divestments.
2022 Guidance Summary
|
Updated
Guidance
|
Previous
Guidance
|
Capital
spending
|
$430 million
|
$400 – 440
million
|
Average total
production
|
99,750 – 101,000
BOE/day
|
97,500 – 101,500
BOE/day
|
Average liquids
production
|
61,500 – 62,500
bbls/day
|
59,500 – 62,500
bbls/day
|
Fourth quarter total
production
|
105,000 – 110,000
BOE/day
|
n/a
|
Fourth quarter liquids
production
|
64,000 – 68,000
bbls/day
|
n/a
|
Average production tax
rate (% of net sales, before
transportation)
|
7% (No
change)
|
7 %
|
Operating
expense
|
$10.00/BOE (No
change)
|
$10.00/BOE
|
Transportation
expense
|
$4.25/BOE (No
change)
|
$4.25/BOE
|
Cash G&A
expense
|
$1.20/BOE (No
change)
|
$1.20/BOE
|
Current tax
expense
|
2-3% of adjusted funds
flow before tax
(No change)
|
2-3% of adjusted funds
flow before tax
|
2022 Differential/Basis Outlook(1)
|
Updated
Guidance
|
Previous
Guidance
|
U.S. Bakken crude oil
differential (compared to WTI
crude oil)
|
$+1.25/bbl
|
$+1.00/bbl
|
Marcellus natural gas
sales price differential (compared to NYMEX natural gas)
|
$(0.75)/Mcf (No
change)
|
$(0.75)/Mcf
|
(1) Excluding transportation
costs.
|
Q3 2022 Conference Call Details
A conference call hosted by Ian C.
Dundas, President and CEO will be held at 9:00 AM MT (11:00 AM
ET) on November 4, 2022, to
discuss these results. Details of the conference call are as
follows:
Date:
|
Friday, November 4,
2022
|
Time:
|
9:00 AM MT (11:00 AM
ET)
|
Dial-In:
|
587-880-2171
(Alberta)
|
|
1-888-390-0546 (Toll
Free)
|
Conference
ID:
|
58265396
|
Audiocast:
|
https://app.webinar.net/wraEPb2PVB9
|
To ensure timely participation in the conference call, callers
are encouraged to join 15 minutes prior to the start time to
register for the event. A telephone replay will be available for 30
days following the conference call and can be accessed at the
following numbers:
Replay
Dial-In:
|
1-888-390-0541
(Toll Free)
|
Replay
Passcode:
|
265396 #
|
PRICE RISK MANAGEMENT
The following is a summary of Enerplus' financial commodity
hedging contracts at November 3,
2022.
|
|
WTI Crude Oil
($/bbl)(1)(2)(3)
|
|
NYMEX Natural Gas
($/Mcf)(2)
|
|
|
Oct 1,
2022 –
|
|
Jan 1,
2023 –
|
|
Jul 1,
2023 –
|
|
Oct 1,
2022 –
|
|
Nov 1, 2022
–
|
Apr 1, 2023
–
|
|
|
Dec 31,
2022
|
|
Jun 30,
2023
|
|
Dec 31,
2023
|
|
Oct 31,
2022
|
|
Mar
31, 2023
|
Oct
31, 2023
|
Swaps
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Mcf/day)
|
|
–
|
|
–
|
|
–
|
|
40,000
|
|
–
|
–
|
Volume
(bbls/day)
|
|
–
|
|
10,000
|
|
10,000
|
|
–
|
|
–
|
–
|
Swaps
|
|
–
|
|
–
|
|
–
|
|
$ 3.40
|
|
–
|
–
|
Brent - WTI
Spread
|
|
–
|
|
$ 5.47
|
|
$ 5.47
|
|
–
|
|
–
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Way
Collars
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(bbls/day)
|
|
17,000
|
|
15,000
|
|
5,000
|
|
–
|
|
–
|
–
|
Sold Puts
|
|
$ 40.00
|
|
$ 61.67
|
|
$ 65.00
|
|
–
|
|
–
|
–
|
Purchased
Puts
|
|
$ 50.00
|
|
$ 79.33
|
|
$ 85.00
|
|
–
|
|
–
|
–
|
Sold Calls
|
|
$ 57.91
|
|
$ 114.31
|
|
$ 128.16
|
|
–
|
|
–
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Collars
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Mcf/day)
|
|
–
|
|
–
|
|
–
|
|
60,000
|
|
120,000
|
50,000
|
Volume
(bbls/day)
|
|
–
|
|
2,000
|
|
2,000
|
|
–
|
|
–
|
–
|
Purchased
Puts
|
|
–
|
|
$ 5.00
|
|
$ 5.00
|
|
$ 3.77
|
|
$ 6.27
|
$ 4.05
|
Sold Calls
|
|
–
|
|
$ 75.00
|
|
$ 75.00
|
|
$ 4.50
|
|
$ 18.17
|
$ 7.00
|
(1)
|
The total average
deferred premium spent on our outstanding crude oil contracts is
$1.50/bbl from October 1, 2022 - December 31, 2022 and $1.25/bbl
from January 1, 2023 – December 31, 2023.
|
(2)
|
Transactions with a
common term have been aggregated and presented at weighted average
prices and volumes.
|
(3)
|
Upon closing of the
acquisition of Bruin E&P Holdco, LLC (the "Bruin Acquisition"),
Bruin E&P Holdco, LLC's outstanding crude oil contracts were
recorded at a fair value liability of $76.4 million. At September
30, 2022, the remaining liability was $4.7 million on the Condensed
Consolidated Balance Sheets. Realized and unrealized gains and
losses on the acquired contracts are recognized in Condensed
Consolidated Statement of Income/(Loss) and the Condensed
Consolidated Balance Sheets to reflect changes in crude oil prices
from the date of closing of the Bruin Acquisition.
|
THIRD QUARTER 2022 PRODUCTION AND OPERATIONAL SUMMARY
TABLES
Summary of Average Daily Production(1)
|
Three months ended
September 30, 2022
|
|
Nine months ended
September 30, 2022
|
|
Williston
Basin
|
Marcellus
|
Canadian
Water-
floods
|
Other(2)
|
Total
|
|
Williston
Basin
|
Marcellus
|
Canadian
Water-
floods
|
Other(2)
|
Total
|
Tight oil
(bbl/d)
|
52,014
|
-
|
-
|
779
|
52,793
|
|
45,376
|
-
|
-
|
817
|
46,194
|
Light & medium oil
(bbl/d)
|
-
|
-
|
2,006
|
32
|
2,038
|
|
-
|
-
|
2,069
|
28
|
2,097
|
Heavy oil
(bbl/d)
|
-
|
-
|
2,629
|
22
|
2,651
|
|
-
|
-
|
2,841
|
14
|
2,855
|
Total crude oil
(bbl/d)
|
52,014
|
-
|
4,635
|
833
|
57,482
|
|
45,376
|
-
|
4,911
|
859
|
51,146
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids
(bbl/d)
|
10,511
|
-
|
102
|
287
|
10,900
|
|
8,916
|
-
|
92
|
311
|
9,319
|
|
|
|
|
|
|
|
|
|
|
|
|
Shale gas
(Mcf/d)
|
63,976
|
164,731
|
-
|
941
|
229,649
|
|
52,904
|
164,843
|
-
|
959
|
218,706
|
Conventional natural
gas (Mcf/d)
|
-
|
-
|
1,375
|
5,534
|
6,909
|
|
-
|
-
|
1,405
|
5,734
|
7,139
|
Total natural gas
(Mcf/d)
|
63,976
|
164,731
|
1,375
|
6,475
|
236,558
|
|
52,904
|
164,843
|
1,405
|
6,693
|
225,845
|
|
|
|
|
|
|
|
|
|
|
|
|
Total production
(BOE/d)
|
73,188
|
27,455
|
4,966
|
2,199
|
107,808
|
|
63,110
|
27,474
|
5,237
|
2,285
|
98,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Table may not add due
to rounding.
|
(2)
|
Comprises DJ Basin and
other properties in Canada.
|
Summary of Wells Drilled(1)
|
Three months
ended
September 30, 2022
|
|
Nine months
ended
September 30, 2022
|
|
Operated
|
|
Non-Operated
|
|
Operated
|
|
Non-Operated
|
|
Gross
|
Net
|
|
Gross
|
Net
|
|
Gross
|
Net
|
|
Gross
|
Net
|
Williston
Basin
|
8
|
6.6
|
|
6
|
0.2
|
|
35
|
30.1
|
|
34
|
4.6
|
Marcellus
|
-
|
-
|
|
23
|
2.2
|
|
-
|
-
|
|
60
|
5.1
|
Canadian
Waterfloods
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Other(2)
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
15
|
0.4
|
Total
|
8
|
6.6
|
|
29
|
2.4
|
|
35
|
30.1
|
|
109
|
10.1
|
(1)
|
Table may not add due
to rounding.
|
(2)
|
Comprises DJ Basin and
other properties in Canada.
|
Summary of Wells Brought On-Stream(1)
|
Three months
ended
September 30, 2022
|
|
Nine months
ended
September 30, 2022
|
|
Operated
|
|
Non-Operated
|
|
Operated
|
|
Non-Operated
|
|
Gross
|
Net
|
|
Gross
|
Net
|
|
Gross
|
Net
|
|
Gross
|
Net
|
Williston
Basin
|
8
|
7.7
|
|
25
|
4.1
|
|
34
|
30.7
|
|
30
|
4.4
|
Marcellus
|
-
|
-
|
|
10
|
1.2
|
|
-
|
-
|
|
58
|
4.1
|
Canadian
Waterfloods
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Other(2)
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
Total
|
8
|
7.7
|
|
35
|
5.2
|
|
34
|
30.7
|
|
88
|
8.5
|
(1)
|
Table may not add due
to rounding.
|
(2)
|
Comprises DJ Basin and
other properties in Canada.
|
SELECTED FINANCIAL
RESULTS
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Financial (US$,
thousands, except ratios)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income/(Loss)
|
|
$
|
305,945
|
|
$
|
98,112
|
|
$
|
583,594
|
|
$
|
57,528
|
Adjusted Net
Income(1)
|
|
|
207,913
|
|
|
87,467
|
|
|
525,992
|
|
|
186,004
|
Cash Flow from
Operating Activities
|
|
|
409,946
|
|
|
182,177
|
|
|
856,798
|
|
|
321,305
|
Adjusted Funds
Flow
|
|
|
355,622
|
|
|
203,131
|
|
|
914,910
|
|
|
453,956
|
Dividends to
Shareholders – Declared
|
|
|
11,516
|
|
|
7,929
|
|
|
29,374
|
|
|
22,651
|
Net Debt
|
|
|
391,059
|
|
|
826,282
|
|
|
391,059
|
|
|
826,282
|
Capital
Spending
|
|
|
114,459
|
|
|
63,613
|
|
|
346,357
|
|
|
221,289
|
Property and Land
Acquisitions
|
|
|
16,252
|
|
|
3,079
|
|
|
19,662
|
|
|
832,404
|
Property
Divestments
|
|
|
4,214
|
|
|
(216)
|
|
|
19,386
|
|
|
3,782
|
Net Debt to Adjusted
Funds Flow Ratio
|
|
|
0.3x
|
|
|
1.6x
|
|
|
0.3x
|
|
|
1.6x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial per
Weighted Average Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) –
Basic
|
|
$
|
1.32
|
|
$
|
0.38
|
|
$
|
2.47
|
|
$
|
0.22
|
Net Income/(Loss) –
Diluted
|
|
|
1.28
|
|
|
0.38
|
|
|
2.40
|
|
|
0.22
|
Weighted Average Number
of Shares Outstanding (000's) - Basic
|
|
|
231,565
|
|
|
256,345
|
|
|
237,835
|
|
|
252,432
|
Weighted Average Number
of Shares Outstanding (000's) - Diluted
|
|
|
239,136
|
|
|
260,831
|
|
|
245,403
|
|
|
256,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial
Results per BOE(2)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil &
Natural Gas Sales(4)
|
|
$
|
66.90
|
|
$
|
46.10
|
|
$
|
67.38
|
|
$
|
40.61
|
Commodity Derivative
Instruments
|
|
|
(8.92)
|
|
|
(5.39)
|
|
|
(11.19)
|
|
|
(3.95)
|
Operating
Expenses
|
|
|
(10.47)
|
|
|
(9.76)
|
|
|
(10.10)
|
|
|
(8.78)
|
Transportation
Costs
|
|
|
(4.16)
|
|
|
(3.56)
|
|
|
(4.29)
|
|
|
(3.63)
|
Production
Taxes
|
|
|
(4.86)
|
|
|
(3.33)
|
|
|
(4.76)
|
|
|
(2.86)
|
General and
Administrative Expenses
|
|
|
(1.10)
|
|
|
(0.94)
|
|
|
(1.18)
|
|
|
(1.15)
|
Cash Share-Based
Compensation
|
|
|
(0.12)
|
|
|
(0.09)
|
|
|
(0.13)
|
|
|
(0.20)
|
Interest, Foreign
Exchange and Other Expenses
|
|
|
(0.61)
|
|
|
(0.89)
|
|
|
(0.64)
|
|
|
(1.18)
|
Current Income Tax
Recovery/(Expense)
|
|
|
(0.80)
|
|
|
0.10
|
|
|
(0.93)
|
|
|
(0.10)
|
Adjusted Funds
Flow
|
|
$
|
35.86
|
|
$
|
22.24
|
|
$
|
34.16
|
|
$
|
18.76
|
SELECTED OPERATING
RESULTS
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Average Daily
Production(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil
(bbls/day)
|
|
|
57,482
|
|
|
54,578
|
|
|
51,146
|
|
|
46,188
|
Natural Gas Liquids
(bbls/day)
|
|
|
10,900
|
|
|
8,492
|
|
|
9,319
|
|
|
7,246
|
Natural Gas
(Mcf/day)
|
|
|
236,558
|
|
|
217,253
|
|
|
225,845
|
|
|
211,299
|
Total
(BOE/day)
|
|
|
107,808
|
|
|
99,279
|
|
|
98,106
|
|
|
88,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Crude Oil and Natural
Gas Liquids
|
|
|
63 %
|
|
|
64 %
|
|
|
62 %
|
|
|
60 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling
Price(3)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil
(per bbl)
|
|
$
|
92.48
|
|
$
|
67.22
|
|
$
|
97.44
|
|
$
|
62.12
|
Natural Gas Liquids
(per bbl)
|
|
|
32.04
|
|
|
29.91
|
|
|
34.13
|
|
|
25.40
|
Natural Gas
(per Mcf)
|
|
|
6.53
|
|
|
3.00
|
|
|
5.79
|
|
|
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Wells
Drilled
|
|
|
9.0
|
|
|
9.0
|
|
|
40.2
|
|
|
14.0
|
(1)
|
This non‑GAAP measure
may not be directly comparable to similar measures presented by
other entities See "Non-GAAP and Other Financial
|
|
Measures" section in
this news release.
|
(2)
|
Non‑cash amounts have
been excluded.
|
(3)
|
Based on net
production volumes. See "Basis of Presentation" section in this
news release.
|
(4)
|
Before transportation
costs and commodity derivative instruments.
|
Condensed Consolidated Balance Sheets
(US$ thousands) unaudited
|
|
|
September 30, 2022
|
|
December 31, 2021
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
42,185
|
|
$
|
61,348
|
Accounts
receivable
|
|
|
|
313,770
|
|
|
227,988
|
Other current
assets
|
|
|
|
11,129
|
|
|
10,956
|
Derivative financial
assets
|
|
|
|
15,179
|
|
|
5,668
|
|
|
|
|
382,263
|
|
|
305,960
|
Property, plant and
equipment:
|
|
|
|
|
|
|
|
Crude oil and natural
gas properties (full cost method)
|
|
|
|
1,418,814
|
|
|
1,253,505
|
Other capital
assets
|
|
|
|
11,028
|
|
|
13,887
|
Property, plant and
equipment
|
|
|
|
1,429,842
|
|
|
1,267,392
|
Other long-term
assets
|
|
|
|
7,485
|
|
|
9,756
|
Right-of-use
assets
|
|
|
|
20,490
|
|
|
26,118
|
Derivative financial
assets
|
|
|
|
3,407
|
|
|
—
|
Deferred income tax
asset
|
|
|
|
197,420
|
|
|
380,858
|
Total Assets
|
|
|
$
|
2,040,907
|
|
$
|
1,990,084
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
|
453,684
|
|
$
|
367,008
|
Income tax
payable
|
|
|
|
1,878
|
|
|
—
|
Current portion of
long-term debt
|
|
|
|
80,600
|
|
|
100,600
|
Derivative financial
liabilities
|
|
|
|
39,454
|
|
|
143,200
|
Current portion of
lease liabilities
|
|
|
|
11,342
|
|
|
10,618
|
|
|
|
|
586,958
|
|
|
621,426
|
Long-term
debt
|
|
|
|
352,644
|
|
|
601,171
|
Asset retirement
obligation
|
|
|
|
155,168
|
|
|
132,814
|
Derivative financial
liabilities
|
|
|
|
2,181
|
|
|
7,098
|
Lease
liabilities
|
|
|
|
11,619
|
|
|
18,265
|
Deferred income tax
liability
|
|
|
|
11,112
|
|
|
—
|
|
|
|
|
532,724
|
|
|
759,348
|
Total
Liabilities
|
|
|
|
1,119,682
|
|
|
1,380,774
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
Share capital –
authorized unlimited common shares, no par value
Issued and outstanding:
September 30, 2022 – 227 million shares
December 31, 2021 – 244 million shares
|
|
|
|
2,926,217
|
|
|
3,094,061
|
Paid-in
capital
|
|
|
|
45,608
|
|
|
50,881
|
Accumulated
deficit
|
|
|
|
(1,750,237)
|
|
|
(2,238,325)
|
Accumulated other
comprehensive loss
|
|
|
|
(300,363)
|
|
|
(297,307)
|
|
|
|
|
921,225
|
|
|
609,310
|
Total Liabilities
& Shareholders' Equity
|
|
|
$
|
2,040,907
|
|
$
|
1,990,084
|
Condensed Consolidated Statements of Income/(Loss) and
Comprehensive Income/(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September 30,
|
|
September 30,
|
(US$ thousands,
except per share amounts) unaudited
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil and natural
gas sales
|
|
|
$
|
663,532
|
|
$
|
421,133
|
|
$
|
1,804,701
|
|
$
|
982,945
|
Commodity derivative
instruments gain/(loss)
|
|
|
|
56,995
|
|
|
(57,447)
|
|
|
(197,368)
|
|
|
(275,532)
|
|
|
|
|
720,527
|
|
|
363,686
|
|
|
1,607,333
|
|
|
707,413
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
103,841
|
|
|
89,102
|
|
|
270,451
|
|
|
212,423
|
Transportation
|
|
|
|
41,312
|
|
|
32,508
|
|
|
114,949
|
|
|
87,910
|
Production
taxes
|
|
|
|
48,169
|
|
|
30,364
|
|
|
127,351
|
|
|
69,132
|
General and
administrative
|
|
|
|
15,745
|
|
|
12,401
|
|
|
48,013
|
|
|
35,376
|
Depletion, depreciation
and accretion
|
|
|
|
82,225
|
|
|
81,250
|
|
|
219,006
|
|
|
194,392
|
Asset
impairment
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,420
|
Interest
|
|
|
|
6,471
|
|
|
8,232
|
|
|
18,624
|
|
|
21,642
|
Foreign exchange
(gain)/loss
|
|
|
|
16,109
|
|
|
(14,023)
|
|
|
13,764
|
|
|
(6,269)
|
Transaction costs and
other expense/(income)
|
|
|
|
(368)
|
|
|
(4,735)
|
|
|
12,020
|
|
|
(1,679)
|
|
|
|
|
313,504
|
|
|
235,099
|
|
|
824,178
|
|
|
616,347
|
Income/(Loss) before
taxes
|
|
|
|
407,023
|
|
|
128,587
|
|
|
783,155
|
|
|
91,066
|
Current income tax
expense/(recovery)
|
|
|
|
7,929
|
|
|
(926)
|
|
|
24,929
|
|
|
2,489
|
Deferred income tax
expense/(recovery)
|
|
|
|
93,149
|
|
|
31,401
|
|
|
174,632
|
|
|
31,049
|
Net
Income/(Loss)
|
|
|
$
|
305,945
|
|
$
|
98,112
|
|
$
|
583,594
|
|
$
|
57,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
Income/(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain/(loss)
on foreign currency translation
|
|
|
|
28,582
|
|
|
(5,111)
|
|
|
29,939
|
|
|
(5,830)
|
Foreign exchange
gain/(loss) on net investment hedge, net of tax
|
|
|
|
(24,276)
|
|
|
(13,728)
|
|
|
(32,995)
|
|
|
2,164
|
Total Comprehensive
Income/(Loss)
|
|
|
$
|
310,251
|
|
$
|
79,273
|
|
$
|
580,538
|
|
$
|
53,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.32
|
|
$
|
0.38
|
|
$
|
2.47
|
|
$
|
0.22
|
Diluted
|
|
|
$
|
1.28
|
|
$
|
0.38
|
|
$
|
2.40
|
|
$
|
0.22
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September 30,
|
|
September 30,
|
(US$ thousands) unaudited
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
$
|
305,945
|
|
$
|
98,112
|
|
$
|
583,594
|
|
$
|
57,528
|
Non-cash items
add/(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Depletion, depreciation
and accretion
|
|
|
82,225
|
|
|
81,250
|
|
|
219,006
|
|
|
194,392
|
Asset
impairment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,420
|
Changes in fair value
of derivative instruments
|
|
|
(145,480)
|
|
|
7,963
|
|
|
(103,423)
|
|
|
178,601
|
Deferred income tax
expense/(recovery)
|
|
|
93,149
|
|
|
31,401
|
|
|
174,632
|
|
|
31,049
|
Foreign exchange
(gain)/loss on debt and working capital
|
|
|
16,997
|
|
|
(14,234)
|
|
|
14,876
|
|
|
(7,229)
|
Share-based
compensation and general and administrative
|
|
|
3,665
|
|
|
3,277
|
|
|
13,959
|
|
|
4,060
|
Other
expense/(income)
|
|
|
(289)
|
|
|
(176)
|
|
|
12,267
|
|
|
(2,093)
|
Amortization of debt
issuance costs
|
|
|
366
|
|
|
419
|
|
|
1,070
|
|
|
728
|
Translation of U.S.
dollar cash held in parent company
|
|
|
(956)
|
|
|
(288)
|
|
|
(1,071)
|
|
|
(1,907)
|
Other income
reclassified to Investing Activities
|
|
|
—
|
|
|
(4,593)
|
|
|
—
|
|
|
(4,593)
|
Asset retirement
obligation settlements
|
|
|
(1,560)
|
|
|
(1,681)
|
|
|
(12,704)
|
|
|
(8,461)
|
Changes in non-cash
operating working capital
|
|
|
55,884
|
|
|
(19,273)
|
|
|
(45,408)
|
|
|
(124,190)
|
Cash flow from/(used
in) operating activities
|
|
|
409,946
|
|
|
182,177
|
|
|
856,798
|
|
|
321,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Drawings
from/(repayment of) bank credit facilities
|
|
|
(130,315)
|
|
|
(106,000)
|
|
|
(186,015)
|
|
|
569,000
|
Repayment of senior
notes
|
|
|
(21,000)
|
|
|
—
|
|
|
(100,600)
|
|
|
(81,600)
|
Debt issuance
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,621)
|
Proceeds from the
issuance of shares
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98,339
|
Purchase of common
shares under Normal Course Issuer Bid
|
|
|
(111,800)
|
|
|
(10,151)
|
|
|
(241,935)
|
|
|
(10,151)
|
Share-based
compensation – tax withholdings settled in cash
|
|
|
—
|
|
|
—
|
|
|
(11,567)
|
|
|
(3,551)
|
Dividends
|
|
|
(11,516)
|
|
|
(7,929)
|
|
|
(29,374)
|
|
|
(24,400)
|
Cash flow from/(used
in) financing activities
|
|
|
(274,631)
|
|
|
(124,080)
|
|
|
(569,491)
|
|
|
543,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and office
expenditures
|
|
|
(121,382)
|
|
|
(77,719)
|
|
|
(311,449)
|
|
|
(193,266)
|
Bruin
acquisition
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(420,249)
|
Dunn County
acquisition
|
|
|
—
|
|
|
(188)
|
|
|
—
|
|
|
(305,076)
|
Property and land
acquisitions
|
|
|
(16,252)
|
|
|
(3,079)
|
|
|
(19,662)
|
|
|
(7,102)
|
Property
divestments
|
|
|
4,214
|
|
|
(216)
|
|
|
6,333
|
|
|
3,782
|
Other
expense/(income)
|
|
|
—
|
|
|
4,593
|
|
|
—
|
|
|
4,593
|
Cash flow from/(used
in) investing activities
|
|
|
(133,420)
|
|
|
(76,609)
|
|
|
(324,778)
|
|
|
(917,318)
|
Effect of exchange rate
changes on cash & cash equivalents
|
|
|
14,884
|
|
|
471
|
|
|
18,308
|
|
|
5,729
|
Change in cash and cash
equivalents
|
|
|
16,779
|
|
|
(18,041)
|
|
|
(19,163)
|
|
|
(47,268)
|
Cash and cash
equivalents, beginning of period
|
|
|
25,406
|
|
|
60,718
|
|
|
61,348
|
|
|
89,945
|
Cash and cash
equivalents, end of period
|
|
$
|
42,185
|
|
$
|
42,677
|
|
$
|
42,185
|
|
$
|
42,677
|
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, returns-based
capital allocation strategy and a commitment to safe, responsible
operations. For more information, visit the Company's website at
www.enerplus.com.
Follow @EnerplusCorp on Twitter at
https://twitter.com/EnerplusCorp.
NOTICE REGARDING INFORMATION CONTAINED IN THIS NEWS
RELEASE
Currency and Accounting Principles
All amounts in this news release are stated in U.S. 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 and Other Financial
Measures".
Barrels of Oil Equivalent
This news release contains references to "BOE" (barrels of
oil equivalent), "MBOE" (one thousand barrels of oil equivalent),
and "MMBOE" (one million barrels of oil equivalent). Enerplus has
adopted the standard of six thousand cubic feet of gas to one
barrel of oil (6 Mcf: 1 bbl) when converting natural gas to
BOEs. BOE, MBOE and MMBOE 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.
Basis of Presentation
All production volumes presented in this news release are
reported on a "net" basis (the Company's working interest share
after deduction of royalty obligations, plus the Company's royalty
interests), unless expressly indicated that it is being presented
on a "gross" basis. Previously, the Company presented production
volumes on a "company interest" basis, which was calculated as its
working interest share before deduction of royalties plus the
Company's royalty interests. With these changes, production volumes
presented by the Company on a "net" basis are expected to be lower
than those presented historically.
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. All references to "natural gas" in this news release include
conventional natural gas and shale gas on a combined basis.
Readers are urged to review the 2021 annual MD&A and
financial statements filed on SEDAR and as part of our Form 40-F on
EDGAR concurrently with this news release for more complete
disclosure on our operations.
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: Enerplus' return of capital plans, including
expectations regarding the payment of dividends and the source of
funds and timing related thereto; expectations regarding Enerplus'
share repurchase program and the funding of such share repurchases
from free cash flow; the sale of Enerplus' Canadian assets and the
expected timing and impact thereof on Enerplus' operations and
financial results; updated 2022 production guidance; capital
spending guidance and expected capital spending levels in 2022 and
future years; expectations regarding free cash flow generation and
reinvestment rates reduction of net debt; 2022 average production
volumes and the anticipated production mix; the proportion of our
anticipated oil and gas production that is hedged and the expected
effectiveness of such hedges in protecting our cash flow from
operating activities and adjusted funds flow; oil and natural gas
prices and differentials and expectations regarding the market
environment and our commodity risk management program in 2022;
updated and existing 2022 Bakken and Marcellus differential
guidance; expectations regarding realized oil and natural gas
prices; and expected operating, transportation and cash G&A
expenses and tax expenses and updated 2022 guidance with respect
thereto.
The forward-looking information contained in this news
release reflects several material factors and expectations and
assumptions of Enerplus including, without limitation: the ability
to fund our return of capital plans, including both dividends and
the share repurchase program, from free cash flow as expected; that
our common share trading price will be at levels, and that there
will be no other alternatives, that, in each case, make share
repurchases an appropriate and best strategic use of our free cash
flows; that we will conduct our operations and achieve results of
operations as anticipated; that Enerplus will realize the
expected impact and proceeds of the sale of assets in Canada; the continued operation of the Dakota
Access Pipeline; 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 and anticipated commodity
prices, differentials and cost assumptions; the general continuance
of current or, where applicable, assumed industry conditions, the
impact of inflation, weather conditions, storage fundamentals and
expectations regarding the duration and overall impact of COVID-19;
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 ability to execute our share repurchase
program as currently expected and in compliance with applicable
Canadian and US rules; our ability to comply with our debt
covenants; the availability of third party services; expected
transportation expenses; the extent of our liabilities; and the
availability of technology and process to achieve environmental
targets. In addition, our 2022 guidance described in this news
release is based on rest of year commodity prices of: $85.00/bbl WTI and $6.00/Mcf NYMEX and a CDN/USD exchange rate of
0.72. 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 increased 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: failure
by Enerplus to realize anticipated proceeds or benefits of the sale
of assets in Canada; continued
instability, or further deterioration, in global economic and
market environment, including from COVID-19 or similar events,
inflation and/or the Ukraine/Russia conflict and heightened geopolitical
risks; decreases in commodity prices or volatility in commodity
prices; changes in realized prices of Enerplus' products from those
currently anticipated; changes in the demand for or supply of our
products, including global energy demand; volatility in our common
share trading price and free cash flow that could impact our
planned share repurchases and dividend levels; unanticipated
operating results, results from our capital spending activities or
production declines; legal proceedings or other events inhibiting
or preventing operation of the Dakota Access Pipeline; 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 facilities and/or 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; changes in law or government
programs or policies in Canada or
the United States; failure to
complete the recently announced sale of substantially all of
Enerplus' remaining Canadian assets; and certain other risks
detailed from time to time in our public disclosure documents
(including, without limitation, those risks identified in our 2022
Interim MD&As, our annual information form for the year ended
December 31, 2021, our 2021 annual
MD&A and Form 40-F as at December 31,
2021) which are available at www.sedar.com, www.sec.gov and
through Enerplus' website at www.enerplus.com.
The forward-looking information contained in this news
release speaks 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. Any forward-looking information contained herein
are expressly qualified by this cautionary statement.
NON-GAAP AND OTHER FINANCIAL MEASURES
Non-GAAP Financial Measures
This news release includes references to certain non-GAAP
financial measures and non-GAAP ratios used by the Company to
evaluate its financial performance, financial position or cash
flow. Non-GAAP financial measures are financial measures disclosed
by a company that (a) depict historical or expected future
financial performance, financial position or cash flow of a
company, (b) with respect to their composition, exclude amounts
that are included in, or include amounts that are excluded from,
the composition of the most directly comparable financial measure
disclosed in the primary financial statements of the company, (c)
are not disclosed in the financial statements of the company and
(d) are not a ratio, fraction, percentage or similar
representation. Non-GAAP ratios are financial measures disclosed by
a company that are in the form of a ratio, fraction, percentage or
similar representation that has a non-GAAP financial measure as one
or more of its components, and that are not disclosed in the
financial statements of the company.
These non-GAAP financial measures and non-GAAP ratios do not
have standardized meanings or definitions as prescribed by
U.S. GAAP and may not be comparable with the calculation of
similar financial measures by other entities. For each
measure, we have indicated the composition of the measure,
identified the GAAP equivalency to the extent one exists, provided
comparative detail where appropriate, indicated the reconciliation
of the measure to the mostly directly comparable GAAP financial
measure and provided details on the usefulness of the measure for
the reader. These non-GAAP financial measures and non-GAAP ratios
should not be considered as a substitute for, or superior to,
measures of financial performance prepared in accordance with
GAAP.
"Adjusted net income/(loss)" and "Adjusted net
income/(loss) per share (diluted)" are used by Enerplus and are
useful to investors and securities analysts in evaluating the
financial performance of the company by adjusting for certain
unrealized items and other items that the company considers
appropriate to adjust given their irregular nature. The most
directly comparable GAAP measure is net income/(loss). No income
tax rate adjustments or valuation allowances on deferred taxes were
recorded for the three months ended September 30, 2022 and 2021. Adjusted net income
per share is calculated using adjusted net income, as reconciled
below, divided by the number of common shares outstanding on a
diluted basis during the applicable period as determined in
accordance with U.S. GAAP. The calculation follows:
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
($ millions)
|
|
2022
|
|
2021
|
|
Net
income/(loss)
|
|
$
|
305.9
|
|
$
|
98.1
|
|
Unrealized derivative
instrument (gain)/loss
|
|
|
(145.5)
|
|
|
8.0
|
|
Asset
impairment
|
|
|
-
|
|
|
-
|
|
Other expense related
to investing activities
|
|
|
-
|
|
|
-
|
|
Unrealized foreign
exchange (gain)/loss
|
|
|
17.0
|
|
|
(14.2)
|
|
Tax effect on above
items
|
|
|
30.5
|
|
|
0.2
|
|
Other income related to
investing activities
|
|
|
-
|
|
|
(4.6)
|
|
Adjusted net
income/(loss)
|
|
$
|
207.9
|
|
$
|
87.5
|
|
Adjusted net
income/(loss) per share (diluted)
|
|
$
|
0.87
|
|
$
|
0.34
|
|
"Free cash flow" is used by Enerplus and is useful to
investors and securities analysts in analyzing operating and
financial performance, leverage and liquidity. Free cash flow is
calculated as adjusted funds flow minus capital spending. The most
directly comparable GAAP measure is cash flow from operating
activities
|
Three months ended
September 30,
|
($ millions)
|
2022
|
|
2021
|
Cash flow from/(used
in) operating activities
|
$
|
409.9
|
|
$
|
182.2
|
Asset retirement
obligation settlements
|
|
1.6
|
|
|
1.7
|
Changes in non-cash
operating working capital
|
|
(55.9)
|
|
|
19.3
|
Adjusted funds
flow
|
$
|
355.6
|
|
$
|
203.2
|
Capital
spending
|
|
(114.5)
|
|
|
(63.6)
|
Free cash
flow
|
$
|
241.1
|
|
$
|
139.6
|
Other Financial Measures
CAPITAL MANAGEMENT MEASURES
Capital management measures are financial measures disclosed by
a company that (a) are intended to enable an individual to evaluate
a company's objectives, policies and processes for managing the
company's capital, (b) are not a component of a line item disclosed
in the primary financial statements of the company, (c) are
disclosed in the notes to the financial statements of the company,
and (d) are not disclosed in the primary financial statements of
the company. The following section provides an explanation of the
composition of those capital management measures if not previously
provided:
"Adjusted funds flow" is used by Enerplus and is
useful to investors and securities analysts, in analyzing operating
and financial performance, leverage and liquidity. The most
directly comparable GAAP measure is cash flow from operating
activities. Adjusted funds flow is calculated as cash flow from
operating activities before asset retirement obligation
expenditures and changes in non‑cash operating working capital.
"Net Debt" is calculated as current and long-term
debt associated with senior notes plus any outstanding Bank Credit
Facilities balances, less cash and cash equivalents. "Net debt" is
useful to investors and securities analysts in analyzing financial
liquidity and Enerplus considers net debt to be a key measure of
capital management. For further details, see Note 8 to the Interim
Financial Statements.
"Net debt to adjusted funds flow ratio" is used by
Enerplus and is useful to investors and securities analysts in
analyzing leverage and liquidity. The net debt to adjusted funds
flow ratio is calculated as net debt divided by a trailing
twelve months of adjusted funds flow. There is no directly
comparable GAAP equivalent for this measure, and it is not
equivalent to any of our debt covenants.
SUPPLEMENTARY FINANCIAL MEASURES
Supplementary financial measures are financial measures
disclosed by a company that (a) are, or are intended to be,
disclosed on a periodic basis to depict the historical or expected
future financial performance, financial position or cash flow of a
company, (b) are not disclosed in the financial statements of the
company, (c) are not non-GAAP financial measures, and (d) are not
non-GAAP ratios. The following section provides an explanation of
the composition of those supplementary financial measures if not
previously provided:
"Capital spending" Capital and office expenditures,
excluding other capital assets/office capital and property and land
acquisitions and divestments.
"Cash general and administrative expenses" or "Cash
G&A expenses" General and administrative expenses that are
settled through cash payout, as opposed to expenses that relate to
accretion or other non-cash allocations that are recorded as part
of general and administrative expenses.
"Cash share-based compensation" or "Cash SBC
expenses" Share-based compensation that is settled by way of
cash payout, as opposed to equity settled.
"Reinvestment rate" Comparing the amount of our
capital spending as compared to adjusted funds flow (as a
percentage).
Electronic copies of Enerplus' 2022 interim reports and annual
2021 Financial Statements and associated MD&As, along with
other public information including investor presentations, are or
will be available on the Company's website at www.enerplus.com. For
further information, please contact Investor Relations at
1-800-319-6462 or email investorrelations@enerplus.com.
SOURCE Enerplus Corporation