Frequently Asked Questions
We have set out some questions and answers below to explain the main points of the Enerplus Dividend Reinvestment Plan. Shareholders should carefully read the Offering Circular which accompanies this document before making any decisions regarding the Plan.
1. What is the Dividend Reinvestment Plan?
The Dividend Reinvestment Plan (the "Plan") provides residents of Canada who hold at least one share of Enerplus Corporation ("Enerplus") with a convenient method to reinvest the cash dividends received on shares of Enerplus into new shares of Enerplus. All shares issued under the Plan are issued from the treasury of Enerplus.
2. What are the main features of the Plan?
- Under the Plan, new shares are purchased monthly with reinvested dividends at a discount of 5% below the Average Market Price of the Shares (as defined in the answer to Question 9) in respect of the applicable dividend payment date.
- There are generally no service charges in connection with the new shares acquired under the Plan and, because shares are purchased directly from Enerplus, there are no brokerage fees. However, beneficial shareholders should contact their broker, investment dealer, bank, trust company or other nominee holder (each a "Nominee") through which their shares are held to confirm what fees (if any) such Nominee may charge to enroll or participate in the Plan on their behalf.
- Full investment of participants' dividends is possible because fractions of shares (to three decimal places), as well as whole shares, may be purchased and held for participants. In addition, dividends on fractional and whole shares held under the Plan will be reinvested in new shares.
- Registered Participants will receive regular statements to assist their record keeping. Beneficial Shareholders will receive such information from their Nominee holder. All administrative costs of the Plan are borne by Enerplus.
3. Who is eligible to participate in the Plan?
Any Canadian resident holder of at least one share of Enerplus may join the Plan at any time. Unless authorized or otherwise announced by Enerplus, shareholders who are not residents in Canada are not eligible to participate in the Plan.
4. How do I become a participant in the Plan?
If you are an eligible registered shareholder, you may enrol in the Plan at any time by duly completing an Enrolment Form and returning it to the Plan Agent no later than four (4) business days prior to the relevant dividend record date. If the Plan Agent receives an Enrolment Form after such date, the cash dividend in respect of that dividend record date will be paid to you by Enerplus in the usual manner on the corresponding dividend payment date, and your participation in the Plan will commence on the next dividend payment date. Enerplus' dividend record dates are normally on or about the 10th day of each month, and Enerplus' dividend payment dates are normally on or about the 20th day of each month. If you are an eligible beneficial shareholder whose shares are not registered in your own name but are held through a Nominee, you may participate in the Plan by either: (i) having your shares transferred into and registered in your own name, or (ii) by instructing your Nominee to participate in the Plan on your behalf while maintaining the shares in the Nominee's account. Once you have enrolled in the Plan, your participation continues automatically unless terminated in accordance with the terms of the Plan.
5. When does my participation in the Plan start?
You will become a Participant in the Plan as of the first dividend payment date following the receipt by the Plan Agent of a duly completed Enrolment Form, either directly from you if you are a registered shareholder, or if you are a non-registered beneficial shareholder, on your behalf through the Nominee through which you hold your shares. An Enrolment Form must be received by the Plan Agent at least four (4) business days prior to a dividend record date in order to have your dividends reinvested in shares on the corresponding dividend payment date. Enerplus' dividend record dates are normally on or about the 10th day of each month, and Enerplus' dividend payment dates are normally on or about the 20th day of each month.
6. How will the Plan purchase new shares of Enerplus for me?
On each monthly dividend payment date, cash dividends payable on your shares that are enrolled in the Plan will be applied automatically to the purchase of shares from Enerplus' treasury at the applicable subscription price for new shares. The Plan Agent will hold such new shares for you either in its name or the name of its nominee.
7. What will be the price of new shares purchased under the Plan?
The price of new shares purchased with reinvested dividends on eligible shares pursuant to the Plan will be 95% of the Average Market Price of the shares in respect of the applicable dividend payment date. For the purposes of the Plan, "Average Market Price" means the weighted average trading price of the shares on the Toronto Stock Exchange for the 10 trading days immediately preceding a dividend payment date on which at least a board lot of such shares was traded.
8. Will certificates be issued for new shares purchased?
Normally, a Direct Registration System ("DRS") advice or certificate for new shares purchased under the Plan will not be issued. The number of shares held for you under the Plan will be shown on your statement of account or other statement received from your Nominee holder. This protects you against loss, theft or destruction of share certificates. If you are a registered shareholder, you may duly complete the withdrawal portion of the voucher located on the reverse of the statement of account provided each month to you and send it to the Plan Agent in order to have a DRS advice or share certificate issued in your name for any number of whole shares held for your account under the Plan, even though you are not terminating your participation in the Plan. If you are a beneficial shareholder who holds your shares through a Nominee, you must contact the Nominee through which your shares are held in order to have a DRS advice or share certificate issued in your name. Normally a DRS advice or certificate will be sent to you within three weeks of receipt by the Plan Agent of your written request.
9. How do I terminate participation in the Plan?
If you are a registered shareholder, you may terminate your participation in the Plan at any time by duly completing the termination portion of the voucher on the reverse of the statement of account provided each month to you and sending it to the Plan Agent. If you are a non-registered beneficial shareholder, you must contact the Nominee through which your shares are held in order to terminate your participation in the Plan. If the Plan Agent does not receive the termination request form at least four (4) business days prior to a dividend record date, your termination will not be effective until after the next dividend payment has been completed.
When you terminate your participation in the Plan, or upon termination of the Plan by Enerplus, if you are a registered shareholder you will receive a DRS advice or certificate for the whole shares held for your account and a cash payment for any fraction of a share held. Any fractional share interest will be paid in cash, calculated using the Average Market Price of the shares applicable to the dividend payment date immediately preceding the effective date of termination. Normally a DRS advice or certificate will be sent to you within three weeks of receipt by the Plan Agent of your written request for such termination.
10. What statements will I receive under the Plan?
With each monthly dividend, an unaudited statement of account will be mailed to you if you are a registered shareholder. These statements are your continuing record of purchases and should be retained for income tax purposes. In addition, if you are a registered shareholder, you will be sent annually the appropriate information for tax reporting purposes. If you are a beneficial owner of shares who is enrolled in the Plan through a Nominee, you may or may not be provided with such reports or forms from your Nominee.
11. What are the income tax consequences of participation in the Plan?
It should be understood that the fact that dividends are reinvested in shares under the terms of the Plan does not relieve Participants of any liability for taxes that may be payable on such amounts. To the extent that a dividend from Enerplus would be included in the income of a shareholder for the purposes of the Income Tax Act (Canada), such amount will be included in the income of shareholders who elect to reinvest such amount. The amount reinvested by shareholders (plus any cash consideration) will be added to the adjusted cost base of their shares for the purpose of computing any subsequent gain or loss thereon.
Shareholders are responsible for calculating and monitoring their own adjusted cost base in Enerplus shares for income tax purposes, as certain averaging rules may apply and such calculations may depend on the cost of other shares held by such shareholder. Beneficial owners of shares who are enrolled in the Plan through a Nominee may or may not be provided with such reports or forms from their Nominee.
You are urged to consult your tax advisor as to your particular tax position.
12. Where can I obtain the required forms and who can I contact with any questions?
Our Enrolment Form can be found here (PDF)
Questions regarding the Plan, should be addressed to:
Computershare Investor Services Inc.
100 University Avenue, 9th Floor
Toronto, Ontario M5J 2Y1
Attention: Dividend Reinvestment Department
Telephone: 1-866-921-0978
or
Enerplus Corporation
The Dome Tower
Suite 3000
333 - 7th Avenue S.W.
Calgary, Alberta T2P 2Z1
Attention: Investor Relations
Telephone: (403) 298-2200 or 1-800-319-6462
Facsimile: (403) 298-2211
E-mail: investorrelations@enerplus.com
About EnerplusEnerplus is an independent North American energy company with a diversified asset base of oil and gas properties across a variety of resource plays. We are focused on creating value for our investors by providing organic growth in production and reserves complemented by a monthly dividend. more
