|
5 YEAR DETAILED STATISTICAL REVIEW
The information contained in the table below reflects the reverse takeover of Enerplus by EnerMark on June 21, 2001 as
required by Canadian generally accepted accounting principles.
 |
| Financial |
| Oil and gas sales |
$ |
621,450 |
$ |
639,379 |
$ |
343,182 |
$ |
169,541 |
$ |
134,102 |
| Cash available for distribution |
$ |
246,787 |
$ |
316,454 |
$ |
168,181 |
$ |
78,189 |
$ |
70,059 |
| Per Unit |
$ |
3.32 |
$ |
5.67 |
$ |
5.49 |
$ |
3.70 |
$ |
3.70 |
| Net income |
$ |
115,876 |
$ |
180,269 |
$ |
82,150 |
$ |
25,754 |
$ |
8,881 |
| Per Unit |
$ |
1.61 |
$ |
3.28 |
$ |
3.06 |
$ |
1.25 |
$ |
0.47 |
| Total net capital expenditures |
$ |
365,042 |
$ |
874,420 |
$ |
700,714 |
$ |
17,837 |
$ |
56,516 |
| Total assets |
$ |
2,471,631 |
$ |
2,284,253 |
$ |
1,567,952 |
$ |
576,901 |
$ |
617,881 |
| Bank debt, net of working capital |
$ |
389,147 |
$ |
407,768 |
$ |
315,820 |
$ |
142,066 |
$ |
188,762 |
| Net debt/funds flow ratio |
|
1.3 x |
|
1.2 x |
|
1.8 x |
|
1.8 x |
|
3.0 x |
|
|
| Oil and Gas Economics |
| Net royalty rate |
|
21% |
|
23% |
|
23% |
|
19% |
|
14% |
| Weighted average price (net of hedging) |
$ |
27.11 |
$ |
32.43 |
$ |
30.14 |
$ |
18.32 |
$ |
13.39 |
| Net royalty expense |
|
5.75 |
|
6.73 |
|
7.10 |
|
3.47 |
|
1.87 |
| Operating expense |
|
5.86 |
|
6.09 |
|
4.83 |
|
4.02 |
|
4.04 |
|
| Operating netback |
|
15.50 |
|
19.61 |
|
18.21 |
|
10.83 |
|
7.48 |
| General and administrative expense |
|
0.70 |
|
0.66 |
|
0.63 |
|
0.62 |
|
0.56 |
| Management fee |
|
0.94 |
|
0.47 |
|
0.40 |
|
0.24 |
|
0.15 |
| Interest expense, net of interest and other income |
|
0.78 |
|
0.85 |
|
1.30 |
|
0.87 |
|
0.16 |
| Capital taxes |
|
0.23 |
|
0.24 |
|
0.26 |
|
0.17 |
|
0.20 |
| Restoration and abandonment cash costs |
|
0.20 |
|
0.13 |
|
0.13 |
|
0.12 |
|
0.10 |
| Gain on sale of investment |
|
- |
|
- |
|
- |
|
0.06 |
|
0.03 |
|
| Funds flow from operations |
$ |
12.65 |
$ |
17.26 |
$ |
15.49 |
$ |
8.75 |
$ |
6.28 |
|
COMBINED OPERATIONAL STATISTICS
The information contained in the table below reflects the combined results of Enerplus and EnerMark for the years indicated
as if the combination of the Funds had been effective January 1, 1997. This information may not be representative of the actual
results had the combination occurred on that date. No pro forma adjustments have been made to give effect to the
combination of Enerplus and EnerMark for these periods. The information in this table is different from the financial
statements and MD&A which account for the combination as a reverse takeover of Enerplus by EnerMark on June 21, 2001
as required by Canadian generally accepted accounting principles.
|
| Daily Production |
| Crude oil per day (bbls) |
23,288 |
24,010 |
18,118 |
16,938 |
17,934 |
| NGLs per day (bbls) |
4,410 |
4,650 |
3,395 |
3,153 |
3,603 |
| Natural Gas per day (Mcf ) |
210,517 |
203,727 |
149,616 |
119,303 |
128,282 |
|
| Total BOE per day |
62,784 |
62,615 |
46,449 |
39,975 |
42,917 |
|
|
| Probable Reserves |
| Crude oil (Mbbls) |
33,450 |
37,642 |
41,350 |
27,541 |
24,975 |
| NGLs (Mbbls) |
4,638 |
4,674 |
3,445 |
3,240 |
3,916 |
| Natural Gas (MMcf ) |
277,578 |
260,690 |
263,636 |
531,277 |
471,943 |
|
| Total MBOE |
84,350 |
85,764 |
88,7346 |
119,327 |
107,548 |
|
|
Established Reserves
(proven and 50% of probable) |
| Crude oil (Mbbls) |
121,972 |
113,668 |
122,114 |
85,671 |
89,566 |
| NGLs (Mbbls) |
18,354 |
18,451 |
18,696 |
13,375 |
13,375 |
| Natural Gas (MMcf ) |
1,140,702 |
1,081,478 |
1,085,942 |
779,631 |
615,172 |
|
| Total MBOE |
330,442 |
312,365 |
321,800 |
228,985 |
207,239 |
|
Established reserve life index
(years) BOE Combined ¹ |
13.8 |
14.0 |
13.7 |
13.7 |
14.2 |
|
INCOME TAX - CANADIAN RESIDENTS (CDN$/UNIT)
The following table outlines the breakdown of cash distributions per Unit paid or payable by Enerplus Resources Fund during
the period February 10, 2002 up to and including January 10, 2003 for Canadian income tax purposes.
|
| February 10 |
February 20 |
$0.2500 |
$0.1600 |
$0.0053 |
$0.0847 |
| March 10 |
March 20 |
$0.2000 |
$0.1269 |
$0.0053 |
$0.0678 |
| April 10 |
April 20 |
$0.2000 |
$0.1269 |
$0.0053 |
$0.0678 |
| May 10 |
May 20 |
$0.2800 |
$0.1798 |
$0.0053 |
$0.0949 |
| June 10 |
June 20 |
$0.2800 |
$0.1798 |
$0.0052 |
$0.0950 |
| July 10 |
July 20 |
$0.2800 |
$0.1798 |
$0.0052 |
$0.0950 |
| August 10 |
August 20 |
$0.2800 |
$0.1799 |
$0.0052 |
$0.0949 |
| September 10 |
September 20 |
$0.2800 |
$0.1799 |
$0.0052 |
$0.0949 |
| October 10 |
October 20 |
$0.3000 |
$0.1934 |
$0.0049 |
$0.1017 |
| November 10 |
November 20 |
$0.3000 |
$0.1934 |
$0.0049 |
$0.1017 |
| December 10 |
December 20 |
$0.3000 |
$0.1939 |
$0.0044 |
$0.1017 |
| December 31 |
January 20 |
$0.3000 |
$0.1939 |
$0.0044 |
$0.1017 |
|
| Total per Unit |
|
$3.2500 |
$2.0876 |
$0.0606 |
$1.1018 |
|
INCOME TAX - UNITED STATES RESIDENTS (US$/UNIT)
The following table outlines the breakdown of cash dividends paid per Unit by Enerplus Resources Fund, prior to any amounts
deducted for Canadian withholding tax, for Units held through a broker or other intermediary for the period January 20, 2002
to December 20, 2002 for U.S. income tax purposes. All amounts shown are in U.S. dollars as converted on the applicable
payment date.
|
| December 31, 2001 |
January 20 |
$0.1865 |
$0.1350 |
$0.0515 |
| February 10 |
February 20 |
$0.1571 |
$0.1137 |
$0.0434 |
| March 10 |
March 20 |
$0.1265 |
$0.0916 |
$0.0349 |
| April 10 |
April 20 |
$0.1271 |
$0.0920 |
$0.0351 |
| May 10 |
May 20 |
$0.1817 |
$0.1315 |
$0.0502 |
| June 10 |
June 20 |
$0.1825 |
$0.1321 |
$0.0504 |
| July 10 |
July 20 |
$0.1798 |
$0.1302 |
$0.0497 |
| August 10 |
August 20 |
$0.1798 |
$0.1287 |
$0.0491 |
| September 10 |
September 20 |
$0.1779 |
$0.1288 |
$0.0491 |
| October 10 |
October 20 |
$0.1910 |
$0.1383 |
$0.0527 |
| November 10 |
November 20 |
$0.1891 |
$0.1369 |
$0.0522 |
| December 10 |
December 20 |
$0.1928 |
$0.1396 |
$0.0532 |
|
| Total per Unit |
|
$2.0699 |
$1.4984 |
$0.5715 |
|
HISTORICAL ANNUAL CASH DISTRIBUTIONS
UNIT TRADING INFORMATION
ERF.un trading information on Toronto Stock Exchange as at December 31,
|
| High |
18.60 |
25.20 |
30.00 |
33.00 |
35.25 |
33.00 |
25.50 |
19.20 |
24.60 |
32.86 |
29.00 |
| Low |
13.56 |
13.50 |
22.20 |
21.60 |
28.50 |
20.40 |
12.00 |
12.60 |
15.60 |
22.00 |
22.85 |
| Close |
15.00 |
23.10 |
27.00 |
32.25 |
32.40 |
23.40 |
12.96 |
16.32 |
22.90 |
24.75 |
28.05 |
| Volume 000 |
1,680 |
5,079 |
4,245 |
9,898 |
16,160 |
12,672 |
8,230 |
7,322 |
10,214 |
29,466 |
37,492 |
|
Enerplus Resources Fund began trading on the New York Stock Exchange on November 17, 2000.
ERF trading information on the New York Stock Exchange as at December 31,
|
| High |
15.25 |
23.50 |
19.08 |
| Low |
14.69 |
13.79 |
14.30 |
| Close |
15.25 |
15.56 |
17.75 |
| Volume |
121 |
19,740 |
31,350 |
|
DISTRIBUTION REINVESTMENT UNIT PURCHASE PLAN
Enerplus Resources Fund has a convenient method for Canadian Residents to reinvest cash distributions or invest additional
funds into new Trust Units. Residents of Canada who hold at least one Trust Unit, are eligible to participate in the Plan.
If your Units are held for you by your broker, investment dealer or other financial intermediary, you must direct that company
to enrol your Units into the Plan.
To obtain more information and/or enrolment forms, please contact Enerplus’ Investor Relations Department at
1-800-319-6462, in Calgary at (403) 298-2200, by fax at (403) 298-2211 or by Email at investorrelations@enerplus.com.
STATEMENT OF CORPORATE GOVERNANCE PRACTICES
At the present time, the corporate governance structure of
Enerplus Resources Fund (the "Fund") is not the same as for
a conventional corporation. The way in which the Fund is
governed reflects its status as a trust. The Board of Directors
(the "Board") of EnerMark Inc. ("EnerMark"), a whollyowned
subsidiary of the Fund, is responsible for the overall
governance of the Fund (see diagram below). However, the
management of the Fund is provided by Enerplus Global
Energy Management Company ("the Manager") pursuant to
a Management, Advisory and Administration Agreement
between the Fund, its subsidiaries, the Manager and the CIBC
Mellon Trust Company (the trustee to the Fund).
The Board of Directors
The Board is currently comprised of eight members, five of
whom are unrelated (as defined in the Toronto Stock Exchange Guidelines for Improved Corporate Governance in Canada)
and elected by the Fund’s unitholders. The remaining three directors are nominated by the Manager pursuant to a Governance
Agreement entered into with the Fund, its subsidiaries and trustee of the Fund. At the next scheduled annual general meeting
of the unitholders of the Fund, an additional unrelated director has been nominated to expand the membership of the Board
to nine and the number of unrelated directors to six.
The Board is charged with the overall stewardship of the Fund as more particularly described in its mandate. To summarize
its mandate here, the Board has responsibility for:
- reviewing, adopting and monitoring the Fund’s strategic planning process;
- reviewing and approving the Fund’s operating budget;
- considering principal risks and reviewing and approving risk management strategies;
- approving corporate policies and other corporate protocols and controls;
- approving goals and objectives for the Fund;
- succession planning, including nominating and monitoring senior management; and
- ensuring the integrity of internal financial controls and reviewing management information systems.
The Board meets a minimum of six times per year and each scheduled board meeting is followed by a meeting of the
independent directors without the presence of management. Management is responsible to ensure the Board has timely access
to the information it needs to carry out its duties. Directors assist in preparing the agenda for Board and committee meetings,
receive a comprehensive package of information in advance of each Board and committee meeting, and attend an annual
strategic planning session each fall to review, amend or adopt new corporate objectives.
In 2002, the Board instituted a formal assessment process for itself and its members; this has now become an annual review.
The results of this assessment has helped the Board enhance its corporate governance practices. Through the Board, the Fund
has made substantial progress in strengthening its governance practices and has responded quickly and effectively to external
events which have eroded investor confidence in the North American marketplace.
The Board has approved a Code of Business Conduct and Conflict of Interest (the "Code") which sets standards of ethical
behaviour for all directors. Among other things, the Code deals with issues such as conflict of interest, compliance with laws,
outside business interests, acceptance of gifts and favours, disclosure of confidential information and securities trading and
reporting. Each director must adhere to the standards described in the Code and must review, sign and deliver to the
Chairman of the Board a copy of this Code each year. The Code of Business Conduct and Conflict of Interest can be found,
in its entirety, on our website at www.enerplus.com. In addition to the Code, the Manager and all its employees (including
senior management) also operate pursuant to a code of business conduct entitled "Ethics in Practice" ("Ethics Code"). The
Ethics Code is a code of conduct pursuant to which the shareholder of the Manager and the Manager and its employees
conduct business. Like the Code, it requires all who are subject to it to operate with integrity and in an ethical manner. To
view the Ethics Code in its entirety, it can be found on our website at www.enerplus.com.
The current corporate governance structures, policies and practices of the Board and its committees has enabled the Board to
conclude that the Fund is in full compliance with the Guidelines of Corporate Governance established by the Toronto Stock
Exchange ("TSX") and which is more particularly outlined in the Fund’s Information Circular and Proxy Statement.
The Board of Directors discharges its responsibilities either acting in its entirety, or through one of its three board committees.
Annual General and Special Meeting
Unitholders are encouraged to attend Enerplus Resources Fund Annual General and Special Meeting being held on:
Wednesday, April 23, 2003
at 10:00 AM, local time,
at The Metropolitan Centre
333 - 4th Avenue S.W.
Calgary, Alberta
Those unable to attend are asked to sign and return the Form of Proxy contained with this annual report.
For more information, visit our website: www.enerplus.com
|
