Nov 9, 2012
CALGARY, Nov. 9, 2012 /CNW/ - Enerplus Corporation ("Enerplus") (TSX: ERF) (NYSE: ERF) is pleased to announce our operating and financial results for the third quarter of 2012.
SELECTED FINANCIAL RESULTS
Three months ended September 30, | Nine months ended September 30, | ||||
2012 | 2011 | 2012 | 2011 | ||
Financial (000's) | |||||
Funds Flow | $134,980 | $ 123,262 | $444,233 | $ 416,927 | |
Cash and Stock Dividends | 53,394 | 97,416 | 247,988 | 291,179 | |
Net Income | (63,466) | 111,321 | 2,977 | 408,852 | |
Debt Outstanding - net of cash | 1,118,569 | 734,300 | 1,118,569 | 734,300 | |
Capital Spending | 166,988 | 201,266 | 692,641 | 520,875 | |
Property and Land Acquisitions | 7,277 | 67,313 | 63,946 | 209,946 | |
Divestments | 3,112 | 7,320 | 55,636 | 638,108 | |
Debt to Trailing 12 Month Funds Flow | 1.9x | 1.3x | 1.9x | 1.3x | |
Financial per Weighted Average Shares Outstanding | |||||
Funds Flow | $0.68 | $0.68 | $2.28 | $2.32 | |
Net Income | (0.32) | 0.62 | 0.02 | 2.28 | |
Weighted Average Number of Shares Outstanding | 197,618 | 180,266 | 194,753 | 179,566 | |
Selected Financial Results per BOE(1) | |||||
Oil & Gas Sales(2) | $43.30 | $ 46.44 | $44.10 | $48.34 | |
Royalties | (8.61) | (8.33) | (8.74) | (8.67) | |
Commodity Derivative Instruments | 1.06 | (0.66) | 0.11 | (1.09) | |
Operating Costs | (12.32) | (10.90) | (11.00) | (9.87) | |
G&A and Equity Based Compensation | (3.17) | (2.45) | (2.94) | (2.96) | |
Interest and Other Expenses | (2.56) | (1.01) | (1.40) | (1.55) | |
Taxes | 0.29 | (4.80) | (0.10) | (3.75) | |
Funds Flow | $17.99 | $ 18.29 | $20.03 | $ 20.45 | |
SELECTED OPERATING RESULTS | |||||
Three months ended September 30, | Nine months ended September 30, | ||||
2012 | 2011 | 2012 | 2011 | ||
Average Daily Production | |||||
Crude oil (bbls/day) | 36,810 | 29,337 | 35,807 | 29,665 | |
NGLs (bbls/day) | 3,538 | 3,295 | 3,644 | 3,323 | |
Natural gas (Mcf/day) | 247,347 | 243,675 | 249,046 | 250,244 | |
Total (BOE/day) | 81,573 | 73,245 | 80,959 | 74,695 | |
% Crude Oil & Natural Gas Liquids | 49% | 45% | 49% | 44% | |
Average Selling Price(2) | |||||
Crude oil (per bbl) | $ 76.41 | $ 77.57 | $ 78.72 | $ 82.01 | |
NGLs (per bbl) | 47.81 | 64.98 | 54.88 | 63.89 | |
Natural gas (per Mcf) | 2.20 | 3.73 | 2.18 | 3.83 | |
USD/CDN exchange rate | 1.00 | 1.02 | 1.00 | 1.02 | |
Net Wells drilled | 17 | 35 | 70 | 75 |
(1) | Non-cash amounts have been excluded. |
(2) | Net of oil and gas transportation costs, but before the effects of commodity derivative instruments. |
Share Trading Summary | CDN* - ERF | U.S.** - ERF |
For the three months ended September 30, 2012 | (CDN$) | (US$) |
High | $16.94 | $17.48 |
Low | $12.41 | $12.13 |
Close | $16.30 | $16.61 |
* TSX and other Canadian trading data combined.
**NYSE and other U.S. trading data combined.
2012 Dividends Per Share | ||||
Payment Month | CDN$ | US$(1) | ||
First Quarter Total | $0.54 | $0.54 | ||
Second Quarter Total | $0.54 | $0.53 | ||
July | $0.09 | $0.09 | ||
August | 0.09 | 0.09 | ||
September | 0.09 | 0.09 | ||
Third Quarter Total | $0.27 | $0.27 | ||
Total Year-to-Date | $1.35 | $1.34 |
(1) | US$ dividends represent CDN$ dividends converted at the relevant foreign exchange rate on the payment date. |
Production and Capital Spending
Three months ended September 30, 2012 |
Nine months ended September 30, 2012 |
|||
Play Type |
Average Production Volumes |
Capital Spending ($ millions) |
Average Production Volumes |
Capital Spending ($ millions) |
Tight Oil (BOE/day) | 19,322 | $90 | 17,760 | $391 |
Crude Oil Waterflood (BOE/day) | 16,769 | 25 | 16,530 | 95 |
Conventional Oil (BOE/day) | 4,470 | 13 | 4,736 | 27 |
Total Crude Oil (BOE/day) | 40,561 | $128 | 39,026 | $513 |
Marcellus Shale Gas (Mcf/day) | 40,188 | $30 | 35,081 | $120 |
Other Natural Gas (Mcfe/day) | 205,881 | 9 | 216,519 | 60 |
Total Gas (Mcfe/day) | 246,069 | $39 | 251,600 | $180 |
Company Total (BOE/day) | 81,573 | $167 | 80,959 | $693 |
Net Drilling Activity for the Three Months Ended September 30, 2012
Play Type |
Horizontal Wells Drilled |
Vertical Wells Drilled |
Total Wells Drilled |
Wells Pending Completion/ Tie-in* |
Wells On-stream** |
Dry & Abandoned Wells |
|
Tight Oil | 7.9 | - | 7.9 | 3.6 | 8.9 | - | |
Crude Oil Waterflood | 3.8 | - | 3.8 | 1.7 | 5.9 | 0.1 | |
Conventional Oil | 2.5 | - | 2.5 | 0.9 | 1.7 | - | |
Total Crude Oil | 14.2 | - | 14.2 | 6.2 | 16.5 | 0.1 | |
Marcellus Shale Gas | 2.3 | - | 2.3 | 2.3 | 1.7 | - | |
Other Natural Gas | 0.1 | - | 0.1 | 0.1 | - | - | |
Total Gas | 2.4 | - | 2.4 | 2.4 | 1.7 | - | |
Company Total | 16.6 | - | 16.6 | 8.6 | 18.2 | 0.1 |
*Wells drilled during the quarter that were pending potential
completion/tie-in or abandonment.
**Total wells brought on-stream during the quarter regardless of when
they were drilled.
Update on 2012 Guidance
The slower pace of activity in the Marcellus and the corresponding delay in bringing the associated natural gas production on stream is expected to impact both our annual and exit production rates. As a result, we are revising our annual average production guidance from 83,500 BOE/day to 82,000 BOE/day and now expect our exit production could range between 85,000 BOE/day to 88,000 BOE/day. The sale of our Manitoba assets is not expected to have a material impact on our 2012 exit production forecast as the sale is expected to close late in December. Average production for October was approximately 84,000 BOE/day. Operating costs are now expected to average $10.70/BOE versus our original expectation of $10.40/BOE due to our revised production forecast. We are maintaining our capital spending guidance of $850 million with the majority of this spending focused on our crude oil properties.
Outlook
Looking forward to 2013, our focus will be on improving the profitability of our business while maintaining our financial strength. We expect to reduce our capital spending program by approximately 20% next year from 2012 levels. As a result, we would expect to see an improvement in our adjusted payout ratio while maintaining an attractive dividend.
Our growth expectations will be reduced for next year due to the lower capital program and the sale of our Manitoba assets (1,600 bbls/day) which we expect to close at the end of 2012. Should profitability improve (for example through commodity price increases or improved operating efficiencies) we would have the ability to increase our capital program and production to capture additional value for our shareholders.
Conference Call Details
Further details on our operations will be provided during our conference call which is scheduled for 9:00 am MT (11:00 AM ET) today. Details of the conference call are as follows:
Date: | Friday, November 9, 2012 |
Time: | 9:00 AM MT/11:00 AM ET |
Dial-In: | 1-647-427-7450 |
1-888-231-8191 (toll free) | |
Conference Call ID: 50540263 | |
Audiocast: http://www.newswire.ca/en/webcast/detail/1054731/1146491
To ensure timely participation in the conference call, callers are encouraged to dial in 15 minutes prior to the start time to register for the event. A podcast of the conference call will also be available on our website for downloading following the event. A telephone replay will be available for 30 days following the conference call and can be accessed at the following numbers:
Dial-In: | 1-416-849-0833 |
1-855-859-2056 (toll free) | |
Passcode: | 50540263 |
Gordon J. Kerr
President & Chief Executive Officer
Enerplus Corporation
Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans" and similar expressions, are forward-looking information that represents management of Enerplus' internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Enerplus. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Enerplus' actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Enerplus' filings with the Canadian and U.S. securities authorities. Accordingly, holders of Enerplus shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted.
SOURCE: Enerplus Corporation
Enerplus’ core values include a commitment to develop its resources responsibly and profitably, while making a positive contribution to society