All financial information contained within this news release
has been prepared in accordance with U.S. GAAP, except as noted
under "Non-GAAP Measures". 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. A full copy of Enerplus' First Quarter 2018
Financial Statements and MD&A are available on the Company's
website at www.enerplus.com, under its SEDAR profile
at www.sedar.com and on the EDGAR website at
www.sec.gov.
CALGARY, May 3, 2018 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX & NYSE: ERF) is pleased to
announce first quarter 2018 operating and financial results. The
Company reported first quarter 2018 net income of $29.6 million or $0.12 per share.
HIGHLIGHTS
- 2018 adjusted funds flow expected to exceed capital
expenditures and dividends by approximately $100 million based on current forward strip
pricing
- Strong growth underway with second quarter liquids production
expected to average between 48,000 to 50,000 barrels per day
- Well positioned relative to 2018 production guidance including
over 30% production growth in North
Dakota year-over-year
- First quarter 2018 adjusted funds flow of $155.2 million
- Ended the first quarter of 2018 with a net debt to adjusted
funds flow ratio of 0.5 times
"Our plans are well on track to continue to drive
competitive, profitable growth while generating robust returns on
capital," stated Ian C. Dundas,
President and Chief Executive Officer. "With our continued margin
expansion resulting from improved pricing realizations and
reductions to our cost structure over the last year, we expect to
generate meaningful free cash flow in 2018 under current strip
prices. Additionally, we expect to deliver over 30%
production growth from our high-returning North Dakota asset. Despite the improving
crude oil price outlook, we remain committed to our disciplined
approach to capital allocation focused on generating full-cycle
returns and creating long-term value for our shareholders."
FIRST QUARTER FINANCIAL AND OPERATIONAL SUMMARY
Production
Production in the first quarter of 2018
averaged 85,080 BOE per day, including 41,528 barrels per day of
crude oil (90%) and natural gas liquids (10%). As forecast, liquids
production was lower compared to the prior quarter primarily due to
downtime related to completions activity on adjacent properties and
on-stream activity in North Dakota
weighted to the back half of the first quarter.
Natural gas production for the first quarter averaged 261 MMcf
per day, a 4% increase from the prior quarter primarily due to
higher Marcellus production supported by stronger natural gas
pricing.
The Company remains well positioned relative to its 2018
production guidance with strong growth underway in the second
quarter. Four wells from a high-working interest six-well pad in
North Dakota began flowing back at
strong initial rates in late April, with the two remaining wells
expected on-stream in early May. Based on field estimates, current
liquids production is averaging approximately 49,000 barrels per
day. Enerplus is expecting second quarter liquids production to
average 48,000 to 50,000 barrels per day.
Net Income, Adjusted Funds Flow and Netback
Enerplus
generated net income of $29.6 million
in the first quarter of 2018, an increase from $15.3 million in the previous quarter as a result
of lower non-cash income tax expense in the first quarter.
Adjusted funds flow was $155.2
million during the first quarter, compared to $199.6 million in the previous quarter which
included $50.1 million related to the
U.S. Alternative Minimum Tax refund. Adjusted funds flow remained
strong in the first quarter supported by higher benchmark oil and
natural gas prices and a hedging gain related to the unwinding of a
portion of the Company's AECO - NYMEX basis contracts.
Enerplus' netback, before commodity hedging, was $21.97 per BOE in the first quarter of 2018. This
represents a 2% increase from the prior quarter and a 22% increase
from the same period in 2017.
Pricing Realizations and Cost Structure
Enerplus'
realized Bakken crude oil price differential averaged US$3.27 per barrel below WTI in the first
quarter, weaker than the previous quarter's differential of
US$1.61 per barrel largely driven by
the 13% increase in average benchmark WTI oil prices
quarter-over-quarter. As a result of the recent strength in WTI oil
prices and with the current 2018 forward strip at approximately
US$65 per barrel, Enerplus is
increasing its estimated 2018 average Bakken crude oil price
differential to US$3.50 per barrel
below WTI, from US$2.50 per barrel
below WTI previously.
Enerplus' realized Marcellus natural gas price differential
strengthened considerably to US$0.21
per Mcf below NYMEX in the first quarter, an improvement of
US$0.60 per Mcf from the prior
quarter. This pricing improvement was due to the continued
build-out of regional pipeline takeaway capacity as well as the
effect of a colder than normal winter, which resulted in price
spikes in key consumption regions in the U.S. Enerplus
expects its Marcellus differential to increase during the remainder
of 2018 as a portion of its sales portfolio is linked to
New York markets that are
typically weaker during the summer months. Enerplus continues to
project an average 2018 differential of US$0.40 per Mcf below NYMEX.
First quarter operating, transportation, and cash general and
administrative ("G&A") expenses were all largely in-line with
the Company's annual 2018 guidance. First quarter operating
expenses averaged $7.02 per BOE,
transportation costs averaged $3.52
per BOE, and cash G&A expenses averaged $1.72 per BOE. Enerplus' 2018 guidance for
these items remains unchanged.
Capital Expenditures and Balance Sheet
Position
Exploration and development capital spending in the
first quarter was $151.5 million
associated with drilling 13.9 net wells and completing and bringing
on production 8.9 net wells across the Company. Enerplus' 2018
capital spending guidance of $535
million to $585 million is
unchanged.
Enerplus remains in a strong financial position. Total debt net
of cash at March 31, 2018 was
$292 million. Total debt was
comprised of $688.4 million of senior
notes outstanding. The Company was undrawn on its $800 million bank credit facility, and had a cash
balance of $396.4 million. At
March 31, 2018, Enerplus' net debt to
adjusted funds flow ratio was 0.5 times.
AVERAGE DAILY PRODUCTION(1)
|
Three months ended
March 31, 2018
|
|
Crude Oil
(Mbbl/d)
|
Natural
Gas Liquids
(Mbbl/d)
|
Natural
gas
(MMcf/d)
|
Total
Production
(Mboe/d)
|
Williston
Basin
|
27.7
|
2.8
|
19.8
|
33.8
|
Marcellus
|
0.0
|
0.0
|
208.4
|
34.7
|
Canadian
Waterfloods
|
9.4
|
0.1
|
5.0
|
10.3
|
Other(2)
|
0.4
|
1.1
|
28.2
|
6.2
|
Total
|
37.4
|
4.1
|
261.3
|
85.1
|
(1)
|
Table may not add due
to rounding.
|
(2)
|
Includes
approximately 600 boe/d of production from Canadian natural gas
properties sold in Q1 2018
|
SUMMARY OF WELLS BROUGHT ON-STREAM(1)
|
Three months ended
March 31, 2018
|
|
Operated
|
|
Non-Operated
|
|
Gross
|
Net
|
|
Gross
|
Net
|
Williston
Basin
|
8
|
5.2
|
|
0
|
0.0
|
Marcellus
|
0
|
0.0
|
|
11
|
1.5
|
Canadian
Waterfloods
|
2
|
1.9
|
|
0
|
0.0
|
Other
|
0
|
0.0
|
|
1
|
0.3
|
Total
|
10
|
7.1
|
|
12
|
1.8
|
(1) Table may not add due to
rounding.
|
ASSET ACTIVITY
Williston
Basin
Williston Basin
production averaged 33,836 BOE per day (82% oil) during the first
quarter of 2018, down 14% from the fourth quarter of 2017. This
decrease was expected due to downtime related to offset completions
and on-stream activity in North
Dakota weighted to the back half of the first quarter. First
quarter Williston Basin production
was comprised of 30,372 BOE per day in North Dakota and 3,464 BOE per day in
Montana.
Enerplus brought on-stream eight gross operated wells (65%
average working interest) across its acreage at Fort Berthold
during the first quarter. The average completed lateral length was
9,000 feet per well and average peak 30-day production rates per
well were 1,360 BOE per day (77% oil, on a three-stream basis).
The Company drilled nine gross operated wells (96% average
working interest) in the first quarter.
In late April, the Company completed and brought on production
four of six planned wells from its Cats pad (91% average working
interest). The wells are currently flowing back at strong rates
which are tracking the high end of the Company's expectations. The
remaining two wells are expected to be on-stream in early May.
The Company continues to run two operated drilling rigs and one
dedicated completions crew at its Fort Berthold operations.
Marcellus
Marcellus production averaged 208 MMcf per
day during the first quarter, an increase from the previous quarter
of 8% primarily due to stronger production driven by improved
natural gas pricing.
Eleven gross non-operated wells (14% average working interest)
were brought on-stream during the quarter. Nine wells had more than
30 days on production as of the date of this news release with an
average completed lateral length of 6,340 feet per well and average
peak 30-day production rates per well of 14 MMcf per day.
The Company participated in drilling 13 gross non-operated wells
(20% average working interest) during the first quarter.
Canadian Waterfloods
Canadian waterflood production
averaged 10,336 BOE per day (91% oil) during the first quarter,
relatively flat to the previous quarter. Enerplus drilled and
brought on-stream two wells in southeast Saskatchewan with average peak 30-day
production rates per well of 235 barrels of oil per day, exceeding
the Company's expectations. At Ante Creek, the construction of two
injection pipelines was completed along with two
producer-to-injector well conversions. The increased water
injection at Ante Creek has helped stabilize decline with oil
production remaining relatively flat compared to the fourth
quarter. Ante Creek oil volumes are expected to gradually increase
during the second half of 2018.
DJ Basin
Enerplus' first DJ Basin well (Maple
8-67-36-5C) has produced over 85,000 BOE (79% oil) in just over
seven months on production. In April, the well averaged
approximately 400 BOE per day (73% oil). The Company is continuing
delineation activity to test the extent of commerciality across its
acreage position with four gross (3.5 net) wells in 2018 testing
both the Codell and Niobrara intervals.
2018 GUIDANCE
Enerplus' 2018 guidance is summarized below. The Company has
included second quarter 2018 liquids production guidance and
revised its estimated 2018 Bakken crude oil price differential to
US$3.50 per barrel below WTI from
US$2.50 per barrel below WTI
previously. All other guidance targets are unchanged.
|
|
|
Guidance
|
Capital
spending
|
$535 - $585
million
|
Q2 2018 crude oil and
natural gas liquids production
|
48,000 to 50,000
bbls/day
|
Average annual
production
|
86,000 to 91,000
BOE/day
|
Average annual crude
oil and natural gas liquids production
|
46,000 to 50,000
bbls/day
|
Average royalty and
production tax rate
|
25%
|
Operating
expense
|
$7.00/BOE
|
Transportation
expense
|
$3.60/BOE
|
Cash G&A
expense
|
$1.65/BOE
|
|
|
2018 Full-Year
Differential/Basis Outlook (1)
|
|
U.S. Bakken crude oil
differential (compared to WTI crude oil):
|
US$(3.50)/bbl (from
US$(2.50)/bbl)
|
Marcellus natural gas
sales price differential (compared to NYMEX natural
gas):
|
US$(0.40)/Mcf
|
(1) Excluding transportation
costs.
|
RISK MANAGEMENT
Enerplus continues to manage price risk through commodity
hedging. Using swaps and collar structures, Enerplus has an average
of 21,500 barrels per day of crude oil protected for the remainder
of 2018 (approximately 67% of forecast crude oil production at the
midpoint of guidance, net of royalties), 21,300 barrels per day
protected in 2019, and 6,000 barrels per day of crude oil protected
in 2020.
For natural gas, Enerplus has 37,800 Mcf per day protected for
the remainder of 2018 (approximately 21% of forecast natural gas
production at the midpoint of guidance, net of royalties) using
collar structures.
Commodity Hedging Detail (As at May 2, 2018)
|
|
|
|
WTI Crude
Oil (US$/bbl)
(1)
|
Nymex Natural
Gas
(US$/Mcf) (1)
|
|
Apr 1,
–
Apr 30,
2018
|
May 1 –
Jun 30,
2018
|
Jul 1 –
Sep 30,
2018
|
Oct 1 –
Dec 31,
2018
|
Jan 1, –
Mar 31,
2019
|
Apr 1, –
Dec 31,
2019
|
Jan 1, –
Dec 31,
2020
|
Apr 1,
–
Oct
31,
2018
|
Nov 1,
–
Dec
31,
2018
|
|
|
|
|
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
|
|
|
|
Sold Swaps
|
$55.38
|
$57.20
|
$53.73
|
$53.73
|
$53.73
|
-
|
-
|
-
|
-
|
Volume (bbls/d or
Mcf/d)
|
5,000
|
6,000
|
3,000
|
3,000
|
3,000
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
Three-Way
Collars
|
|
|
|
|
|
|
|
|
|
Sold Puts
|
$42.92
|
$42.92
|
$42.71
|
$42.74
|
$44.05
|
$44.26
|
$46.67
|
-
|
-
|
Volume (bbls/d or
Mcf/d)
|
15,000
|
15,000
|
18,000
|
20,000
|
16,000
|
22,000
|
6,000
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
Purchased
Puts
|
$52.90
|
$52.90
|
$52.53
|
$52.48
|
$53.69
|
$54.17
|
$56.00
|
$2.75
|
$2.75
|
Volume (bbls/d or
Mcf/d)
|
15,000
|
15,000
|
18,000
|
20,000
|
16,000
|
22,000
|
6,000
|
40,000
|
30,000
|
|
|
|
|
|
|
|
|
|
|
Sold Calls
|
$61.73
|
$61.73
|
$61.22
|
$61.10
|
$63.44
|
$64.83
|
$70.33
|
$3.38
|
$3.47
|
Volume (bbls/d or
Mcf/d)
|
15,000
|
15,000
|
18,000
|
20,000
|
16,000
|
22,000
|
6,000
|
40,000
|
30,000
|
(1) Based
on weighted average price (before premiums)
|
BOARD OF DIRECTOR RETIREMENT
As previously announced, Mr. David
Barr will be retiring from the Board at the Annual Meeting
being held later today. Mr. Barr has been a valued member of the
Board of Directors since his appointment in 2011. Enerplus would
like to acknowledge and thank him for his contribution and
dedicated service.
Q1 2018 CONFERENCE CALL DETAILS
A conference call hosted by Ian C.
Dundas, President and CEO will be held at 7:30 AM MT (9:30 AM
ET) today to discuss these results. Details of the
conference call are as follows:
Date:
|
Thursday, May 3,
2018
|
Time:
|
7:30 AM MT (9:30 AM
ET)
|
Dial-In:
|
647-427-7450
|
|
1-888-231-8191 (toll
free)
|
Audiocast:
|
https://event.on24.com/wcc/r/1651698/8A98B2F74E8F567D4C28F7EFF7E44424
|
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 telephone replay will be available for 30
days following the conference call and can be accessed at the
following numbers:
Dial-In:
|
416-849-0833
|
|
1-855-859-2056 (toll
free)
|
Passcode:
|
8267908
|
SELECTED FINANCIAL AND OPERATING RESULTS
|
|
|
|
|
|
|
Three months
ended
March 31,
|
|
2018
|
|
2017
|
Financial
(000's)
|
|
|
|
|
|
Net
Income/(Loss)
|
$
|
29,637
|
|
$
|
76,293
|
Adjusted Funds
Flow(4)
|
|
155,162
|
|
|
119,920
|
Dividends to
Shareholders - Declared
|
|
7,320
|
|
|
7,242
|
Debt Outstanding –
net of Cash and Restricted Cash
|
|
291,978
|
|
|
350,401
|
Capital
Spending
|
|
151,472
|
|
|
120,351
|
Property and Land
Acquisitions
|
|
12,272
|
|
|
2,536
|
Property
Divestments
|
|
6,970
|
|
|
(899)
|
Net Debt to Adjusted
Funds Flow Ratio(4)
|
|
0.5x
|
|
|
0.9x
|
|
|
|
|
|
|
Financial per
Weighted Average Shares Outstanding
|
|
|
|
|
|
Net Income -
Basic
|
$
|
0.12
|
|
$
|
0.32
|
Net Income -
Diluted
|
|
0.12
|
|
|
0.31
|
Weighted Average
Number of Shares Outstanding (000's)
|
|
243,874
|
|
|
241,285
|
|
|
|
|
|
|
Selected Financial
Results per BOE(1)(2)
|
|
|
|
|
|
Oil & Natural Gas
Sales(3)
|
$
|
42.91
|
|
$
|
36.33
|
Royalties and
Production Taxes
|
|
(10.41)
|
|
|
(7.89)
|
Commodity Derivative
Instruments
|
|
1.33
|
|
|
0.86
|
Cash Operating
Expenses
|
|
(7.02)
|
|
|
(6.57)
|
Transportation
Costs
|
|
(3.52)
|
|
|
(3.88)
|
General and
Administrative Expenses
|
|
(1.72)
|
|
|
(1.87)
|
Cash Share-Based
Compensation
|
|
(0.25)
|
|
|
(0.02)
|
Interest, Foreign
Exchange and Other Expenses
|
|
(1.05)
|
|
|
(1.26)
|
Current Income Tax
Recovery/(Expense)
|
|
(0.01)
|
|
|
(0.01)
|
Adjusted Funds
Flow(4)
|
$
|
20.26
|
|
$
|
15.69
|
|
Three months
ended
March 31,
|
|
2018
|
|
2017
|
Average Daily
Production(2)
|
|
|
|
|
|
Crude Oil
(bbls/day)
|
|
37,443
|
|
|
33,178
|
Natural Gas Liquids
(bbls/day)
|
|
4,085
|
|
|
3,158
|
Natural Gas
(Mcf/day)
|
|
261,310
|
|
|
291,607
|
Total
(BOE/day)
|
|
85,080
|
|
|
84,937
|
|
|
|
|
|
|
% Crude Oil and
Natural Gas Liquids
|
|
49%
|
|
|
43%
|
|
|
|
|
|
|
Average Selling
Price (2)(3)
|
|
|
|
|
|
Crude Oil (per
bbl)
|
$
|
69.67
|
|
$
|
57.53
|
Natural Gas Liquids
(per bbl)
|
|
28.13
|
|
|
37.76
|
Natural Gas (per
Mcf)
|
|
3.50
|
|
|
3.63
|
|
|
|
|
|
|
Net Wells
Drilled
|
|
14
|
|
|
15
|
(1)
|
Non-cash amounts have
been excluded.
|
(2)
|
Based on Company
interest production volumes. See "Presentation of Production
Information" below.
|
(3)
|
Before transportation
costs, royalties, and commodity derivative instruments.
|
(4)
|
These non-GAAP
measures may not be directly comparable to similar measures
presented by other entities. See "Non-GAAP Measures" section in
this news release.
|
|
Three months
ended
March 31,
|
Average Benchmark
Pricing
|
2018
|
|
2017
|
WTI crude oil
(US$/bbl)
|
$
|
62.87
|
|
$
|
51.92
|
AECO natural gas–
monthly index (CDN$/Mcf)
|
|
1.85
|
|
|
2.94
|
AECO natural gas –
daily index (CDN$/Mcf)
|
|
2.08
|
|
|
2.69
|
NYMEX natural gas –
last day (US$/Mcf)
|
|
3.00
|
|
|
3.32
|
USD/CDN average
exchange rate
|
|
1.26
|
|
|
1.32
|
|
|
|
|
|
|
Share Trading
Summary
|
CDN(1) - ERF
|
|
U.S.(2) - ERF
|
For the three
months ended March 31, 2018
|
(CDN$)
|
|
(US$)
|
High
|
$
|
15.90
|
|
$
|
12.26
|
Low
|
$
|
12.18
|
|
$
|
9.66
|
Close
|
$
|
14.49
|
|
$
|
11.26
|
(1) TSX and
other Canadian trading data combined.
|
|
|
|
|
|
(2) NYSE and
other U.S. trading data combined.
|
|
|
|
|
|
|
|
|
|
|
|
2018 Dividends per Share
|
CDN$
|
|
US$(1)
|
First Quarter
Total
|
$
|
0.03
|
|
$
|
0.02
|
(1) CDN$
dividends converted at the relevant foreign exchange rate on the
payment date.
|
Currency and Accounting Principles
All amounts in
this news release are stated in Canadian 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 Measures".
Barrels of Oil Equivalent
This news release also
contains references to "BOE" (barrels of oil equivalent). Enerplus
has adopted the standard of six thousand cubic feet of natural gas
to one barrel of oil (6 Mcf: 1 bbl) when converting natural gas to
BOEs. BOEs 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.
Presentation of Production Information
Under U.S.
GAAP oil and gas sales are generally presented net of royalties and
U.S. industry protocol is to present production volumes net of
royalties. Under Canadian industry protocol oil and gas sales and
production volumes are presented on a gross basis before deduction
of royalties. In order to continue to be comparable with its
Canadian peer companies, the summary results contained within this
news release presents Enerplus' production and BOE measures on a
before royalty company interest basis. All production volumes and
revenues presented herein are reported on a "company interest"
basis, before deduction of Crown and other royalties, plus
Enerplus' royalty interest.
Readers are cautioned that the average initial production
rates contained in this news release are not necessarily indicative
of long-term performance or of ultimate recovery.
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", "should", "believe", "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: expected average
production volumes in 2018 and the anticipated production mix; the
proportion of our anticipated oil and gas production that is hedged
and the effectiveness of such hedges in protecting our funds flow;
the results from our drilling program and the timing of related
production; oil and natural gas prices and estimated differentials
and our commodity risk management programs in 2018 and beyond;
expectations regarding our realized oil and natural gas prices;
future royalty rates on our production and future production taxes;
anticipated cash and non-cash G&A, share-based compensation and
financing expenses; operating and transportation costs; capital
spending levels in 2018 and its impact on our production level and
land holdings; our future royalty and production and cash taxes;
future debt and working capital levels and debt to funds flow
ratios.
The forward-looking information contained in this news
release reflects several material factors and expectations and
assumptions of Enerplus including, without limitation: that
Enerplus will conduct its operations and achieve results of
operations as anticipated; that Enerplus' development plans will
achieve the expected results; current commodity price and cost
assumptions; the general continuance of current or, where
applicable, assumed industry conditions; the continuation of
assumed tax, royalty and regulatory regimes; the accuracy of the
estimates of Enerplus' reserves and resources volumes; the
continued availability of adequate debt and/or equity financing,
cash flow and other sources to fund Enerplus' capital and operating
requirements, and dividend payments, as needed; availability of
third party services; and the extent of its liabilities. In
addition, our 2018 guidance contained in this news release is based
on rest of year prices of: WTI US$65.00/bbl, NYMEX US$3.00/Mcf, and a USD/CDN exchange rate of
1.27. 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.
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: changes,
including continued volatility, in commodity prices; changes in
realized prices for Enerplus' products; changes in the demand for
or supply of Enerplus' products; unanticipated operating results,
results from Enerplus' capital spending activities or production
declines; curtailment of Enerplus' 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 development plans by Enerplus or by third party
operators of Enerplus' properties; increased debt levels or debt
service requirements; Enerplus' inability to comply with covenants
under its bank credit facility and senior notes; changes in
estimates of Enerplus' oil and gas reserves and resources 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; failure to complete
any anticipated acquisitions or divestitures; and certain other
risks detailed from time to time in Enerplus' public disclosure
documents (including, without limitation, those risks identified in
its Annual Information Form, management's discussion and analysis
for the year-ended December 31, 2017,
and Form 40-F at December 31,
2017).
The forward-looking information contained in this press
release speak only as of the date of this press release. Enerplus
does not undertake any obligation to publicly update or revise any
forward-looking information contained herein, except as required by
applicable laws.
NON-GAAP MEASURES
In this news release, we use the terms "adjusted funds flow"
and "net debt to adjusted funds flow ratio" as measures to analyze
operating performance, leverage and liquidity. "Adjusted funds
flow" is calculated as net cash generated from operating activities
but before changes in non-cash operating working capital and asset
retirement obligation expenditures. "Net debt to adjusted funds
flow ratio" is calculated as total debt net of cash and restricted
cash, divided by a trailing 12 months of adjusted funds flow.
Calculation of these terms is described in Enerplus' MD&A under
the "Liquidity and Capital Resources" section.
Enerplus believes that, in addition to net earnings and other
measures prescribed by U.S. GAAP, the terms "adjusted funds flow"
and "net debt to adjusted funds flow" are useful supplemental
measures as they provide an indication of the results generated by
Enerplus' principal business activities. However, these measures
are not measures recognized by U.S. GAAP and do not have a
standardized meaning prescribed by U.S. GAAP. Therefore, these
measures, as defined by Enerplus, may not be comparable to similar
measures presented by other issuers. For reconciliation of these
measures to the most directly comparable measure calculated in
accordance with U.S. GAAP, and further information about these
measures, see disclosure under "Non-GAAP Measures" in Enerplus'
First Quarter 2018 MD&A.
Electronic copies of Enerplus Corporation's First Quarter 2018
MD&A and Financial Statements, along with other public
information including investor presentations, are available on its
website at www.enerplus.com. Shareholders may, upon request,
receive a printed copy of the Company's audited financial
statements at any time. For further information, please contact
Investor Relations at 1-800-319-6462 or email
investorrelations@enerplus.com.
Follow @EnerplusCorp on Twitter at
https://twitter.com/EnerplusCorp.
Ian C. Dundas
President & Chief Executive Officer
Enerplus Corporation
SOURCE Enerplus Corporation