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1. Company Snapshot

1.a. Company Description

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada.The company's oil and natural gas properties are located primarily in North Dakota, Colorado, and Pennsylvania; and Alberta, British Columbia, and Saskatchewan.As of December 31, 2021, it had proved plus probable gross reserves of approximately 8.2 million barrels (MMbbls) of light and medium crude oil; 20.7 MMbbls of heavy crude oil; 299.3 MMbbls of tight oil; 56.2 MMbbls of natural gas liquids; 19.7 billion cubic feet (Bcf) of conventional natural gas; and 1,367.9 Bcf of shale gas.


Enerplus Corporation was founded in 1986 and is headquartered in Calgary, Canada.

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1.b. Last Insights on ERF

Enerplus Corporation's 5.0% performance over the past three months can be attributed to the company's efforts to strengthen its financial position through strategic acquisitions and cost-cutting measures. The pending combination with Chord Energy Corporation has also contributed to the stock's growth, as investors anticipate the benefits of the merger. Additionally, the company's dividend payments and quarterly cash dividends have maintained investor confidence, driving the stock's upward trend.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Chord (CHRD) Updates 2024 Outlook After Enerplus Acquisition

Jun -03

Source: zacks.com

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Chord Energy and Enerplus Complete Combination, Creating Premier Williston-Focused E&P Company

May -31

Source:

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Chord Closes $4B Enerplus Acquisition for Williston Basin Scale

May -31

Source:

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Enerplus Corp's Dividend Analysis

May -30

Source:

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S&P Dow Jones Indices Announces Changes to the S&P/TSX Composite Index

May -28

Source:

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Enerplus Announces Shareholder Approval of Transaction with Chord Energy Corporation and Receipt of Investment Canada Act Approval

May -24

Source:

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Dividends Declared Week of May 20, 2024

May -24

Source:

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Enerplus, Chord on Track to Close $4B Williston Deal on May 31

May -23

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.23%)

6. Segments

Crude Oil

Expected Growth: 7%

Enerplus Corporation's 7% growth in Crude Oil is driven by increased production from its North Dakota and Montana assets, improved operational efficiencies, and a favorable crude oil price environment. Additionally, the company's strategic hedging program and cost reduction initiatives have contributed to the growth.

Natural Gas

Expected Growth: 9%

Enerplus Corporation's 9% growth in Natural Gas is driven by increased production from its North Dakota and Montana assets, improved well performance, and higher realized prices. Additionally, the company's focus on cost reduction and operational efficiencies has contributed to the growth. Furthermore, Enerplus' strategic acquisitions and divestitures have optimized its portfolio, leading to increased natural gas production and revenue.

Natural Gas Liquids

Expected Growth: 8%

Enerplus Corporation's 8% growth in Natural Gas Liquids is driven by increased production from its North Dakota and Montana assets, improved operational efficiencies, and strategic hedging. Additionally, growing demand for NGLs in the petrochemical sector and Enerplus' focus on high-margin, light-oil rich plays contribute to this growth.

7. Detailed Products

Crude Oil

Enerplus Corporation is a leading independent oil and gas producer, with a focus on light oil and gas production in North America.

Natural Gas

Enerplus produces natural gas from its properties in Canada and the United States.

Natural Gas Liquids (NGLs)

Enerplus produces NGLs, including ethane, propane, and butane, as a byproduct of natural gas production.

Oil Sands

Enerplus has a non-operated interest in the Foster Creek oil sands project in Alberta, Canada.

8. Enerplus Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Enerplus Corporation is moderate due to the availability of alternative energy sources, such as wind and solar power. However, the high cost of switching to these alternatives and the lack of infrastructure in some areas reduce the threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration in the market and the high switching costs. Additionally, Enerplus Corporation has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of a few large suppliers of oil and gas equipment and services. However, Enerplus Corporation's large scale of operations and diversified supply chain reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the oil and gas industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large and established players in the oil and gas industry, leading to intense competition for market share and resources.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.76%
Debt Cost 10.31%
Equity Weight 85.24%
Equity Cost 17.16%
WACC 16.15%
Leverage 17.31%

11. Quality Control: Enerplus Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Paramount Resources

A-Score: 6.8/10

Value: 8.2

Growth: 8.0

Quality: 7.6

Yield: 9.0

Momentum: 2.5

Volatility: 5.3

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Coterra Energy

A-Score: 6.6/10

Value: 6.9

Growth: 4.4

Quality: 6.9

Yield: 9.0

Momentum: 4.5

Volatility: 7.7

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Kimbell Royalty Partners

A-Score: 5.4/10

Value: 2.7

Growth: 3.7

Quality: 5.6

Yield: 10.0

Momentum: 2.0

Volatility: 8.7

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Crescent Point Energy

A-Score: 5.2/10

Value: 6.8

Growth: 5.1

Quality: 5.2

Yield: 6.0

Momentum: 5.0

Volatility: 3.0

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Ovintiv

A-Score: 5.1/10

Value: 7.4

Growth: 4.1

Quality: 5.2

Yield: 5.0

Momentum: 4.0

Volatility: 5.0

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Enerplus

A-Score: 5.1/10

Value: 6.3

Growth: 7.2

Quality: 7.8

Yield: 1.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.78$

Current Price

26.78$

Potential

-0.00%

Expected Cash-Flows