CALGARY, AB – Enerplus Corporation (“Enerplus” or the “Company”) (TSX: ERF) (NYSE: ERF) today announced that it has increased and extended its senior, unsecured bank credit facility to US$900 million with a maturity date of October 31, 2025; incorporating sustainability-linked performance targets to establish a Sustainability-Linked Credit Facility (“SLL Credit Facility”) with no changes to its existing pricing grid or covenant package.
“We continuously look to further integrate the Company’s environmental, social and governance (“ESG”) goals and targets into all aspects of our business,” said Jodi Jenson Labrie, Senior Vice-President and Chief Financial Officer. “As the first North American exploration and production company to link ESG performance targets to its principal revolving credit facility, we are further demonstrating our commitment to developing our resources responsibly, safely and profitably. Furthermore, our SLL Credit Facility aligns with the performance metrics in our balanced executive compensation scorecard and we expect it to enhance our access to credit markets and support our cost of capital in the future. In addition, the increase of our SLL Credit Facility to US$900 million, from US$600 million, provides Enerplus with ample liquidity to close our recent asset acquisition and support our ongoing business activities.”
The senior unsecured SLL Credit Facility incorporates ESG-linked incentive pricing terms which reduce or increase the borrowing costs by up to 5 basis points as Enerplus’ sustainability performance targets (“SPT”) are exceeded or missed, respectively. The SPTs are based on the following ESG goals of the company:
- GHG Emissions: continuous progress toward Enerplus’ stated goal of a 50% reduction in corporate Scope 1 and 2 greenhouse gas emissions intensity by 2030, using 2019 as a baseline and measurement based on Enerplus’ annual internal targets
- Water Management: achieve a 50% reduction in freshwater usage in corporate well completions by 2025 or earlier compared to 2019, with progress to be measured on an annual basis over the life of the SLL Credit Facility
- Health & Safety: achieve and maintain a 25% reduction in the Company’s Lost Time Injury Frequency, based on a trailing 3-year average, relative to a 2019 baseline
CIBC acted as Sole Bookrunner, Sole Lead Arranger and Sustainability Structuring Agent for the transaction.
Enerplus is an independent North American oil and gas exploration and production company focused on creating long-term value for its shareholders through a disciplined capital allocation strategy and a commitment to safe, responsible operations.