HIGHLIGHTS
- Third quarter total production was 107,808 BOE per day (up 15% from the prior quarter) and liquids production was 68,382 barrels per day (up 20% from the prior quarter)
- Adjusted funds flow was $355.6 million in the third quarter, which exceeded capital spending of $114.5 million, generating free cash flow(1) of $241.1 million
- Total return of capital to shareholders during the third quarter was $123.3 million, comprising share repurchases of $111.8 million and dividends of $11.5 million
- Increased the quarterly dividend by 10% to $0.055 per share (from $0.05 per share)
- 2022 liquids production guidance was increased by 1,000 barrels per day at the midpoint due to continued strong operational performance; annual liquids production growth now tracking approximately 10%
- 2022 capital spending guidance was set to $430 million (from the previous range of $400 – $440 million)
- Fourth quarter production guidance is 105,000 to 110,000 BOE per day, including liquids production of 64,000 to 68,000 barrels per day.
(1) This is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” section for more information. |
“Our operating momentum continued through the third quarter with liquids production increasing 20% quarter-over-quarter and strong volumes expected through the end of the year,” said Ian C. Dundas, President and CEO. “This performance has driven another positive production guidance update while annual capital spending is forecast inside our previously stated range. The result of this execution has been robust free cash flow generation which has allowed us to reduce our net debt by almost 40% and return over $270 million to shareholders through the first nine months of 2022. We remain well positioned to continue with these initiatives in the fourth quarter and into 2023.”
THIRD QUARTER SUMMARY
Production in the third quarter of 2022 was 107,808 BOE per day, an increase of 15% compared to the prior quarter and 9% higher than the same period a year ago. Crude oil and natural gas liquids production in the third quarter of 2022 was 68,382 barrels per day, an increase of 20% compared to the prior quarter and 8% higher than the same period a year ago. Production increased from the previous quarter and prior year period primarily due to the Company’s development activity in North Dakota.
Enerplus reported third quarter 2022 net income of $305.9 million, or $1.28 per share (diluted), compared to net income of $98.1 million, or $0.38 per share (diluted), in the same period in 2021. Adjusted net income(1) for the third quarter of 2022 was $207.9 million, or $0.87 per share (diluted), compared to $87.5 million, or $0.34 per share (diluted), during the same period in 2021. Net income and adjusted net income were higher compared to the prior year period primarily due to higher realized commodity prices and production during the third quarter of 2022.
(1) This is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” section for more information. |
Enerplus’ third quarter 2022 realized Bakken crude oil price differential was $2.41 per barrel above WTI, compared to $2.26 per barrel below WTI in the third quarter of 2021. Bakken crude oil prices continued to trade at premiums relative to WTI due to excess pipeline capacity in the region and strong physical prices for crude oil delivered to the U.S. Gulf Coast. Given the constructive outlook for Bakken crude oil prices and strong realizations year to date, Enerplus expects its 2022 realized average Bakken crude oil price differential to be $1.25 per barrel above WTI, compared to $1.00 per barrel above WTI, previously.
The Company’s realized Marcellus natural gas price differential widened to $0.99 per Mcf below NYMEX during the third quarter of 2022, compared to $0.45 per Mcf below NYMEX in the third quarter of 2021. The Company’s realized natural gas price was $6.53 per Mcf in the third quarter of 2022, an increase from $3.00 per Mcf in the same period in 2021 due to the increase in NYMEX natural gas prices in 2022. Enerplus continues to expect its full-year 2022 Marcellus natural gas price differential to average $0.75 per Mcf below NYMEX.
In the third quarter of 2022, Enerplus’ operating expenses were $10.47 per BOE, compared to $9.76 per BOE during the third quarter of 2021. The Company continues to expect full-year 2022 operating expenses to average $10.00 per BOE.
Capital spending totaled $114.5 million in the third quarter of 2022. The Company ended the third quarter of 2022 with total debt of $433.2 million and cash of $42.2 million.
During the third quarter of 2022, Enerplus announced its intention to increase its expected 2022 return of capital to at least 60% of free cash flow commencing in the second half of 2022 and continuing through 2023, an increase from 50% of free cash flow in the first half of 2022. Enerplus also previously announced an increase to the expected minimum return of capital level to $425 million for 2022. In the third quarter, Enerplus paid $11.5 million in dividends and repurchased 7.9 million shares under its normal course issuer bid (“NCIB”) at an average price of $14.13 per share, for total consideration of $111.8 million. During the nine months ended September 30, 2022, a total of $271.3 million was returned to shareholders through dividends and share repurchases.
Subsequent to September 30, 2022 and up to November 2, 2022, Enerplus repurchased 2.7 million shares under its NCIB at an average price of $16.00 per share, for total consideration of $43.7 million. Enerplus has also increased its quarterly dividend by 10% to $0.055 per share payable on December 15, 2022.
ASSET DETAIL
North Dakota production averaged 73,188 BOE per day during the third quarter of 2022, an increase of 25% compared to the prior quarter and 16% compared to the same period a year ago. Enerplus drilled eight gross operated wells (83% working interest) during the third quarter and brought eight operated wells (96% working interest) on production.
Marcellus production averaged 165 MMcf per day during the third quarter of 2022, an increase of 7% compared to the same period in 2021 and 2% lower than the prior quarter.
2022 GUIDANCE UPDATE
Capital spending guidance in 2022 has been updated to $430 million from the prior range of $400 to $440 million.
Annual production guidance has been revised to 99,750 to 101,000 BOE per day from the prior range of 97,500 to 101,500 BOE per day, representing an increase of 875 BOE per day at the midpoint. Annual liquids production guidance has been revised to 61,500 to 62,500 barrels per day from the prior range of 59,500 to 62,500 barrels per day, representing an increase of 1,000 barrels per day at the midpoint.
Fourth quarter volumes are expected to remain strong despite the two announced divestments of the Company’s Canadian assets, one of which closed on October 31, 2022, with the other expected to close in December 2022. Enerplus is providing fourth quarter 2022 production guidance of 105,000 to 110,000 BOE per day, including liquids production of 64,000 to 68,000 barrels per day.
Enerplus’ 2022 Bakken crude oil price differential guidance has been strengthened to $1.25 per barrel above WTI, from $1.00 per barrel above WTI previously.
A summary of Enerplus’ updated 2022 guidance is provided in the tables below and includes the impact of the two announced Canadian asset divestments.
2022 Guidance Summary
Updated Guidance |
Previous Guidance |
|
Capital spending |
$430 million |
$400 – 440 million |
Average total production |
99,750 – 101,000 BOE/day |
97,500 – 101,500 BOE/day |
Average liquids production |
61,500 – 62,500 bbls/day |
59,500 – 62,500 bbls/day |
Fourth quarter total production |
105,000 – 110,000 BOE/day |
n/a |
Fourth quarter liquids production |
64,000 – 68,000 bbls/day |
n/a |
Average production tax rate |
7% (No change) |
7 % |
Operating expense |
$10.00/BOE (No change) |
$10.00/BOE |
Transportation expense |
$4.25/BOE (No change) |
$4.25/BOE |
Cash G&A expense |
$1.20/BOE (No change) |
$1.20/BOE |
Current tax expense |
2-3% of adjusted funds flow before tax |
2-3% of adjusted funds flow before tax |
2022 Differential/Basis Outlook(1)
Updated Guidance |
Previous Guidance |
|
U.S. Bakken crude oil differential |
$+1.25/bbl |
$+1.00/bbl |
Marcellus natural gas sales price differential |
$(0.75)/Mcf (No change) |
$(0.75)/Mcf |
(1) Excluding transportation costs. |
Q3 2022 Conference Call Details
A conference call hosted by Ian C. Dundas, President and CEO will be held at 9:00 AM MT (11:00 AM ET) on November 4, 2022, to discuss these results. Details of the conference call are as follows:
Date: |
Friday, November 4, 2022 |
Time: |
9:00 AM MT (11:00 AM ET) |
Dial-In: |
587-880-2171 (Alberta) |
1-888-390-0546 (Toll Free) |
|
Conference ID: |
58265396 |
Audiocast: |
To ensure timely participation in the conference call, callers are encouraged to join 15 minutes prior to the start time to register for the event. A telephone replay will be available for 30 days following the conference call and can be accessed at the following numbers:
Replay Dial-In: |
1-888-390-0541 (Toll Free) |
Replay Passcode: |
265396 # |
PRICE RISK MANAGEMENT
The following is a summary of Enerplus’ financial commodity hedging contracts at November 3, 2022.
WTI Crude Oil ($/bbl)(1)(2)(3) |
NYMEX Natural Gas ($/Mcf)(2) |
||||||||||
Oct 1, 2022 – |
Jan 1, 2023 – |
Jul 1, 2023 – |
Oct 1, 2022 – |
Nov 1, 2022 – |
Apr 1, 2023 – |
||||||
Dec 31, 2022 |
Jun 30, 2023 |
Dec 31, 2023 |
Oct 31, 2022 |
Mar 31, 2023 |
Oct 31, 2023 |
||||||
Swaps |
|||||||||||
Volume (Mcf/day) |
– |
– |
– |
40,000 |
– |
– |
|||||
Volume (bbls/day) |
– |
10,000 |
10,000 |
– |
– |
– |
|||||
Swaps |
– |
– |
– |
$ 3.40 |
– |
– |
|||||
Brent – WTI Spread |
– |
$ 5.47 |
$ 5.47 |
– |
– |
– |
|||||
3 Way Collars |
|||||||||||
Volume (bbls/day) |
17,000 |
15,000 |
5,000 |
– |
– |
– |
|||||
Sold Puts |
$ 40.00 |
$ 61.67 |
$ 65.00 |
– |
– |
– |
|||||
Purchased Puts |
$ 50.00 |
$ 79.33 |
$ 85.00 |
– |
– |
– |
|||||
Sold Calls |
$ 57.91 |
$ 114.31 |
$ 128.16 |
– |
– |
– |
|||||
Collars |
|||||||||||
Volume (Mcf/day) |
– |
– |
– |
60,000 |
120,000 |
50,000 |
|||||
Volume (bbls/day) |
– |
2,000 |
2,000 |
– |
– |
– |
|||||
Purchased Puts |
– |
$ 5.00 |
$ 5.00 |
$ 3.77 |
$ 6.27 |
$ 4.05 |
|||||
Sold Calls |
– |
$ 75.00 |
$ 75.00 |
$ 4.50 |
$ 18.17 |
$ 7.00 |
(1) |
The total average deferred premium spent on our outstanding crude oil contracts is $1.50/bbl from October 1, 2022 – December 31, 2022 and $1.25/bbl from January 1, 2023 – December 31, 2023. |
(2) |
Transactions with a common term have been aggregated and presented at weighted average prices and volumes. |
(3) |
Upon closing of the acquisition of Bruin E&P Holdco, LLC (the “Bruin Acquisition”), Bruin E&P Holdco, LLC’s outstanding crude oil contracts were recorded at a fair value liability of $76.4 million. At September 30, 2022, the remaining liability was $4.7 million on the Condensed Consolidated Balance Sheets. Realized and unrealized gains and losses on the acquired contracts are recognized in Condensed Consolidated Statement of Income/(Loss) and the Condensed Consolidated Balance Sheets to reflect changes in crude oil prices from the date of closing of the Bruin Acquisition. |
THIRD QUARTER 2022 PRODUCTION AND OPERATIONAL SUMMARY TABLES
Summary of Average Daily Production(1)
Three months ended September 30, 2022 |
Nine months ended September 30, 2022 |
||||||||||||||||||
Williston |
Marcellus |
Canadian |
Other(2) |
Total |
Williston |
Marcellus |
Canadian |
Other(2) |
Total |
||||||||||
Tight oil (bbl/d) |
52,014 |
– |
– |
779 |
52,793 |
45,376 |
– |
– |
817 |
46,194 |
|||||||||
Light & medium oil (bbl/d) |
– |
– |
2,006 |
32 |
2,038 |
– |
– |
2,069 |
28 |
2,097 |
|||||||||
Heavy oil (bbl/d) |
– |
– |
2,629 |
22 |
2,651 |
– |
– |
2,841 |
14 |
2,855 |
|||||||||
Total crude oil (bbl/d) |
52,014 |
– |
4,635 |
833 |
57,482 |
45,376 |
– |
4,911 |
859 |
51,146 |
|||||||||
Natural gas liquids (bbl/d) |
10,511 |
– |
102 |
287 |
10,900 |
8,916 |
– |
92 |
311 |
9,319 |
|||||||||
Shale gas (Mcf/d) |
63,976 |
164,731 |
– |
941 |
229,649 |
52,904 |
164,843 |
– |
959 |
218,706 |
|||||||||
Conventional natural gas (Mcf/d) |
– |
– |
1,375 |
5,534 |
6,909 |
– |
– |
1,405 |
5,734 |
7,139 |
|||||||||
Total natural gas (Mcf/d) |
63,976 |
164,731 |
1,375 |
6,475 |
236,558 |
52,904 |
164,843 |
1,405 |
6,693 |
225,845 |
|||||||||
Total production (BOE/d) |
73,188 |
27,455 |
4,966 |
2,199 |
107,808 |
63,110 |
27,474 |
5,237 |
2,285 |
98,106 |
|||||||||
(1) |
Table may not add due to rounding. |
(2) |
Comprises DJ Basin and other properties in Canada. |
Summary of Wells Drilled(1)
Three months ended |
Nine months ended |
||||||||||
Operated |
Non-Operated |
Operated |
Non-Operated |
||||||||
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
||||
Williston Basin |
8 |
6.6 |
6 |
0.2 |
35 |
30.1 |
34 |
4.6 |
|||
Marcellus |
– |
– |
23 |
2.2 |
– |
– |
60 |
5.1 |
|||
Canadian Waterfloods |
– |
– |
– |
– |
– |
– |
– |
– |
|||
Other(2) |
– |
– |
– |
– |
– |
– |
15 |
0.4 |
|||
Total |
8 |
6.6 |
29 |
2.4 |
35 |
30.1 |
109 |
10.1 |
(1) |
Table may not add due to rounding. |
(2) |
Comprises DJ Basin and other properties in Canada. |
Summary of Wells Brought On-Stream(1)
Three months ended |
Nine months ended |
||||||||||
Operated |
Non-Operated |
Operated |
Non-Operated |
||||||||
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
||||
Williston Basin |
8 |
7.7 |
25 |
4.1 |
34 |
30.7 |
30 |
4.4 |
|||
Marcellus |
– |
– |
10 |
1.2 |
– |
– |
58 |
4.1 |
|||
Canadian Waterfloods |
– |
– |
– |
– |
– |
– |
– |
– |
|||
Other(2) |
– |
– |
– |
– |
– |
– |
– |
– |
|||
Total |
8 |
7.7 |
35 |
5.2 |
34 |
30.7 |
88 |
8.5 |
(1) |
Table may not add due to rounding. |
(2) |
Comprises DJ Basin and other properties in Canada. |
SELECTED FINANCIAL RESULTS |
Three months ended |
Nine months ended |
||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
Financial (US$, thousands, except ratios) |
||||||||||||
Net Income/(Loss) |
$ |
305,945 |
$ |
98,112 |
$ |
583,594 |
$ |
57,528 |
||||
Adjusted Net Income(1) |
207,913 |
87,467 |
525,992 |
186,004 |
||||||||
Cash Flow from Operating Activities |
409,946 |
182,177 |
856,798 |
321,305 |
||||||||
Adjusted Funds Flow |
355,622 |
203,131 |
914,910 |
453,956 |
||||||||
Dividends to Shareholders – Declared |
11,516 |
7,929 |
29,374 |
22,651 |
||||||||
Net Debt |
391,059 |
826,282 |
391,059 |
826,282 |
||||||||
Capital Spending |
114,459 |
63,613 |
346,357 |
221,289 |
||||||||
Property and Land Acquisitions |
16,252 |
3,079 |
19,662 |
832,404 |
||||||||
Property Divestments |
4,214 |
(216) |
19,386 |
3,782 |
||||||||
Net Debt to Adjusted Funds Flow Ratio |
0.3x |
1.6x |
0.3x |
1.6x |
||||||||
Financial per Weighted Average Shares Outstanding |
||||||||||||
Net Income/(Loss) – Basic |
$ |
1.32 |
$ |
0.38 |
$ |
2.47 |
$ |
0.22 |
||||
Net Income/(Loss) – Diluted |
1.28 |
0.38 |
2.40 |
0.22 |
||||||||
Weighted Average Number of Shares Outstanding (000’s) – Basic |
231,565 |
256,345 |
237,835 |
252,432 |
||||||||
Weighted Average Number of Shares Outstanding (000’s) – Diluted |
239,136 |
260,831 |
245,403 |
256,900 |
||||||||
Selected Financial Results per BOE(2)(3) |
||||||||||||
Crude Oil & Natural Gas Sales(4) |
$ |
66.90 |
$ |
46.10 |
$ |
67.38 |
$ |
40.61 |
||||
Commodity Derivative Instruments |
(8.92) |
(5.39) |
(11.19) |
(3.95) |
||||||||
Operating Expenses |
(10.47) |
(9.76) |
(10.10) |
(8.78) |
||||||||
Transportation Costs |
(4.16) |
(3.56) |
(4.29) |
(3.63) |
||||||||
Production Taxes |
(4.86) |
(3.33) |
(4.76) |
(2.86) |
||||||||
General and Administrative Expenses |
(1.10) |
(0.94) |
(1.18) |
(1.15) |
||||||||
Cash Share-Based Compensation |
(0.12) |
(0.09) |
(0.13) |
(0.20) |
||||||||
Interest, Foreign Exchange and Other Expenses |
(0.61) |
(0.89) |
(0.64) |
(1.18) |
||||||||
Current Income Tax Recovery/(Expense) |
(0.80) |
0.10 |
(0.93) |
(0.10) |
||||||||
Adjusted Funds Flow |
$ |
35.86 |
$ |
22.24 |
$ |
34.16 |
$ |
18.76 |
SELECTED OPERATING RESULTS |
Three months ended |
Nine months ended |
||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
Average Daily Production(3) |
||||||||||||
Crude Oil (bbls/day) |
57,482 |
54,578 |
51,146 |
46,188 |
||||||||
Natural Gas Liquids (bbls/day) |
10,900 |
8,492 |
9,319 |
7,246 |
||||||||
Natural Gas (Mcf/day) |
236,558 |
217,253 |
225,845 |
211,299 |
||||||||
Total (BOE/day) |
107,808 |
99,279 |
98,106 |
88,651 |
||||||||
% Crude Oil and Natural Gas Liquids |
63 % |
64 % |
62 % |
60 % |
||||||||
Average Selling Price(3)(4) |
||||||||||||
Crude Oil (per bbl) |
$ |
92.48 |
$ |
67.22 |
$ |
97.44 |
$ |
62.12 |
||||
Natural Gas Liquids (per bbl) |
32.04 |
29.91 |
34.13 |
25.40 |
||||||||
Natural Gas (per Mcf) |
6.53 |
3.00 |
5.79 |
2.58 |
||||||||
Net Wells Drilled |
9.0 |
9.0 |
40.2 |
14.0 |
(1) |
This non‑GAAP measure may not be directly comparable to similar measures presented by other entities See “Non-GAAP and Other Financial |
Measures” section in this news release. |
|
(2) |
Non‑cash amounts have been excluded. |
(3) |
Based on net production volumes. See “Basis of Presentation” section in this news release. |
(4) |
Before transportation costs and commodity derivative instruments. |
Condensed Consolidated Balance Sheets
(US$ thousands) unaudited |
September 30, 2022 |
December 31, 2021 |
|||||
Assets |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
42,185 |
$ |
61,348 |
|||
Accounts receivable |
313,770 |
227,988 |
|||||
Other current assets |
11,129 |
10,956 |
|||||
Derivative financial assets |
15,179 |
5,668 |
|||||
382,263 |
305,960 |
||||||
Property, plant and equipment: |
|||||||
Crude oil and natural gas properties (full cost method) |
1,418,814 |
1,253,505 |
|||||
Other capital assets |
11,028 |
13,887 |
|||||
Property, plant and equipment |
1,429,842 |
1,267,392 |
|||||
Other long-term assets |
7,485 |
9,756 |
|||||
Right-of-use assets |
20,490 |
26,118 |
|||||
Derivative financial assets |
3,407 |
— |
|||||
Deferred income tax asset |
197,420 |
380,858 |
|||||
Total Assets |
$ |
2,040,907 |
$ |
1,990,084 |
|||
Liabilities |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
453,684 |
$ |
367,008 |
|||
Income tax payable |
1,878 |
— |
|||||
Current portion of long-term debt |
80,600 |
100,600 |
|||||
Derivative financial liabilities |
39,454 |
143,200 |
|||||
Current portion of lease liabilities |
11,342 |
10,618 |
|||||
586,958 |
621,426 |
||||||
Long-term debt |
352,644 |
601,171 |
|||||
Asset retirement obligation |
155,168 |
132,814 |
|||||
Derivative financial liabilities |
2,181 |
7,098 |
|||||
Lease liabilities |
11,619 |
18,265 |
|||||
Deferred income tax liability |
11,112 |
— |
|||||
532,724 |
759,348 |
||||||
Total Liabilities |
1,119,682 |
1,380,774 |
|||||
Shareholders’ Equity |
|||||||
Share capital – authorized unlimited common shares, no par value Issued and outstanding: September 30, 2022 – 227 million shares December 31, 2021 – 244 million shares |
2,926,217 |
3,094,061 |
|||||
Paid-in capital |
45,608 |
50,881 |
|||||
Accumulated deficit |
(1,750,237) |
(2,238,325) |
|||||
Accumulated other comprehensive loss |
(300,363) |
(297,307) |
|||||
921,225 |
609,310 |
||||||
Total Liabilities & Shareholders’ Equity |
$ |
2,040,907 |
$ |
1,990,084 |
Condensed Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss)
Three months ended |
Nine months ended |
||||||||||||
September 30, |
September 30, |
||||||||||||
(US$ thousands, except per share amounts) unaudited |
2022 |
2021 |
2022 |
2021 |
|||||||||
Revenues |
|||||||||||||
Crude oil and natural gas sales |
$ |
663,532 |
$ |
421,133 |
$ |
1,804,701 |
$ |
982,945 |
|||||
Commodity derivative instruments gain/(loss) |
56,995 |
(57,447) |
(197,368) |
(275,532) |
|||||||||
720,527 |
363,686 |
1,607,333 |
707,413 |
||||||||||
Expenses |
|||||||||||||
Operating |
103,841 |
89,102 |
270,451 |
212,423 |
|||||||||
Transportation |
41,312 |
32,508 |
114,949 |
87,910 |
|||||||||
Production taxes |
48,169 |
30,364 |
127,351 |
69,132 |
|||||||||
General and administrative |
15,745 |
12,401 |
48,013 |
35,376 |
|||||||||
Depletion, depreciation and accretion |
82,225 |
81,250 |
219,006 |
194,392 |
|||||||||
Asset impairment |
— |
— |
— |
3,420 |
|||||||||
Interest |
6,471 |
8,232 |
18,624 |
21,642 |
|||||||||
Foreign exchange (gain)/loss |
16,109 |
(14,023) |
13,764 |
(6,269) |
|||||||||
Transaction costs and other expense/(income) |
(368) |
(4,735) |
12,020 |
(1,679) |
|||||||||
313,504 |
235,099 |
824,178 |
616,347 |
||||||||||
Income/(Loss) before taxes |
407,023 |
128,587 |
783,155 |
91,066 |
|||||||||
Current income tax expense/(recovery) |
7,929 |
(926) |
24,929 |
2,489 |
|||||||||
Deferred income tax expense/(recovery) |
93,149 |
31,401 |
174,632 |
31,049 |
|||||||||
Net Income/(Loss) |
$ |
305,945 |
$ |
98,112 |
$ |
583,594 |
$ |
57,528 |
|||||
Other Comprehensive Income/(Loss) |
|||||||||||||
Unrealized gain/(loss) on foreign currency translation |
28,582 |
(5,111) |
29,939 |
(5,830) |
|||||||||
Foreign exchange gain/(loss) on net investment hedge, net of tax |
(24,276) |
(13,728) |
(32,995) |
2,164 |
|||||||||
Total Comprehensive Income/(Loss) |
$ |
310,251 |
$ |
79,273 |
$ |
580,538 |
$ |
53,862 |
|||||
Net Income/(Loss) per share |
|||||||||||||
Basic |
$ |
1.32 |
$ |
0.38 |
$ |
2.47 |
$ |
0.22 |
|||||
Diluted |
$ |
1.28 |
$ |
0.38 |
$ |
2.40 |
$ |
0.22 |
Condensed Consolidated Statements of Cash Flows
Three months ended |
Nine months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
(US$ thousands) unaudited |
2022 |
2021 |
2022 |
2021 |
||||||||
Operating Activities |
||||||||||||
Net income/(loss) |
$ |
305,945 |
$ |
98,112 |
$ |
583,594 |
$ |
57,528 |
||||
Non-cash items add/(deduct): |
||||||||||||
Depletion, depreciation and accretion |
82,225 |
81,250 |
219,006 |
194,392 |
||||||||
Asset impairment |
— |
— |
— |
3,420 |
||||||||
Changes in fair value of derivative instruments |
(145,480) |
7,963 |
(103,423) |
178,601 |
||||||||
Deferred income tax expense/(recovery) |
93,149 |
31,401 |
174,632 |
31,049 |
||||||||
Foreign exchange (gain)/loss on debt and working capital |
16,997 |
(14,234) |
14,876 |
(7,229) |
||||||||
Share-based compensation and general and administrative |
3,665 |
3,277 |
13,959 |
4,060 |
||||||||
Other expense/(income) |
(289) |
(176) |
12,267 |
(2,093) |
||||||||
Amortization of debt issuance costs |
366 |
419 |
1,070 |
728 |
||||||||
Translation of U.S. dollar cash held in parent company |
(956) |
(288) |
(1,071) |
(1,907) |
||||||||
Other income reclassified to Investing Activities |
— |
(4,593) |
— |
(4,593) |
||||||||
Asset retirement obligation settlements |
(1,560) |
(1,681) |
(12,704) |
(8,461) |
||||||||
Changes in non-cash operating working capital |
55,884 |
(19,273) |
(45,408) |
(124,190) |
||||||||
Cash flow from/(used in) operating activities |
409,946 |
182,177 |
856,798 |
321,305 |
||||||||
Financing Activities |
||||||||||||
Drawings from/(repayment of) bank credit facilities |
(130,315) |
(106,000) |
(186,015) |
569,000 |
||||||||
Repayment of senior notes |
(21,000) |
— |
(100,600) |
(81,600) |
||||||||
Debt issuance costs |
— |
— |
— |
(4,621) |
||||||||
Proceeds from the issuance of shares |
— |
— |
— |
98,339 |
||||||||
Purchase of common shares under Normal Course Issuer Bid |
(111,800) |
(10,151) |
(241,935) |
(10,151) |
||||||||
Share-based compensation – tax withholdings settled in cash |
— |
— |
(11,567) |
(3,551) |
||||||||
Dividends |
(11,516) |
(7,929) |
(29,374) |
(24,400) |
||||||||
Cash flow from/(used in) financing activities |
(274,631) |
(124,080) |
(569,491) |
543,016 |
||||||||
Investing Activities |
||||||||||||
Capital and office expenditures |
(121,382) |
(77,719) |
(311,449) |
(193,266) |
||||||||
Bruin acquisition |
— |
— |
— |
(420,249) |
||||||||
Dunn County acquisition |
— |
(188) |
— |
(305,076) |
||||||||
Property and land acquisitions |
(16,252) |
(3,079) |
(19,662) |
(7,102) |
||||||||
Property divestments |
4,214 |
(216) |
6,333 |
3,782 |
||||||||
Other expense/(income) |
— |
4,593 |
— |
4,593 |
||||||||
Cash flow from/(used in) investing activities |
(133,420) |
(76,609) |
(324,778) |
(917,318) |
||||||||
Effect of exchange rate changes on cash & cash equivalents |
14,884 |
471 |
18,308 |
5,729 |
||||||||
Change in cash and cash equivalents |
16,779 |
(18,041) |
(19,163) |
(47,268) |
||||||||
Cash and cash equivalents, beginning of period |
25,406 |
60,718 |
61,348 |
89,945 |
||||||||
Cash and cash equivalents, end of period |
$ |
42,185 |
$ |
42,677 |
$ |
42,185 |
$ |
42,677 |
About Enerplus
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, returns-based capital allocation strategy and a commitment to safe, responsible operations. For more information, visit the Company’s website at www.enerplus.com.