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Summary Enerplus entered into an agreement with Surge Energy to divest the remainder of its Canadian assets. Going forward, Enerplus will be a Bakken company with secondary investments in the Marcellus. It appears capable of generating over $600 million in positive cash flow in 2023 at current strip. Core Bakken inventory should have excellent economics at $70s WTI oil. Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More » Leonid Ikan Enerplus Corporation (NYSE: ERF ) recently divested its Canadian assets in two transactions worth a combined total of approximately US$289 million (prior to closing adjustments). Enerplus is now focusing primarily on the Bakken, with some secondary investment in the Marcellus. At current strip prices Enerplus may be able to generate over US$600 million in positive cash flow in 2023. This is down a bit from my previous estimates due to weaker 2023 strip prices and cost inflation. Enerplus appears fairly priced for a long-term low-$70s WTI oil scenario currently, and could have upside to around US$21 with long-term $75 WTI oil. This report uses US dollars unless otherwise noted, along with an exchange rate of US$1 to CAD$1.36. Continued Canadian […]
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