Enerplus Corporation (ERF): history, ownership, mission, how it works & makes money

A Brief History of Enerplus Corporation (ERF)

Foundation and Early Years

Enerplus Corporation was founded in 1986 in Calgary, Alberta, Canada. Initially, the company focused on natural gas and oil production, capitalizing on the growing demand for energy resources during that period.

Public Offering and Growth

In 1997, Enerplus became a publicly traded company on the Toronto Stock Exchange under the ticker symbol ERF. During the late 1990s and early 2000s, the company expanded its operations by acquiring several smaller oil and gas companies.

Strategic Acquisitions

Throughout the 2000s, Enerplus pursued a series of acquisitions to bolster its asset portfolio. Some notable acquisitions include:

• 2001: Acquired the assets of NAL Oil & Gas Trust for CAD 635 million.
• 2004: Acquired the assets of a private company for CAD 1.6 billion.
• 2006: Purchased certain natural gas assets from EnCana Corporation for CAD 1.2 billion.

Financial Performance

Market Developments and Innovations

In 2012, Enerplus made a strategic decision to shift its focus towards liquids-rich plays, enhancing its portfolio in the Bakken and Marcellus formations. This shift has contributed to more robust revenue growth and improved profit margins.

Recent Financial Highlights

As of Q2 2023, Enerplus reported:

• Production: 117,000 barrels of oil equivalent per day (BOE/d).
• Average realized price: CAD 102.50 per barrel of oil.
• Total assets: CAD 3.2 billion.

Environmental, Social, and Governance (ESG) Initiatives

Enerplus has committed to reducing its greenhouse gas emissions, targeting a 30% reduction by 2030 compared to 2019 levels. The company also emphasizes community engagement and sustainable practices in its operations.

Current Position and Outlook

As of 2023, Enerplus remains a significant player in the North American energy sector, with a market capitalization exceeding CAD 3.5 billion. The company continues to focus on operational efficiency and maintaining a strong balance sheet amid fluctuating commodity prices.

A Who Owns Enerplus Corporation (ERF)

Ownership Structure

As of the latest available data, Enerplus Corporation is publicly traded, and its shares are held by a variety of institutional and individual investors.

Major Shareholders

The top institutional shareholders as of late 2023 are:

Insider Ownership

Insider ownership is a key factor in understanding the company's governance. As of the end of 2023, insider ownership is reported at:

Stock Performance

As of Q4 2023, Enerplus Corporation's stock performance metrics include:

Historical Ownership Changes

Over the last five years, notable changes in ownership include:

• Increased stake by Fidelity Investments, up from 8% to 12.5%.
• Vanguard Group's ownership decreased slightly from 9.1% to 8.7%.
• BlackRock has consistently held around 9% over the same period.

Enerplus Corporation (ERF) Mission Statement

Company Overview

Enerplus Corporation is an independent North American exploration and production company with a focus on sustainable growth and financial strength. The company's mission statement emphasizes the commitment to delivering value for shareholders through its operations while maintaining environmental responsibility. As of Q3 2023, Enerplus reported an average production of approximately 128,000 barrels of oil equivalent per day (boe/d).

Financial Performance

Enerplus has demonstrated robust financial health, with a reported revenue of $1.137 billion for the full year of 2022. The company has maintained a strong balance sheet, showcasing financial prudence and operational efficiency.

Operational Focus Areas

Enerplus's mission centers on several key operational focus areas:

• Enhancing operational efficiency across its assets.
• Investing in sustainable practices and technology.
• Maximizing shareholder returns through disciplined capital allocation.
• Engaging with local communities and stakeholders.

Sustainability Initiatives

As part of its mission, Enerplus is committed to environmental stewardship. The company aims to reduce its greenhouse gas emissions intensity by 30% by 2030. The total capital expenditures for sustainability initiatives are projected to be approximately $200 million from 2022 to 2025.

Shareholder Value Creation

Enerplus has a strong focus on returning capital to shareholders. In 2022, the company returned approximately $200 million to shareholders through dividends and share repurchases. The annual dividend was increased to $1.00 per share in 2022, reflecting a yield of about 5.5% based on the share price around $18.25.

Market Position

As of October 2023, Enerplus operates around 1,000 net wells, primarily in the Bakken and Marcellus areas. The company holds a strong position in North America, with assets strategically located in key oil and gas regions.

Summary of Mission Alignment

Enerplus Corporation’s mission statement underscores its commitment to operational excellence, sustainable practices, and financial return to shareholders. Through strategic initiatives and a focused approach, the company endeavors to achieve its goals while responding to the evolving energy landscape.

How Enerplus Corporation (ERF) Works

Core Business Operations

Enerplus Corporation focuses on the exploration and production of oil and natural gas. As of Q2 2023, the company reported an average production of approximately 100,000 barrels of oil equivalent per day (boe/d).

Geographic Presence

Enerplus operates in various regions across North America, primarily in:

• Canada
• United States

Specifically, Enerplus holds significant assets in:

• North Dakota (Bakken)
• British Columbia (Montney)
• Alberta (various oil and gas fields)

Financial Performance

As of December 31, 2022, Enerplus reported a total revenue of:

The company achieved an operating cash flow of CAD 1,372 million in 2022.

Capital Expenditure

Enerplus has allocated its capital expenditures as follows:

Dividends and Shareholder Returns

Enerplus has a strong commitment to returning value to its shareholders. The dividend history is as follows:

In 2022, the company returned approximately CAD 500 million to shareholders through dividends and share buybacks.

Sustainability Initiatives

Enerplus is committed to reducing its carbon footprint. As part of its sustainability initiatives, the company has set a target to achieve:

• Net-zero greenhouse gas emissions by 2050
• Reduce operational emissions intensity by 30% by 2025

Market Position and Strategy

As of October 2023, Enerplus has a market capitalization of approximately CAD 4.5 billion. Its strategic focus includes:

• Maximizing cash flow generation
• Investing in high-return drilling opportunities
• Expanding its resource base through acquisitions

Recent Developments

In Q2 2023, Enerplus completed the acquisition of strategic assets in the Bakken region for USD 300 million, enhancing its production capacity by approximately 10,000 boe/d.

How Enerplus Corporation (ERF) Makes Money

Oil and Natural Gas Production

Enerplus Corporation generates revenue primarily through the extraction and sale of oil and natural gas. In 2022, the company reported total production of approximately 94,371 barrels of oil equivalent per day (boe/d).

Breakdown of production by type in 2022:

Revenue Streams

In 2022, Enerplus reported total revenues of $2.04 billion. Revenue primarily comes from:

• Sales of crude oil
• Sales of natural gas
• Sales of natural gas liquids

Pricing Overview

The average realized price for Enerplus in 2022:

Cost Structure

For 2022, Enerplus reported operating costs amounting to $600 million, which breaks down as follows:

Capital Expenditures

Enerplus invested approximately $600 million in capital expenditures in 2022. Allocation of capital expenditures was as follows:

Geographical Focus

Enerplus operates primarily in the following areas:

• Bakken Formation (North Dakota and Montana)
• Pennsylvania Marcellus Shale
• Western Canadian Sedimentary Basin

Net Income

In 2022, Enerplus reported a net income of $865 million, significantly improved from the previous year.

Debt and Equity Financing

As of December 31, 2022, Enerplus had a total debt of approximately $1.1 billion, with a debt-to-equity ratio of 0.8. The company successfully managed to reduce its debt levels by 20% compared to 2021.

Dividends

In 2022, Enerplus declared dividends totaling $175 million, reflecting a dividend yield of approximately 6.5% based on an annual dividend of $1.40 per share.