Enerplus Announces Third Quarter 2022 Results; Increases Dividend and Updates 2022 Guidance
All financial information contained within this news release has been prepared in accordance with
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
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
(1) This is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" section for more information. |
The Company's realized Marcellus natural gas price differential widened to
In the third quarter of 2022,
Capital spending totaled
During the third quarter of 2022,
Subsequent to
ASSET DETAIL
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
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
A summary of
2022 Guidance Summary
|
Updated Guidance |
Previous Guidance |
Capital spending |
|
|
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 |
Transportation expense |
|
|
Cash G&A expense |
|
|
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 |
|
|
|
Marcellus natural gas sales price differential |
|
|
(1) Excluding transportation costs. |
Q3 2022 Conference Call Details
A conference call hosted by
Date: |
|
Time: |
|
Dial-In: |
587-880-2171 ( |
|
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
|
|
WTI Crude Oil ($/bbl)(1)(2)(3) |
|
|
|||||||
|
|
Oct 1, 2022 – |
|
Jan 1, 2023 – |
|
Jul 1, 2023 – |
|
Oct 1, 2022 – |
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|
|
|
|
|
|
|
|
|
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|
|
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|
Swaps |
|
|
|
|
|
|
|
|
|
|
|
Volume (Mcf/day) |
|
– |
|
– |
|
– |
|
40,000 |
|
– |
– |
Volume (bbls/day) |
|
– |
|
10,000 |
|
10,000 |
|
– |
|
– |
– |
Swaps |
|
– |
|
– |
|
– |
|
|
|
– |
– |
Brent - WTI Spread |
|
– |
|
|
|
|
|
– |
|
– |
– |
|
|
|
|
|
|
|
|
|
|
|
|
3 Way Collars |
|
|
|
|
|
|
|
|
|
|
|
Volume (bbls/day) |
|
17,000 |
|
15,000 |
|
5,000 |
|
– |
|
– |
– |
Sold Puts |
|
|
|
|
|
|
|
– |
|
– |
– |
Purchased Puts |
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|
|
|
|
|
|
– |
|
– |
– |
Sold Calls |
|
|
|
|
|
|
|
– |
|
– |
– |
|
|
|
|
|
|
|
|
|
|
|
|
Collars |
|
|
|
|
|
|
|
|
|
|
|
Volume (Mcf/day) |
|
– |
|
– |
|
– |
|
60,000 |
|
120,000 |
50,000 |
Volume (bbls/day) |
|
– |
|
2,000 |
|
2,000 |
|
– |
|
– |
– |
Purchased Puts |
|
– |
|
|
|
|
|
|
|
|
|
Sold Calls |
|
– |
|
|
|
|
|
|
|
|
|
(1) |
The total average deferred premium spent on our outstanding crude oil contracts is |
(2) |
Transactions with a common term have been aggregated and presented at weighted average prices and volumes. |
(3) |
Upon closing of the acquisition of |
THIRD QUARTER 2022 PRODUCTION AND OPERATIONAL SUMMARY TABLES
Summary of Average Daily Production(1)
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
Marcellus |
Canadian |
Other(2) |
Total |
|
|
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 |
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|
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|
|
|
|
(1) |
Table may not add due to rounding. |
(2) |
|
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 |
|
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) |
|
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 |
|
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) |
|
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 |
|
|
|
|
|
||
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:
|
|
|
|
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 |
||||||||
|
|
|
|
|
|
||||||||
(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 |
||||||||
|
|
|
|
|
||||||||
(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 |
|
|
(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) |
|
|
|
— |
|
|
(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
Follow @EnerplusCorp on Twitter at https://twitter.com/EnerplusCorp.
NOTICE REGARDING INFORMATION CONTAINED IN THIS NEWS RELEASE
Currency and Accounting Principles
All amounts in this news release are stated in
Barrels of Oil Equivalent
This news release contains references to "BOE" (barrels of oil equivalent), "MBOE" (one thousand barrels of oil equivalent), and "MMBOE" (one million barrels of oil equivalent).
Basis of Presentation
All production volumes presented in this news release are reported on a "net" basis (the Company's working interest share after deduction of royalty obligations, plus the Company's royalty interests), unless expressly indicated that it is being presented on a "gross" basis. Previously, the Company presented production volumes on a "company interest" basis, which was calculated as its working interest share before deduction of royalties plus the Company's royalty interests. With these changes, production volumes presented by the Company on a "net" basis are expected to be lower than those presented historically.
All references to "liquids" in this news release include light and medium crude oil, heavy oil and tight oil (all together referred to as "crude oil") and natural gas liquids on a combined basis. All references to "natural gas" in this news release include conventional natural gas and shale gas on a combined basis.
Readers are urged to review the 2021 annual MD&A and financial statements filed on SEDAR and as part of our Form 40-F on EDGAR concurrently with this news release for more complete disclosure on our operations.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains certain forward-looking information and statements ("forward-looking information") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "ongoing", "may", "will", "project", "plans", "budget", "strategy" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following:
The forward-looking information contained in this news release reflects several material factors and expectations and assumptions of
The forward-looking information included in this news release is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: failure by
The forward-looking information contained in this news release speaks only as of the date of this news release.
NON-GAAP AND OTHER FINANCIAL MEASURES
Non-GAAP Financial Measures
This news release includes references to certain non-GAAP financial measures and non-GAAP ratios used by the Company to evaluate its financial performance, financial position or cash flow. Non-GAAP financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.
These non-GAAP financial measures and non-GAAP ratios do not have standardized meanings or definitions as prescribed by U.S. GAAP and may not be comparable with the calculation of similar financial measures by other entities. For each measure, we have indicated the composition of the measure, identified the GAAP equivalency to the extent one exists, provided comparative detail where appropriate, indicated the reconciliation of the measure to the mostly directly comparable GAAP financial measure and provided details on the usefulness of the measure for the reader. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
"Adjusted net income/(loss)" and "Adjusted net income/(loss) per share (diluted)" are used by
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
||||
($ millions) |
|
2022 |
|
2021 |
|
||
Net income/(loss) |
|
$ |
305.9 |
|
$ |
98.1 |
|
Unrealized derivative instrument (gain)/loss |
|
|
(145.5) |
|
|
8.0 |
|
Asset impairment |
|
|
- |
|
|
- |
|
Other expense related to investing activities |
|
|
- |
|
|
- |
|
Unrealized foreign exchange (gain)/loss |
|
|
17.0 |
|
|
(14.2) |
|
Tax effect on above items |
|
|
30.5 |
|
|
0.2 |
|
Other income related to investing activities |
|
|
- |
|
|
(4.6) |
|
Adjusted net income/(loss) |
|
$ |
207.9 |
|
$ |
87.5 |
|
Adjusted net income/(loss) per share (diluted) |
|
$ |
0.87 |
|
$ |
0.34 |
|
"Free cash flow" is used by
|
Three months ended |
||||
($ millions) |
2022 |
|
2021 |
||
Cash flow from/(used in) operating activities |
$ |
409.9 |
|
$ |
182.2 |
Asset retirement obligation settlements |
|
1.6 |
|
|
1.7 |
Changes in non-cash operating working capital |
|
(55.9) |
|
|
19.3 |
Adjusted funds flow |
$ |
355.6 |
|
$ |
203.2 |
Capital spending |
|
(114.5) |
|
|
(63.6) |
Free cash flow |
$ |
241.1 |
|
$ |
139.6 |
Other Financial Measures
CAPITAL MANAGEMENT MEASURES
Capital management measures are financial measures disclosed by a company that (a) are intended to enable an individual to evaluate a company's objectives, policies and processes for managing the company's capital, (b) are not a component of a line item disclosed in the primary financial statements of the company, (c) are disclosed in the notes to the financial statements of the company, and (d) are not disclosed in the primary financial statements of the company. The following section provides an explanation of the composition of those capital management measures if not previously provided:
"Adjusted funds flow" is used by
"Net Debt" is calculated as current and long-term debt associated with senior notes plus any outstanding Bank Credit Facilities balances, less cash and cash equivalents. "Net debt" is useful to investors and securities analysts in analyzing financial liquidity and
"Net debt to adjusted funds flow ratio" is used by
SUPPLEMENTARY FINANCIAL MEASURES
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. The following section provides an explanation of the composition of those supplementary financial measures if not previously provided:
"Capital spending" Capital and office expenditures, excluding other capital assets/office capital and property and land acquisitions and divestments.
"Cash general and administrative expenses" or "Cash G&A expenses" General and administrative expenses that are settled through cash payout, as opposed to expenses that relate to accretion or other non-cash allocations that are recorded as part of general and administrative expenses.
"Cash share-based compensation" or "Cash SBC expenses" Share-based compensation that is settled by way of cash payout, as opposed to equity settled.
"Reinvestment rate" Comparing the amount of our capital spending as compared to adjusted funds flow (as a percentage).
Electronic copies of
SOURCE