Executive Summary
Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -5.4% per year for the next 3 years
Snowflake Analysis
Outstanding track record and good value.
Similar Companies
Share Price & News
How has Enerplus's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ERF's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.3%
ERF
0.6%
CA Oil and Gas
0.6%
CA Market
1 Year Return
-38.1%
ERF
0.2%
CA Oil and Gas
5.8%
CA Market
Return vs Industry: ERF underperformed the Canadian Oil and Gas industry which returned 0.2% over the past year.
Return vs Market: ERF underperformed the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| ERF | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 0.6% | 0.6% |
| 30 Day | -17.3% | -2.3% | 0.5% |
| 90 Day | -12.1% | 3.8% | 3.6% |
| 1 Year | -37.3%-38.1% | 4.6%0.2% | 9.1%5.8% |
| 3 Year | -41.2%-43.0% | -7.0%-16.9% | 15.4%5.0% |
| 5 Year | -37.7%-45.0% | -9.6%-24.0% | 33.6%14.0% |
Price Volatility Vs. Market
How volatile is Enerplus's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is Enerplus's (TSE:ERF) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
Why You Might Be Interested In Enerplus Corporation (TSE:ERF) For Its Upcoming DividendValuation
Is Enerplus undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ERF (CA$6.98) is trading below our estimate of fair value (CA$16.75)
Significantly Below Fair Value: ERF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ERF is good value based on its PE Ratio (3.9x) compared to the Oil and Gas industry average (11x).
PE vs Market: ERF is good value based on its PE Ratio (3.9x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: ERF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ERF is overvalued based on its PB Ratio (0.8x) compared to the CA Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Enerplus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-5.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ERF's earnings are forecast to decline over the next 3 years (-5.4% per year).
Earnings vs Market: ERF's earnings are forecast to decline over the next 3 years (-5.4% per year).
High Growth Earnings: ERF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ERF's revenue (6.7% per year) is forecast to grow faster than the Canadian market (4.9% per year).
High Growth Revenue: ERF's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ERF's Return on Equity is forecast to be low in 3 years time (7.3%).
Next Steps
Past Performance
How has Enerplus performed over the past 5 years?
36.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ERF has high quality earnings.
Growing Profit Margin: ERF's current net profit margins (35.7%) are higher than last year (12.5%).
Past Earnings Growth Analysis
Earnings Trend: ERF has become profitable over the past 5 years, growing earnings by 36.9% per year.
Accelerating Growth: ERF's earnings growth over the past year (190.3%) exceeds its 5-year average (36.9% per year).
Earnings vs Industry: ERF earnings growth over the past year (190.3%) exceeded the Oil and Gas industry 6%.
Return on Equity
High ROE: ERF's Return on Equity (21.4%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Enerplus's financial position?
Financial Position Analysis
Short Term Liabilities: ERF's short term assets (CA$359.2M) do not cover its short term liabilities (CA$396.5M).
Long Term Liabilities: ERF's short term assets (CA$359.2M) do not cover its long term liabilities (CA$687.9M).
Debt to Equity History and Analysis
Debt Level: ERF's debt to equity ratio (31.6%) is considered satisfactory.
Reducing Debt: ERF's debt to equity ratio has reduced from 53.1% to 31.6% over the past 5 years.
Balance Sheet
Inventory Level: ERF has a high level of physical assets or inventory.
Debt Coverage by Assets: ERF's debt is not covered by short term assets (assets are 0.6x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: ERF is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: ERF is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Enerplus's current dividend yield, its reliability and sustainability?
1.72%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ERF's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: ERF's dividend (1.72%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).
Stability and Growth of Payments
Stable Dividend: ERF's dividends per share have been stable in the past 10 years.
Growing Dividend: ERF's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (6.8%), ERF's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ERF's dividends in 3 years are forecast to be thoroughly covered by earnings (9.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Ian Dundas (51yo)
6.6yrs
Tenure
CA$4,036,341
Compensation
Mr. Ian Charles Dundas, B.Comm., LLB, has been the Chief Executive Officer and President at Enerplus Corporation since July 1, 2013. Mr. Dundas served as Chief Operating Officer at Enerplus Corporation fro ...
CEO Compensation Analysis
Compensation vs Market: Ian's total compensation ($USD3.05M) is above average for companies of similar size in the Canadian market ($USD1.55M).
Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.6yrs | CA$4.04m | 0.040% CA$633.5k | |
| Senior VP & CFO | 4.4yrs | CA$1.91m | 0.017% CA$264.5k | |
| Executive Officer | 0yrs | CA$2.11m | 0.0093% CA$145.6k | |
| President of U.S. Operations | 7.8yrs | CA$1.59m | 0.0081% CA$127.5k | |
| Vice President of U.S. Development & Geosciences | 4.4yrs | CA$1.33m | 0.0094% CA$147.1k | |
| Senior VP & COO | 0yrs | no data | no data | |
| Manager of Investor Relations | 0yrs | no data | no data | |
| VP, General Counsel & Corporate Secretary | 0yrs | CA$815.32k | 0.0078% CA$123.1k | |
| Vice President of Marketing | 1yrs | no data | 0.0047% CA$73.4k |
4.4yrs
Average Tenure
51yo
Average Age
Experienced Management: ERF's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.6yrs | CA$4.04m | 0.040% CA$633.5k | |
| Independent Chairman of the Board | 5.7yrs | CA$307.00k | 0.020% CA$311.2k | |
| Independent Director | 12.3yrs | CA$180.50k | 0.017% CA$260.9k | |
| Independent Director | 6yrs | CA$170.58k | 0.0044% CA$69.8k | |
| Independent Director | 6yrs | CA$160.50k | 0.0024% CA$38.4k | |
| Independent Director | 7.7yrs | CA$170.50k | 0.00071% CA$11.1k | |
| Independent Director | 8.6yrs | CA$167.10k | 0.0029% CA$45.0k | |
| Independent Director | 2.2yrs | CA$169.50k | 0.0063% CA$99.1k | |
| Independent Director | 1.2yrs | no data | 0.00089% CA$14.0k | |
| Director | 0.08yrs | no data | no data |
6.0yrs
Average Tenure
62yo
Average Age
Experienced Board: ERF's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ERF insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Enerplus Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Enerplus Corporation
- Ticker: ERF
- Exchange: TSX
- Founded: 1986
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: CA$1.569b
- Shares outstanding: 224.75m
- Website: https://www.enerplus.com
Number of Employees
Location
- Enerplus Corporation
- The Dome Tower
- Suite 3000
- Calgary
- Alberta
- T2P 2Z1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ERF | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 1990 |
| ERF | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1990 |
| E17 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1990 |
Biography
Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada. The company’s oil and natural gas properties are located primarily in North Dakota, Montana, Colorado, and Pennsylvania; and Alberta, British Columbia, and Saskatchewan. As of December 31, 2018, it had proved plus probable gross reserves of approximately 12.7 million barrels (MMbbls) of light and medium crude oil; 28.4 MMbbls of heavy crude oil; 167.2 MMbbls of tight oil; 21.1 MMbbls of natural gas liquids; 41.1 billion cubic feet (Bcf) of conventional natural gas; and 1,149.5 Bcf of shale gas. The company was founded in 1986 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:12 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.