Enerplus (TSX:ERF) - Share price, News & Analysis

ERF fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	4/6
Financial Health	2/6
Dividends	2/6

ERF Stock Overview

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada.

Rewards

Trading at 67.6% below our estimate of its fair value

Earnings are forecast to grow 48.86% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Enerplus Competitors

Canadian Natural Resources

TSX:CNQ

CA$91.6b

Ovintiv

TSX:OVV

CA$15.6b

Crescent Point Energy

TSX:CPG

CA$5.5b

Vermilion Energy

TSX:VET

CA$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Enerplus
Historical stock prices
Current Share Price	CA$16.25
52 Week High	CA$18.74
52 Week Low	CA$6.12
Beta	3.28
1 Month Change	2.01%
3 Month Change	9.72%
1 Year Change	122.30%
3 Year Change	56.55%
5 Year Change	50.19%
Change since IPO	-57.52%

Recent News & Updates

May 13

Statutory Profit Doesn't Reflect How Good Enerplus' (TSE:ERF) Earnings Are

Enerplus Corporation ( TSE:ERF ) just reported healthy earnings but the stock price didn't move much. We think that...

Shareholder Returns

	ERF	CA Oil and Gas	CA Market
7D	0.9%	2.9%	0.8%
1Y	122.3%	60.3%	4.9%

Return vs Industry: ERF exceeded the Canadian Oil and Gas industry which returned 60.3% over the past year.

Return vs Market: ERF exceeded the Canadian Market which returned 4.9% over the past year.

Price Volatility

Is ERF's price volatile compared to industry and market?
ERF volatility
ERF Average Weekly Movement	7.7%
Oil and Gas Industry Average Movement	10.3%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: ERF is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ERF's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	435	Ian Dundas	https://www.enerplus.com

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, Colorado, and Pennsylvania; and Alberta, British Columbia, and Saskatchewan. As of December 31, 2021, it had proved plus probable gross reserves of approximately 8.2 million barrels (MMbbls) of light and medium crude oil; 20.7 MMbbls of heavy crude oil; 299.3 MMbbls of tight oil; 56.2 MMbbls of natural gas liquids; 19.7 billion cubic feet (Bcf) of conventional natural gas; and 1,367.9 Bcf of shale gas.

Enerplus Fundamentals Summary

How do Enerplus's earnings and revenue compare to its market cap?
ERF fundamental statistics
Market Cap	US$3.04b
Earnings (TTM)	US$257.34m
Revenue (TTM)	US$1.64b

11.8x

P/E Ratio

1.9x

P/S Ratio

Is ERF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERF income statement (TTM)
Revenue	US$1.64b
Cost of Revenue	US$462.70m
Gross Profit	US$1.18b
Other Expenses	US$923.84m
Earnings	US$257.34m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.07
Gross Margin	71.85%
Net Profit Margin	15.65%
Debt/Equity Ratio	99.9%

How did ERF perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

13%

Payout Ratio

Does ERF pay a reliable dividends?

See ERF dividend history and benchmarks

When do you need to buy ERF by to receive an upcoming dividend?
Enerplus dividend dates
Ex Dividend Date	May 26 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	3 days
Days until Dividend pay date	23 days

Does ERF pay a reliable dividends?

See ERF dividend history and benchmarks

Valuation

Is Enerplus undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ERF (CA$16.25) is trading below our estimate of fair value (CA$50.1)

Significantly Below Fair Value: ERF is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ERF is poor value based on its PE Ratio (11.8x) compared to the Canadian Oil and Gas industry average (8.7x).

PE vs Market: ERF is poor value based on its PE Ratio (11.8x) compared to the Canadian market (11.4x).

Price to Earnings Growth Ratio

PEG Ratio: ERF is good value based on its PEG Ratio (0.2x)

Price to Book Ratio

PB vs Industry: ERF is overvalued based on its PB Ratio (5.1x) compared to the CA Oil and Gas industry average (2.1x).

Future Growth

How is Enerplus forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

48.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERF's forecast earnings growth (48.9% per year) is above the savings rate (1.6%).

Earnings vs Market: ERF's earnings (48.9% per year) are forecast to grow faster than the Canadian market (7.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ERF's revenue (8.1% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: ERF's revenue (8.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ERF's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Enerplus performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-47.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERF has high quality earnings.

Growing Profit Margin: ERF became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: ERF has become profitable over the past 5 years, growing earnings by -47.5% per year.

Accelerating Growth: ERF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ERF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (185%).

Return on Equity

High ROE: ERF's Return on Equity (43.2%) is considered outstanding.

Financial Health

How is Enerplus's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ERF's short term assets ($314.5M) do not cover its short term liabilities ($772.7M).

Long Term Liabilities: ERF's short term assets ($314.5M) do not cover its long term liabilities ($669.2M).

Debt to Equity History and Analysis

Debt Level: ERF's net debt to equity ratio (96.1%) is considered high.

Reducing Debt: ERF's debt to equity ratio has increased from 48.6% to 99.9% over the past 5 years.

Debt Coverage: ERF's debt is well covered by operating cash flow (129.8%).

Interest Coverage: ERF's interest payments on its debt are well covered by EBIT (14.1x coverage).

Balance Sheet

Dividend

What is Enerplus's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.04%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: ERF's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: ERF's dividend (1.04%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).

Stability and Growth of Payments

Stable Dividend: ERF's dividend payments have been volatile in the past 10 years.

Growing Dividend: ERF's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.4%), ERF's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (7%), ERF's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure

CEO

Ian Dundas (53 yo)

8.83yrs

Tenure

US$3,676,171

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 ($USD3.68M) is about average for companies of similar size in the Canadian market ($USD3.43M).

Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ERF's management team is considered experienced (5 years average tenure).

Board Members

Experienced Board: ERF's board of directors are considered experienced (8.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ERF insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31