TSX:ERF

Stock Analysis Report

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.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.

Risks

  • Enerplus has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

10.8%

ERF

3.1%

CA Oil and Gas

1.3%

CA Market


1 Year Return

-30.0%

ERF

-10.7%

CA Oil and Gas

-0.1%

CA Market

ERF underperformed the Oil and Gas industry which returned -11.2% over the past year.

ERF underperformed the Market in Canada which returned -0.4% over the past year.


Share holder returns

ERFIndustryMarket
7 Day10.8%3.1%1.3%
30 Day26.6%8.4%4.2%
90 Day9.5%0.8%1.6%
1 Year-29.3%-30.0%-6.6%-10.7%3.4%-0.1%
3 Year38.0%33.8%-5.2%-15.0%19.1%8.4%
5 Year-41.2%-49.1%-24.1%-35.3%23.2%5.7%

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 month ago | Simply Wall St

Is Enerplus (TSE:ERF) Using Too Much Debt?

Valuation

Is Enerplus undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Enerplus's share price is below the future cash flow value, and at a moderate discount (> 20%).

Enerplus's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Enerplus is good value based on earnings compared to the CA Oil and Gas industry average.

Enerplus is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Enerplus earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Enerplus is overvalued based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

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

-2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Enerplus's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).

Enerplus's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Enerplus's revenue growth is expected to exceed the Canada market average.

Enerplus's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Enerplus's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Enerplus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Enerplus performed over the past 5 years?

32.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Enerplus has delivered over 20% year on year earnings growth in the past 5 years.

Enerplus's 1-year earnings growth exceeds its 5-year average (499.7% vs 32.1%)

Enerplus's earnings growth has exceeded the CA Oil and Gas industry average in the past year (499.7% vs 62.2%).


Return on Equity

Enerplus has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Enerplus used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Enerplus has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Enerplus's financial position?


Financial Position Analysis

Enerplus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Enerplus's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Enerplus's level of debt (31.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (54.8% vs 31.6% today).

Debt is well covered by operating cash flow (128.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

1.12%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Enerplus's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Enerplus's dividend is below the markets top 25% of dividend payers in Canada (5.78%).

Enerplus is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.

Enerplus is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Enerplus's dividends as it is not paying a notable one for Canada.


Future Payout to Shareholders

No need to calculate the sustainability of Enerplus's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

What is the CEO of Enerplus's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Ian Dundas (51yo)

6.2yrs

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

Ian's remuneration is higher than average for companies of similar size in Canada.

Ian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

The tenure for the Enerplus management team is about average.


Board Age and Tenure

5.6yrs

Average Tenure

62yo

Average Age

The tenure for the Enerplus board of directors is about average.


Insider Trading

More shares have been bought than sold by Enerplus individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$8,69924 Jul 19
Karen Clarke-Whistler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$8.72
BuyCA$19,84320 Jun 19
Garth Doll
EntityIndividual
Shares2,000
Max PriceCA$9.92
BuyCA$9,11017 Jun 19
Karen Clarke-Whistler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$9.11
BuyCA$8,93716 Jun 19
Ian Dundas
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$8.94
BuyCA$68,16113 Jun 19
Shaina Morihira
EntityIndividual
Shares7,500
Max PriceCA$9.09
BuyCA$9,06013 Jun 19
Ian Dundas
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$9.06
BuyCA$8,94912 Jun 19
Ian Dundas
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$8.95
BuyCA$9,11011 Jun 19
Ian Dundas
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceCA$9.11
BuyCA$46,77206 Jun 19
Jodine J. Labrie
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares5,000
Max PriceCA$9.35
SellCA$162,02421 Mar 19
Edward McLaughlin
EntityIndividual
Role
Unit President
President of U.S. Operations
Shares14,464
Max PriceCA$11.23
SellCA$186,89721 Mar 19
Jodine J. Labrie
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares16,682
Max PriceCA$11.23
SellCA$219,01221 Mar 19
Raymond Daniels
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Operations
Shares19,552
Max PriceCA$11.23
SellCA$74,92921 Mar 19
Daniel Fitzgerald
EntityIndividual
Shares6,689
Max PriceCA$11.23
SellCA$83,81921 Mar 19
John Hoffman
EntityIndividual
Shares7,484
Max PriceCA$11.23
SellCA$40,32321 Mar 19
Shaina Morihira
EntityIndividual
Shares3,599
Max PriceCA$11.23
SellCA$119,05721 Mar 19
Nathan Fisher
EntityIndividual
Role
Other Key Executive
Vice President of U.S. Development & Geosciences
Shares10,627
Max PriceCA$11.23
SellCA$54,92821 Mar 19
Terry Eichinger
EntityIndividual
Shares4,906
Max PriceCA$11.23
SellCA$16,68021 Mar 19
Garth Doll
EntityIndividual
Shares1,489
Max PriceCA$11.23
SellCA$446,63721 Mar 19
Ian Dundas
EntityIndividual
Role
Chief Executive Officer
President
Shares39,867
Max PriceCA$11.23
SellCA$88,55721 Mar 19
David McCoy
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Corporate Secretary
Shares7,906
Max PriceCA$11.23
BuyCA$56,61507 Mar 19
Nathan Fisher
EntityIndividual
Role
Other Key Executive
Vice President of U.S. Development & Geosciences
Shares5,000
Max PriceCA$11.32
SellCA$241,02011 Jan 19
Glen Roane
EntityIndividual
Shares20,000
Max PriceCA$12.05
SellCA$235,60009 Jan 19
Glen Roane
EntityIndividual
Shares20,000
Max PriceCA$11.78
BuyCA$98,30026 Dec 18
Glen Roane
EntityIndividual
Shares10,000
Max PriceCA$9.83
BuyCA$20,49921 Dec 18
Ian Dundas
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceCA$10.25
BuyCA$21,83020 Dec 18
Ian Dundas
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceCA$10.92
BuyCA$106,00019 Dec 18
Glen Roane
EntityIndividual
Shares10,000
Max PriceCA$10.60
BuyCA$218,80018 Dec 18
Glen Roane
EntityIndividual
Shares20,000
Max PriceCA$10.94

Ownership Breakdown


Management Team

  • Ian Dundas (51yo)

    President

    • Tenure: 6.2yrs
    • Compensation: CA$4.04m
  • David McCoy

    VP, General Counsel & Corporate Secretary

    • Tenure: 0yrs
    • Compensation: CA$815.32k
  • Edward McLaughlin (63yo)

    President of U.S. Operations

    • Tenure: 7.3yrs
    • Compensation: CA$1.59m
  • Jodi Labrie

    Senior VP & CFO

    • Tenure: 4yrs
    • Compensation: CA$1.91m
  • Ray Daniels

    Senior Vice President of Operations

    • Tenure: 2.7yrs
    • Compensation: CA$2.11m
  • Nathan Fisher

    Vice President of U.S. Development & Geosciences

    • Tenure: 4yrs
    • Compensation: CA$1.33m
  • Drew Mair

    Manager of Investor Relations

    • Tenure: 0yrs
  • Garth Doll

    Vice President of Marketing

    • Tenure: 0.6yrs

Board Members

  • Elliott Pew (64yo)

    Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: CA$307.00k
  • Bob Hodgins (68yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: CA$180.50k
  • Michael Culbert (62yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: CA$170.58k
  • Hilary Foulkes (61yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: CA$160.50k
  • Ian Dundas (51yo)

    President

    • Tenure: 6.2yrs
    • Compensation: CA$4.04m
  • Sheldon Steeves (65yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$170.50k
  • Sue MacKenzie (59yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: CA$167.10k
  • Jeff Sheets (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$169.50k
  • Karen Clarke-Whistler (63yo)

    Independent Director

    • Tenure: 0.8yrs

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$2.453b
  • Shares outstanding: 227.95m
  • Website: https://www.enerplus.com

Number of Employees


Location

  • Enerplus Corporation
  • The Dome Tower
  • Suite 3000
  • Calgary
  • Alberta
  • T2P 2Z1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1990
ERFNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1990
E17DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 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 l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 00:06
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.