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.

Rewards

Trading at 74.3% below its fair value

Revenue is forecast to grow 10.58% per year

Earnings grew by 190.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -7.9% 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

ERF

1.6%

CA Oil and Gas

0.4%

CA Market


1 Year Return

-22.6%

ERF

5.6%

CA Oil and Gas

11.2%

CA Market

Return vs Industry: ERF underperformed the Canadian Oil and Gas industry which returned 5.6% over the past year.

Return vs Market: ERF underperformed the Canadian Market which returned 11.2% over the past year.


Shareholder returns

ERFIndustryMarket
7 Day2.7%1.6%0.4%
30 Day2.3%0.8%0.007%
90 Day-9.1%3.1%0.4%
1 Year-21.7%-22.6%10.5%5.6%14.8%11.2%
3 Year-28.4%-30.6%-13.0%-22.0%15.9%5.3%
5 Year-12.8%-23.9%-8.5%-22.9%34.0%14.2%

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

Valuation

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$8.83) is trading below our estimate of fair value (CA$34.38)

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 (5x) compared to the Oil and Gas industry average (10x).

PE vs Market: ERF is good value based on its PE Ratio (5x) compared to the Canadian market (15.3x).


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 (1x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

-7.9%

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 (-7.9% per year).

Earnings vs Market: ERF's earnings are forecast to decline over the next 3 years (-7.9% per year).

High Growth Earnings: ERF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ERF's revenue (10.6% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: ERF's revenue (10.6% 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


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 16.5%.


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.

Debt Coverage: ERF's debt is well covered by operating cash flow (117.6%).

Interest Coverage: ERF's interest payments on its debt are well covered by EBIT (16x coverage).


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).


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.0%markettop25%5.7%industryaverage4.7%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: ERF's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: ERF's dividend (1.36%) is low compared to the top 25% of dividend payers in the Canadian market (5.68%).


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 (7.2% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Ian Dundas (51yo)

6.4yrs

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 ($USD3.06M) is above average for companies of similar size in the Canadian market ($USD2.22M).

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


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: ERF's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ERF's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$16,00022 Nov 19
John Hoffman
EntityIndividual
Shares2,000
Max PriceCA$8.00
BuyCA$43,06615 Nov 19
Nathan Fisher
EntityIndividual
Role
Other Key Executive
Vice President of U.S. Development & Geosciences
Shares5,000
Max PriceCA$8.61
BuyCA$22,92315 Nov 19
Garth Doll
EntityIndividual
Shares2,700
Max PriceCA$8.49
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$54,92821 Mar 19
Terry Eichinger
EntityIndividual
Shares4,906
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$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
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
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

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


Management Team

  • Ian Dundas (51yo)

    President

    • Tenure: 6.4yrs
    • 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: 7.6yrs
    • Compensation: CA$1.59m
  • Jodi Labrie

    Senior VP & CFO

    • Tenure: 4.3yrs
    • Compensation: CA$1.91m
  • Ray Daniels

    Senior Vice President of Operations

    • Tenure: 2.9yrs
    • Compensation: CA$2.11m
  • Nathan Fisher

    Vice President of U.S. Development & Geosciences

    • Tenure: 4.3yrs
    • Compensation: CA$1.33m
  • Drew Mair

    Manager of Investor Relations

    • Tenure: 0yrs
  • Garth Doll

    Vice President of Marketing

    • Tenure: 0.8yrs

Board Members

  • Elliott Pew (64yo)

    Independent Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: CA$307.00k
  • Bob Hodgins (68yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: CA$180.50k
  • Michael Culbert (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$170.58k
  • Hilary Foulkes (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$160.50k
  • Ian Dundas (51yo)

    President

    • Tenure: 6.4yrs
    • Compensation: CA$4.04m
  • Sheldon Steeves (65yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: CA$170.50k
  • Sue MacKenzie (59yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: CA$167.10k
  • Jeff Sheets (61yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: CA$169.50k
  • Karen Clarke-Whistler (63yo)

    Independent Director

    • Tenure: 1yrs

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$1.985b
  • 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

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 Analysis2019/12/13 00:07
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
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.