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ERF

EnerplusNYSE:ERF Stock Report

Last Price

CA$11.61

Market Cap

CA$3.0b

7D

-0.9%

1Y

219.8%

Updated

19 Jan, 2022

Data

Company Financials +
ERF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends2/6

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.

Enerplus Competitors

EOG Resources

NYSE:EOG

US$61.5b

Pioneer Natural Resources

NYSE:PXD

US$53.5b

Devon Energy

NYSE:DVN

US$33.1b

Hess

NYSE:HES

US$28.1b

Price History & Performance

Summary of all time highs, changes and price drops for Enerplus
Historical stock prices
Current Share PriceCA$11.61
52 Week HighCA$12.26
52 Week LowCA$3.07
Beta3.41
1 Month Change27.02%
3 Month Change25.11%
1 Year Change219.84%
3 Year Change36.91%
5 Year Change21.44%
Change since IPO-20.95%

Recent News & Updates

Jan 13

Enerplus Corporation: Positive Cash Flow May Exceed $500 Million In 2022

Enerplus looks capable of generating over US$500 million in positive cash flow in 2022 at current strip. It may also be able to generate over US$350 million in positive cash flow without hedges at $65 WTI oil. Leverage is projected to fall below 0.4x by the end of 2022. There should be room for increased dividends, share repurchases or acquisitions. It appears fairly priced for a long-term high-$60s WTI oil scenario currently.

Dec 31

Enerplus: Potential Double From Current Levels

Enerplus is set to enter a rare company with their leverage ratio falling below 1.0x. Enerplus is going to continue to grow free cash flow and reward shareholders accordingly over the next two years as there is little debt left to pay off. Enerplus could continue to see volatility in the share price, a better buying opportunity could arise based on current price action.

Shareholder Returns

ERFUS Oil and GasUS Market
7D-0.9%0.7%-4.6%
1Y219.8%45.7%7.7%

Return vs Industry: ERF exceeded the US Oil and Gas industry which returned 46.8% over the past year.

Return vs Market: ERF exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is ERF's price volatile compared to industry and market?
ERF volatility
ERF Average Weekly Movement8.0%
Oil and Gas Industry Average Movement7.3%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: ERF is not significantly more volatile than the rest of US 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

FoundedEmployeesCEOWebsite
1986360Ian Dundashttps://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, Montana, Colorado, and Pennsylvania; and Alberta, British Columbia, and Saskatchewan. As of December 31, 2019, it had proved plus probable gross reserves of approximately 9.0 million barrels (MMbbls) of light and medium crude oil; 22.3 MMbbls of heavy crude oil; 170.1 MMbbls of tight oil; 23.5 MMbbls of natural gas liquids; 23.2 billion cubic feet (Bcf) of conventional natural gas; and 1,173.9 Bcf of shale gas.

Enerplus Fundamentals Summary

How do Enerplus's earnings and revenue compare to its market cap?
ERF fundamental statistics
Market CapCA$3.70b
Earnings (TTM)-CA$137.12m
Revenue (TTM)CA$1.32b

2.8x

P/S Ratio

-27.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERF income statement (TTM)
RevenueCA$1.32b
Cost of RevenueCA$471.22m
Gross ProfitCA$853.08m
ExpensesCA$990.20m
Earnings-CA$137.12m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)-0.54
Gross Margin64.42%
Net Profit Margin-10.35%
Debt/Equity Ratio160.0%

How did ERF perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

-27%

Payout Ratio

Valuation

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

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERF ($11.61) is trading below our estimate of fair value ($19.75)

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


Price To Earnings Ratio

PE vs Industry: ERF is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: ERF is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ERF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ERF is overvalued based on its PB Ratio (5.4x) compared to the US Oil and Gas industry average (2.2x).


Future Growth

How is Enerplus forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ERF's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if ERF's earnings are forecast to grow faster than the US market

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

Revenue vs Market: ERF's revenue (11.3% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: ERF's revenue (11.3% 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?

-42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERF is currently unprofitable.

Growing Profit Margin: ERF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ERF is unprofitable, and losses have increased over the past 5 years at a rate of 42.9% per year.

Accelerating Growth: Unable to compare ERF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ERF is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (17.4%).


Return on Equity

High ROE: ERF has a negative Return on Equity (-19.92%), as it is currently unprofitable.


Financial Health

How is Enerplus's financial position?


Financial Position Analysis

Short Term Liabilities: ERF's short term assets (CA$361.7M) do not cover its short term liabilities (CA$798.7M).

Long Term Liabilities: ERF's short term assets (CA$361.7M) do not cover its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: ERF's net debt to equity ratio (152.2%) is considered high.

Reducing Debt: ERF's debt to equity ratio has increased from 119.5% to 160% over the past 5 years.


Balance Sheet


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: Whilst unprofitable ERF has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ERF is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40.8% per year.


Dividend

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

1.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ERF's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ERF's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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: ERF is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ERF's dividends in 3 years are forecast to be thoroughly covered by earnings (5.8% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Ian Dundas (53 yo)

8.5yrs

Tenure

CA$4,240,592

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 ($USD3.39M) is below average for companies of similar size in the US market ($USD5.14M).

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 seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: ERF's board of directors are considered experienced (8.2 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 been diluted in the past year, with total shares outstanding growing by 14.2%.


Top Shareholders

Company Information

Enerplus Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Enerplus Corporation
  • Ticker: ERF
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: CA$3.697b
  • Listing Market Cap: CA$2.955b
  • Shares outstanding: 254.78m
  • Website: https://www.enerplus.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:37
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.