| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 0/6 |
| 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.
Enerplus Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$11.61 |
| 52 Week High | CA$12.26 |
| 52 Week Low | CA$3.07 |
| Beta | 3.41 |
| 1 Month Change | 27.02% |
| 3 Month Change | 25.11% |
| 1 Year Change | 219.84% |
| 3 Year Change | 36.91% |
| 5 Year Change | 21.44% |
| Change since IPO | -20.95% |
Recent News & Updates
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.
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
| ERF | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | -0.9% | 0.7% | -4.6% |
| 1Y | 219.8% | 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
| ERF volatility | |
|---|---|
| ERF Average Weekly Movement | 8.0% |
| Oil and Gas Industry Average Movement | 7.3% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1986 | 360 | 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, 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
| ERF fundamental statistics | |
|---|---|
| Market Cap | CA$3.70b |
| Earnings (TTM) | -CA$137.12m |
| Revenue (TTM) | CA$1.32b |
2.8x
P/S Ratio-27.0x
P/E RatioIs ERF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ERF income statement (TTM) | |
|---|---|
| Revenue | CA$1.32b |
| Cost of Revenue | CA$471.22m |
| Gross Profit | CA$853.08m |
| Expenses | CA$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 Margin | 64.42% |
| Net Profit Margin | -10.35% |
| Debt/Equity Ratio | 160.0% |
How did ERF perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield-27%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:37 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.