- Enerplus predicts an average production of about 99,000 barrels of oil equivalent per day (BOE/D) in 2024.
- The company’s capital expenditure for the year is expected to be around C$550 million.
- For the fourth quarter, Enerplus’s average production was 103,543 BOE/D.
- Enerplus and Chord Energy are planning to merge in an $11 billion transaction consisting of both stock and cash.
- The combined company will have a strong position in the Williston Basin with approximately 1.3 million net acres and a production of 287 Million Barrels of Oil Equivalent per Day (MBoepd) in the fourth quarter of 2023.
- It is expected that the transaction will generate up to $150 million in annual cost synergies and have an after-tax present value of up to $750 million.
- Each common share of Enerplus will be exchanged for 0.10125 shares of Chord common stock and $1.84 in cash, a split of 90% stock and 10% cash.
- Chord shareholders will own approximately 67% of the combined company, while Enerplus shareholders will own approximately 33%.
- The board of directors of the new company will consist of seven representatives from Chord and four from Enerplus.
- Danny Brown will serve as Director, President, and Chief Executive Officer of the merged company.
- The transaction is expected to close by mid-2024.
- Enerplus’s 2024 outlook may change depending on the completion of the transaction with Chord.
- The company expects its 2024 capital spending to be around $550 million and its annual average liquids production to be approximately 64,000 barrels per day.
- The company’s stock currently has 9 buy ratings, 2 hold ratings, and no sell ratings.
A look at Enerplus Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Enerplus Corp, an oil and gas exploration and production company, has a promising long-term outlook according to the Smartkarma Smart Scores. With a score of 5 for Growth, the company is expected to continue expanding and increasing its profits in the future. This is supported by the company’s large and diversified portfolio of income generating crude oil and natural gas properties. These properties, primarily located in western Canada, have predictable production profiles, making them a reliable source of revenue for the company.
While Enerplus Corp scores well in Growth, it receives a lower score of 2 for Resilience. This indicates that the company may face some challenges in the future, but its strong portfolio and steady production should help mitigate any potential risks. Additionally, the company receives a score of 3 for both Value and Momentum, suggesting that it is fairly priced and has moderate momentum in the market. However, with a score of 1 for Dividend, investors should not expect significant dividends from this company.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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