S E P T E M B E R 2 0 2 0 INVESTOR UPDATE ERF: TSX & NYSE
Forward looking information and statements This presentation contains certain forward-looking information and forward-looking statements within the meaning of applicable securities laws ("forward-looking information"). The use of any of the words "expect", "anticipate", "continue", “estimate”, “guidance”, "may", "will", "should", "believe", "plans“ and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this presentation contains forward-looking information pertaining to the following, on the entire company basis and on an asset-level basis, as applicable: the proportion of our anticipated oil and gas production that is hedged and the effectiveness of such hedges in protecting our adjusted funds flow or expected free cash flow in 2020; our drilling program, including future development locations and plans, the results from our drilling program and the timing of related production; oil and natural gas prices and differentials and our commodity risk management programs, in 2020 and in the future; expectations regarding our realized oil and natural gas prices; future efficiencies and reserves and production growth; capital spending levels in 2020 and in the future, along with its components and impact on our production levels and land holdings; the amount of our future abandonment and reclamation costs and asset retirement obligations; future environmental expenses; our future royalty and production and U.S. cash taxes; deferred income taxes, and our tax pools and the time at which we may pay Canadian cash taxes; net operating income and future adjusted funds flow levels, including on a per share and debt adjusted basis; future debt and working capital levels and net debt-to-adjusted funds flow ratios and adjusted payout ratios, financial capacity, liquidity and capital resources to fund capital spending and working capital requirements; the amount and timing of future cash dividends that we may pay to our shareholders; and future acquisitions and dispositions, expecting timing thereof and use of proceeds therefrom; and our ESG initiatives, including greenhouse gas emissions and freshwater reduction targets in 2020. The forward-looking information included in this presentation is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: continued low commodity price environment or further volatility; changes in realized prices of Enerplus’ products; changes in the demand for or supply of our products; unanticipated operating results, results from our capital spending activities or production declines; curtailment of our production to retain value, or due to low realized prices or lack of adequate infrastructure; changes in tax or environmental laws, royalty rates, incentive programs or other regulatory matters; changes in our capital plans or by third party operators of our properties; increased debt levels or debt service requirements; inability to comply with debt covenants under our bank credit facility and outstanding senior notes; inaccurate estimation of our oil and gas reserves and contingent resources volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; reliance on industry partners; constraints on, or unavailability of, adequate pipeline and transportation capacity; and certain other risks detailed from time to time in our public disclosure documents (including, without limitation, those risks identified in our Annual Information Form, Form 40-F, and as described under “Risk Factors and Risk Management” in our Second Quarter 2020 report, or 2019 Annual MD&A dated February 21, 2020 (the “2019 MD&A”). The forward-looking information contained in this presentation reflects several material factors, expectations and assumptions made by Enerplus including, without limitation: that we will conduct our operations and achieve results of operations as anticipated; that our development plans will achieve the expected results; the completion and timing of proposed projects (including in-serviced dates); that lack of adequate infrastructure will not result in curtailment of production and/or reduced realized prices beyond our current expectations; the general continuance of current or, where applicable, assumed industry conditions; the continuation of assumed tax, royalty and regulatory regimes; the accuracy of the estimates of our reserves and resources volumes; commodity price and cost assumptions; the continued availability of adequate debt and/or equity financing and adjusted funds flow to fund our capital, operating and working capital requirements, and dividend payments as needed; the continued availability and sufficiency of our adjusted funds flow and availability under our bank credit facility to fund our working capital deficiency; our ability to negotiate debt covenant relief under our bank credit facility and outstanding senior notes if required; the ability to repay certain debts on the estimated timelines, or at all; the availability of third party services; and the extent of our liabilities. In addition, our expected 2020 capital expenditures and operating strategy described in this presentation is based on the rest of the year prices of: WTI of US$41.19/bbl, a NYMEX price of US$1.94/Mcf, and a USD/CDN exchange rate of 1.35. Although we believe the material factors, expectations and assumptions reflected in the forward-looking information are reasonable, but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The purpose of our adjusted funds flow disclosure, as well as the net operating income disclosure from both the Corporation’s Marcellus and Canadian Waterflood assets is to assist readers in understanding Enerplus’ expected and targeted financial results, and this information may not be appropriate for other purposes. Certain measures used in this presentation do not have a standardized meaning under United States GAAP (“U.S. GAAP”). Please refer to “Non-GAAP measures” in the “Advisories” and to our Second Quarter 2020 report and our 2019 MD&A for reconciliation of these measures to the most directly comparable measure calculated in accordance with U.S. GAAP. The forward-looking information contained in this presentation speaks only as of the date of this presentation, and none of Enerplus or its subsidiaries assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. 2
Enerplus overview Concentrated position in the Bakken core − High quality drilling inventory with large remaining opportunity set CDN DN W WATERFLOODS DS Low financial leverage and strong liquidity 6,300 BOE/d (94% oil) − 1.0x net debt to adjusted funds flow ratio (Jun 30, 2020) (1) Well positioned to navigate low commodity price environment − Significant operational flexibility, strong balance sheet, reduced cost structure Disciplined returns-based capital allocation BAKKEN 44,080 BOE/d (81% oil) − Track record of delivering profitable growth and free cash flow MARCELLU LLUS 197 MMcf/d (100% gas) Com ompany Infor ormation on Dual li l listed: TSX and NYSE Mar arket c cap apital alizat ation: C$0.9 billion Net et d debt ebt (1) 1) : C$0.6 billion Enter erpr prise v e value: e: C$1.5 billion Q2 2 202 020 pr 0 production:87,360 BOE/d (55% liquids) 1) Non-GAAP measure. See supplemental materials and “Advisories”. 3 2) Production volumes on map are Q2 2020. Map does not include ~4.2 MBOE/d from other assets in Canada and Colorado.
Q2 2020 - Highlights Q2 total production of 87 MBOE/d (48 Mbbl/d liquids) RESILIENT Solid id e execu cutio ion a and fin inancia cial r resil ilie ience PRODUCTION ON 2020 guidance reinstated: 88-90 MBOE/d (49-50 Mbbl/d liquids) Liquidity of ~US$600MM (1) STRONG LIQ IQUID IDIT ITY Net debt /adjusted funds flow ratio at 1.0x (2) Maintained $300MM capital budget in 2020 CAP APITAL AL Generated $30MM in free cash flow in Q2, more forecast in H2 2020 (2) DIS ISCIP IPLINE INE WELL LL ~$300MM maintenance capital estimate to keep liquids flat to H2 2020 POSITIONED Exiting 2020 with 26 net DUCs (3) FOR 20 2021 21 1) Based on cash position of US$4.5MM and US$599MM undrawn on credit facility. 4 2) Non-GAAP measure. Please see supplemental materials and “Advisories”. 3) Expect 23 net operated DUCs in North Dakota and 3 net operated DUCs in the DJ Basin at year-end 2020.
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