Capital Markets | Capital Expenditure | Capex Decrease | Curtailment/Shut-In

Enerplus 1Q20: Production Down 9%, Capex Cut 45%

Share Print Bookmark    |    Thursday,April 23,2020

Enerplus provided a quick look at its prelim 1Q'20 numbers.

Production update

Enerplus' first quarter 2020 production averaged approximately 98,200 BOE per day, down -8.6% vs 4Q'19, including 54,400 barrels per day of crude oil and natural gas liquids down -9.1% vs 4Q'19. As previously announced, Enerplus has now suspended all further operated drilling and completions activity in North Dakota.

Production shut-in

Enerplus has begun to temporarily shut-in select wells across its Williston basin and Canadian operations. The Company currently expects to shut-in more production in May in response to weaker oil pricing and will provide a further update in connection with its first quarter 2020 results on May 8, 2020.

Withdraw previous guidance

Enerplus is withdrawing its 2020 corporate guidance, as provided in the Company's news release on March 16, 2020

Further capital spending reduction

Enerplus is further reducing its 2020 capital budget by an additional $25 million to $300 million. In total, Enerplus has reduced its 2020 capital budget by approximately 45% from its original plan.

Executive Salalry Cut/Reduction

Enerplus has also reduced cash compensation for its Board of Directors, executives and employees. The Company anticipates that its cash general and administrative expenses for 2020 will be approximately $5 million lower than the Company's original budget, with the potential for further reductions