CA - Enerplus: Strong Cash Flow And Production Assets Indicate Long-Term Growth
2023-05-08 03:38:20 ET
Summary
- In the past year, Enerplus' price action (+12.04%) exceeds both the general market (-0.29%) and the oil exploration and production ETF, XOP (-14.08%).
- This reflects Enerplus' commitment to competitive capital return to shareholders in addition to continued operational production strength.
- The firm's two primary geographies, Bakken in North Dakota and Marcellus in Pennsylvania, produce 65 MBOE/d and 28 MBOE/d, respectively.
- Commitment to these projects has enabled the firm to capture a 12% production CAGR from 2018-2022 and free cash flow generation of $1.45bn in the equivalent period.
- Due to both Enerplus' undervaluation, the company's operational strengths, and their ability to produce solid financial returns, I rate the company a 'buy'.
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Enerplus: Strong Cash Flow And Production Assets Indicate Long-Term Growth