- Enerplus is a well-financed energy company that is likely to be somewhat attractive because of its high dividend.
- The company has operations in Canada, the Bakken shale, and the Marcellus with its operations weighted towards crude oil.
- Natural gas has much better fundamentals than oil right now, and the company is in a position to take advantage of this with its Marcellus acreage.
- The company is not currently generating positive free cash flow to cover the dividend, but it does historically do so on an annual basis.
- Enerplus could be a reasonable investment right now, but there is a chance that the dividend might be cut if energy prices do not improve.
For further details see:
Enerplus: A Reasonably Well-Positioned Energy Company, But Free Cash Flow Is Troubling