With a ~20% liquids CAGR on the horizon, a very strong balance sheet and a transformed cost structure, ERF is attractively positioned to grow in a ~US$50/bbl world, and trades at a significantly lower DACF multiple than peers with similar debt-adjusted growth rates. Our $17.00 target price implies 38% upside and at strip pricing equates to a reasonable 7.0x DACF multiple on our 2019e estimates. We expect improving basis differentials and continued strong operational performance will drive the
27 Sep 2017
ERF – Better Bakken, better balance sheet, better valuation
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ERF – Better Bakken, better balance sheet, better valuation
Enerplus Corporation (ERF:TSE) | 0 0 0.6% | Mkt Cap: 3,228m
- Published:
27 Sep 2017 -
Author:
Michael P. Dunn -
Pages:
40
With a ~20% liquids CAGR on the horizon, a very strong balance sheet and a transformed cost structure, ERF is attractively positioned to grow in a ~US$50/bbl world, and trades at a significantly lower DACF multiple than peers with similar debt-adjusted growth rates. Our $17.00 target price implies 38% upside and at strip pricing equates to a reasonable 7.0x DACF multiple on our 2019e estimates. We expect improving basis differentials and continued strong operational performance will drive the