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Enerplus Corporation (ERF - Free Report) released the production and operational results for the fourth quarter of 2023. The company’s production totalled 103,500 barrels of oil equivalent per day (boepd), which topped the high end of its guided range. Liquids production was reported at 67,100 barrels per day. The company’s prior projection for its total production was in the range of 95,000-99,000 barrels per day and the same for liquids production was in the band of 60,500-64,500 barrels per day.
Enerplus’ average annual production of 100,000 boepd also surpassed its guidance of 98,000-99,000 boepd. Liquids production amounted to 62,500 barrels per day, which surpassed its guidance of 60,500-61,500 barrels per day.
The capital expenditure for the fourth quarter totalled $91 million. Capital spending for full-year 2023 amounted to $532 million, well within guidance. The company also returned $106 million through repurchase of shares and in dividends. For the full year, ERF returned capital worth $307 million.
While Enerplus’ fourth-quarter operational results were stronger than anticipated, the company cautioned that severe cold weather conditions might negatively impact output during January-March 2024. Extremely low temperatures resulted in power outages and production disruptions in North Dakota. However, the volume impacted due to these has now been restored.
In the first quarter of 2024, the liquids production is anticipated to go down 2,000-3,000 barrels per day from the previously forecasted range. Despite the negative impact of the cold weather, Enerplus anticipates to deliver liquids production of approximately 64,000 barrels per day in 2024. Additionally, annual capital spending is estimated to be $550 million.
The company’s guidance for 2024 and the full-year 2023 report will be released on Feb 22.
Zacks Rank and Key Picks
Enerplus is an independent oil and gas company, headquartered in Canada. It owns resources across Western Canada and the United States. Currently, ERF carries a Zacks Rank #5 (Strong Sell).
Investors might want to look at some better-ranked stocks in the energy sector, such as Oceaneering International (OII - Free Report) , Vaalco Energy (EGY - Free Report) and Harbour Energy (HBRIY - Free Report) . While both Oceaneering International and Vaalco Energy currently sport a Zacks Rank #1 (Strong Buy), Harbour Energy holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International is a market-leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. With a large inventory of drilling locations in premium Canadian Acreage, its production outlook seems bright.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 boepd. The company has also done well in reducing its debt in the past year.
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Enerplus (ERF) Q4 Production Outperforms Guidance
Enerplus Corporation (ERF - Free Report) released the production and operational results for the fourth quarter of 2023. The company’s production totalled 103,500 barrels of oil equivalent per day (boepd), which topped the high end of its guided range. Liquids production was reported at 67,100 barrels per day. The company’s prior projection for its total production was in the range of 95,000-99,000 barrels per day and the same for liquids production was in the band of 60,500-64,500 barrels per day.
Enerplus’ average annual production of 100,000 boepd also surpassed its guidance of 98,000-99,000 boepd. Liquids production amounted to 62,500 barrels per day, which surpassed its guidance of 60,500-61,500 barrels per day.
The capital expenditure for the fourth quarter totalled $91 million. Capital spending for full-year 2023 amounted to $532 million, well within guidance. The company also returned $106 million through repurchase of shares and in dividends. For the full year, ERF returned capital worth $307 million.
While Enerplus’ fourth-quarter operational results were stronger than anticipated, the company cautioned that severe cold weather conditions might negatively impact output during January-March 2024. Extremely low temperatures resulted in power outages and production disruptions in North Dakota. However, the volume impacted due to these has now been restored.
In the first quarter of 2024, the liquids production is anticipated to go down 2,000-3,000 barrels per day from the previously forecasted range. Despite the negative impact of the cold weather, Enerplus anticipates to deliver liquids production of approximately 64,000 barrels per day in 2024. Additionally, annual capital spending is estimated to be $550 million.
The company’s guidance for 2024 and the full-year 2023 report will be released on Feb 22.
Zacks Rank and Key Picks
Enerplus is an independent oil and gas company, headquartered in Canada. It owns resources across Western Canada and the United States. Currently, ERF carries a Zacks Rank #5 (Strong Sell).
Investors might want to look at some better-ranked stocks in the energy sector, such as Oceaneering International (OII - Free Report) , Vaalco Energy (EGY - Free Report) and Harbour Energy (HBRIY - Free Report) . While both Oceaneering International and Vaalco Energy currently sport a Zacks Rank #1 (Strong Buy), Harbour Energy holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International is a market-leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. With a large inventory of drilling locations in premium Canadian Acreage, its production outlook seems bright.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 boepd. The company has also done well in reducing its debt in the past year.