Back to top

Image: Bigstock

Enerplus (ERF) Signs Deal With Hess to Acquire Williston Acres

Read MoreHide Full Article

Enerplus Corporation (ERF - Free Report) recently announced an agreement with Hess Corporation (HES - Free Report) . Notably, the companies have valued the transaction at $312 million of cash considerations.

Per the accord, likely to get closed in May 2021, Enerplus will be acquiring assets in the Williston Basin. The to-be acquired assets signify 78,700 largely contiguous net acres in Dunn County, North Dakota. Importantly, the core acreage has a strong inventory of premium drilling locations, brightening the production outlook.

Enerplus, an independent oil and gas exploration and production company in North America, also recently made a major update to its guidance for 2021 in connection with the acquisition of the assets. The company has revised its 2021 daily production guidance from 103,500 to 108,500 barrel of oil equivalent (BoE) to 111,000 to 115,000 BoE. Enerplus has also revised its capital spending guidance for this year from $335-$385 million to $360-$400 million.

The company also predicts cumulative free cashflow of $1.2 billion to $1.8 billion from 2021 to 2025 with the assumption that West Texas Intermediate (WTI) crude price will be between $50 per barrel and $55 per barrel.

Currently, Enerplus carries a Zacks Rank #3 (Hold). Meanwhile, two better-ranked players in the energy sector include Diamondback Energy, Inc. (FANG - Free Report) and EOG Resources, Inc. (EOG - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamondback is likely to see earnings growth of 112.5% in 2021.

EOG Resources is expected to see earnings growth of 272.6% in 2021.

Zacks Names “Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>