Enerplus Announces Guidance for 2013 and Acquisition of Additional Bakken Interests in Montana

Enerplus Announces Guidance for 2013 and Acquisition of Additional Bakken 
Interests in Montana 
This news release includes forward-looking statements and information within 
the meaning of applicable securities laws. Readers are advised to review the 
"Cautionary Note Regarding Forward-Looking Information and Statements" at the 
conclusion of this news release. For information regarding the presentation 
of certain information in this news release, see "Currency, BOE and 
Operational Information" at the conclusion of this news release. 
CALGARY, Dec. 10, 2012 /CNW/ - Enerplus Corporation ("Enerplus") (TSX: ERF) 
(NYSE: ERF) announces guidance for 2013 and the acquisition of additional low 
decline, light oil interests in Montana. 
Acquisition of Bakken Interests in Montana 
Consistent with our strategy of consolidating core positions within our 
portfolio, Enerplus has agreed to enter into an agreement to acquire an 
additional 20% working interest in our operated leases in the Sleeping Giant 
area in the Elm Coulee field in Richland County, Montana for approximately 
US$131 million (approximately US$121 million after estimated closing 
adjustments of US$10 million). By investing approximately half of the proceeds 
from the sale of our Manitoba assets, we expect to replace the sold 
production, improve the concentration of our asset base and improve our 
operating metrics. 
The acquisition is complementary to our existing operations in Sleeping Giant 
where we currently own an operated 70% working interest. This is a mature 
light oil property with an average decline rate of 14%. Our internal reserves 
assessment has identified a total of 6.2 million BOE of proved plus probable 
reserves associated with the acquisition and daily production of approximately 
1,550 BOE/day (both of which are weighted 80% to light crude oil). The 
transaction has attractive acquisition metrics of 4.2 times annual funds flow 
after estimated closing adjustments, $23.00/BOE of proved plus probable 
reserves including future development capital and is expected to be 4% 
accretive to funds flow in 2013 (2% on a debt-adjusted basis). This light oil 
property has current netbacks of approximately $50/BOE with low operating 
costs averaging $5.50/BOE in 2012. We do not expect any increases in general 
and administrative costs as a result of the acquisition. 
We believe there is additional upside potential in this field through 
production optimization, refracs and limited infill drilling. With 
approximately 400 million barrels of original oil in place on our operated 
leases, we are also evaluating the potential for enhanced oil recovery schemes 
as the current reserve bookings results in a 14% recovery factor. The total 
crude oil recovered to date is approximately 8%. We anticipate closing the 
acquisition mid-December, after which Enerplus will own a 90% working interest 
in the operated leases with production of approximately 7,300 BOE/day. We 
expect a modest level of capital spending at Sleeping Giant in 2013. 
Guidance for 2013 
In addition, the Board of Directors of Enerplus has approved a capital 
spending program for 2013. Highlights of the program are as follows: 

    --  We expect to deliver funds flow growth of over 11% in 2013. On
        a debt-adjusted basis, funds flow is expected to grow by 6% per
        share. This growth, along with a current yield of approximately
        8%, aligns with our long-term business strategy of providing an
        attractive total return to investors comprised of both growth
        and income.
    --  We are targeting a capital program of $685 million, 20% lower
        than our estimated spending in 2012, which more closely
        balances our capital spending and dividends with funds flow.
    --  We expect production to average between 82,000 BOE/day and
        85,000 BOE/day, which at the mid-point of the range, would
        represent a 2% increase over our estimated 2012 average daily
        production after adjusting for our recent acquisition and
        divestment activities. Based upon current cost structures and
        the commodity price outlook for both crude oil and natural gas
        in 2013, we believe this is an appropriate level of production
        growth. We plan to continue to pursue acquisition opportunities
        in core areas and rationalize non-core assets to enhance our
        portfolio and profitability.
    --  With an expected increase in funds flow, combined with a
        reduced capital spending program and maintenance of our
        dividend, we expect our adjusted pay-out ratio to improve to
        approximately 130% net of our Stock Dividend Program ("SDP").
        We intend to continue to focus our portfolio and improve our
        cost structure to enhance the sustainability of our business.
    --  We have successfully managed our balance sheet throughout 2012.
        We continue to pursue joint venture opportunities and non-core
        asset sales in an effort to allow us to enhance shareholder
        value. Our debt to funds flow ratio is expected to be 1.9 times
        at the end of 2013 based upon current forward market commodity
        prices,  our estimate of production and costs and before any
        additional acquisition or divestment activities
    --  We remain committed to providing a meaningful dividend to
        investors. Given the steps we have proactively taken to improve
        the sustainability of our business including the sale of
        non-core assets and reducing our capital spending plans, we
        currently have no plans to adjust our monthly dividend. We will
        continue to review dividend levels in the context of commodity
        prices, capital spending, cost structures and debt levels.

Summary Guidance*

|                                |          2012E|          2013E|
|Capital Expenditures ($millions)|           $850|           $685|
|                                |               |               |
|Annual Average Daily Production |         82,000|82,000 - 85,000|
|(BOE/day)                       |               |               |
|     Oil & Liquids Weighting    |            49%|            50%|
|                                |               |               |
|Exit Production (BOE/day)       |85,000 - 88,000|84,000 - 88,000|
|     Oil & Liquids Weighting    |            49%|            50%|
|                                |               |               |
|Adjusted Payout Ratio**         |           190%|           130%|
|                                |               |               |
|Debt/Funds Flow at Year-End     |           1.8x|           1.9x|
|                                |               |               |

Based upon forward commodity prices and forecast costs as of November 26, 2012 
including the impact of hedging and does not include any acquisition or 
divestment activities not previously announced. Based upon our current capital 
spending plans for Q42012, forecast YE2012 debt is approximately $1.1 billion
** Adjusted payout ratio is calculated as the sum of dividends paid to 
shareholders, net of participation in the Stock Dividend Plan, plus capital 
expenditures divided by funds flow. See "Non-GAAP Measures" below.

Capital Spending

We are targeting a capital spending program of $685 million in 2013. Through 
this spending, we expect to offset our corporate production decline rate of 
approximately 24% and grow production modestly by 2%. Approximately 85% of 
our program is currently planned to be directed to oil and liquids rich 
natural gas projects, with over 75% directed specifically to crude oil 
projects. Our capital program is based upon delivering a minimum internal 
rate of return of 25%.

The Fort Berthold region of North Dakota has delivered significant light oil 
production growth for Enerplus over the past two years. Through our 2012 
drilling program, we have effectively managed our lease expirations in the 
region and grown production to approximately 14,000 BOE/day during the month 
of November. We expect to reduce capital spending by 25% to approximately 
$340 million next year as we focus on improving our costs and efficiencies 
while still delivering production growth. We're forecasting average daily 
production growth of 30% next year over expected 2012 average volumes. We plan 
to run a two-rig program targeting both the Bakken and Three Forks formations 
and expect to drill, complete and bring on-stream between 20 to 25 net wells 
at Fort Berthold next year. The majority of these wells will be long 
horizontal wells. We expect non-operating spending will represent 
approximately 15% of our total spending in this area in 2013.

We expect to continue to invest in our oil waterflood properties in Canada 
next year targeting a capital spending program of approximately $160 million 
similar to 2012 levels. Under our planned spending, we will continue to invest 
in drilling projects at Freda Lake in Saskatchewan and Medicine Hat, Giltedge 
and Pembina in Alberta. Waterflood optimization will remain a focus area as we 
continue to balance drilling activity with our pressure maintenance programs 
to effectively manage performance from these fields. Our volumes are expected 
to be modestly impacted next year as we plan to curtail approximately 400 
BOE/day and 2 MMcf/day of natural gas at Pembina early in the first quarter as 
part of this on-going program. We anticipate that these volumes will be 
recovered over the course of the next 6 to18 months and believe this will 
result in better long-term recoveries. Finally, we plan to continue to 
advance on our existing polymer projects at Medicine Hat and Giltedge. Overall 
we have been encouraged by the performance of these projects. We plan to 
evaluate performance over the course of next year and if performance continues 
as we expect, would be in a position to consider expansion of the program.

We plan to reduce capital spending in the Marcellus region by over 50% to $80 
million in 2013 directed to non-operated drilling projects in the northeast 
region of Pennsylvania. Through this drilling program, we expect to have 
retained the majority of what we believe to be core non-operated acreage by 
the end of 2013. We expect continued production growth from 55 MMcf/day 
currently to roughly 75 MMcf/day as we exit 2013. Given the lower operating 
costs associated with this production ($0.75/Mcf) and NYMEX based pricing, 
operating netbacks are currently averaging approximately $2.00/Mcf. As a 
result, our Marcellus production is expected to contribute to the increase in 
funds flow in 2013. We anticipate that 25% of our corporate natural gas 
production volumes will be attributable to the Marcellus in 2013. We 
continue to see positive results from our drilling program despite the delays 
associated with infrastructure in the region.

We expect to continue investing in the Deep Basin region in 2013 on both our 
operated and non-operated leases. Approximately $75 million will be allocated 
to develop natural gas projects with associated liquids. Based upon our 
success in the Wilrich play in Alberta in 2012, we are planning an additional 
3 to 5 wells next year.

Approximately 75% of our capital spending is expected to be directed to 
drilling projects with around 90 net wells planned in 2013 with 80 net wells 
brought on-stream throughout the year. The program is weighted to the first 
half of the year with about one third of the capital planned for investment in 
the first quarter. We expect that approximately 75% of our capital spending 
will be directed to properties where we control the pace and level of 
spending. We expect to allocate less than $30 million to delineate our 
undeveloped acreage in 2013.

2013 Capital Spending Breakdown           2013E
                                   ($ millions)

Development Drilling & Completions         $555

Plant/Facilities                            $70

Maintenance                                 $30

Exploration & Seismic                       $30

Total                                      $685

We expect to review our capital spending program on a regular basis throughout 
the year in the context of prevailing commodity prices, economic conditions 
and cost structures and may modify our spending plans as required.

Production Growth

We are forecasting average daily production of 82,000 to 85,000 BOE/day in 
2013, a 2% increase over our estimated 2012 average daily production after 
adjusting for our recent acquisition and divestment activities. Crude oil 
production is expected to increase in 2013, averaging 38,000 bbls/day, up 2.5% 
from 2012. Oil production in the Fort Berthold region of North Dakota is 
expected to grow again in 2013 but at a slower pace than in 2012 given the 
reduced capital spending plans. Natural gas and natural gas liquids volumes 
are expected to remain flat year-over-year. The additional natural gas volumes 
associated with our 2012 Marcellus drilling program are anticipated to come 
on-stream during the first half of 2013 and are expected to offset the decline 
in our Canadian conventional natural gas properties. Total natural gas 
production is expected to average approximately 250 MMcf/day. Approximately 
75% of our total production will be operated by Enerplus.

As we plan to spend a greater proportion of our capital spending in the first 
half of 2013, and given the variability and timing of our non-operated 
spending, we expect exit production in 2013 to range between 84,000 and 88,000 

Current Daily Production

Daily production during the month of November 2012 is estimated to be 86,000 
BOE/day. Given the slow-down in drilling activity, we expect December 
production will be similar.


Operating costs are expected to average $10.70/BOE, unchanged from 2012 and 
general and administrative expenses are expected to average $3.40/BOE, up 
marginally from 2012. We expect our average royalty rate will increase 
slightly in 2013 due to an improvement in the natural gas price outlook and 
the increase in production associated with our U.S. operations which have 
higher royalty rates than our Canadian operations. Royalties are expected to 
average 21% of revenues. We have sufficient tax pools to shelter our funds 
flow in Canada in 2013 and beyond, and we expect U.S. cash taxes to be 
approximately 3% of our U.S. cash flow.

2013 Forecast Expenses                              2013E

Operating Costs ($/BOE)                            $10.70

Cash General & Administrative Expenses ($/BOE)      $3.15

Non-cash General & Administrative Expenses ($/BOE)  $0.25

Royalties                                             21%

Cash Taxes ($MM)                                      $12

Interest Expense ($MM)                                $65

Funds Flow Growth

Based upon current forward commodity prices, we expect funds flow to grow in 
2013 by 6% per debt-adjusted share. Improvements in natural gas prices as well 
as the growing NYMEX based natural gas production in the Marcellus are key 
factors contributing to this expected growth. Our hedging program is expected 
to provide support to this increase as we have 57% of our anticipated net oil 
production volumes hedged at a price of US$100.84 per barrel and 12% of our 
projected net natural gas volumes swapped at a fixed price of $3.63/Mcf and a 
further 11% of our projected net natural gas production hedged with put 
protection at $3.17/Mcf. We estimate that approximately 75% of the net 
operating income will be generated from our oil plays.

2013 Sensitivities                            Est. effect on 2013
                                                 Funds Flow/Share

Change of $5.00/bbl WTI crude oil                           $0.14

Change of $0.50/Mcf AECO natural gas                        $0.18

Change of 1,000 BOE/day production                          $0.05

Change of $0.01 in the US$/CDN$ exchange rate               $0.05

Financial Flexibility

We have preserved our financial flexibility throughout 2012 through the sale 
of non-core assets, issuance of long-term debt and a reduction in our 
dividend. We expect to exit 2012 with a debt-to-funds flow ratio of 1.8 
times which we anticipate is at the low end of our peer group. Our adjusted 
pay-out ratio is expected to drop significantly in 2013 to approximately 130% 
net of the participation in the SDP. In the context of current commodity 
prices, we expect a debt-funded shortfall of $200 million (funds flow 
including participation in the SDP less capital spending and dividends). We 
expect to continue to divest of non-core assets to offset our funding 
shortfall and to improve the concentration and focus within our portfolio. Our 
debt to funds flow ratio is expected to be 1.9 times at the end of 2013 before 
consideration of any joint venture, asset sale or acquisition activities.

Gordon J. Kerr
President & Chief Executive Officer
Enerplus Corporation

Currency, BOE and Operational Information

All dollar amounts or references to "$" in this news release are in Canadian 
dollars unless specified otherwise. Enerplus has adopted the standard of 6 
Mcf:1 BOE when converting natural gas to BOEs. BOEs may be misleading 
particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 BOE is 
based on an energy equivalency conversion method primarily applicable at the 
burner tip and does not represent a value equivalency at the wellhead. Given 
that the value ratio based on the current price of crude oil as compared to 
natural gas is significantly different from the energy equivalency of 6:1, 
utilizing a conversion on a 6:1 basis may be misleading as an indication of 
value. Unless otherwise stated, all oil and gas production information and 
estimates are presented on a gross basis, before deducting royalty interests.

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains certain forward-looking information and statements 
(collectively, "forward-looking information") within the meaning of applicable 
securities laws. The use of any of the words "expect", "anticipate", 
"continue", "estimate", "budget", "guidance", "objective", "ongoing", "may", 
"will", "project", "should", "believe", "plans", "intends", "strategy" and 
similar expressions are intended to identify forward-looking information. In 
particular, but without limiting the foregoing, this news release contains 
forward-looking information and statements pertaining to the following: future 
capital spending amounts, the timing and locations of such spending and the 
types of projects on which such capital will be spent; future growth in 
production, and cash flow and other anticipated growth opportunities; a 
financing strategy to fund anticipated capital expenditures, including funds 
raised from our Stock Dividend Plan; future oil, natural gas liquids and 
natural gas prices and production levels (including anticipated 2013 average 
daily and exit production rates), the product mix and sources of such 
production, and production decline rates; future drilling activities and 
results and undeveloped land acquisitions; future capital efficiencies, 
corporate netbacks and cash flow levels; rates of return from our investments; 
the expected ultimate recovery of oil or gas from a particular well; operating 
costs, general and administrative expenses and royalty expenses; sales of our 
non-core properties and the redeployment of proceeds realized therefrom; 
dividend payments made by Enerplus and the related adjusted payout ratio; the 
timing and payment of future taxes; our planned commodity risk management 
program; and future liquidity, debt levels, financial capacity and resources; 
and the completion of our proposed acquisition of additional working interests 
in Montana, including the terms and timing thereof.

The forward-looking information contained in this news release reflect several 
material factors and expectations and assumptions of Enerplus including, 
without limitation: that Enerplus will achieve operational, production and 
drilling results as anticipated; anticipated production decline rates; the 
general continuance of current or, where applicable, assumed industry 
conditions; commodity prices will remain within Enerplus' expected range of 
forecast prices, being the current forward market prices; availability of 
adequate cash flow, debt and/or equity sources to fund Enerplus' capital and 
operating requirements as needed and to pay dividends to shareholders as 
anticipated; the continuance of existing and, in certain circumstances, 
proposed tax and royalty regimes; availability of willing buyers for the 
properties proposed to be disposed of; that capital, operating, financing and 
third party service provider costs will not exceed Enerplus' current 
expectations; availability of third party service providers (including 
drilling rigs and service crews) and cooperation of industry partners; certain 
foreign exchange rate and other cost assumptions. Enerplus believes the 
material factors, expectations and assumptions reflected in the 
forward-looking information are reasonable at this time but no assurance can 
be given that these factors, expectations and assumptions will prove to be 

The forward-looking information included in this news release is not a 
guarantee of future performance and should not be unduly relied upon. Such 
information involves known and unknown risks, uncertainties and other factors 
that may cause actual results or events to differ materially from those 
anticipated in such forward-looking information including, without limitation: 
changes in commodity prices; unanticipated operating or drilling results or 
production declines; potential redeployment of available funding to 
alternative projects; changes in tax or environmental laws or royalty rates; 
increased debt levels or debt service requirements; insufficient available 
cash to pay dividends as currently anticipated; inaccurate estimation of or 
changes to estimates of Enerplus' oil and gas reserve and resource volumes and 
the assumptions relating thereto; limited, unfavourable or no access to debt 
or equity capital markets; increased costs and expenses; a shortage of third 
party service providers; the impact of competitors; reliance on industry 
partners; an inability to agree to terms with potential buyers of investments 
or assets that may be disposed of; and certain other risks detailed from time 
to time in Enerplus' public disclosure documents including, without 
limitation, those risks identified in our MD&A for the year ended December 31, 
2011 and in Enerplus' Annual Information Form dated March 9, 2012 for the 
year ended December 31, 2011, copies of which are available on Enerplus' SEDAR 
profile at www.sedar.com and which also form part of Enerplus' annual report 
on Form 40-F for the year ended December 31, 2011 filed with the United States 
Securities and Exchange Commission, a copy of which is available at 

The forward-looking information contained in this news release speaks only as 
of the date of this news release, and Enerplus assumes no obligation to 
publicly update or revise such information to reflect new events or 
circumstances, except as may be required pursuant to applicable laws.

Any financial outlook or future oriented financial information in this news 
release, as defined by applicable securities legislation, has been approved by 
management of Enerplus. Such financial outlook or future oriented financial 
information is provided for the purpose of providing information about 
management's reasonable expectations as to the anticipated results of its 
proposed business activities for 2013. Readers are cautioned that reliance on 
such information may not be appropriate for other purposes.

Non-GAAP Measures

Enerplus utilizes the following terms for measurement within this news release 
that do not have a standardized meaning or definition as prescribed by IFRS 
and therefore may not be comparable with the calculation of similar measures 
by other entities

We use the term "adjusted payout ratio" to measure operating performance, 
leverage and liquidity. We calculate "adjusted payout ratio" is calculated as 
dividends paid to shareholders net of the participation in the Stock Dividend 
Plan plus capital expenditures divided by funds flow. The term "adjusted 
payout ratio" does not have a standardized meaning or definition as prescribed 
by IFRS and therefore may not be comparable with the calculation of similar 
measures by other entities.

Netback is used to measure operating performance and is calculated by 
subtracting Enerplus' expected royalties and operating costs from the 
anticipated revenues in respect of the relevant properties. The term "netback" 
does not have a standardized meaning or definition as prescribed by IFRS and 
therefore may not be comparable with the calculation of similar measures by 
other entities.

For further information, please call 1-800-319-6462 or 

SOURCE: Enerplus Corporation

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CO: Enerplus Corporation
ST: Alberta

-0- Dec/10/2012 11:00 GMT

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