This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Enerplus' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: ERF

We've also seen a substantial increase in activity by our non-operated partners in this region. In addition, we have increased spending on infrastructure related to pipeline connecting our wells both to capture associated gas production and reduce the hauling of oil. Spending on our natural gas assets has been limited with the majority of activity occurring on our non-operated properties in the Marcellus in Northeastern Pennsylvania.

Operating cost were on-track with our forecast for the quarter of CAD$10.78 per BOE and G&A expenses were CAD$$2.81 per BOE including both cash and equity based compensation. Our funds flow during the quarter was CAD$$147 million, down 10% versus Q1 but ahead of analyst consensus of CAD$$131 million.

Higher oil production volumes during the quarter provided the additional support to our cash flows. We took three important steps during the quarter to manage our balance sheet. First, we issued C CAD$405 million of long term senior unsecured notes at approximately 4.4% coupon rate and the proceeds of this issue were used to reduce the borrowing under our bank credit facility.

Secondly, we implemented the stock dividend program which gives all of our shareholders the choice to receive their dividends as shares in Enerplus instead of cash. This replaces our DRIP, which was available only to Canadian shareholders.

As a result of opening the [STP] up to our entire shareholder base, we have seen early participation of about 17% of total dividends paid. This compares to around 11% for the first five months of 2012 under the old DRIP.

Thirdly, we reduced our monthly dividend from CAD$0.18 per share to CAD$0.09 per share.

As a result of these measures and our activity in the quarter, our debt for the 12-month trailing funds flow was two times and 68% of our CAD$1 billion line of credit was available to us at the end of the quarter. We also continue to increase our hedge positions for better funds flow.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,621.21 +6.40 0.04%
S&P 500 1,948.45 +7.17 0.37%
NASDAQ 4,433.1580 +13.68 0.31%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs