ENERPLUS CORP. $13.84 (Toronto symbol ERF; Shares outstanding: 196.9 million; Market cap: $2.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 7.8%) produces an average of 79,190 barrels of oil equivalent per day (weighted 52% to natural gas and 48% to oil). Its properties are mainly in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as the Marcellus Shale, which passes through Pennsylvania, New York, Ohio and West Virginia.
In the three months ended March 31, 2012, Enerplus’s cash flow per share fell 4.4%, to $0.86 from $0.90. That’s mainly due to lower gas prices, which offset gains from a rise in oil prices.
Enerplus has cut its monthly dividend by 50%, to $0.09 a share from $0.18. It now yields 7.8%.
The cut will let Enerplus continue with its plan to put $800 million toward its drilling and exploration efforts this year, up 3.9% from the $770 million it spent in 2011. That could push its production to as high as 88,000 barrels per day by the end of 2012.
Enerplus’s long-term debt is $858.4 million, or a manageable 31.8% of its market cap. The shares trade at a low 4.1 times the company’s forecast 2012 cash flow of $3.35 a share.
Enerplus is still a buy.
