ENERPLUS CORP. $16.05 (Toronto symbol ERF; Shares outstanding: 197.6 million; Market cap: $3.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.7%) produces an average of 82,108 barrels of oil equivalent per day (weighted 51% to natural gas and 49% 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 June 30, 2012, Enerplus’s cash flow per share was unchanged at $0.74 from a year earlier.
In June 2012, the company cut its monthly dividend by 50%. It now yields 6.7%.
The cut will let Enerplus continue with its plan to put $800 million toward its drilling and exploration efforts in 2012, up 3.9% from the $770 million it spent in 2011. That could push its production as high as 88,000 barrels per day by the end of the year.
Enerplus’s debt is $1.1 billion, or a manageable 34.4% of its market cap. The shares trade at 5.1 times forecast 2012 cash flow of $3.15 a share.
Enerplus is still a buy.
