Newfield’s Bakken assets may be a fit for Enerplus, analyst says

|About: Enerplus Corporation (ERF)|By:, SA News Editor

Enerplus (NYSE:ERF) is said to be divesting its position in the Marcellus shale, and while the proceeds from a potential sale could be used to pare down debt, TD Securities analyst Aaron Bilkoski thinks ERF could be in position to make an acquisition that improves its drilling inventory and cash flow per share.

Bilkoski speculates that Newfield Exploration's (NYSE:NFX) Bakken assets would interest ERF, as such a purchase likely would prove to be accretive and transform ERF into an oil-weighted North Dakota Bakken pure-play.

Given ERF's previous success in the Bakken, including North Dakota's highest average initial production well results on existing acreage, "it stands to reason that the Bakken would be an area that Enerplus would like to expand its footprint if the right asset (and right valuation) presented itself," Bilkoski writes.

The analyst also thought SM Energy's (NYSE:SM) Bakken holdings might prove attractive to ERF, but that notion could be off the table following today's $785M sale of North Dakota assets to Oasis Petroleum.