Enerplus: Focus On Free Cash Flow Positions It To Reward Stockholders

Power Hedge
Investing Group Leader

Summary

  • Enerplus operates in the Canadian Waterfloods, the Bakken shale, and the Marcellus, which gives it a great deal of product diversity.
  • The company is highly focused on generating free cash flow, which should allow it to reward shareholders.
  • The company has been aggressively buying back its own stock, which it plans to continue doing this year.
  • The company has managed to bring down its leverage recently, which should help it weather through should energy prices turn against it.
  • The stock appears to be undervalued today.
  • Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More »

Oil worker checking work of the pumpjack in the oil well of the oil field using laptop

Nazar Rybak/E+ via Getty Images

Enerplus Corporation (ERF) is a relatively well-known independent exploration and production company that boasts fairly substantial assets in the United States and Canada. There are certainly some reasons to like this company right now as it has a relatively low debt load and

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This article was written by

Power Hedge
15.65K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long various energy-focused mutual funds that may hold positions in any stock mentioned in this article. I exercise no control over the holdings of these funds. All figures given in this article are in U.S. dollars at today's exchange rate unless otherwise stated.

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