Enerplus: Free Cash Flow Plus Production Growth Rewards Shareholders

Power Hedge
Investing Group Leader

Summary

  • Enerplus is one of the few Canadian independents with substantial operations in the United States.
  • The company produces a relatively balanced mix of crude oil and natural gas, which is quite nice to see given the fundamentals of each of these products.
  • Enerplus is returning about 50% of its free cash flow to its investors in the form of share buybacks, which could have a positive impact on the stock price.
  • The company is planning to grow its production at a 3% to 5% rate growing forward, which should have a positive impact on its FCF over the next five years.
  • Enerplus is currently trading at an incredibly attractive valuation considering its forward earnings per share.
  • 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 »

Fracking Oil Well

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Enerplus Corporation (ERF) is a Canadian independent exploration and production company that boasts operations in three different resource basins throughout North America. Investors in the company have certainly benefited from the tremendous surge in energy prices that has occurred over the

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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 any stock mentioned in this article. I exercise no control over the contents of these funds.

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