Enerplus: Strong Independent But The Focus On Buybacks Is Disappointing

Power Hedge
Investing Group Leader

Summary

  • Enerplus Corporation is a Canadian independent E&P that operates in the Bakken Shale and Marcellus region.
  • The company's production is a blend of crude oil and natural gas, which is nice as the fundamentals of both products are pretty good right now.
  • The company has strong free cash flow, but it is spending it on buybacks instead of dividends and this appears to be handicapping the company's total returns.
  • The company has a very strong balance sheet and minimal debt.
  • Enerplus is currently trading at a fairly attractive valuation.
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Oil pumps working under the sunrise sky

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Enerplus Corporation (ERF, ERF:CA) is a Canadian independent exploration and production company that primarily operates in the Bakken Shale. The company also has some significant exposure to the Marcellus Shale of Appalachia, which gives it some natural gas production. This is nice due

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This article was written by

Power Hedge
15.68K 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 funds that may hold positions in any asset mentioned in this article. I exercise no control over these funds and their holdings may change at any time without my knowledge.

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