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Opinions Eric Nuttall
Enerplus CorpERF.TOCOMMENTJan 13, 2014
Eric NuttallStock price when the opinion was issued
As of Jun 03, 2024. Market Open.
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At least 15 years of drilling inventory in Bakken play. Very strong balance sheet (almost no debt). Expecting ~60% of free cash flow returning to shareholders. Trading under 3x cash flow with $80 oil. Expecting ~$29 share price next year given $80 oil. Expecting strong performance in 2024. Value proposition very strong.
Eric NuttallOwns ~5 million shares in company (~5% of shares).
Oil assets very profitable.
Management team very good.
Expecting ~60% of free cash flow being returned to shareholders.
Current share price under-valued.
Eric Nuttall
Pure USA Bakken & Marcellus play.
12-15 years of drilling inventory.
Trading at 2.2x times cash flow (fair value = 5x).
Expecting meaningful appreciation of shares.
Eric NuttallEric Nuttall
Jason MannEric NuttallEric NuttallEric NuttallEric Nuttall
Huge winner last year. An example of how a stock can be unfairly punished and unfairly cheap and where you need people’s perception to change. 25% of their production is in the US Bakken play so are not exposed to as much differentials. About 25% of production in the US Marcellus play, so are not as exposed as much to the basis, the difference between Canadian and US natural gas. Still trading at a discount to some of its peers. Trading at around 6 times and pays a pretty healthy dividend. However, payout ratio is about 100%, so thinks they are using a little debt to pay some of the dividend. You could be looking at 15%-20% upside this year.