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Enerplus CorpERF.TOHOLDMay 12, 2014Stock price when the opinion was issued
As of Jun 03, 2024. Market Open.
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.
Not a cheap stock, but probably deservedly so because they have been executing very well in both Canada and the US. They are also continuing to develop their long-term resource plays. Dividend of 4.5% is sustainable.