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Opinions Eric Nuttall
Enerplus CorpERF.TOCOMMENTJul 25, 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
This is a solid name. Management has done an awesome job of deleveraging over the past couple of years and refocusing their drilling efforts. Likes that 50% of their production is US, Bakken and then Marcellus. Marcellus rates have been getting better over time, just as a lot of operators have. Do have some pricing risks, which they have been open about. Thinks that 30%-40% of their gas is exposed to the blowout in the basis differential. He saw the upside in their Bakken acreage. Stock has been trading at it really big discount, but over time that differential has narrowed. Feels the real easy money has been made. As a long-term investor looking for yield, it is a very solid name.