Enerplus Corporation (NYSE:ERF) Q3 2023 Earnings Call Transcript

Ian Dundas: And you’re looking specifically to our portfolio, you’re not talking sort of statewide stuff?

James Kubik: Statewide stuff looks like it’s — yes, I mean, with respect to the question on your portfolio specifically, what you’ve seen sort of gas to oil ratios and NGL production, just what’s driven the strength in recent quarters, Ian?

Ian Dundas: Sure. Yes. I guess, Wade, do you want to take both those? But they sort of work in concert.

Wade Hutchings: Yes, happy to. So I would say, in our portfolio, the GOR of our production, the biggest thing that drives that on a quarter-by-quarter basis is the nature of the new pads we’re bringing online. So even within Fort Berthold, there’s GOR differences. Some of the big pads we brought online actually in 2022 had a higher GOR ratio. Some of the pads we brought online at Little Knife have a little bit higher GOR. So that’s one of the underlying drivers for that trend for us. But I would say the other key one is we’re simply capturing more gas. As you have followed our emissions reduction efforts, and frankly, just our efforts to capture and produce and sell more gas, we’re essentially increasing that sales GOR ratio.

And then that ties into the second question around NGL production. Obviously, we’re — as we capture more gas, we are selling more NGLs as well. And then I’ll come back to my first point to close out the NGL answer. It also varies by the geographic area of where new pads come online. Those two fairly significant new pads in Little Knife not only did have a little bit higher GOR than average and enhance higher NGLs, the gas processing plants that we flow those through have a higher NGL yield or realization as well. And so that’s why you saw that tick up a bit in Q2 and Q3. I think we’ve tried to be clear. We actually see that come back a little bit closer to our historic average on oil cut for Q4.

James Kubik: That’s great color. That’s all from me. Thanks.

Operator: Thank you. And at this time, we have no other questions registered. Please proceed.

Ian Dundas: All right. Well, we’ll leave it there. I appreciate everyone’s attention. It’s a very busy reporting day. And have a nice, safe weekend. Thank you.

Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.