Enerplus selling some Alberta natural gas assets
Enerplus Corporation has announced that it has entered into agreements to sell various Canadian natural gas properties located in Alberta. The total cash consideration for these assets is approximately $193 million, subject to closing adjustments, and is accretive on both a funds flow per debt adjusted share and production per debt adjusted share basis. Enerplus intends to use the proceeds to reduce outstanding indebtedness providing additional financial flexibility. The divestment of these properties further increases the focus and concentration within Enerplus' portfolio.
The divested assets, which are largely located around the Ansell, Minehead and Hanlan-Robb areas, consist of operated and non-operated properties and facilities. Production from the divested properties for 2016 was expected to be approximately 5,400 BOE per day (98 per cent natural gas). These properties are being divested under two separate transactions, both of which are expected to close during the first quarter of 2016.
Enerplus plans to update its 2016 guidance, which will include the impact of these transactions, with or before the release of its year-end 2015 results on February 19, 2016.
BMO Capital Markets is acting as exclusive financial advisor to Enerplus.