Aug 10 Enerplus Corp said quarterly
profit more than halved on weak natural gas and oil prices, and
that it expects capital expenditure for the year to rise as it
looks to boost production at the Fort Berthold oilfield in North
The Canadian oil and gas producer raised its average
production forecast for the second time in three months as it
expects Fort Berthold to boost exit volumes.
It expects production to average 83,500 barrels of oil
equivalent per day (boe/d), up from its prior forecast of 83,000
Enerplus, which said oil and liquids now represent nearly
half of its production volumes, expects to spend about C$850
million this year, up from C$800 million forecast earlier.
The net income fell to C$100.3 million ($101.1 million), or
51 Canadian cents per share, in the second quarter from C$268
million, or C$1.50 per share, a year earlier.
Average production for the company, which in 2010 acquired
Bakken and Marcellus assets, rose 9 percent to 82,108 barrels of
oil equivalent per day.
Natural gas prices have fallen 46 percent from last
year to average $2.4 per million British thermal unit in
April-June, while U.S. crude oil prices fell 9 percent.
Natural gas prices have remained weak in the last two years,
forcing companies such as Chesapeake and Encana
to shut in some gas output or trim spending on dry gas fields
and focus on oil and natural gas liquids.
Enerplus halved its monthly dividend to 9 Canadian cents in
June to cope with weak prices.
Shares of Enerplus, which has a market value of about C$2.80
billion, closed at C$14.39 on Thursday on the Toronto Stock