Enerplus Story

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ERF -- USA Stock  

USD 4.84  0.16  3.20%

Enerplus Corp is scheduled to announce its earnings today. The next earnings report is expected on the 14th of May 2021. Enerplus Corp Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 161 Million. The current year Average Equity is expected to grow to about 1.7 B, whereas Working Capital is forecasted to decline to (63.2 M). As many of us are excited about energy space, it is fair to digest Enerplus Corp as a unique alternative.
Published six days ago
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Should I sell my Enerplus (NYSE:ERF) holdings?
The company has 497.04 M in debt with debt to equity (D/E) ratio of 0.73, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Enerplus Corp has an asset utilization ratio of 46.68 percent. This indicates that the company is making $0.47 for each dollar of assets. An increasing asset utilization means that Enerplus Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Enerplus Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Enerplus Corp, including all of Enerplus Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Enerplus Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Enerplus Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Enerplus Total Liabilities

Enerplus Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Enerplus Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Enerplus Corp balance sheet include debt obligations and money owed to different Enerplus Corp vendors, workers, and loan providers. Below is the chart of Enerplus short long-term liabilities accounts currently reported on its balance sheet.
You can use Enerplus Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Enerplus Corp's Liquidity

Enerplus Corp financial leverage refers to using borrowed capital as a funding source to finance Enerplus Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Enerplus Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Enerplus Corp's total debt and its cash.

Going after Enerplus Financials

The latest price surge of Enerplus Corp could raise concerns from shareholders as the firm it trading at a share price of 4.39 on 708,184 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.27. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Enerplus Corp partners.

Asset Breakdown

2.4 B
Assets Non Current
538.6 M
Tax Assets
Current Assets
Total Assets2.74 Billion
Current Assets423.46 Million
Assets Non Current2.41 Billion
Goodwill228.99 Million
Tax Assets538.65 Million

Is Enerplus showing appearance of lower volatility?

Semi deviation is down to 2.54. It may indicate a possible volatility dip. Enerplus Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Enerplus Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Enerplus Corp future alpha.

Our Conclusion on Enerplus Corp

Although other companies in the oil & gas e&p industry are either recovering or due for a correction, Enerplus Corp may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 30 days horizon, it may be a good time to buy new shares of Enerplus or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Enerplus Corp.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Enerplus Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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