Canadian oil and gas producer Enerplus continues to sell off non-core assets, announcing today it had divested a passel of crude oil and natural gas liquids properties in Canada for approximately $80 million. So far in 2013, Enerplus sold, or had commitments to sell, approximately $115 million of non-core assets representing approximately 1,400 barrels of oil equivalent per day of net production, net of acquisitions.
The properties being sold today consist primarily of non-operated properties producing approximately 1,000 BOE/day, and are being sold to multiple parties. Closings on the property are expected to occur during the third quarter of 2013.
In addition to these sales, Enerplus has also acquired an incremental 50% working interest in the Pouce Coupe South Boundary B Unit #1 for approximately $30 million, giving it a near 100% working interest in the property. Currently, Enerplus is the operator of the site, which produces approximately 375 BOE/day, and is primarily light oil waterflood property.
Despite the sale, Enerplus is maintaining its production guidance for 2013, and now expects annual average production volumes will average approximately 85,000 BOE/day, which would come in at the high end of its previous guidance range. All of its other operational guidance remains unchanged.
Enerplus says the divestitures it's made, coupled with the continued performance of its remaining operations, has improved its financial flexibility, while allowing its debt-to-funds flow ratio to remain unchanged from the end of 2012, or 1.6 times.
TD Securities acted as advisor to Enerplus on these divestments.
The article Enerplus Sells Non-Core Canadian Assets originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.