Enerplus Slips To Loss In Q2 On Impairment Charge; Lifts Production View

(RTTNews) - Enerplus Corp. (ERF.TO, ERF), an explorer of crude oil and natural gas, reported Friday that its second-quarter net loss was $312.54 million including a non-cash asset impairment charge of $497 million, while last year's net income was $39.96 million.

The impairment reflects the low commodity prices in the fourth quarter of 2014 and the first half of 2015.

Funds flow was $160.44 million, down from $213.21 million last year. Funds flow climbed 47% sequentially, primarily due to higher production, lower costs and improved crude oil prices, and despite slightly weaker gas pricing.

Production volumes grew to 107,429 BOE per day from 103,987 BOE per day last year. This growth was primarily driven by increased activity in North Dakota.

As a result of continued operational outperformance, the company increased its average annual production guidance range to 100,000 - 104,000 BOE per day from 97,000 - 103,000 BOE per day projected earlier. The company expects approximately 44,000 - 46,000 barrels per day of crude oil and natural gas liquids.

Based on cost savings realized to date and increased production target, the company lowered annual operating cost guidance to $9.25 per BOE from $9.75 per BOE.