Not that there is anything wrong with Canada’s vast oil wealth, but former Canroy Enerplus Corporation (ERF) has found greener pastures here in the good old U.S. of A. The past year or so has been one of transition, in which ERF has plowed head-first into some of North America’s hottest shale regions, namely the Bakken and Marcellus.
In fact, during the 3rd quarter, ERF managed to see a 20% surge in production from the Bakken alone.
That focus on rising oil production and the shift away from its legacy assets in Canada have helped ERF shares surge 40% this year. Perhaps more importantly, Enerplus is also a dividend machine. Rising cash flows from higher priced WTI crude and natural gas have helped ERF continue its high Canroy-style payments.
ERF currently yields 5.5% and pays its dividend monthly.
Over the longer term, Enerplus’s switch towards the Bakken should continue to pay benefits for investors as production in the region is still surging. As we begin using that crude for both refining and exports, it should help ERF’s strengthen cash flows and that high dividend.