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Enerplus Cuts 2020 Capital Spending Budget

Enerplus Corp. (ERF,ERF.TO) said that it has reduced its 2020 capital spending budget to C$325 million, or about 40% at the midpoint of prior 2020 guidance of C$520 to C$570 million, citing decline in crude oil prices.

The reduced 2020 capital budget is focused on prioritizing the company's balance sheet and free cash flow at US$35 per barrel WTI and US$2.25 per Mcf NYMEX.

The company plans to cease all operated drilling and completions activity in North Dakota by mid-April. Based on the revised plan, the company will have 32 gross drilled uncompleted wells in inventory in North Dakota, creating valuable flexibility for rapid future capital deployment.

Under this reduced capital program, 2020 crude oil and natural gas liquids production is expected to average between 50,000 to 52,000 barrels per day from the prior outlook of 57,000 to 60,000 barrels per day.

Enerplus estimates it could sustain liquids production about flat to 2020 over the next several years with capital spending at similar levels to the revised 2020 plan. Total average production guidance for 2020 has also been reduced to 89,000 to 92,000 BOE per day from the previous outlook of 96,000 to 100,000 BOE per day.

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