CALGARY — North Dakota oil and gas producer Enerplus Corp. says it is restoring crude production halted during the pandemic-linked oil price crash in May despite a court ruling that the Dakota Access Pipeline must be shut down.
The Calgary-based company says it is confident that crude-by-rail shipping from the state can be ramped up if the decision, stayed by an appeal court earlier this week, is restored and the pipeline is out of commission for a longer term.
Enerplus reported a second-quarter net loss of $609 million or $2.74 per share due to non-cash impairments of $630 million on assets and goodwill as a result of market volatility and low commodity prices, compared with a net profit of $85 million in the same period of 2019.
Excluding those impairments and other non-cash or non-recurring items, its adjusted net loss was $41.2 million, versus adjusted net income of $74.4 million a year earlier.
Analysts said the company’s financial results beat consensus estimates, as did second-quarter production of 87,360 barrels of oil equivalent per day, down 11 per cent from the first quarter.
Enerplus reinstated its 2020 guidance cancelled earlier this year, calling for an unchanged capital budget of $300 million and average production of between 88,000 and 90,000 boe/d.
“We have seen extraordinary volatility in the first six months of 2020 as the COVID-19 pandemic and OPEC supply issues meaningfully impacted the industry,” said CEO Ian Dundas in a statement.
“Enerplus took decisive action to respond to this instability, enabling the company to navigate this period and maintain financial resilience.”
This report by The Canadian Press was first published Aug. 7, 2020.
Companies in this story: (TSX:ERF)
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