ENVIRONMENTAL, SOCIAL & GOVERNANCE FOCUS … Focus Areas...Enerplus' ESG focus areas; and the...

ENVIRONMENTAL, SOCIAL & GOVERNANCE FOCUS AREAS

F E B R U A R Y 2 0 2 0

This presentation contains certain forward-looking information and statements ("forward-looking information") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "ongoing", "may", "will", "project", "plans", "budget", "strategy" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following: Enerplus' per barrel greenhouse gas (GHG) emissions intensity reduction target in 2020 and further GHG emissions initiatives, including enhanced emissions measurement and forecasting, evaluation of additional operational adjustments and of new technologies and opportunities to achieve GHG emissions; Enerplus' target to reduce freshwater use in its North Dakota operations in 2020 and further water management initiatives, including Enerplus' goal of reusing produced water broadly across its fracturing operations; Enerplus' plans with respect to continued stakeholder engagement, including its goal of developing a multi-year legacy fund directed at a measurable positive impact in one of more of Enerplus' operating areas; Enerplus' continued commitment to health and safety initiatives and zero incidents target, including through increased safety leadership engagement at the field level; Enerplus' continued efforts to developing a strong internal culture of responsibility and Board expertise and engagement initiatives; Enerplus' ability to achieve its targets; the opportunities related to setting and achieving targets, commitments and ambitions for Enerplus' ESG focus areas; and the capital costs associated with achieving the ESG focus area targets, commitments and ambitions.

The forward-looking information contained in this presentation reflects several material factors and expectations and assumptions of Enerplus including, without limitation: in respect of Enerplus' GHG emissions intensity reduction target and reduction in freshwater use in its North Dakota operations in 2020, Enerplus' ability to conduct its operations and achieve results of operations as anticipated; the successful implementation of Enerplus' proposed or potential strategies and plans to reduce GHG emissions and freshwater use; projected capital investment levels, the flexibility of Enerplus' capital spending plans and the associated source of funding; and Enerplus' ability to otherwise access and implement all technology necessary to achieve its 2020 GHG emissions and freshwater use reduction targets, the development and performance of technology and technological innovations and the future use and development of technology and associated expected future results; current commodity price and cost assumptions; the general continuance of current or, where applicable, assumed industry conditions; the continuation of assumed tax, royalty and regulatory regimes; Enerplus' ability to otherwise access and implement all technology necessary to achieve its targets, commitments and initiatives, the development and performance of technology and technological innovations and the future use and development of technology and associated expected future results; continuing collaboration with certain regulatory and environmental groups; the accuracy of the estimates of Enerplus' reserves and resources volumes; the continued availability of adequate debt and/or equity financing, cash flow and other sources to fund Enerplus' capital and operating requirements; availability of third party services; and the extent of its liabilities. Enerplus believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable but no assurance can be given that these factors, expectations, and assumptions will prove to be correct.

The forward-looking information included in this presentation is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: Enerplus' ability to develop, access or implement some or all of the technology necessary to efficiently and effectively operate assets and achieve expected future results, including in respect of GHG emissions and freshwater use reduction targets; the development and execution of implementing strategies to meet Enerplus' targets; impediments generally to Enerplus' operations in respect of Enerplus meeting its targets and commitments as they relate to its ESG focus areas; changes, including future decline, in commodity prices; changes in realized prices for Enerplus’ products; changes in the demand for or supply of Enerplus' products; unanticipated operating results, results from Enerplus' capital spending activities or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans by Enerplus or by third party operators of Enerplus' properties; increased debt levels or debt service requirements; changes in estimates of Enerplus' oil and gas reserves and resources volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; reliance on industry partners; failure to complete any anticipated acquisitions or divestitures; and certain other risks detailed from time to time in Enerplus' public disclosure documents (including, without limitation, those risks identified in its annual information form, management’s discussion and analysis, and Form 40-F at December 31, 2019).

Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Enerplus disclaims any intention or obligation to update or revise any forward-looking statements in this presentation as a result of new information or future events, except as may be required under applicable U.S. federal securities laws or applicable Canadian securities legislation.

All amounts are stated in Canadian dollars unless otherwise specified.

Forward looking information and statements

2

Enerplus’ approach to ESGE N V I R O N M E N T A L , S O C I A L & G O V E R N A N C E

3

Why is ESG important? Enerplus’ ESG integration

Long term company value can be materially impacted by ESG factors

Enerplus believes the integration of key ESG factors into its strategy will reduce risk and enhance long-term business resilience

Clear, consistent disclosure of ESG information allows stakeholders to make informed decisions

Identify focus areas that could materially impact company value

Establish objectives and targets relative to each material focus area

Integrate objectives and targets throughout the organization

Oversight

Senior leadership team is deeply involved in the identification of material focus areas and, in conjunction with the Board of Directors, in setting objectives and targets

Focus areas are integrated into enterprise risk management

Each focus area has oversight from the Board of Directors with management ensuring the Board has a comprehensive understanding of the issues

Enerplus’ core values

include a commitment to

develop its resources

responsibly and profitably,

while making a positive

contribution to society

1) Enerplus publishes an annual Corporate Sustainability Report in accordance with the Global Reporting Initiative (GRI) international standard. In its 2018 report, Enerplus expanded its disclosure to include Sustainability Accounting Standards Board (SASB) materiality metrics. Enerplus is also planning to report in accordance with the (IPIECA) for its 2019 report.International Petroleum Industry Environmental Conservation Association

DISCLOSURE & REPORTING FRAMEWORK(1)

CDP GRI SASB IPIECA

Material focus areas

4

ESGMATERIAL

FOCUS AREAS

Reduce GHG emissions intensity through technological innovation and operational efficiency.

Targeting a 10% reduction in GHG emissions per BOE in 2020(1)

Greenhouse Gas Emissions

Manage water use by deploying technology to reduce and reuse freshwater.

Targeting a 15% reduction in freshwater use per well completion, on average, in North Dakota in 2020

Water Management

CultureContinue to elevate our culture of accountability ensuring strong alignment of shared values.

Promote an inclusive and supportive workplace

Measure employee engagement and understand where gaps exist in culture alignment

Stakeholder EngagementCreate positive and sustainable impacts in the communities in which we operate.

Job creation

Improved infrastructure

Direct funding/community supportHealth and SafetyWe are committed to building a workplace where all injuries can be prevented.

Ambition is zero incidents

Board Expertise & EngagementEnsure the Board is highly-engaged and accountable, with a comprehensive and diverse skill-set.

Independent and diverse

Essential skills

Strong engagement

Effective succession

E N V I R O N M E N T A L , S O C I A L & G O V E R N A N C E

1) Enerplus’ GHG emissions reduction target addresses scope 1 and 2 emissions. Scope 1 emissions are direct emissions from owned and operated facilities. Scope 2 emissions are indirect emissions from the generation of purchased energy for the Company’s owned and operated facilities.

GHG emissionsM A T E R I A L E S G F O C U S A R E A S

1) Enerplus’ GHG emissions reduction target addresses scope 1 and 2 emissions. Scope 1 emissions are direct emissions from owned and operated facilities. Scope 2 emissions are indirect emissions from the generation of purchased energy for the Company’s owned and operated facilities.

5

As the global economy transitions to a lower carbon future, climate related policies and regulations around GHG emissions are becoming increasingly stringent, requiring businesses to adapt to support long-term resilience

Reducing emissions can also drive efficiencies - positively impacting financial and operational performance

Board oversight

Why it matters

Objectives & targets

Reduce GHG emissions intensity through technological innovation and operational efficiency

Using 2019 as a baseline, Enerplus is targeting a 10% reduction of its per-barrel of oil equivalent GHG emissions in 2020 (Scope 1 and 2)(1)

Further integrated emissions measurement and forecasting into planning and strategy

Infrastructure expansion is expected to support efforts to reduce levels of flared natural gas in North Dakota in 2020

Identify and evaluate additional opportunities to further reduce emissions

Oversight by all Board members

Safety & Social Responsibility Committee has accountability to ensure appropriate target setting and strategy implementation, and performance monitoring

2019 2020e

10% EMISSIONS INTENSITY

REDUCTION

GHG Emissions Intensity Reduction TargetCompany CO2e / BOE(1)

REDUCTION TARGET

Progress & next steps

Water managementM A T E R I A L E S G F O C U S A R E A S

6

Access to clean, reliable sources of water is a basic human right

Minimizing the use of freshwater in natural resource development is a foundational tenet of corporate responsibility and promotes greater social acceptability, thereby mitigating risk and supporting efficient operations


Board oversight

Why it matters


Manage water use by deploying technology to reduce and reuse freshwater

Using 2019 as a baseline, Enerplus is targeting a 15% reduction in its freshwater use per well completion, on average, in North Dakota in 2020

The vast majority (approximately 80% in 2018) of the water used in Enerplus’ operations is reused

Through technological and operational advancements, Enerplus is testing its ability to reuse produced water in hydraulic fracturing in North Dakota

Enerplus aims to reuse produced water broadly across its fracturing operations



Produced water

Freshwater

Water Use by Source(1)

80%of water volumes are reused

in freshwater use per well completion, on average, in North Dakota in 2020 by reusing produced water

TARGET:

15% REDUCTION

20%of water volumes are not reused

1) Based on 2018. 2) Produced water is water (brine) obtained from the hydrocarbon bearing formation strata during the extraction of oil and gas.

REDUCTION TARGET

Reused

Non-reused

Proportion of Water Reused(1)(2)

89%of water used is produced water

11%of water used is freshwater

CultureM A T E R I A L E S G F O C U S A R E A S

7

A culture with strong alignment of shared values is a competitive advantage and a critical performance driver for long term success

High levels of employee engagement supports innovation, corporate agility and ultimately productivity and profitability

A strong culture is fundamental to retaining and attracting the best talent


Board oversight

Why it matters


Continue to elevate a culture of accountability, ensuring strong alignment of shared values

Promote an inclusive and supportive workplace that welcomes diverse people and perspectives

Continually measure employee engagement and understand where gaps exist in culture alignment

Updated cultural beliefs to better align with company vision

Ongoing engagement and strategic communication from senior leadership to drive alignment throughout organization

Ongoing data collection to measure employee engagement and motivation

Identify gaps in culture alignment and prioritize resources accordingly


Compensation & Human Resources Committee has accountability to ensure appropriate target setting and strategy implementation, and performance monitoring

One Enerplus.I collaborate across the organization.

CULTURAL BELIEFS

Be Inclusive.I welcome diverse people and perspectives.

Communicate Effectively.I communicate honestly, respectfully, and in a timely manner.

Show Courage.I offer my opinions and ideas, even it feels risky.

Be Curious.I ask “What if?” and “Why not?”, always pursuing improvements in our business.

Live Well.I look after work and life, health and wellness, and support those around me.

Stakeholder engagementM A T E R I A L E S G F O C U S A R E A S

8

Strong, mutually beneficial relationships with stakeholders, based on principles of trust, respect and transparency are critical to Enerplus’ ability to execute its strategy effectively

Enerplus has a key development project on the Fort Berthold Indian Reservation (FBIR) in North Dakota and the company recognizes and respects their unique culture and history

Why it matters

Improve the lives of those living in and around the communities where we operate through job creation, improved infrastructure and direct funding

Dedicate a portion of the company’s community investment budget to initiatives that engage employees in community betterment

Spent over US$300 million with tribal businesses on FBIR(1) in 2019

Added water pipelines to move produced water and reduce local truck traffic on FBIR

Direct community support to tribal/cultural activities on FBIR of US$280K since 2012

Develop a multi-year legacy fund directed at a measurable positive impact in one or more of Enerplus’ operating areas



1) FBIR is Fort Berthold Indian Reservation in North Dakota. 2) MHA is the Mandan, Hidatsa, and Arikara Nation located on the Fort Berthold Indian Reservation in North Dakota.

$280 THOUSANDDirect community support to tribal/cultural activities on FBIR(1) since 2012Received MHA(2) Best in Community Support Award in 2019

LEGACY FUNDDeveloping a multi-year fund directed at a measurable positive impact in our operating areas


Board oversight


>$300 MILLIONSpent over US$300 million with tribal businesses on FBIR(1) in 2019

Health and SafetyM A T E R I A L E S G F O C U S A R E A S

9

Fundamentally, everyone has the right to a safe and healthy work environment

Keeping employees and contractors safe is not only ethical but can demonstrably improve the company’s efficiency and its culture, which leads to better overall performance


Board oversight

Why it matters


Keep people safe. Enerplus is committed to building a workplace where all injuries can be prevented. The company’s ambition is zero incidents

Enerplus is targeting top quartile safety performance in the basins in which it operates as measured by LTIF and TRIF

Focus on Serious Injury or Fatality potential (SIFp) events as leading indicators to help identify and reduce risks within operations

Increase safety leadership visibility at the field level through focused engagement

Ongoing strategic communication from senior leadership to drive alignment throughout organization

Improve effectiveness of leading indicators through data analytics



0.0

1.0

2.0

2013 2014 2015 2016 2017 2018 2019

LTIF TRIF

0

10

20

30

2013 2014 2015 2016 2017 2018 2019

Safety Performance – LTIF & TRIF(1)(2)

Employees and contractors

Motor Vehicle Incidents

1) TRIF: Total Recordable Injury Frequency, an industry standard safety metric. The number of recordable injuries (medical treatment, restricted work, lost time incidents) x 200,000 hours divided by total person hours.2) LTIF: Lost Time Injury Frequency, an industry standard safety metric. The number of lost time injuries (fatalities + lost work day cases) x 200,000 hours divided by total person hours.

0

10

20

30

2013 2014 2015 2016 2017 2018 2019

Serious Injury or Fatality Potential Events (SIFp)

Data not reported

Board expertise and engagementM A T E R I A L E S G F O C U S A R E A S

10

Effective boards play an integral role in strategy development and implementation

Robust corporate governance, including ethics, integrity and effective succession planning, help protect long-term shareholder value


Board oversight

Why it matters


Ensure the Board is highly engaged and accountable, with a comprehensive and diverse skill-set

Ensure a boardroom culture that balances collaboration with challenging conversations

Maintain an ambitious Board Chair who helps define a broad and forward-looking agenda

Continue to educate and train Board members

Continue to annually review the sustainability of each director’s continuation on the Board, along with annual election of directors

Continue to hold Board-driven shareholder engagement conversations


Corporate Governance & Nominating Committee has accountability to regularly review corporate governance and internal policies to reflect best practices. Further, the committee also assists the Board in identifying and evaluating director candidates

MEETING ATTENDANCE

69 8

69 8

2017 2018 2019meetings held avg. attendance

Financial literacy & expertise Capital markets Enterprise management M&A / strategic planning Corporate governance Change management Operations HS&E management Global experience Human resources Reserves evaluation Risk evaluation Legal & regulatory

BOARD SKILLS ASSESSED ANNUALLY9/10

INDEPENDENT DIRECTORS

SEPARATE CHAIR & CEO

40%FEMALE DIRECTORS

BOARD SUCCESSION

Annually review each director’s continuation on the Board

Annual election of directors

5.5 years AVERAGE TENURE OF

INDEPENDENT DIRECTORS

1.3AVERAGE # OF OUTSIDE PUBLIC

BOARD DIRECTORSHIPS

Essential SkillsIndependent & Diverse

Effective SuccessionStrong Engagement

Balanced tenure helps provide fresh perspectives while ensuring experience, continuity and stability exist on the Board

The Board of Directors

11

Elliott Pew (Director since September 2010)

Board Chair

Karen E. Clarke-Whistler (Director since December 2018)Corporate Governance & Nominating CommitteeSafety & Social Responsibility Committee

Michael R. Culbert (Director since March 2014)Audit & Risk Management CommitteeCompensation & Human Resources CommitteeCorporate Governance & Nominating Committee

Ian C. DundasPresident and CEO

Judith D. Buie (Director since January 2020)Audit & Risk Management CommitteeReserves Committee

Robert B. Hodgins (Director since November 2007)Audit & Risk Management CommitteeCompensation & Human Resources CommitteeCorporate Governance & Nominating Committee

Susan M. MacKenzie (Director since July 2011)Audit & Risk Management CommitteeReserves CommitteeSafety & Social Responsibility Committee

Jeffrey W. Sheets (Director since December 2017)Audit & Risk Management CommitteeCompensation & Human Resources CommitteeSafety & Social Responsibility Committee

Sheldon B. Steeves (Director since June 2012)Reserves CommitteeSafety & Social Responsibility Committee

Hilary A. Foulkes (Director since February 2014)Compensation & Human Resources CommitteeCorporate Governance & Nominating CommitteeReserves CommitteeSafety & Social Responsibility Committee

SUPPLEMENTAL INFORMATION

12

ESG - Board oversight

13

Audit & Risk Management Committee

Compensation & Human Resources

Committee

Corporate Governance &

Nominating Committee

Reserves Committee

Safety & Social Responsibility

Committee

Board Committees

Greenhouse Gas Emissions

Water Management

CultureStakeholder Engagement

Health & Safety

Board Expertise & Engagement

ESG oversight by the Board of Directors with material focus areas mapped to the applicable committee

Sustainability reporting

14

5 YEARSOF SUSTAINABILITY REPORTING

ENVIRONMENTAL, SOCIAL & GOVERNANCE FOCUS … Focus Areas...Enerplus' ESG focus areas; and the...

Documents

Transcript of ENVIRONMENTAL, SOCIAL & GOVERNANCE FOCUS … Focus Areas...Enerplus' ESG focus areas; and the...