In the video below, Motley Fool energy analysts Taylor Muckerman and Joel South discuss Enerplus (NYSE:ERF). In 2013 the company is looking to cut its capital expenditures by 20%. Instead of going after a lot of natural gas plays like before, Enerplus is focusing 85% of capex on oils and liquids, and 75% of that directly at crude. This is going to give a higher rate of return -- over 25%. It is important for Enerplus to generate growth while keeping its dividend. If everything moves forward with this company, then as it increases its payments on debt its adjusted payout ratio can go down from 190% at year's end to 130% at the end of 2013. Enerplus is definitely moving in the right direction.
Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool owns shares of Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.