Enerplus (NYSE:ERF) is a rather interesting study of the oil and gas industry. Investors who first look at the company are probably blown away by its greater than 5% dividend yield, but may get scared when they see that dividend has been cut recently enough to bring back bad memories. It has some very attractive U.S. assets in locations including the Bakken and the Marcellus, but the real value for this company actually lies in the tried-and-true conventional oil business in Canada.
How exactly can Enerplus get more out of its Canadian waterflooding business than the Bakken, which is one of the most prolific shale oil formations in the U.S.? It all comes down to how efficiently the company can operate in the Bakken, as well as the asset type it needs to cover that huge dividend. Find out more in the video below on why the Bakken may not be Enerplus' golden ticket and why the company should follow the path of Denbury Resources (NYSE:DNR) in managing its Canadian assets.
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