Enerplus Corp (USA) (NYSE:ERF) posted what the management termed as a fairly strong 4Q2015 and full-year 2015. However, given the lower crude oil prices, the management dims it fit to reduce dividend and capital budget to preserve cash. Enerplus posted losses for both the quarter and the year as a result of certain impairments.

Losses

Enerplus Corp (USA) (NYSE:ERF) reported a net loss of $625 million for 4Q was due in part to a non-cash impairment amounting to $266 million and another $426 million relating to deferred tax assets. For the full-year, the company reported a net loss of $1.5 billion, driven by $1.35 million in impairment charges.

Cost reduction

Despite the losses, Enerplus Corp (USA) (NYSE:ERF) did make progress in its cost reduction program during 2015. Operating costs and costs related to general and administration both declined beyond target. In 4Q, operating costs fell 10% from a similar period a year earlier. For the full-year, operating costs declined 5% from the previous year.

In 4Q, costs relating to general and administrative spending fell 33% from a year-ago quarter and for the full-year 2015 similar costs fell 6% from the prior year.

As part of the efforts to preserve cash, Enerplus Corp (USA) (NYSE:ERF) trimmed its workforce by 20% in 2015, divested certain assets and lowered its capital activity.

Production

Despite spending cuts in 2015, Enerplus Corp (USA) (NYSE:ERF) posted a 28% spike in production.

2016 outlook

Enerplus Corp (USA) (NYSE:ERF) has lowered its monthly dividend to $0.01 per share and the new dividend amount will take effect with April dividend payout. Dividends for April will come on April 15, 2016. Enerplus previously paid out monthly dividend of $0.03 per share. The low commodity price situation triggered the dividend cut.

Enerplus Corp (USA) (NYSE:ERF) also said it will only spend $200 million on capital program in 2016, which reflects a 60% step-down from 2015 capital spending.