Slide 1: Company Overview
COMPANY OVERVIEW November 2015
Slide 2: Forward Looking Statements Advisory
Forward Looking Statements Advisory • This presentation is for information purposes only and is not intended to, and should not be construed to, constitute an offer to sell or the solicitation of an offer to buy securities of Enerflex. • Certain statements containing words such as “anticipate”, “cou
Slide 3: Market Information
Market Information TSX Ticker Symbol EFX 52-Week Price Range $17.75 - $10.03 Market Capitalization $1.1 billion Shares Outstanding 79.1 million Held by Management 1% Annualized Dividend $0.34/share Annualized Dividend Yield 2.4% 3
Slide 4: Q3 2015 Highlights
Q3 2015 Highlights • Engineered Systems backlog and bookings of $477.6 million and $237.3 respectively as at September 30, 2015 (a 10% decrease in backlog and a 174% increase in bookings over the previous quarter). • Revenue for the three months ended September 30, 2015 was $425.2 million (a 6% decr
Slide 5: Full Cycle Natural Gas Solutions
Full Cycle Natural Gas Solutions Compression, Processing and Electric Power Solutions Canada Europe / CIS USA Asia MEA Latin America Australia Calgary, Alberta Calgary, Alberta Houston, Texas Perth, Australia Brisbane, Australia
Slide 6: Standardized and Customized Equipment
Standardized and Customized Equipment Compression and Process • Reciprocating and rotary screw compression applications. • Small to large horsepower (200 hp – 10,000 hp). • Conventional and unconventional plays. Production and Processing • Systems for gas plants (dew point) and refrigeration systems
Slide 7: Recurring Revenue Focus
Recurring Revenue Focus • Full after-market services for gas engine compressors and power generators. • Full turnkey rental opportunities in growth markets. • Electric power solutions (250 kW to 50 MW). • Construction and product installation. • Contract operations and maintenance. • Global Platinum
Slide 8: Consolidated Revenues – Regions
Consolidated Revenues – Regions $1,855.6 2,000.0 $1,780.7 1,800.0 $1,501.7 1,600.0 $1,405.0 613.9 701.5 $1,227.1 1,400.0 Canada $1,067.9 500.4 1,200.0 438.2 444.0 1,000.0 USA 425.6 800.0 761.6 800.6 603.8 590.4 600.0 422.5 Rest of 392.6 World 400.0 360.6 397.5 376.4 405.2 353.6 200.0 249.7 ‐ 2010 20
Slide 9: Revenue by Geographic Segment and Product Line
Revenue by Geographic Segment and Product Line Geographic Distribution YTD 2015 2014 5% Canada USA Rest of World Product Distribution YTD 2015 2014 5% 37% 37% Engineered Systems Parts and Service Rental
Slide 10: Enerflex – The Growth Strategy
Enerflex – The Growth Strategy CAGR (Revenue) : 11.8% CAGR (Operating Income) : 11.8% June 2014 ‐ Acquisition of Axip International 2010 – Merger of Operating Income ($ 000's) Enerflex Systems Revenue ($ 000's) 2005 ‐ Income Fund & TESI Acquisition of HPS Group 2004 2005 2006 2007 2008 2009 2010 201
Slide 11: Worldwide LNG Opportunities
Worldwide LNG Opportunities 2017 – 2020 Projected 2.8 – 6 BCF per day first LNG exports potential LNG exports from two to four projects by 2025 CANADA UNITED STATES >11 BCF per day expected LNG exports in AUSTRALIA 2020 2016 Expected first LNG exports 3.2 BCF per day LNG Significant LNG shipments, c
Slide 12: Canada
Canada
Slide 13: Canada
Canada • Head office and two manufacturing facilities located in Calgary, Alberta. • 18 Sales and Service locations situated in liquids-rich plays across the region. • Over 200 qualified service technicians. • Specializes in cold weather compression and production and processing applications and lev
Slide 14: LNG Projects
LNG Projects Exports of LNG to the Asian market will help support development in the Montney, Horn River, Liard and Cordova Basins. • LNG has received support Proposed and Existing Natural Gas Pipelines from Canadian provincial and federal governments. • LNG buyers are attracted to secure supply fro
Slide 15: Electric Power Opportunities
Electric Power Opportunities Industrial Applications • Island Mode Prime Power Co-Generation • Combined Heat and Power Applications Energy Export • Flare Gas to Energy • Landfill Gas to Energy • Biogas to Energy 15
Slide 16: United States of America
United States of America
Slide 17: United States of America
United States of America • Regional head office and manufacturing facility in Houston, Texas. • Sales and Service locations situated across the region. • Strategic Advantages: • Tidewater location for international shipping. • Lower manufacturing cost base to support Houston international projects.
Slide 18: US Growth Opportunities
US Growth Opportunities Enerflex location 18
Slide 19: Gulf Coast LNG Liquefaction Capacity Increase
Gulf Coast LNG Overview Massive industrial projects near abundant source gas could add 183 MMtpa of liquefaction capacity by 2020. A favorable regulatory environment makes the Gulf Coast appealing for investors. Gulf Coast Liquefaction Facilities(1) First LNG Plant Capacity Plant Capacity Shipment C
Slide 20: Rest of World
Rest of World
Slide 21: Latin America
Latin America • Strong focus on compression and processing equipment and after-market service. Mexico • Modern and technologically up-to-date equipment. • Compression fleet of 405 Colombia units with approximately 248,000 horsepower. Peru • 3 gas treating facilities. Brazil • Committed rental contra
Slide 22: Australia
Australia GLADSTONE QCLNG APLNG • Projects include: GLNG • Gas-gathering GALILEE ARROW infrastructure for LNG plants on COOPER BOWEN/ Australia’s northwest SURAT shelf GUNNEDAH • Coal-seam gas compression systems ICHTHYS for Queensland’s local SUNRISE gas demand and PRELUDE BROWSE upstream LNG SCARB
Slide 23: Asia
Asia • Indonesia is currently suffering from gas shortages and looking for ways to increase production through unconventional production. • Focus on offshore production platforms and floating production units. Bangkok • Compression rental fleet of 29 Kota Kinabalu units with approximately 15,000 Kua
Slide 24: Middle East/Africa
Middle East/Africa • Expected to lead the world in natural gas production over the next 20 years with an estimated 44% of the worlds proven reserves. • Growth will be driven by: • LNG; • Power generation; Bahrain • Desalination plants; and UAE Oman • Cooling needs. • Compression rental fleet 16 unit
Slide 25: Financial Overview
Financial Overview
Slide 26: Focused on Profitable Growth
Focused on Profitable Growth $600,000 25.0% 20.7% 20.9% $500,000 19.3% 18.2% 18.4% 20.3% 20.0% 17.7% 15.7% 19.3% $400,000 17.3% 17.8% 16.9% 15.0% 15.4% $300,000 9.5% 9.8% 8.7% 8.7% 10.0% 8.2% 7.6% 6.4% 6.8% $200,000 9.5% 5.4% 7.6% 4.7% 5.0% $100,000 3.0% $‐ 0.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 27: Regional Backlog
nal Backlog Ql Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 Ql Q2 Q3 Q4 Qi Q2 Q3 11 #11 #11 #11 #12 «212 «22 «12 «13 «13 13 13 #14 #14 #14 «214~«15~ «15 «15 GS Canada GE USA (2553 Rest of World —O— Bookings 27
Slide 28: Financial Strength
Financial Strength 2011 2012 2013 2014 2015 TTM EBIT $ 84,841 $ 117,341 $ 87,341 $ 125,734 $ 151,242 Depreciation & Amortization 42,171 39,487 39,595 56,799 72,075 Cash Taxes Paid (27,134) (16,951) (27,106) (34,667) (36,968) Cash Interest Paid (8,864) (6,520) (5,960) (9,863) (15,837) Capital Expendi
Slide 29: Investment Thesis
Investment Thesis Proven track record of creating shareholder value through Growth and Dividend Income. • Operating income has grown at a CAGR of 11.8% over the past 11 years. • Increased dividend by 42% over the past three years. • Strong Free Cash Flow. Enerflex has been able to generate strong FC
Slide 30: Well Positioned as a Natural Gas Compression and Processing Solutions Provider
WELL POSITIONED AS A NATURAL GAS COMPRESSION AND PROCESSING SOLUTIONS PROVIDER