Slide 1: Enerflex Overview
Enerflex Overview
Slide 2: Forward Looking Statements
Forward Looking Statements • 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”, “could”, “exp
Slide 3: Company Overview
Company Overview
Slide 4: World Leading Pure-Play Supplier of Natural Gas Production and Processing Equipment
World Leading Pure-Play Supplier of Natural Gas Production and Processing Equipment Sales and Service Locations Revenue* $1.4 Billion Employees 3,200 Sales and Service Locations 60 Countries 13 * Trailing 12 months Calgary, Alberta Nisku, Alberta Casper, Wyoming Houston, Texas Perth, Australia Brisb
Slide 5: Specialty Customized Equipment
Specialty Customized Equipment Compression and Power • 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 • Amine sys
Slide 6: Q2 2012 Balanced and Diversified Revenue
Q2 2012 Balanced and Diversified Revenue Geographic Distribution Product Distribution Rentals Canada and International Northern U.S. 2% Parts and Services 21% Engineered 35% 36% Systems 77% 29% Southern U.S. and South America Q2 2012 Revenue $354.6 million Global Diversification with Core Parts, Ser
Slide 7: YTD 2012 Balanced and Diversified Revenue
YTD 2012 Balanced and Diversified Revenue Geographic Distribution Product Distribution Rentals Canada and International Northern U.S. 3% Parts and Services 19% 31% Engineered 39% Systems 78% 30% Southern U.S. and South America Q2 YTD 2012 Revenue $710.4 million 7
Slide 8: Divisional Overview
Divisional Overview
Slide 9: Canada and Northern United States
Canada and Northern United States Markets we Serve Manufacturing Facilities 4 Retrofitting Facilities 4 Service Locations 27 Service Vehicles 250 Specialize in Cold Weather Application of Enerflex Technologies g 9
Slide 10: Opportunities – Canada & Northern U.S.
Opportunities – Canada & Northern U.S. N.W.T North Maxhamish Loop Slave Point Cordova Embayment BC Horn River Platform Cabin AB SK Shale Gas Play British Col Cabin 0.4 Bcf/d, m Alberta yste 2.4 Bcf/d Ultimate Fau ovie Ft. Nelson Fort McMurray Horn River 4th Qtr. 2011 lt S umbia B Basin Demand Region
Slide 11: Distributor of GE's Gas Engines Division's Parts and Engines
Distributor of GE’s Gas Engines Division’s Parts and Engines Established Gas Drive Global LP to be the authorized Waukesha distributor in Canada, Australia, Indonesia, Papua New Guinea and 20 U.S. states, as well as the Jenbacher distributor in Canada. New Gas Drive Territory (Canada and Northern U.
Slide 12: Southern United States and South America
Southern United States and South America Markets we Serve Southern U.S. and South America • Houston main location (Packaging and Service) • 4 remote sales offices • 5 remote service offices Strategic Advantage • Tidewater Location for International • Lower Manufacturing Cost Base to Support Internat
Slide 13: Opportunities - Southern & Eastern U.S.
Opportunities - Southern & Eastern U.S. Sale & Service Locations Fabrication Plants Shale Gas Plays Fayetteville Marcellus gas field gas field 41 trillion cubic feet 262 trillion cubic of recoverable gas feet of recoverable gas Haynesville Eagle Ford shale field 250 trillion cubic sizeable quantitie
Slide 14: Houston Facility Expansion
Houston Facility Expansion 14
Slide 15: Australia
Australia • Solid market presence • Our projects include: • Gas-gathering infrastructure for LNG plants on Australia’s northwest shelf • Coal-seam gas compression systems for Queensland’s local gas demand and upstream LNG development • Compression booster stations along most of Australia’s pipeline
Slide 16: Opportunities - Australia
Opportunities - Australia Major Basin Activity ConocoPhillips Darwin LNG ExxonMobil / CBI LNG GDF Suez Woodside Sunrise (operating) Talisman / Horizon Stanley Bonaparte FLNG Chevron Greater Gorgon Santos GLNG QGC CLNG Woodside APLNG Arrow LNG (Shell) Eastern Star Gas Chevron (Santos) Wheatstone 16
Slide 17: Middle East North Africa
Middle East North Africa • Smallest share of revenue today • Expected to lead the world in natural gas production over the next 20 years • Region holds a total of 2,658 trillion cubic feet of natural gas • 44% of world’s proven gas reserves 17
Slide 18: Opportunities - Middle East North Africa
Opportunities - Middle East North Africa • Growth will be driven by: • LNG • Power Generation • Fertilizer • Water Desalination Kuwait • Abu Dhabi office with sales, Egypt Bahrain engineering and operations Qatar UAE management • Oman reached the commencement of our BOOM Oman contract for BP’s Khazz
Slide 19: Financial Overview
Financial Overview
Slide 20: Earnings
Earnings Three Months Ended June 30, Six Months Ended June 30, % % (Unaudited)($ millions, except percentages) 2012 2011 Change 2012 2011 Change Revenue $354.6 $246.5 43.9% $710.4 $561.0 26.6% Gross Margin 66.0 48.3 36.6 128.3 103.7 23.7 Operating Income 28.4 16.3 74.2 49.6 31.6 57.0 EBITDA1 38.2 27
Slide 21: Balance Sheet
Balance Sheet June 31, December 31, % Change (Unaudited)($ millions, except percentages) 2012 2011 Cash $102.9 $81.2 26.8% Working Capital 250.9 191.7 30.9 Debt 148.0 119.0 24.4 Shareholder’s Equity 857.0 836.3 2.5 Net Debt to Equity 0.05:1 0.05:1 21
Slide 22: Free Cash Flow
Free Cash Flow Three Months Ended June 30, Six Months Ended June 30, % % (Unaudited)($ millions, except percentages) 2012 2011 Change 2012 2011 Change EBITDA $38.2 $27.6 38.2% $69.5 $54.7 27.1% Net Capital Spending 11.4 (1.1) 1,179.9 22.2 0.7 2,871.5 Finance Costs 1.6 1.6 0.0 3.0 3.9 (24.5) Dividend
Slide 23: Q2 2012 Results – Business Segment Review
Q2 2012 Results – Business Segment Review Canada and Southern U.S. and International Three months ended June 30, Northern U.S. South America Millions of dollars except percentages 2012 2011 % 2012 2011 % 2012 2011 % Revenue $126.8 $101.6 24.8% $102.8 $62.4 64.6% $125.0 $82.5 51.7% Engineered 77.9 47
Slide 24: YTD 2012 Results – Business Segment Review
YTD 2012 Results – Business Segment Review Six Months ended Canada and Southern U.S. and International June 30, Northern U.S. South America Millions of dollars except percentages 2012 2011 % 2012 2011 % 2012 2011 % Revenue $277.5 $243.9 13.8% $215.6 $151.7 42.1% $217.3 $165.3 31.4% Engineered 179.0
Slide 25: Bookings and Backlog
Bookings and Backlog 1,200 986 1,000 928 921 833 800 722 672 644 600 511 419 393 400 453 388 333 315 315 200 267 244 231 223 157 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Backlog Bookings 25
Slide 26: Regional Backlog
Regional Backlog 1,200 1,000 177 165 136 800 195 285 151 103 297 331 600 136 190 307 211 169 146 400 96 102 524 161 212 466 454 200 174 379 362 360 331 162 130 117 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Canada and Northern US Southern US and South America International
Slide 27: Well Positioned as a Pure Play Supplier of Natural Gas and Processing Equipment
Well Positioned as a Pure Play Supplier of Natural Gas and Processing Equipment 27
Slide 28: Slide 28