Slide 1: Company Overview May 2015
- ENERFLEX - ‘ ™ — aa IMPROVED CAPABILITIES. NEW OPPORTUNITIES. COMPANY OVERVIEW May 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 $21.50 - $14.04 Market Capitalization $1.1 Billion Shares Outstanding 78.7 million Held by Management 1% Annualized Dividend $0.34/share Annualized Dividend Yield 2.4% 3
Slide 4: Q1 2015 Highlights
Q1 2015 Highlights • Engineered Systems backlog of $715.1 million as at March 31, 2015 (a 11% decrease over the same period in 2014). • Revenue for the three months ended March 31, 2015 was $475.3 million (a 43% increase over the same period in 2014). • EBITDA and EPS from continuing operations for
Slide 5: Full Cycle Natural Gas Solutions
Full Cycle Natural Gas Solutions Compression, Processing and Electric Power Solutions Revenue $1.9 Billion Market Cap $1.1 Billion Shares 78.7 Million Outstanding Annualized Dividend 2.4% Canada 52 Week High $21.50 Europe / CIS 52 Week Low $14.04 Employees 3,200 Sales & Service 65 Locations USA Asia
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 $1,923.6 2,000.0 $1,780.7 1,800.0 $1,501.7 1,600.0 $1,405.0 667.4 613.9 $1,227.1 1,400.0 Canada $1,067.9 500.4 1,200.0 438.2 444.0 1,000.0 USA 425.6 826.3 800.0 761.6 603.8 590.4 600.0 422.5 Rest of 392.6 World 400.0 360.6 397.5 376.4 405.2 429.9 200.0 249.7 - 2010 20
Slide 9: Revenue by Geographic Segment and Product Line
Revenue by Geographic Segment and Product Line Geographic Distribution Q1 2015 2014 20% 5% 36% 37% 23% 34% 37% 44% 43% Canada USA Rest of World Product Distribution Q1 2015 2014 8% 6% 5% 20% 37% 22% 37% 72% 73% Engineered Systems Parts and Service Rental
Slide 10: Enerflex – The Growth Strategy
Enerflex – The Growth Strategy June 2014 – Acquistion of Axip International $2,200,000 $160,000 $2,000,000 CAGR (Revenue) : 12.3% 2010 – Merger of Enerflex Systems CAGR (Operating Income) : 8.8% $140,000 Income Fund & TESI $1,800,000 $120,000 $1,600,000 2005 – $1,400,000 acquisition of $100,000 Oper
Slide 11: Liquefied Natural Gas
Liquefied Natural Gas
Slide 12: Global LNG Situation
Global LNG Situation Global LNG has become an increasingly attractive market driven by major natural gas discoveries, robust global demand and technological developments. Global LNG Themes • Numerous LNG projects are expected to enter the market within the next 15 years. Large Volume of • Suppliers
Slide 13: 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 14: Canada
Canada
Slide 15: 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 125 fully equipped service vehicles. • Specializes in cold weather compression and production and processing applications and l
Slide 16: 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 17: 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 17
Slide 18: United States of America
United States of America
Slide 19: 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 20: US Growth Opportunities
US Growth Opportunities Enerflex location 20
Slide 21: Gulf Coast LNG Overview
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 22: Latin America
Latin America
Slide 23: 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 24: International
International
Slide 25: 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 26: 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 27: 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 28: Financial Overview
Financial Overview
Slide 29: Focused on Profitable Growth
Focused on Profitable Growth $600,000 25.0% 20.7% $500,000 19.3% 18.2% 18.4% 20.0% 17.7% 15.7% 19.3% $400,000 17.3% 17.8% 16.9% 15.0% 15.4% $300,000 9.5% 8.7% 8.7% 10.0% 8.2% 6.4% 6.8% 7.6% $200,000 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 2012 2012 2013 2013 2013 2
Slide 30: Regional Backlog
Regional Backlog 1,200 1,000 219 177 159 800 333 136 304 292 281 300 323 600 248 308 326 354 143 198 228 207 203 153 270 244 400 330 412 210 233 297 410 458 255 367 325 297 363 459 200 423 409 370 297 255 241 223 196 203 152 156 172 162 129 116 116 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q
Slide 31: Financial Strength
Financial Strength 2011 2012 2013 2014 2015 TTM EBIT $ 84,841 $ 117,341 $ 87,341 $ 125,734 $ 151,722 Depreciation & Amortization 42,171 39,487 39,595 56,799 65,239 Cash Taxes Paid (27,134) (16,951) (27,106) (34,667) (38,314) Cash Interest Paid (8,864) (6,520) (5,960) (9,863) (11,658) Capital Expendi
Slide 32: Investment Thesis
Investment Thesis Proven track record of creating shareholder value through Growth and Dividend Income. • Operating income has grown at a CAGR of 8.8% over the past 10 years. • Increased dividend by 42% over the past three years. • Strong Free Cash Flow. Enerflex has been able to generate strong FCF
Slide 33: Well Positioned as a Natural Gas Compression and Processing Solutions Provider
WELL POSITIONED AS A NATURAL GAS COMPRESSION AND PROCESSING SOLUTIONS PROVIDER