Slide 1: Company Overview
- ENERFLEX - ‘ ™ — aa IMPROVED CAPABILITIES. NEW OPPORTUNITIES. COMPANY OVERVIEW March 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 $20.99 - $14.64 Market Capitalization $1.3 Billion Shares Outstanding 78.5 million Held by Management 1% Annualized Dividend $0.34/share Annualized Dividend Yield 2.2% 3
Slide 4: Q4 2014 Highlights
Q4 2014 Highlights • Engineered Systems backlog of $916.5 million as at December 31, 2014 (a 15% increase over the same period in 2013) • Revenue for the twelve months ended December 31, 2014 was $1.8 billion (a 27% increase over the same period in 2013) • Normalized EBITDA and EPS for the twelve mo
Slide 5: Full Cycle Natural Gas Solutions
Full Cycle Natural Gas Solutions Compression, Processing and Power Generation Solutions Revenue * $1.8 Billion Market Cap $1.3 Billion Shares 78.5 Million Outstanding Annualized Dividend 2.2% 52 Week High $20.99 52 Week Low $14.64 Employees 3,500 Sales & Service 67 Locations * Trailing 12 months Cal
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. • Power generation solutions (250 kW to 50 MW). • Construction and product installation. • Contract operations and maintenance. • Global Platin
Slide 8: Enerflex – The Single Source
Enerflex– The Single Source 8
Slide 9: Consolidated Revenues – Regions
Consolidated Revenues – Regions $1,780.7 1,800.0 $1,501.7 1,600.0 $1,405.0 682.8 1,400.0 $1,227.1 $1,067.8 592.1 Canada & 1,200.0 524.9 Northern US 1,000.0 524.2 Southern US 453.8 800.0 & Latin 799.1 America 512.1 503.7 600.0 342.3 International 364.3 400.0 360.6 397.5 376.4 200.0 249.7 298.9 - 2010
Slide 10: Revenue by Geographic Segment and Product Line
Revenue by Geographic Segment and Product Line Geographic Distribution 2014 2013 17% 27% 5% 37% 38%37% 37% 45% 36%3 Canada and Northern United Southern United States and Latin International States America Product Distribution 2014 2013 5% 4% 5% 22% 37% 23% 37% 73% 73% Engineered Systems Parts and Se
Slide 11: Enerflex – The Growth Strategy
Enerflex – The Growth Strategy June 2014 – Acquistion of Axip International $2,000,000 $140,000 CAGR (Revenue) : 12.3% 2010 – Merger of $1,800,000 Enerflex Systems CAGR (Operating Income) : 8.8% Income Fund & TESI $120,000 $1,600,000 $1,400,000 $100,000 2005 – acquisition of Operating Income ($ 000'
Slide 12: Liquefied Natural Gas
LIQUEFIED NATURAL GAS
Slide 13: 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 14: 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 15: Canada
CANADA
Slide 16: Canada – Markets we Serve
Canada – Markets we Serve Manufacturing Facilities 3 Retrofitting Facilities 2 Service Locations 28 Service Vehicles 220 Calgary Specialize in Cold Weather Compression and Processing Applications 16
Slide 17: 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 18: Gas Drive Global LP
Gas Drive Global LP Global Platinum Power Packager Gas Drive packages and services Waukesha engines worldwide and is the authorized distributor for GE’s Jenbacher engines and parts in Canada. 18
Slide 19: 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 19
Slide 20: United States of America
UNITED STATES OF AMERICA
Slide 21: United States – Markets we Serve
United States – Markets we Serve • 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 Houston base to support international proje
Slide 22: US Growth Opportunities
rowth Opportunities Driver LNG exports Power generation — accelerated switching from coal to gas Increased gas exports to Mexico “Industrial Renaissance” (fertilizer, petro-chemical manufacturing demand) Fuel-switching to gas in transportation and related sectors* Potential total Five Drivers of Inc
Slide 23: 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 24: Latin America
LATIN AMERICA
Slide 25: Latin America
Latin America • Strong focus on compression and processing equipment Mexico and after-market service. • Modern and technologically up-to-date equipment. Colombia • Compression fleet of 405 units with approximately 248,000 horsepower. Peru Brazil • 3 gas treating facilities. • Committed rental contra
Slide 26: International
INTERNATIONAL
Slide 27: AustralAsia
AustralAsia GLADSTONE QCLNG APLNG • Projects include: GLNG GALILEE ARROW • Gas-gathering infrastructure for LNG plants on COOPER BOWEN/ SURAT Australia’s northwest shelf GUNNEDAH • Coal-seam gas compression systems ICHTHYS for Queensland’s local SUNRISE PRELUDE gas demand and BROWSE SCARBOROUGH upst
Slide 28: SE Asia
SE 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
Slide 29: Middle East / North Africa
Middle East / North 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
Slide 30: Financial Overview
FINANCIAL OVERVIEW
Slide 31: Focused on Profitable Growth
Focused on Profitable Growth $600,000 25.0% 20.7% $500,000 19.3% 18.2% 18.4% 20.0% 15.7% 19.3% 17.8% $400,000 17.3% 16.9% 15.0% 15.4% $300,000 9.5% 8.7% 8.7% 10.0% 8.2% 6.5% 6.8% $200,000 7.6% 5.4% 4.7% 5.0% $100,000 3.0% $- 0.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2012 2013 2013 2013 2013 2014 2014
Slide 32: Regional Backlog
Regional Backlog 1,200 1,000 242 207 182 800 332 309 296 303 154 307 324 600 270 285 331 159 217 227 297 220 164 252 400 307 228 190 211 278 455 435 243 359 280 362 472 459 200 423 409 370 297 255 241 223 196 203 152 129 116 125 130 98 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3
Slide 33: Financial Strength
Financial Strength 2010 2011 2012 2013 2014 EBIT $ 60,118 $ 84,841 $ 117,341 $ 87,341 $ 125,734 Depreciation & Amortization 39,113 42,171 39,487 39,595 56,799 Cash Taxes Paid (10,989) (27,134) (16,951) (27,106) (34,667) Cash Interest Paid (16,195) (8,864) (6,520) (5,960) (9,863) Capital Expenditures
Slide 34: 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 35: Well Positioned as a Natural Gas Compression and Processing Solutions Provider
Well Positioned as a Natural Gas Compression and Processing Solutions Provider