Slide 1: Enerflex Ltd. Corporate Presentation
September 2024 Enerflex Ltd. Corporate Presentation All amounts presented in US Dollars unless otherwise stated
Slide 2: Enerflex at a Glance
Enerflex at a Glance Transforming Energy for a Sustainable Future Committed to delivering the fuel of the future creating shareholder value as we meet demand TSX NYSE EFX EFXT Eastern Hemisphere Annual dividend Common shares outstanding (2) CAD$0.10 124 MM /share North America Percentage of gross ma
Slide 3: Compelling Shareholder Value Proposition
Compelling Shareholder Global Market Leader in Natural Gas and Energy Strategically located where the resource is, with all product lines designed to Value Proposition Transition Solutions deliver on the world’s energy needs, including energy transition expertise Differentiated global platform strat
Slide 4: Executing Strategic Priorities to Drive Shareholder Value
Executing Strategic Priorities to Drive Shareholder Value STRATEGIC P RIORITIES 1 2 3 Maximize free cash flow to Complete the integration of Pay sustainable base dividend reduce leverage. Exterran and optimize and generate strong cash flow business across product lines to drive medium to long-term B
Slide 5: Positioned to Capitalize on Growing Demand for Natural Gas
Positioned to Capitalize on Growing Demand for Natural Gas • Global demand for natural gas is forecasted to grow by 15% over the next decade(1) • U.S. and Canadian supply will need to grow by ~25% to meet this demand(2) Global Natural Gas Supply by Region (Bcf/d)(1) U.S. and Canada Gas Production (B
Slide 6: Demand for Enerflex's Services in North America will Continue to Grow
Demand for Enerflex’s Services in North America will Continue to Grow U.S. and Canada Gas Supply & Compression Outlook(1) Incremental Demand for Compression & Processing >25 Bcf/d >10 MM HP 160 80 U.S. Canada Total Installed Compression HP 140 75 growth in U.S. and Canada gas supply (2023 – 2033)(1)
Slide 7: LNG Developments Support Growth in Gas Supply from U.S. and Canada
LNG Developments Support Growth in Gas Supply from U.S. and Canada U.S. and Canada LNG Export Capacity by Project (Bcf/d) (2018 – 2028)(1) LNG export capacity from U.S. and Canada is expected to more than double 35 30 Calcasieu Pass 2 Cedar LNG 25 Woodfibre LNG Rio Grande Port Arthur 18 Bcf/d Costa
Slide 8: Electrical Power Provides Optionality for U.S. Gas Demand
Electrical Power Provides Optionality for U.S. Gas Demand Data Center Power Demand (TWh)(1) Potential Demand from Data Centers (Bcf/d)(2) 9.0 1,200 Actual Forecast 8.0 1,000 7.0 6.0 800 5.0 600 4.0 400 3.0 2.0 200 1.0 - 0.0 2023 2024 2025 2026 2027 2028 2029 2030 2027 2015 2016 2017 2018 2019 2020 2
Slide 9: Market Leader in Modular Energy Solutions
Market Leader in Modular Energy Solutions Serving the growing need for natural gas and energy transition solutions through a differentiated and vertically integrated suite of products and services Critical energy infrastructure that Enerflex Energy owns, operates, and maintains under contract Infras
Slide 10: Premier Diversified Customer Base
Premier Diversified Customer Base Top 10 customers that are NOC or Average relationship with top 10 Investment Grade(1) customers(1) 80% 15+ years Strong creditworthy counterparties Low revenue concentration risk Total Revenue from top customer top 10 customers account for(1) accounts for(1) ~30% ~5
Slide 11: Solid Performance of U.S. Contract Compression Business
Solid Performance of U.S. Contract Compression Business U.S. rental business benefitting from favorable positioning and strong market fundamentals • ~75% of fleet operating in the Permian(1) and ~20% total fleet is electric drive(1) Fleet utilization >90% over the past two years and demonstrated res
Slide 12: Growing International Energy Infrastructure Business
Growing International Energy Infrastructure International Energy Infrastructure Highlights Business Revenue and Payments Under Contract(1) ~1.5 MM 25+ 2 ~$1.5 B horsepower of compression installed gas plants produced water treatment facilities worldwide Weighted Average Contract Term(1) >5 years • P
Slide 13: A Full Range of Water Solutions for a Better Tomorrow
25+ years of experience designing, engineering, manufacturing, and A Full Range of Water delivering treated waters solutions worldwide. Solutions for a Better Tomorrow 13 8B+ 30+ Patents Issued or Pending Total Barrels of Water Customer Projects Quickly and cost-efficiently treats in 26 Countries Tr
Slide 14: Strategically Positioned to Enable the Energy Transition
Strategically Positioned to Enable the Energy Transition 40+ years of experience designing, engineering, manufacturing, CO2 Emissions Reductions in the Energy Sector (1) and delivering energy transition solutions worldwide (GtCO2 / year) 0 Avoided Demand Successful portfolio of simple to complex ene
Slide 15: Successful Integration of Exterran
Successful Integration of Exterran Debt Reduction Establishing a Premier Integrated Global Provider of Energy Infrastructure and Energy Transition Solutions $161 MM of debt since the start of 2023 and reduced Completed transaction in October 2022 leverage ratio(1)(2) ratio from 3.3x at the end of Q4
Slide 16: Operational & Financial Highlights Demonstrate Focus on Growth & Value Creation
Operational & Financial Highlights Demonstrate Focus on Growth & Value 2024 Outlook Creation Q2/24 Operational and Strategic Highlights Strong demand across business units and geographic regions • EI and AMS product lines generated 62% of consolidated Recurring sources expected to contribute 55% to
Slide 17: New Leverage Framework Underpinned by Recurring Revenue Business Lines
New Leverage Framework Underpinned by Recurring Revenue Business Lines Bank-Adjusted Net Debt-to-EBITDA Ratio(1) Targeting a bank-adjusted net debt-to-EBITDA 5.0x ratio of 1.5x - 2.0x Credit Facility Covenant: <4.0x Contract Compression 4.0x & Energy Infrastructure • Underpinned by the highly utiliz
Slide 18: Capital Allocation Priorities Focused on Debt Repayment in 2024
Capital Allocation Priorities Focused on Debt Repayment in 2024 Dividends Debt Reduction Cash Flow Cash Debt repayment will remain a Paying a sustainable base From Outflows dividend is foundational to focus in 2024, with current Enerflex’s total return proposition leverage ratio of 2.2x expected to
Slide 19: ESG Principles Align with our Strategy to Deliver Shareholder Value
ESG Principles Align with our Strategy to Deliver Shareholder Value Enerflex is committed to environmental stewardship, social responsibility, and high standards of safety and corporate governance Smaller Footprint, Bigger Global Safety Starts Locally Commitment to Diversity, Strong Corporate Impact
Slide 20: Strong Leadership Team Committed to Shareholder Value Creation
Strong Leadership Team Committed to Shareholder Value Creation Our management team lives the values that unite us: Marc E. Rossiter Preet Dhindsa David H. Izett Robert Mitchell integrity, commitment, President & Chief Senior Vice Senior Vice President, Senior Vice creativity, and success. Executive
Slide 21: Experienced and Engaged Board of Directors
Experienced and Engaged Board of Directors Oversees the management of Enerflex’s business to ensure long-term success, with a view to maximize shareholder value and ensure corporate conduct Fernando Assing Joanne Cox W. Byron Dunn James C. Gouin Mona Hale Director Director Director Director in an et
Slide 22: Enerflex is Well Positioned for Long-Term Success
Enerflex is Well Positioned for Long-Term Success Tomorrow Starts Today Global Market Leader in Vertically Financial Strength Sustainable Returns Natural Gas and Energy Integrated and Discipline to Shareholders Transition Solutions 1) Non-IFRS measure that is not a standardized financial measure und
Slide 23: Appendix
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Slide 24: Gross Margin by Product Line
Gross Margin by Product Line Energy Infrastructure Engineered Systems After-market Services ($ millions, %) ($ millions, %) ($ millions, %) 240 80% 24% 120 240 25% 180 60% 18% 90 20% 180 15% 120 40% 12% 60 120 10% 60 20% 6% 30 60 5% 0 0% 0 0% 0 0% Gross Margin Gross Margin % Gross Margin before Depr
Slide 25: Gross Margin by Product Line
Gross Margin by Product Line (1) Three Months Ended June 30, 2024 Energy After-market Engineered Total $ millions, except percentages Infrastructure Services Systems Revenue 614 141 127 346 Cost of goods sold Operating expenses 441 64 97 280 Depreciation and amortization 37 32 3 2 Gross margin 136 4
Slide 26: Energy Infrastructure Project Model
Energy Infrastructure Project Model Project Phase Engineer and Design Production Start-up Contract Renewal Project Scope Fee-based Operations Contract Award Operate and Maintain Build, Install, Commission Timeline Ranges from 6 Months to North America Majority of Contracts 10+ Years Depending on 1 t
Slide 27: Advisory Statements
. ~~ Advisory Statements gg OOD Tomorrow starts today ti 4 , 427
Slide 28: Advisory Statements
Advisory Statements Advisory Regarding Forward-looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with forward-looking information, “forward-looking information and stat
Slide 29: Advisory Statements (continued)
Advisory Statements (continued) Future-Oriented Financial Information The 2024 guidance regarding the Company's future financial performance is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant inf
Slide 30: Enerflex Ltd. contact details
September 2024 Enerflex Ltd. Suite 904, 1331 Macleod Trail SE Calgary, AB, Canada T2G 0K3 403-387-6377 IR@enerflex.com www.enerflex.com