Slide 1: Company Overview
Company Overview March 2, 2017
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: 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 Enerflex Location CALGARY, ALBERTA, CANADA CALGARY, ALBERTA, CANADA HOUSTON, TEXAS, USA BRISBANE, QUEENSLAND, AUSTRALIA
Slide 4: 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 5: Recurring Revenue Focus
Recurring Revenue Focus • Full after-market services for gas engine compressors and power generators. • Retrofit of existing compression packages for optimizing producers assets. • Full turnkey rental opportunities in growth markets. • Electric power solutions (250 kW to 50 MW). • Construction and p
Slide 6: Consolidated Revenues – Regions
Consolidated Revenues – Regions $1,696.2 1,800.0 $1,629.0 $1,501.7 1,600.0 $1,405.0 529.4 1,400.0 494.2 $1,130.6 $1,227.1 500.4 Canada 1,200.0 438.2 $1,067.9 444.0 232.8 USA 1,000.0 425.6 800.0 761.6 678.2 Rest of 603.8 590.4 466.1 World 600.0 422.5 392.6 400.0 397.5 405.2 456.6 431.7 200.0 360.6 37
Slide 7: Revenue by Geographic Segment and Product Line
Revenue by Geographic Segment and Product Line Geographic Distribution 2015 2016 21% 28% 30% 38% 41% 42% Canada USA Rest of World Product Distribution 2015 2016 15% 9% 24% 27% 58% 67% Engineered Systems Parts and Service Rental
Slide 8: Growth in Recurring Revenue
Growth in Recurring Revenue $600,000 45% 42% 40% $500,000 152,580 98,425 33% 35% 29% % of Consolidated Revenue $400,000 30% Revenue ($ 000’s) 26% 27% 172,769 22% 49,564 25% $300,000 58,827 39,319 20% $200,000 387,932 384,609 15% 325,428 284,158 298,691 262,217 10% $100,000 5% $0 0% 2011 2012 2013 20
Slide 9: 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 10: Canada
Canada Calgary • Head office and two manufacturing facilities located in Calgary, Alberta. • 13 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
Slide 11: USA
Current play - oldest stacked play (—) Current play - intermediate depth/age stacked play [7] Current play - shallowest/youngest stacked play L Prospective play Basin * Mixed shale & chalk play . + ¥ ** Mixed shale & limestone play ‘ Pe ity Pi * *** Mixed shale & dolostone-siltstone-sandstone play *
Slide 12: Latin America
Latin America Mexico • Strong focus on compression and processing equipment and after- market service. Colombia • Compression fleet of with approximately 280,000 Peru horsepower. Bolivia Brazil • Modern and technologically up-to- date equipment. Argentina Enerflex locations Enerflex unit locations
Slide 13: 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; • Desalination plants; and Bahrain UAE • Cooling needs. Oman • Compression rental fleet of ap
Slide 14: Australia
Australia GLADSTONE QCLNG APLNG Projects include: GALILEE GLNG ARROW • Gas-gathering infrastructure for LNG plants on Australia’s northwest shelf COOPER BOWEN/ SURAT • Coal-seam gas GUNNEDAH compression systems for Queensland’s local gas demand and upstream LNG ICHTHYS SUNRISE development PRELUDE BR
Slide 15: Financial Overview
‘ . Financial Overview y
Slide 16: Regional Backlog
Regional Backlog 900 1,000 800 700 800 600 600 500 400 400 300 200 200 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 Canada USA ROW Bookings
Slide 17: Financial Strength
Financial Strength 2012 2013 2014 2015 2016 EBIT $ 117,341 $ 87,341 $ 138,922 $ 131,777* $ 79,422* Depreciation & Amortization 39,487 39,595 56,799 82,771 93,099 Cash Taxes Paid (16,951) (27,106) (34,667) (41,218) (15,959) Cash Interest Paid (6,520) (5,960) (9,863) (15,179) (14,493) Capital Expendit
Slide 18: Investment Thesis
Investment Thesis Proven track record of creating shareholder value through Growth and Dividend Income. • Increased dividend by 41.7% over the past five years. • Enerflex is leveraged to Global LNG and is positioned to take advantage of the LNG markets in Canada, USA, and Australia. • Product line a
Slide 19: Well Positioned as a Natural Gas Compression and Processing Solutions Provider
Well Positioned as a Natural Gas Compression and Processing Solutions Provider