Slide 1: Company Overview
Company Overview May 31, 2016
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 New 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 compression products 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 P
Slide 6: Consolidated Revenues – Regions
Consolidated Revenues – Regions $1,696.2 1,800.0 $1,629.0 $1,501.7 1,600.0 $1,445.2 $1,405.0 529.4 1,400.0 494.2 $1,227.1 500.4 403.4 Canada 1,200.0 438.2 $1,067.9 444.0 USA 1,000.0 425.6 800.0 761.6 678.2 Rest of 580.9 603.8 590.4 World 600.0 422.5 392.6 400.0 405.2 456.6 460.9 200.0 360.6 397.5 37
Slide 7: Revenue by Geographic Segment and Product Line
Revenue by Geographic Segment and Product Line Geographic Distribution 2015 2016 TTM Canada USA Rest of World Product Distribution 2015 2016 TTM Engineered Systems Parts and Service Rental * Q1 2016 TTM represents the twelve months ending March 31, 2016.
Slide 8: Growth in Recurring Revenue
Growth in Recurring Revenue $600,000 40% 36% 33% 35% $500,000 29% 98,425 152,580 157,151 30% 26% 27% % of Consolidated Revenue $400,000 Revenue ($ 000’s) 25% 22% 49,564 $300,000 58,827 39,319 20% 15% $200,000 387,932 384,609 361,025 325,428 284,158 10% 262,217 $100,000 5% $0 0% 2011 2012 2013 2014 2
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. • 18 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: US Growth Opportunities
US Growth Opportunities Houston
Slide 12: Latin America
Latin America Mexico • Strong focus on compression and processing equipment and after- market service. Colombia • Modern and technologically up-to- date equipment. Peru • Compression fleet of with Brazil approximately 265,000 horsepower. • Three gas treating facilities. Argentina Enerflex 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; Bahrain • Desalination plants; and UAE Oman • Cooling needs. • Compression rental fleet of ap
Slide 14: Australia
Australia GLADSTONE QCLNG APLNG Projects include: GALILEE GLNG ARROW • Gas-gathering infrastructure for LNG plants on COOPER BOWEN/ Australia’s northwest shelf 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 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 Canada USA ROW Bookings
Slide 17: Financial Strength
Financial Strength 2012 2013 2014 2015 2016 TTM EBIT $ 117,341 $ 87,341 $ 138,922 $ 131,777* $ 95,753* Depreciation & Amortization 39,487 39,595 56,799 82,771 86,882 Cash Taxes Paid (16,951) (27,106) (34,667) (41,218) (37,768) Cash Interest Paid (6,520) (5,960) (9,863) (15,179) (15,726) Capital Expe
Slide 18: Investment Thesis
Investment Thesis Proven track record of creating shareholder value through Growth and Dividend Income. • Operating income has grown at a CAGR of 8.4% over the past 11 years. • Increased dividend by 21.4% over the past three years. • Enerflex is leveraged to Global LNG and is positioned to take adva
Slide 19: Well Positioned as a Natural Gas Compression and Processing Solutions Provider
Well Positioned as a Natural Gas Compression and Processing Solutions Provider