Slide 1: Enerflex Ltd. Company Overview
ENERFLEX LTD. COMPANY OVERVIEW
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 $18.45 - $12.68 Market Capitalization $1.4 Billion Shares Outstanding 78 million Held by Management 1% Annualized Dividend $0.30/share Dividend Yield 1.6% 3
Slide 4: World Leading Pure-Play Supplier of Natural Gas Production and Processing Equipment
World Leading Pure-Play Supplier of Natural Gas Production and Processing Equipment Revenue $1.4 Billion Market Cap $1.4 Billion Shares 78.2 Million Outstanding 52 Week High $18.45 52 Week Low $12.68 Employees 2,900 Sales & Service 60 Locations Trailing 12 months Calgary, Alberta Nisku, Alberta Hous
Slide 5: Specialty Customized Equipment
Specialty Customized Equipment Compression and Process • Reciprocating and rotary screw compression • Small to large horsepower (200 hp – 10,000 hp) • Conventional and unconventional plays Production and Processing • Systems for gas plants (dew point) and refrigeration systems • Amine systems (H2S a
Slide 6: Enerflex – The Single Source
Enerflex – The Single Source 6
Slide 7: Consolidated Revenues
Consolidated Revenues Regions Revenues ($ millions) 1,600.0 1,400.0 397.5 376.4 1,200.0 360.6 1,000.0 International 249.7 512.1 800.0 503.7 Southern US & Latin 342.3 America 364.3 600.0 Canada & Northern US 400.0 524.2 592.1 524.9 453.8 200.0 - 1 2010 2011 2012 1 2013 Global Diversification with Cor
Slide 8: Revenue by Geographic Segment
Revenue by Geographic Segment 2012 2013 27% 27% 34% 19% 36% 34% 76% 39% 37% Canada and Northern United States Southern United States and Latin America International 8
Slide 9: Revenue by Product Line
Revenue by Product Line 2012 2013 3% 4% 19% 19% 23% 76% 73% 78% Engineered Systems Parts and Service Rental 9
Slide 10: Enerflex – The Growth Story
Enerflex – The Growth Story $1,600,000 $140,000 CAGR (Revenue) : 14.2% $1,400,000 CAGR (Operating Income) : 15.7% $120,000 $1,200,000 $100,000 Operating Income ($ 000's) $1,000,000 Revenue ($ 000's) $80,000 $800,000 $60,000 $600,000 $40,000 $400,000 $20,000 $200,000 $- $- 2002 2003 2004 2005 2006 20
Slide 11: Global Liquefied Natural Gas
GLOBAL 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 potential LNG exports from first LNG exports 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: Divisional Overview Canada and Northern United States
DIVSIONAL OVERVIEW CANADA AND NORTHERN UINITED STATES
Slide 15: Canada and Northern United States
Canada and Northern United States Markets we Serve Manufacturing Facilities 3 Retrofitting Facilities 2 Service Locations 28 Service Vehicles 220 Specialize in Cold Weather Compression & Processing Applications 15
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: Gas Drive Global LP
Gas Drive Global LP Distributor of GE’s Gas Engines Division’s Parts and Engines. Established Gas Drive Global LP to be the authorized Waukesha distributor in Canada and 20 U.S. states, as well as the Jenbacher distributor in Canada. Gas Drive Territory 17
Slide 18: 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 • Land Fill Gas to Energy • Biogas to Energy
Slide 19: Divisional Overview Southern United States and Latin America
DIVSIONAL OVERVIEW SOUTHERN UNITED STATES AND LATIN AMERICA
Slide 20: Southern United States and Latin America
Southern United States and Latin America Markets we Serve • Southern U.S. and Latin America • Houston main location (Packaging and Service). • 4 remote sales offices. • 5 remote service offices. • Strategic Advantage • Tidewater location for international. • Lower manufacturing cost base to support
Slide 21: Opportunities
Opportunities Five Drivers of Increased U.S. Gas Demand Potential Volume Driver Increase Time Frame LNG exports 8.0 BCF/day Power generation — accelerated switching from coal to gas 5.7 BCF/day ff 2015-2022 Increased gas exports to Mexico 3.0 BCF/day 2014-2016 “Industrial Renaissance” (fertilizer, p
Slide 22: 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 23: Divisional Overview International
DIVSIONAL OVERVIEW INTERNATIONAL
Slide 24: AustralAsia
AustralAsia GLADSTONE QCLNG APLNG GLNG GALILEE ARROW • Projects include: • Gas-gathering COOPER BOWEN/ infrastructure SURAT for LNG plants on Australia’s northwest shelf GUNNEDAH • Coal-seam gas compression ICHTHYS systems SUNRISE for Queensland’s local PRELUDE BROWSE gas demand and SCARBOROUGH upst
Slide 25: 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. • Estimated market size for Kuala Lumpur compression and processing Singapore of approx
Slide 26: 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. • Expanded focus on: • Saudi
Slide 27: Financial Overview
.f FINANCIAL OVERVIEW Ks ENERFLEX
Slide 28: Focused on Profitable Growth
Focused on Profitable Growth $450,000 25.0% $400,000 $350,000 20.0% 20.7% $300,000 18.2% 18.4% 16.9% 17.3% 15.4%15.0% $250,000 15.7% $200,000 8.7% 8.2% 8.7% 10.0% $150,000 6.4% 5.4% $100,000 5.0% 4.7% $50,000 3.0% $- 0.0% Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Revenue Gross Margin E
Slide 29: Regional Backlog
Regional Backlog 1,200 1,000 242 207 182 800 303 154 307 324 600 270 285 331 159 217 227 297 220 164 252 400 228 307 190 211 278 243 359 280 362 459 200 423 409 370 297 255 241 223 196 203 152 129 116 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Canada and Northern
Slide 30: Financial Strength
Financial Strength 2010 2011 2012 2013 EBIT $ 60,118 $ 84,841 $ 117,341 $ 87,341 Depreciation & Amortization 39,113 42,171 39,487 39,595 Cash Taxes Paid (10,989) (27,134) (16,951) (27,106) Cash Interest Paid (16,195) (8,864) (6,520) (5,960) Capital Expenditures (net of 8,506 33,993 (32,706) (17,365)
Slide 31: Enerflex – The Investment of Choice
Enerflex – The Investment of Choice Proven track record of creating shareholder value through Growth and Dividend Income. • Operating income has grown at a CAGR of 15.7% over the past 11 years. • Increased dividend by 25% over the past two years. • Strong Free Cash Flow. Enerflex has been able to ge
Slide 32: Well Positioned as a Pure Play Supplier of Natural Gas and Processing Equipment
Well Positioned as a Pure Play Supplier of Natural Gas and Processing Equipment