HOUSTON--(BUSINESS WIRE)--NOV Inc. (NYSE: NOV) announced today the appointment of Patricia Martinez to NOV’s Board of Directors, effective March 6, 2024. “ We are delighted to welcome Patricia Martinez to NOV’s board of directors,” said Clay Williams, Chairman, President, and Chief Executive Officer. “ Patricia brings extensive industry experience to our board, including growing energy businesses in international markets, and more recently guiding and developing projects within the energy transition rangin ...

Financial Data and Key Metrics Changes - Enerflex reported consolidated revenue of $782 million for Q4 2023, consistent with Q3 levels, driven by strong performance from recurring businesses [19] - Adjusted EBITDA for Q4 was $126 million, an increase from $122 million in Q3, with gross margin before depreciation and amortization rising to $216 million or 28% of revenue compared to 26% in Q3 [11][19] - Free cash flow for Q4 was $185 million, a significant improvement from a cash use of $46 million in Q4 2022 [27][28] Business Line Data and Key Metrics Changes - The Engineered Systems product line recorded bookings of $327 million in Q4 and $1.7 billion for the year, reflecting strong demand across three continents [5][30] - Energy Infrastructure and aftermarket services generated 67% of consolidated gross margin before depreciation and amortization in Q4, with aftermarket services achieving a gross margin of 22%, the highest in over two years [20][21] - Engineered Systems gross margin improved to 18% as higher-margin backlog was executed [21] Market Data and Key Metrics Changes - Approximately 50% of Enerflex's total gross margin in 2023 was contributed by markets outside North America [4] - The U.S. contract compression asset operated at high utilization rates, averaging 93% in Q4 [5] Company Strategy and Development Direction - Enerflex is focused on enhancing operational effectiveness in energy infrastructure and maximizing performance across its geographic platform [9][15] - The integration of Exterran is nearing completion, with updated synergy guidance reflecting annual run rate synergies exceeding the previous target of $60 million [14] - The company aims to reduce debt and enhance financial flexibility, with a target leverage ratio of around 2.3 times [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying macro drivers for the business, citing strong demand for energy infrastructure and low-emission natural gas solutions [17] - The outlook for 2024 is supported by a highly contracted energy infrastructure product line and a $1.5 billion backlog in Engineered Systems, with expectations for the majority to convert into revenue within the next 12 months [30] Other Important Information - Enerflex plans to maintain a disciplined capital program in 2024 with total capital expenditures of $90 million to $110 million, focusing on maintenance and strategic growth opportunities [31] - A quarterly dividend of $0.025 per share has been declared, payable on May 1, 2024 [32] Q&A Session Summary Question: Market position of the combined business post-integration - Management highlighted that the merger has allowed Enerflex to achieve the largest market share in specific product lines in the Eastern Hemisphere and Latin America, focusing on operational effectiveness [38][39] Question: Further dispositions beyond manufacturing footprint - Management stated they regularly review opportunities to optimize their geographic footprint, focusing on core countries like the U.S., Brazil, and Mexico, while not actively seeking to sell noncore assets unless it enhances shareholder value [43][44] Question: Long-term capital allocation strategy - Management emphasized that reducing debt is the priority for 2024, with future capital allocation decisions to be made once the target debt range is achieved [52][54] Question: Update on Engineered Systems bookings and exposure to natural gas prices - Management noted that recent bookings are primarily for international markets, with ongoing constructive conversations with clients despite potential slowdowns in North American markets [84][85] Question: Update on the Pearl project in Kurdistan - Management confirmed that the project is on track for completion in the second half of 2024 [92] Question: Mitigation of foreign exchange losses in Argentina - Management indicated that the Argentine business remains profitable when excluding foreign exchange impacts, with expectations for reduced FX noise in 2024 compared to 2023 [93][95]

CALGARY, Alberta, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX:EFX) (NYSE:EFXT) ("Enerflex" or the "Company") today announced the appointment of Mr. Preet Dhindsa as Senior Vice President and Chief Financial Officer ("CFO"), effective March 1, 2024. Mr. Dhindsa has served as the Company's Interim CFO since October 13, 2023. "Preet has provided solid leadership and financial stewardship since joining Enerflex in October, and our company benefits from his financial acumen and experience leading divers ...

Financial Data and Key Metrics Changes - Consolidated third quarter revenues reached CAD 778 million, driven by strong performance from recurring businesses and the North American Engineered Systems product line [9] - Adjusted EBITDA for the third quarter was CAD 122 million, impacted by foreign exchange losses of CAD 17 million related to the Argentine peso [20][22] - Cash provided by operating activities was CAD 71 million, reflecting a positive swing of CAD 75 million compared to the previous quarter [14] - The bank adjusted net debt-to-EBITDA ratio improved to 2.7x at the end of Q3 from 3.3x at the end of 2022, with a target of under 2.5x by year-end 2023 [11][12] Business Line Data and Key Metrics Changes - Energy Infrastructure contributed approximately 40% of gross margin during the quarter, with stable results and high utilization rates of 93% for the U.S. contract compression fleet [31] - Engineered Systems bookings totaled CAD 560 million in the quarter, bringing the year-to-date total to CAD 1.4 billion, an increase of approximately CAD 500 million year-over-year [29] - After-market Services gross margin was 17% in Q3 2023, down from 20% in the prior quarter, due to a higher proportion of part sales [18] Market Data and Key Metrics Changes - Approximately 60% of Enerflex's gross margin was generated from recurring sources during the first nine months of 2023, with markets outside North America contributing 43% of total gross margin [26] - Strong customer activity levels were noted across three continents, particularly in North America for cryogenic and low-carbon solutions [30] Company Strategy and Development Direction - The company is focused on integrating Exterran and strengthening its financial position, with a disciplined capital program planned for 2024 [10][22] - Enerflex aims to optimize its geographic footprint and business platform, consolidating global manufacturing facilities from five to three [28] - The company is committed to debt reduction, synergy realization, and operational efficiency, with a target of achieving CAD 60 million in annual run rate synergies from the Exterran acquisition [27][22] Management's Comments on Operating Environment and Future Outlook - Management emphasized robust macro drivers for the business, including global energy security and the need for low-emissions natural gas [6] - The company expects performance in 2024 to be supported by recurring Energy Infrastructure and After-market Services product lines, along with a strong Engineered Systems backlog [22] - Management acknowledged the impact of foreign exchange volatility, particularly related to the Argentine peso, but noted strong operating cash flow from the Argentine business [21] Other Important Information - The company repaid CAD 41 million of long-term debt during the quarter, although reported long-term debt declined by only CAD 5 million due to currency effects [3][11] - A quarterly dividend of CAD 0.025 per share was declared, payable on January 10 to shareholders of record on November 21 [32] Q&A Session Summary Question: Can you provide insights on working capital and cash flow for Q4? - Management confirmed guidance and indicated that specific cash flow details for Q4 would be provided later [50][51] Question: What are the strengths and areas for optimization within the organization? - The new CFO highlighted a strong executive team and a focus on integration as key priorities [55] Question: How do you expect bookings in Canada to change in 2024? - Management anticipates more robust bookings in Canada due to macro drivers such as the Blueberry First Nations agreement and LNG Canada [60] Question: What is the expected direction of long-term debt from September 30 to year-end? - Management indicated a focus on debt repayment, expecting a similar paydown in Q4 as seen in Q3 [93] Question: Can you elaborate on the noncore asset sales? - The company sold noncore assets for approximately CAD 40 million, reinforcing its debt reduction priority [86][93]

Enerflex Ltd (NYSE:EFXT) Q2 2023 Earnings Conference Call August 10, 2023 8:00 AM ET Stefan Ali - Vice President, IR and Business Development Energy Transition Rodney Gray - Senior VP & CFO Conference Call Participants Nick Corcoran - Acumen Capital Tim Monachello - ATB Capital Markets Good morning, ladies and gentlemen, and welcome to the Enerflex Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. Stefan Ali Before I turn it over to ...

Yes. It's not helpful. We went to lengths in our prepared commentary to say a lot of our business is coming from crude oil plays and through that, you can read Permian. We don't have a significant amount of business in the Haynesville or the Marcellus. It's opportunistic, but it's not the core of our U.S. Engineered Systems strategy. The core of our business is really in the Permian and the Eagle Ford into the Bakken to a certain degree. And internationally, our U.S. Engineered Systems business, it's under ...

ENERFLEX LTD. REPORTS SOLID YEAR-END 2022 RESULTS AND SUCCESSFULLY CLOSES ACQUISITION OF EXTERRAN CORPORATION, CREATING SIGNIFICANT MOMENTUM FOR 2023 NEWS RELEASE CALGARY, Alberta, March 1, 2023 -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) ("Enerflex" or the "Company"), a premier integrated global provider of energy infrastructure and energy transition solutions, today reported its financial and operational results for the three months and year ended December 31, 2022. "2022 was a pivotal year for Enerflex," sa ...

Enerflex Ltd. (ENRFF) Q2 2022 Earnings Conference Call August 11, 2022 10:00 AM ET Company Participants Stefan Ali - Vice President, Strategy and Investor Relations Marc Rossiter - President and Chief Executive Officer Sanjay Bishnoi - Senior Vice President and Chief Financial Officer Ben Park - Vice President, Corporate Controller Conference Call Participants Tim Monachello - ATB Capital Markets Aaron MacNeil - TD Securities Andrew Bradford - Raymond James Michael Robertson - National Bank Financial John G ...

Enerflex Ltd (ENRFF) Q1 2022 Earnings Conference Call May 5, 2022 10:00 AM ET Company Participants Stefan Ali - Director of Strategy, Risk & IR Marc Rossiter - President and CEO Sanjay Bishnoi - Senior VP & CFO Conference Call Participants Michael Robertson - National Bank Financial Aaron MacNeil - TD Securities Cole Pereira - Stifel Tim Monachello - ATB Capital Markets Operator Good morning, ladies and gentlemen, and welcome to the Enerflex First Quarter 2022 Results Conference Call. [Operator Instructions ...

Financial Data and Key Metrics Changes - Enerflex reported its highest quarterly revenue since the beginning of the pandemic in Q4 2021, driven by strong demand recovery in oil and natural gas markets [6] - Operating income was lower compared to the previous year due to competitive margin pressures and lower government grants received, despite improvements in Engineered Systems revenues [13][14] - SG&A costs decreased to $40 million, down from the same period last year, due to lower share-based compensation and decreased profit share expense [14] Business Line Data and Key Metrics Changes - Engineered Systems bookings exceeded $320 million, indicating strong demand across global regions, particularly in Latin America [6][10] - The aftermarket service business gradually recovered from the downturn, while the Energy Infrastructure platform showed resilience with improved revenues and higher utilization rates [9] - The Rest of World segment secured a 10-year extension on a BOOM asset, reinforcing the strategic goal of generating long-term stable cash flows [10] Market Data and Key Metrics Changes - The recovery in demand was broad-based across Canada, the U.S., and Rest of World segments, with significant bidding activity noted in Latin America [6] - The company is navigating supply chain constraints and inflationary pressures on materials and freight costs, which are expected to persist throughout 2022 [7] Company Strategy and Development Direction - Enerflex is focused on energy transition initiatives, including decarbonization projects and partnerships for CCUS, renewable natural gas, hydrogen, and electrification [7][8] - The company announced an all-share acquisition of Exterran, aiming to create a comprehensive energy infrastructure company and increase recurring gross margin [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic fundamentals driving demand in major basins, despite geopolitical uncertainties [26] - The company is focused on preserving the strength of its balance sheet and maintaining conservative leverage, exiting the quarter with a net debt-to-EBITDA ratio of 1.0 to 1 [17] Other Important Information - Enerflex's 2022 capital expenditures are projected to be between $200 million to $220 million for growth CapEx, with additional amounts allocated for work in progress and maintenance [16] - The company derecognized $45 million in deferred tax assets related to unused tax losses, indicating a cautious approach to future taxable income in Canada [14][15] Q&A Session Summary Question: Energy transition initiatives traction and backlog - Management indicated that Engineered Systems bookings in the hydrogen and non-fossil fuel space range from $10 million to $30 million, with significant potential in CCUS projects valued at $30 million to $60 million [20][21] Question: Demand for bookings and bidding activity in early 2022 - Management noted a good pipeline for bookings, with macroeconomic fundamentals supporting demand in key regions despite geopolitical unrest [26] Question: Renewals and finance lease structures - It was indicated that most renewals are likely to be accounted for as finance leases, with a focus on evaluating each project individually [27] Question: Cash windfall related to deferred revenue - Management clarified that the cash increase was due to effective cash collection and working capital management, but it is not expected to be sustainable [30] Question: Engineered Systems margins outlook - Management acknowledged challenges in margins but expressed hope for improvement as the backlog shifts towards higher-margin projects [34][35] Question: Exposure to Russia and Ukraine - Management confirmed minimal exposure to Russia and Ukraine, emphasizing that the geopolitical situation does not materially impact Enerflex's business [45]