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 ...

Financial Data and Key Metrics Changes - Revenues increased by $820 million, with a significant portion of gross margin derived from recurring sources [30] - Adjusted EBITDA rose by $90 million, although impacted by foreign currency exposure [30][36] - The company ended 2022 with a net debt balance of approximately $1.1 billion and a bank-adjusted net debt-to-EBITDA ratio of 3.3x [37] Business Line Data and Key Metrics Changes - Engineered Systems bookings grew by nearly $550 million, expanding the backlog to a record $1.5 billion [30][33] - The North American contract compression fleet maintained high utilization rates averaging over 95% in Q4 [31] - The energy transition team secured over $160 million in bookings primarily related to carbon capture projects [28] Market Data and Key Metrics Changes - The company noted that its business in Latin America and the Eastern Hemisphere is heavily leveraged towards recurring revenue sources, particularly in energy infrastructure [9] - The North American Engineered Systems business is less impacted by recent weakness in natural gas prices due to its focus on energy infrastructure [32] Company Strategy and Development Direction - The company aims to maximize cash flow generation to deleverage quickly, with three of four major infrastructure projects now in commercial operation [33] - The integration of Exterran is a strategic priority, with $40 million of the targeted $60 million in synergies already captured [42][49] - The company is focused on providing low-carbon solutions and capitalizing on global opportunities while managing market volatility [41][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving debt reduction targets by the end of the year, with a clear line of sight to meeting these goals [34][37] - The company anticipates that demand for energy transition solutions will grow significantly as customers seek to minimize their environmental footprint [29] - Management acknowledged ongoing challenges related to foreign exchange impacts, particularly in Argentina, but remains optimistic about the region's long-term potential [90][92] Other Important Information - The company declared a dividend of $0.025 per share, payable on April 6, 2023 [63] - Adjusted EBITDA for Q4 was reported at $86 million, with foreign exchange losses impacting results [36] Q&A Session Summary Question: Can you provide details on the synergy realizations and backlog expectations? - Management confirmed that the $60 million synergy target remains unchanged, with $40 million realized ahead of schedule [53][54] - The backlog for Engineered Systems is healthier than expected, with strong bookings indicating positive momentum [54] Question: How is the company managing foreign exchange risks, particularly in Argentina? - Management indicated that the $18 million loss from foreign exchange was primarily due to the devaluation of the Argentinian peso, with expectations to manage this more effectively going forward [90][92] Question: What are the expectations for organic CapEx and shareholder returns post-deleveraging? - The focus remains on deleveraging below a 2.5x leverage ratio before considering significant discretionary growth CapEx or shareholder returns [98][111]

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]

Exterran Corporation. (EXTN) Q3 2021 Results Earnings Conference Call November 3, 2021 11:00 AM ET Â Company Participants Blake Hancock - VP, IR Andrew Way - President and CEO David Barta - SVP and CFO Conference Call Participants Kyle May - Capital One Doug Becker - Benchmark Research Tim Monachello - ATB Capital Operator Greetings. Welcome to the Exterran Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the for ...

Exterran Corporation (EXTN) Q2 2021 Earnings Conference Call August 10, 2021 11:00 AM ET Company Participants Blake Hancock - VP, IR Andrew Way - President and CEO David Barta - SVP and CFO Conference Call Participants Kyle May - Capital One Samantha Hoh - Evercore ISI Tim Monachello - ATB Capital Doug Becker - Northland Capital Brian DiRubbio - Baird Operator Greetings and welcome to Exterran Corporation Second Quarter 2021 Earnings Call. [Operator Instructions] I would now like to turn this conference ove ...