Enerflex Ltd. Announces Extension and Consolidation of Credit Facilities, New Target Leverage Framework and Timing of Second Quarter Results

Core Points - Enerflex has extended the maturity of its revolving credit facility to October 2026 and increased its availability to $800 million, providing ample liquidity to support its global business [1][3][15] - The company is targeting a bank-adjusted net debt-to-EBITDA ratio of 1.5x to 2.0x as part of its new leverage framework [5][18] - Enerflex plans to repay its existing term loan, which had outstanding drawings of$120 million as of March 31, 2024, using cash on hand and the expanded revolving credit facility [16][6] Financial Strategy - The new leverage framework is supported by the company's U.S. contract compression fleet and international Energy Infrastructure product line, which is expected to generate approximately $1.6 billion in revenue during their current remaining terms [5][18] - The company maintains a$70 million unsecured credit facility, of which $36 million had been utilized as of March 31, 2024 [4][15] - Enerflex aims to provide meaningful returns to shareholders and will re-evaluate capital allocation priorities once it operates within its target leverage range, potentially increasing dividends, share repurchases, and further debt repayment [17][18] Management Commentary - Preet Dhindsa, Senior Vice President and CFO, expressed satisfaction with the extension and expansion of the revolving credit facility, highlighting its role in reducing finance costs and optimizing the debt structure [6][18] - The company remains focused on generating free cash flow, repaying debt, and lowering finance costs throughout 2024 [18]