Enerflex (EFXT) Earnings Call Presentation

Company Overview - Enerflex's market capitalization is CAD$1.4 billion with an annual dividend of CAD$0.15 per share, resulting in a dividend yield of 1.3%[3] - The company has been operating for 45 years and employs approximately 4,400 people across 7 core countries, with 25 BOOM projects[3] Market Position and Growth - Global demand for natural gas is forecasted to grow by 15% over the next decade, requiring U S and Canadian supply to increase by approximately 25%[15] - Approximately 20 Bcf/d is expected to be added to North American LNG export capacity by 2030, more than doubling the existing capacity of 14 Bcf/d[22] - Data center power demand is projected to reach approximately 700 Twh by 2035, potentially creating a demand of approximately 5 0 Bcf/d[24, 25] Financial Performance and Strategy - Adjusted gross margin from recurring sources accounts for 65% of the total[27] - The company's bank-adjusted net debt-to-EBITDA ratio is 1 3x, compared to a peer range of 3 0x to 4 6x for contract compression and energy infrastructure peers[33] - Enerflex has repaid $396 million of long-term debt since the beginning of 2023, reducing the leverage ratio from 3 3x at year-end 2022 to 1 3x by Q2/25[39, 42] - The company is authorized to acquire up to approximately 6 2 million common shares through March 31, 2026, representing 5% of the float[44, 76] Energy Infrastructure Business - The company's Energy Infrastructure business has approximately $1 3 billion in revenue under contract, with a weighted average contract term of approximately 5 years, extending to 2033[54] - Enerflex operates approximately 1 1 million horsepower of compression internationally, including 23 BOOM gas plants and 2 BOOM produced water treatment facilities[54] - Approximately 75% of the U S contract compression fleet operates in the Permian Basin, with over 20% of the total fleet being electric drive, and fleet utilization exceeding 90% over the past two years[58]