Enerflex Ltd. · TSX:EFX
Enerflex — FY2013 Earnings Presentation
28 slides from Enerflex's earnings presentation, 2014
Slide 1: Enerflex Overview
ENERFLEX OVERVIEW Uj l? ENERFLEX
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: Company Overview
COMPANY OVERVIEW
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 78.0 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: Revenue by Geographic Segment
Revenue by Geographic Segment 2012 2013 27% 34% 19% 27% 34% 36% 76% 39% 37% International Canada & Northern U.S. International Southern U.S. & Latin America Canada & Northern U.S. Southern U.S. & Latin America 7
Slide 8: Revenue by Product Line
Revenue by Product Line 2012 2013 3% 19% 19% 4% 23% 76% 78% 73% Engineered Systems Parts & Service Rental Engineered Systems Parts & Service Rental 8
Slide 9: 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 10: Divisional Overview: Canada and Northern United States
DIVISIONAL OVERVIEW CANADA AND NORTHERN UNITED STATES
Slide 11: Canada and Northern United States
Canada and Northern United States Markets we Serve Manufacturing Facilities 3 Retrofitting Facilities 2 Service Locations 27 Service Vehicles 220 Specialize in Cold Weather Compression & Processing Applications 11
Slide 12: Opportunities – Canada and Northern U.S.
Opportunities – Canada and Northern U.S. Duvernay Shale • Large producers with land positions include: • EnCana Corp • Talisman Energy Inc. • Trilogy Energy Corp. • Athabasca Oil Corp. • Husky Energy Inc. • Royal Dutch Shell PLC. • Canadian Natural Resources Ltd. • Apache Corp. • Estimated reserves
Slide 13: Opportunities – Canada and Northern U.S. (West Coast LNG)
Opportunities – Canada and Northern U.S. Proposed West Coast LNG 1. Kitimat LNG (2018) Initial capacity expected to be 5 mmtpa. 2. LNG Canada (2019) Proposal of two trains capable of 6 mmtpa each. 3. BG Prince Rupert LNG (2020) Initial plant capacity of 4.2 bcf/d. 4. Douglas Channel (2018) Initial p
Slide 14: 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 14
Slide 15: Divisional Overview: Southern United States and Latin America
DIVISIONAL OVERVIEW SOUTHERN UNITED STATES AND LATIN AMERICA
Slide 16: 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 17: Opportunities – Southern and Eastern U.S.
Opportunities – Southern and Eastern U.S. Bakken Sale & Service Locations Fabrication Plants Shale Gas Plays Marcellus Shale Field Gas Field 2.0 tcf of recoverable gas. Approximately 262 150 million barrels tcf of of natural gas recoverable gas. liquids. Permian Woodford Tight Oil Shale Field Over 5
Slide 18: Houston Facility Expansion
Houston Facility Expansion 18
Slide 19: Divisional Overview: International
DIVISIONAL OVERVIEW INTERNATIONAL
Slide 20: AustralAsia
AustralAsia GLADSTONE QCLNG APLNG GLNG GALILEE ARROW • Projects include: • Gas-gathering COOPER infrastructure BOWEN/ SURAT for LNG plants on Australia’s northwest shelf GUNNEDAH • Coal-seam gas compression systems ICHTHYS SUNRISE for Queensland’s local PRELUDE BROWSE gas demand and SCARBOROUGH upst
Slide 21: 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 22: 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 23: Financial Overview
FINANCIAL OVERVIEW ENERFLEX
Slide 24: 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% 15.0% $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 $- 0.0% Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Revenue Gross Margin EBIT GM % EBIT % 24
Slide 25: Regional Backlog
Regional Backlog 1,200 1,000 242 207 182 800 303 154 307 600 270 285 159 217 227 297 331 164 220 252 400 228 307 190 211 278 243 359 280 459 423 200 409 370 255 297 241 223 196 203 152 129 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Canada and Northern U.S. Southern U.S
Slide 26: 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 27: 2013 Results – Business Segment Review
2013 Results – Business Segment Review Twelve months ended Dec 31, Canada and Southern U.S. and International Millions of dollars Northern U.S. Latin America except percentages 2013 2012 % 2013 2012 % 2013 2012 % Revenue $524.9 $592.1 (11.3)% $503.8 $512.1 (1.6)% $376.4 $397.4 (5.3)% Engineered 287.
Slide 28: 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