Enerflex Ltd. · TSX:EFX
Enerflex — Merger or Acquisition (August 2022)
12 slides from Enerflex's merger presentation, Aug 10, 2022
Slide 1: Enerflex and Exterran to Combine: Transaction Update, August 10, 2022
Enerflex and Exterran to Combine, Creating a Premier Integrated Global Provider of Energy Infrastructure TRANSACTION UPDATE – AUGUST 10, 2022 ALL FIGURES HEREIN PRESENTED IN US DOLLARS UNLESS OTHERWISE NOTED
Slide 2: Strategic Rationale
Strategic Rationale Creates a Premier Integrated Global Provider of Energy Infrastructure • Geographic balance with ~25-35% of revenues from each of North America, the Middle East, and Latin America • Accesses a larger, more diverse opportunity set for global energy infrastructure and energy transit
Slide 3: Accelerated Growth of Recurring Gross Margin
Accelerated Growth of Recurring Gross Margin Balanced contribution across recurring segments and manufacturing enhances resiliency US$540 - $600 million Gross Margin % Business Drivers US$500 - $600 million ~20-30% Demand for new natural Engineered Systems / ~20-30% 10 – 20% gas, water, and energy P
Slide 4: Synergies Accelerate Cash Flow Generation
Synergies Accelerate Cash Flow Generation At least US$60 million annual run-rate synergies from reductions in overhead and operational efficiencies compared to US$40 million upon Transaction announcement Overhead • Optimized structuring of management and corporate support teams At least $8.0 US$60 M
Slide 5: Capital Structure
Capital Structure Long-term, stable capital structure with ample liquidity Capital Structure US$ millions 06/30/2022 • US$700 million 3-year secured Revolving Credit Enerflex Exterran Combined (1) Facility Total Secured Debt $21 $336 $357 • Favourable covenant structure (3) • US$925 million High Yie
Slide 6: Updated Pro Forma Outlook
Updated Pro Forma Outlook Funding of in-flight growth projects will result in near-term call on cash before meaningful excess cash flow generation in 2023+ All Values in US$MM Adjusted EBITDA Committed Capex and Work-in-Progress(1) 600 600 500 476 500 355-405 360 - 400 380-420 383 400 400 320 - 370
Slide 7: Positioned for Success
Positioned for Success Combination enhances shareholder value(1) PREMIER GLOBAL BALANCED & PREDICTABLE OPTIMIZED EFFICIENCY & PLATFORM EARNINGS LOWER COST OF BUSINESS Focused on four key ~70/30 split of Expect ~US$60 million growth regions, expanded recurring vs. of annual run-rate product lines, ex
Slide 8: 8
8
Slide 9: Advisories
Advisories This presentation contains forward-looking information within the meaning of applicable Canadian securities laws and within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements relate to the respective Management expectatio
Slide 10: Advisories (Cont’d)
Advisories (Cont’d) Future-oriented Financial Information This presentation contains information that may constitute future-oriented financial information or financial outlook information (FOFI) about Enerflex, Exterran, and the combined entity's prospective financial performance, financial position
Slide 11: Advisories (Cont’d)
Advisories (Cont’d) Non-IFRS Measures: Financial measures in this presentation do not have a standardized meaning as prescribed by generally accepted accounting principles in Canada, which are International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Boar
Slide 12: Slide 12