2013 Annual General Meeting April 16, 2014 Forward-Looking - - PowerPoint PPT Presentation
2013 Annual General Meeting April 16, 2014 Forward-Looking - - PowerPoint PPT Presentation
2013 Annual General Meeting April 16, 2014 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
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”, “could”, “expect”, “seek”, “may”, “intend”, “will”, “believe” and similar
expressions, statements that are based on current expectations and estimates about the markets in which the Company operates and statements of the Company’s belief, intentions and expectations about development, results and events which will or may occur in the future constitute “forward-looking statements” and are based on certain assumptions and analyses made by the Company derived from its experience and perceptions. All statements, other than statements of historical fact contained in this presentation are forward-looking statements, including, without limitation: statements with respect to anticipated financial performance; future capital expenditures, including the amount and nature thereof; bookings and backlog; oil and gas prices and demand; other development trends of the oil and gas industry; business prospects and strategy; expansion and growth of the business and operations, including market share and position in the energy service markets; the ability to raise capital; expectations regarding future dividends; expectations and implications of changes in government regulation, laws and income taxes; and other such matters. In addition, other written or oral statements which constitute forward-looking statements may be made from time to time by and on behalf of the Company. Such forward-looking statements are subject to important risks, uncertainties, and assumptions which are difficult to predict and which may affect the Company’s operations, including, without limitation: the impact of general economic conditions; industry conditions, including the adoption of new environmental, taxation and other laws and regulations and changes in how they are interpreted and enforced; volatility
- f oil and gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations
to meet current and future obligations, including future dividends to shareholders of the Company; increased competition; the lack of availability of qualified personnel or management; labour unrest; fluctuations in foreign exchange or interest rates; stock market volatility;
- pportunities available to or pursued by the Company and other factors, many of which are beyond its control. As such, actual results,
performance, or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds or dividends the Company and its shareholders, will derive there-
- from. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-
looking statements included in this presentation are made as of the date of this presentation and other than as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
- This presentation and its contents should not be construed, under any circumstances, as investment, tax or legal advice. Any person
accepting delivery of this presentation acknowledges the need to conduct their own thorough investigation into Enerflex before considering any investment in its securities. More complete information pertaining to Enerflex, in particular historical financial information, can be accessed through the SEDAR website (www.sedar.com) or at the Company’s website (www.enerflex.com).
- All figures in Canadian funds unless otherwise indicated.
TARGETING HIGH- GROWTH MARKETS
Brisbane, Australia Calgary, Alberta Nisku, Alberta Houston, Texas Perth, Australia
World Leading Pure-Play Supplier of
Natural Gas Production and Processing Equipment
Sales & Service Locations 60 Employees 2,900 Revenue $1.4 Billion
Trailing 12 months
52 Week High $18.29 52 Week Low $12.89 Market Cap $1.4 Billion Shares Outstanding 78.2 Million
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 and CO2 removal)
- Dehydration units and CO2 facilities
- Oil sands modules, including SAGD well-pair
modules and central processing facility modules
- Modular design for fast tracking projects
Service
- Mechanical for gas engine compressors and power
generators
- Electric power
- Construction product installation
- Equipment operating business
- Waukesha and Jenbacher engine and parts
distribution
- Rentals and Retrofit
WE’RE GROWING GLOBALLY
Enerflex – The Growth Story
CAGR (Revenue) : 14.2% CAGR (Operating Income) : 15.7%
$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Operating Income ($ 000's) Revenue ($ 000's) Revenue Operating Income
Consolidated Revenues
Regions
Global Diversification with Core Strengths in North America
- 200.0
400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 1,600.0 2010 2011 2012 2013
453.8 524.2 592.1 524.9 364.3 342.3 512.1 503.7 249.7 360.6 397.5 376.4
Revenues ($ millions)
International Southern US & Latin America Canada & Northern US
1 1 1 Effective January 1, 2012, reporting for Production and Processing moved from the International segment to the Canada and Northern United States segment. Backlog for 2012 and 2013 reflect this change. 2011 and 2010 have not been restated.
Profitable Operations
- 20.0
40.0 60.0 80.0 100.0 2010 2011 2012 2013
30.3 56.7 82.3 57.7
Net Earnings - Continuing Operations
($ millions)
- 0.20
0.40 0.60 0.80 1.00 1.20 2010 2011 2012 2013
0.40 0.73 1.06 0.74
EPS - Continuing Operations
($ millions)
Balance Sheet
10
- 50.0
100.0 150.0 200.0 250.0 300.0 350.0 2010 2011 2012 2013
183.0 191.7 250.8 304.6
Working Capital
($ millions)
- 50.0
100.0 150.0 200.0 250.0 2010 2011 2012 2013
15.0 81.2 145.0 182.0 215.0 119.0 96.5 92.9
Cash vs. Debt ($ millions)
Cash Debt
Backlog
- 100.0
200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0
2010 2011 2012 2013
135.7 177.1 158.8 306.5 146.1 284.6 227.6 358.9
361.8 524.4 296.8 128.6
Backlog at December 31
($ millions)
International Southern US & Latin America Canada & Northern US
Effective January 1, 2012, reporting for Production and Processing moved from the International segment to the Canada and Northern United States segment. Backlog for 2012 and 2013 reflect this change. 2011 and 2010 have not been restated. 1 1 1
12
- Enerflex was awarded a contract to
supply 46 well-pair modules for Cenovus.
- Cenovus intends to more than double
production capacity to over 300,000 bbl/d at each project.
- Typically, two to three well-pairs will be
installed on each module, with all manufacturing to be completed in Nisku, Alberta.
- Enerflex's value position on this project
included cost-competitiveness, quality control, innovation, delivery certainty and a collaborative partnering approach with the customer.
Cenovus’s Foster Creek and Christina Lake Projects
2013 Accomplishment – CNUS
- Over the next 4 years, there is a market of $1.0 billion for sustaining
and new-build well-pair modules.
- De-ethanizer system with a feed capacity of 80,000 bbl/d for
Williams Midstream.
- The plant consists of 23 modules, including refrigeration and hot oil
systems, an amine and mole sieve package, three 1,750 hp compressors packages and an inlet liquid stabilization with electric drive vapor recovery units.
- Engineering, design and manufacturing was performed in the
Houston manufacturing facility.
De-Ethanizer System for Marcellus and Utica Shale Plays
- Awarded this contract as a result of Enerflex’s
ability to meet the needs of large customers with high technical specifications and safety standards, and to execute work with high engineering and manufacturing integrity.
2013 Accomplishment – SULA
14
- Enerflex supplied seventeen, 4,500 hp
electric-drive screw compressors each delivering 20 MMSCF per day from Santos’ coal seam gas fields in Queensland for a total of $56 million.
- Engineering, design and manufacturing
were performed in the Houston manufacturing facility. Installation was completed through Enerflex’s process construction team in Brisbane, Queensland.
2013 Accomplishment – International
Santos GLNG Project
- The Company was awarded two additional compressors for Phase II of
the Santos GLNG project, due to Enerflex’s ability to conform to high international specification standards.
GROWTH POTENTIAL AND OPPORTUNITIES
Significant LNG shipments, current Expected future LNG shipments Major LNG liquefaction area, current* Proposed new/expanded LNG liquefaction area* Major LNG import (regasification) area, current* Projected new/expanded LNG import area*
* Can include multiple facilities
Worldwide LNG Opportunities
AUSTRALIA UNITED STATES CANADA 2017 – 2020 Projected first LNG exports 2016 Expected first LNG exports
2.8 – 6 BCF per day
potential LNG exports from two to four projects by 2025
7.6 BCF per day expected LNG
exports by 2020
3.2 BCF per day LNG
export capacity in 2013
8.1 BCF per day LNG projects
under construction
>11 BCF per
day expected LNG exports in 2020
LNG Opportunities – Canada
Project Estimated Capacity Initial LNG Capacity Potential LNG Capacity Regulatory Status Devel FID Target Date Constru. Start Date Comm. Date Bcf/d MMpta MMpta AltaGas Idemitsu LP Up to 0.5 2.0 2.0 Not yet applied 2014 NA 2017 Douglas Channel Energy Partnership (LNG Partners, Haisla First Nation) 0.1 to 0.25 0.7 0.9 Export license received 2013 NA 2018 Kitimat LNG (Apache, Chevron) 1.5 5.0 10.0 Export license received 2013 NA 2018 Pacific Northwest LNG (Petronas, Japex) 3.0 12.0 20.0 Applied July 2013 2014 2015 2019 LNG Canada (Shell, PetroChina, KOGAS, Mitsubishi) Up to 3.7 12.0 24.0 Export license received 2014 2015 2019 Prince Rupert LNG (BG Group) Up to 2.9 14.4 21.6 Applied June 2013 2015 2016 2020 WCC LNG (ExxonMobil, Imperial) Up to 4.0 10.0 30.0 Applied June 2013 NA NA 2021-2023
Proposed LNG Projects Proposed LNG Terminals
Source: Scotiabank – GBM Equity Research
Industrial Applications
- Island Mode Prime Power
Co-Generation
- Combined Heat and Power
Applications Energy Export
- Flare Gas to Energy
- Land Fill Gas to Energy
- Biogas to Energy
Electric Power Opportunities
Opportunities – United States and Latin
America
PLUTO I PLUTO II SUNRISE PRELUDE BROWSE SCARBOROUGH GORDON WHEATSTONE BAYU-UNDAN ICHTHYS NORTH WEST SHELF GLNG ARROW GLADSTONE QCLNG APLNG
GALILEE COOPER BOWEN/ SURAT GUNNEDAH
- Projects include:
- Gas-gathering
infrastructure
for LNG plants on Australia’s northwest shelf
- Coal-seam gas
compression systems
for Queensland’s local gas demand and upstream LNG development
- Compression booster
stations along most of
Australia’s pipeline network
East Coast CBM & Shale Gas for LNG Project
Enerflex Locations Operating Under Construction Planned Unconventional Resource Basin
Opportunities – Southeast Asia
21
- 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
compression and processing
- f approximately $600 million
per year.
Kuala Lumpur Singapore Jakarta
Opportunities – Middle East North Africa
22
- 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;
- Desalination plants; and
- Cooling Needs.
- Expanded focus on:
- Saudi Arabia – compression on
flared gas
- Iraq – associated gas handling
projects
UAE Oman Bahrain