COMPANY OVERVIEW
March 2020
FORWARD LOOKING STATEMENTS ADVISORY This presentation is issued by - - PowerPoint PPT Presentation
C OMPANY O VERVIEW March 2020 FORWARD LOOKING STATEMENTS ADVISORY This presentation is issued by Enerflex Ltd. (Enerflex or the Company). This presentation is for information purposes only and is not intended to, and should not
March 2020
FORWARD LOOKING STATEMENTS ADVISORY
constitute an offer to sell or the solicitation of an offer to buy securities of Enerflex.
events, results of operations and the Company’s future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “contemplate”, “continue”, “estimate”, “expect”, “intend”, “propose”, “might”, “may”, “will”, “shall”, “project”, “should”, “could”, “would”, “believe”, “predict”, “forecast”, “pursue”, “potential”, “objective” and “capable” and similar expressions are intended to identify forward-looking information. In particular, this presentation includes (without limitation) forward-looking information pertaining to: anticipated financial performance; future capital expenditures, including the amount and nature thereof; bookings and backlog; oil and gas prices and the impact of such prices on demand for Enerflex products and services; development trends in the oil and gas industry; seasonal variations in the activity levels of certain oil and gas markets; 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; the ability of existing and expected cash flows and other cash resources to fund investments in working capital and capital assets; the impact of economic conditions on accounts receivable; expectations regarding future dividends; expectations and implications of changes in government regulation, laws and income taxes; and other such matters.
conditions including supply and demand fundamentals for oil and gas, and the related infrastructure including new environmental, taxation and other laws and regulations; the ability to continue to build and improve on proven manufacturing capabilities and innovate into new product lines and markets; increased competition; insufficient funds to support capital investments required to grow the business; the lack of availability of qualified personnel or management; political unrest; and other factors, many of which are beyond the Company's
basis for the forward-looking information and statements included in this presentation, as a result of such known and unknown risks, uncertainties and other factors, actual results, performance, or achievements could differ materially from those expressed in, or implied by, these statements. The forward-looking information included in this presentation should not be unduly relied upon.
is 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 information, whether as a result of new information, future events or otherwise.
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).
EXECUTIVE MANAGEMENT TEAM
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Marc Rossiter President & CEO Sanjay Bishnoi SVP, Chief Financial Officer Patricia Martinez President, Latin America Greg Stewart President, USA Phil Pyle President, International David Izett SVP, General Counsel Andrew Jack President, Canada
Transforming Natural Gas to Meet The World’s Energy Needs
PROVEN TRACK RECORD OF VALUE CREATION
regions driving balanced revenue growth.
sources to increase and stabilize margins.
flow generation through the cycles.
$0.46/share.
ENERGY ACCESS IS FUNDAMENTAL TO SOCIAL PROGRESS
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Source: World Bank DataBank 2019; U.N. Human Development Reports.
Angola Australia Canada Ethiopia Finland Germany Mozambique Namibia Niger Nigeria Norway Oman Philippines Poland Saudi Arabia Spain Sweden UAE USA Uruguay 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1000 2000 3000 4000 5000 6000 7000 8000
U.N. HUMAN DEVELOPMENT INDEX ENERGY USE (KG OF OIL EQUIVALENT PER CAPITA) Per Capita Energy Use vs. United Nations Human Development Index Score
ENERGY CONSUMPTION TRACKS GDP GROWTH
6
Source: EIA International Energy Outlook 2019, Case: Reference.
50 100 150 200 250 300 2010 2020 2030 2040 2050
High Economic Growth
Reference
Low Economic Growth High Economic Growth
Reference
Low Economic Growth
OECD
non-OECD
Global Gross Domestic Product trillion 2010 US dollars
History Projections
Global Aggregate Energy Consumption
(‘000 bcf equivalent) 200 400 600 800 1,000 2010 2020 2030 2040 2050 OECD non-OECD History Projections
World energy consumption rises over 40% between 2020 and 2050 in the EIA’s Reference case
7 Global natural gas consumption is projected to increase by over 40% from 2020 to 2050 Natural gas is the world’s fastest growing source of fossil fuel
Source: EIA International Energy Outlook 2019.
GLOBAL ENERGY DEMAND SATISFIED BY A DIVERSE FUEL MIX
134.7 191.4
100 200 300 400 500 600 700 800 900 1000 2010 2015 2020 2025 2030 2035 2040 2045 2050
Liquids Natural Gas Coal Nuclear Renewables
Projected Global Energy Consumption
(‘000 bcf equivalent per year)
+42%
(~ 57,000 bcf)
50 100 150 200 250 2010 2020 2030 2040 2050
Global Natural Gas Consumption by Sector
('000 bcf)
Buildings Transportation Power Generation Industrial
INCREASED GAS CONSUMPTION IN ALL SECTORS…
8 Natural gas use accelerates from increased industrial activity, natural gas-fired electricity generation, and transportation fueled by compressed and liquefied natural gas
Source: EIA International Energy Outlook 2019, Case: Reference.
History Projections
…WHILE REDUCING CARBON INTENSITY
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229 206 215 214 161 157 139 117
Diesel Fuel and Heating Oil Coal (Sub- bituminous) Coal (Anthracite) Coal (Lignite) Coal (Bituminous) Natural Gas Gasoline Propane
Environmental considerations support a shift to natural gas vs.
Pounds of CO2 emitted per thousand cubic feet
Up to
fewer CO2 emissions
fossil fuels1
10
ALL PRODUCED GAS REQUIRES COMPRESSION AND PROCESSING
134.7 191.4
50 100 150 200 2020 2050
+57
(‘000 bcf)
Consumption increase
2050 requires $billions
processing, and maintenance investments
1 Based on EIA International Energy Outlook 2019, Case: Reference.GLOBAL DELIVERY OF NATURAL GAS SOLUTIONS
Business Overview*
Revenue $2,045 MM Employees ~2,500 Operating Locations 57 Manufacturing Facilities 3 Countries 17
Fleet: ~675,000 HP Enerflex BOOM Assets Enerflex Operating Location Enerflex Manufacturing Facility *Trailing twelve-months for the period ended December 31, 2019. ** 2017 Global Production = 128,000 bcf/year.
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28,000 bcf** bcf
EXECUTING ON A POWERFUL STRATEGY
Recurring Revenues
Asset Ownership
Engineered Systems
Customized offerings for:
Any Engineered System or ITK product
Own-Operate- Maintain (“BOOM”) basis in all target markets
13
Integrated Turnkey (“ITK”)
Turnkey Engineered Systems, with local construction and installation capabilities
After-Market Services
supply for all products
14
SOLUTIONS FROM THE WELLHEAD TO PIPELINE
DIVERSIFICATION STRATEGY
15 Complementary offerings of diversified product lines in diversified geographies Vertically Integrated platform provides differentiation Focused on growth and maintenance of gas production volumes
USA Canada ROW Engineered Systems AMS Asset Ownership
ADDITIONAL FOCUS ON GROWING RECURRING REVENUES
Recurring Revenues
Asset Ownership
Engineered Systems Integrated Turnkey (“ITK”) After-Market Services
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Recurring revenue streams offer greater stability and predictability
Higher margins versus manufacturing Strategic goal of generating ≥ 50% of revenue from recurring sources
Asset Ownership = Contract Compression + BOOM
3 4 2 1
Leased to Customers for varying durations May include long-term
component Products engineered, built, and owned by Enerflex Contracted revenues provide valuable source of stable, predictable revenues and profits
ASSET OWNERSHIP
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RATIONALE FOR ASSET OWNERSHIP
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$0 $200 $400 $600 $800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 2017 2018 2019
ES Bookings Trailing 12-Month EBITDA*
C$ in millions * Normalized for Goodwill impairments.
STRONG U.S. CONTRACT COMPRESSION FUNDAMENTALS
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0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
US Contract Compression Market1
(million horsepower) Wellhead Gas-Lift Gathering Processing
> 6%
CAGR
History Projections
1 Spears & Associates Inc., October 2019.Demand is expected to grow from both production maintenance and gas volume increases, including gains in associated gas from oil wells Changing field conditions require continual equipment modification, making rental an attractive alternative to purchasing
CAPTURING OPPORTUNITIES IN A SUPPORTIVE MARKET
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Low 30% Mid 25% High 45%
Diversified horsepower profile across contract compression fleet
USA contract compression fleet utilization %1
Growth of US fleet from ~130,000 hp to > 310,000 hp since 2017
1 As at December 31, 2019.BUILD, OWN, OPERATE & MAINTAIN (“BOOM”)
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Any Engineered System
Build-Own-Operate- Maintain (“BOOM”) basis in all target markets Larger scale compression and processing facilities Longer-term contracts
compression
BOOM
Build, Own, Operate, Maintain
Engineering & Design Fabrication Installation & Commissioning Operations & Maintenance
BOOM PORTFOLIO CONTINUES TO EXPAND
22
2009
Compression Facility, USA
2020 2018 2014 2015
Early Production Compression Facility, Oman Compression Facility, USA Compression Facility, Bahrain Compression Facility, Oman Processing and Compression Facility, Oman Compression Facility, Oman Early Development Facility, Oman Field Depletion Compression Facility, Oman Compression Facility, Argentina Gas Compression Facility, Colombia UPGN Processing Facility, Brazil
PRIORITY TO GROW RECURRING REVENUES
Recurring revenue growth through
and strategic M&A
59 39 50 98 153 173 154 176 202 262 284 325 388 385 299 308 345 395 321.0 323.5 375.0 486.4 537.2 471.5 461.7 521.1 596.9
$0 $100 $200 $300 $400 $500 $600 2011 2012 2013 2014 2015 2016 2017 2018 2019
Recurring Revenue C$ in millions Asset Ownership Revenue Service Revenue
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+8%
CAGR
Recurring Revenues = revenues from Asset Ownership and Service product lines Recurring revenue has grown by over $275 million (8% CAGR) since 2011
ASSET OWNERSHIP RISKS
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01 03 02
Counterparty Credit Asset Performance Well and/or basin dynamics
Risks mitigated when paired with financial + basin due diligence and Enerflex AMS
OPTIMIZED PLATFORM POSITIONED FOR GROWTH
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FINANCIAL STRENGTH Manufacturing cash flows fund investment in Asset Ownership platform VALUE CREATION Growing profitability while maintaining strong returns
VERTICAL INTEGRATION
Differentiated global platform with product line synergies
DIVERSE OFFERINGS
Growing all product
geographies – We are where the gas is
COMMITTED TO SAFETY
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1 As at December 31, 2019.Global Consolidated Safety Record:1
Total # of Lost Time Incidents per 200,000 exposure hours.
2019 Target = 0.00
LTI TRIR MVIR
Total Recordable Injury Rate per 200,000 exposure hours.
2019 Target = 0.62
Motor Vehicle Incidents per 1,000,000 km driven.
2019 Target = 0.25
ENHANCING AND STRENGTHENING COMMUNITIES
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Corporate citizenship through wellness and community development initiatives is an integral part of Enerflex’s vision
UNITED STATES
Gas infrastructure demand driven by associated gas from US shale plays Enerflex is positioned to grow its asset
market services platforms in key plays
Enerflex Operating Location Enerflex Manufacturing Facility
20 bcf/d 0 bcf/d
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USA
$948 MM Service $172 MM Rental $76 MM Total Revenue $1,196 MM Fleet: ~310,000 HP Fleet Utilization: 87%
USA 58.5%
ROW 17.0% Canada 24.5%
% of Consolidated Revenues1
Source: US Energy Information Administration, International Energy Outlook 2017.
1Trailing twelve-months for the period ended December 31, 2019.USA 58.5%
ROW 17.0%
Canada 24.5%
% of Consolidated Revenues1
REST OF WORLD – LATIN AMERICA
TBD
Regional gas production is expected to grow by approximately 80% by 2040* Continued success with ITK, BOOM, and recurring revenue projects is expected to lead Enerflex’s growth
Enerflex BOOM Assets Enerflex Operating Location
4 bcf/d 0 bcf/d
30
Rest of World
$77 MM Service $155 MM Rental $115 MM Total Revenue $347 MM Fleet: ~300,000 HP *Source: US Energy Information Administration, International Energy Outlook 2017.
1Trailing twelve-months for the period ended December 31, 2019.REST OF WORLD – MIDDLE EAST / AFRICA
TBD
The Middle East accounts for > 30% of the world’s proven gas reserves* ~ 100,000 horsepower of
compression and processing facilities Positioned for growth in key markets including Oman, Bahrain, and Kuwait
Enerflex BOOM Assets Enerflex Operating Location
20 bcf/d 0 bcf/d *Source: US Energy Information Administration, International Energy Outlook 2017
1Trailing twelve-months for the period ended December 31, 2019.31
Rest of World
$77 MM Service $155 MM Rental $115 MM Total Revenue $347 MM Fleet: ~300,000 HP
USA 58.5%
ROW 17.0%
Canada 24.5%
% of Consolidated Revenues1
CANADA
NGL recovery drives infrastructure demand in liquids-rich basins Petrochemical projects will increase domestic consumption of NGLs Electric power
attractive
Source: Wood Mackenzie.
1Trailing twelve-months for the period ended December 31, 2019.32
Enerflex Operating Location Enerflex Manufacturing Facility
11 bcf/d 0 bcf/d
USA 58.5% ROW 17.0%
Canada 24.5%
% of Consolidated Revenues1
Canada
$424 MM Service $68 MM Rental $11 MM Total Revenue $503 MM Fleet: ~65,000 HP
$422.5 $603.8 $590.4 $761.6 $678.2 $466.1 $779.1 $980.5 $1,195.7 $360.6 $397.5 $376.4 $405.2 $456.6 $431.7 $355.7 $422.8 $346.8 $444.0 $500.4 $438.2 $529.4 $494.2 $232.8 $418.6 $299.9 $502.9
$1,227.1 $1,501.7 $1,405.0 $1,696.2 $1,629.0 $1,130.6 $1,553.4 $1,703.3 $2,045.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 United States of America Rest of World Canada
DIVERSIFIED REVENUES THROUGH COMPLEMENTARY OFFERINGS
71% 19% 10%
C$ in millions
2018 2019
70% 20% 10%
Service Engineered Systems Rentals
Exposure to several markets protects against spending fluctuations in any one particular segment 34
Leads To Leads To
8.8% 13.3% 9.7% 12.2% 6.2% 6.1% 9.4% 9.8% 17.5%
$0 $100 $200 $300 $400 $500 $600 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019*
Acquisition Rental Additions PP&E Additions ROCE
A DISCIPLINED APPROACH TO STRATEGIC GROWTH
* ROCE derived from Adjusted EBIT, the latter calculated using adjusting amounts disclosed in the MD&A.
CAPEX, M&A and ROCE
Over C$1.2 billion reinvested in organic growth and M&A
past eight years Over 90% of growth capex deployed toward Asset Ownership platform, promoting sustained earning power from recurring revenues
Organic Investment M&A Opportunities
Leads To
Organic Investment M&A Opportunities
C$ in millions
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BUSINESS MIX DRIVES PROFITABILITY
127.0 156.8 126.9 193.7 176.8 190.3 214.1 225.2 345.8
10.4% 10.4% 9.0% 11.4% 10.9% 16.8% 13.8% 13.2% 16.9%
100.0 150.0 200.0 250.0 300.0 350.0 400.0 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019*
EBITDA EBITDA Margin %
* Adjusted EBITDA as disclosed in the MD&A. C$ in millions
EBITDA and EBITDA Margin
Approximately $220 million increase in EBITDA since 2011 coupled with increasing EBITDA margins 36
GROSS MARGIN PROFILE
37
Revenues (C$ in millions) and Gross Margin %1 by Product Line
Q4 2019 Q4 2018 FY 2019 FY 2018 Engineered Systems
Revenue
319.8 321.4 1,448.5 1,182.2
Gross Margin %
24.9% 14.5% 19.9% 14.4% Rentals
Revenue
50.9 48.8 202.3 176.0
Gross Margin %
14.5%2 65.6% 52.4%2 67.8% After-Market Services
Revenue
103.6 96.6 394.6 345.1
Gross Margin %
26.1% 27.6% 25.5% 27.1%
1 Gross Margin % is inclusive of depreciation and amortization. See appendix for reconciliation to amounts presented in the MD&A. 2 Rental Gross Margin % includes the impact of rental asset write-offs recognized in Q4 2019, as detailed in the MD&A.
POSITIVE FREE CASH FLOW AND BALANCE SHEET STRENGTH
67.4 105.1 72.7 114.2 126.5 112.8 136.2 190.4 240.8
100.0 150.0 200.0 250.0 300.0 2011 2012 2013 2014 2015 2016 2017 2018 2019
*Amounts presented exclude M&A and net capital spending and are available in the financial statements and accompanying notes for the respective years. See Appendix for reconciliation to Free Cash Flow. ** Calculated using Adjusted EBITDA as disclosed in the MD&A. See Appendix for composition of consolidated borrowings. C$ in millions
0.30 (0.31) (0.70) 1.79 2.38 1.19 1.09 0.52 0.97 2011 2012 2013 2014 2015 2016** 2017** 2018** 2019**
Net Debt to EBITDA Free Cash Flow Before Net Capital Spending*
Free cash flows fuel organic growth, M&A, and dividend growth Balance sheet strength with a net debt to EBITDA of 0.97
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$0.24 $0.28 $0.30 $0.34 $0.34 $0.34 $0.38 $0.42 $0.46 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50
2011 2012 2013 2014 2015 2016 2017 2018 2019
SUSTAINED DIVIDEND GROWTH
Annually (C$/share) Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dividend Paid 0.24 0.25 0.29 0.31 0.34 0.34 0.35 0.39 0.43 Year-End Yield % 1.36 2.09 1.90 1.89 2.56 1.99 2.28 2.44 3.76
Dividend Amount is calculated using the ex-dividend date
1 Compound annual growth rate period from 2011 – 2019.39
dividend CAGR1
CAPITAL ALLOCATION PRIORITIES
Organic growth of Asset Ownership platform in all Regions. Opportunistic Inorganic growth right assets, right places, right long-term returns. Dividend Growth
year since 2011.
focus through the cycles.
3-year average EBITDA1 $253.3M Next $1B of CAPEX
@10x EBITDA multiple
$100M
@5x EBITDA multiple
$200M
$453.3M
ADDITIONAL ORGANIC + INORGANIC REINVESTMENT…
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253.3 453.3
$1B CAPEX @ 5x $1B CAPEX @ 10x 3-year avg. EBITDA1
100.0 100.0
79%
Up to 79% increase in EBITDA1 from next $1B of reinvestment
C$ in millions
1 Three-year average adjusted EBITDA for the period of 2017 – 2019 inclusive. See adjusted EBITDA as disclosed in the MD&A.…WITH OPTION TO CONSOLIDATE A FRAGMENTED MARKET
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US contract compression market consists of 4 to 5 large players and several small players
Roll-up of smaller players may accelerate growth
310
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
US Contract Compression Market
(total horsepower, 000’s)
PIVOT TO RECURRING REVENUES SUPPORTS VALUATION
44
1 EV/NTM EBITDA multiple for Enerflex and the following companies as at December 31, 2019: Archrock Inc., USA Compression Partners LLC. Source: BloombergEV/NTM EBITDA Multiples1:
Implied multiple expansion with continued growth of recurring revenue product lines
0.0 2.0 4.0 6.0 8.0 10.0 12.0
EFX Average Pure Play Contract Compression Peer
foundation for incremental growth in each
Services, and Asset Ownership product lines in all regions.
Ownership remains the best
the cycles.
EXECUTING ON A POWERFUL STRATEGY
EBITDA growth has a low correlation to fluctuations in North American gas prices
Proven track record of creating shareholder value through Growth and Dividend Income
dividend increases of over 90% since 2011.
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RECONCILIATIONS
FREE CASH FLOW
EBITDA growth has a low correlation to fluctuations in North American gas prices 49
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Cash provided by operating activities 134,795 134,208 69,024 64,611 104,173 91,792 179,251 242,868 54,169 Net change in non-cash working capital and other 48,243 15,531 (28,929) (61,053) (55,251) (41,385) 9,736 38,208 (221,749) 86,552 118,677 97,953 125,664 159,424 133,177 169,515 204,660 275,918 Add back: Net finance costs 7,011 5,661 5,518 9,771 15,310 14,056 12,727 19,145 18,578 Current income tax expense 17,293 22,435 23,256 45,949 32,097 20,742 27,525 20,871 31,720 Proceeds on the disposal of property, plant and equipment 22,853 9,205 Proceeds on the disposal of rental equipment 6,935 4,454 Deduct: Net interest paid (8,525) (6,356) (5,408) (8,999) (13,657) (13,116) (11,957) (18,373) (18,398) Net cash taxes (paid) received (25,642) (16,723) (26,801) (34,667) (39,839) (15,089) (31,580) (2,273) (29,434) Additions to property, plant and equipment (16,920) (46,322) Additions to rental equipment: Growth (102,960) (208,978) Maintenance (12,365) (8,090) Dividends paid (9,266) (18,606) (21,798) (23,499) (26,804) (26,921) (30,066) (33,676) (37,548) Net capital spending 33,993 (32,706) (17,365) (32,401) (166,318) 4,244 (13,159) Free cash flow 101,416 72,382 55,355 81,818 (39,787) 117,093 123,005 87,897 (8,895) Free cash flow before net capital spending 67,423 105,088 72,720 114,219 126,531 112,849 136,164 190,354 240,836
GROSS MARGIN PROFILE BY PRODUCT LINE
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Three months ended December 31, 2019 ($ Canadian thousands) Total Engineered Systems Service Rental Revenue $ 474,362 $ 319,800 $ 103,631 $ 50,931 Cost of goods sold: Operating expenses 360,445 240,276 76,623 43,546 Depreciation and amortization 16,475 1,828 1,214 13,433 Gross margin $ 97,442 $ 77,696 $ 25,794 $ (6,048) Three months ended December 31, 2018 ($ Canadian thousands) Total Engineered Systems Service Rental Revenue $ 466,842 $ 321,439 $ 96,601 $ 48,802 Cost of goods sold: Operating expenses 361,616 274,874 69,953 16,789 Depreciation and amortization 23,464 524 1,049 21,891 Gross margin $ 81,762 $ 46,041 $ 25,599 $ 10,122 Twelve months ended December 31, 2019 ($ Canadian thousands) Total Engineered Systems Service Rental Revenue $ 2,045,422 $ 1,448,503 $ 394,586 $ 202,333 Cost of goods sold: Operating expenses 1,550,036 1,159,712 293,924 96,400 Depreciation and amortization 66,301 6,681 3,905 55,715 Gross margin $ 429,085 $ 282,110 $ 96,757 $ 50,218 Twelve months ended December 31, 2018 ($ Canadian thousands) Total Engineered Systems Service Rental Revenue $ 1,703,273 $ 1,182,170 $ 345,098 $ 176,005 Cost of goods sold: Operating expenses 1,320,588 1,012,415 251,490 56,683 Depreciation and amortization 74,712 1,192 3,593 69,927 Gross margin $ 307,973 $ 168,563 $ 90,015 $ 49,395COMPOSITION OF BORROWINGS
EBITDA growth has a low correlation to fluctuations in North American gas prices 51
($ Canadian thousands) December 31, 2019 December 31, 2018 Drawings on Bank Facility 121,328 124,852 Senior Notes due June 22, 2021 40,000 40,000 Senior Notes due December 15, 2024 151,374 158,241 Senior Notes due December 15, 2027 120,916 125,494 Deferred transaction costs (3,131) (3,875) 430,487 444,712