Enerflex Ltd.

Overview Key strengths Key risks Geographic diversity with a presence in more than 25 countries. Small size relative to peers. Cash flow stability due to more than 65% of gross margin backed by long-term contracts. Exposure to changes in upstream capital expenditures. Capital discipline prioritizing deleveraging. Execution risk to deleveraging plan over the next 12 to 18 months. ?s engineered systems operations are dependent on drilling economics. A decline in natural gas prices coupled with takeaway limitations may reduce capital expenditures by upstream producers and limit reduce future engineered systems bookings. North American backlog accounted for approximately 70% of the company?s backlog bookings on Dec. 31, 2022. Its revenues from the region are heavily reliant on natural gas production in

...Commodity price volatility may adversely affect the company's ability to secure future bookings. Enerflex Ltd.'s engineered systems operations are dependent on drilling economics. A decline in natural gas prices coupled with takeaway limitations may reduce capital expenditures by upstream producers and limit reduce future engineered systems bookings. North American backlog accounted for approximately 70% of the company's backlog bookings on Dec. 31, 2022. Its revenues from the region are heavily reliant on natural gas production in the Bakken and Permian basins, although the company's global geographic diversity and long-term contracted nature of its energy infrastructure and after-market services mitigates some of the cash flow risk...

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