Strategic Acquisition of Axip International June 2, 2014
Advisories Continued 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…
Presenters J. Blair Goertzen President and Chief Executive Officer Enerflex D. James Harbilas, CA Executive Vice President and Chief Financial Officer Enerflex Patricia Martinez Senior Vice President, International Contract Services…
Strategic Acquisition Tres Hermanos, Mexico Gas Treating Facility US430 million purchase of International Contract Compression, Processing, as well as the After-Market Services business of Axip Energy Services, LP (Axip International)…
Axip International Business Overview Service Rentals Services Key Financials (year ended Dec 31, 2013)(1,3) Wellhead compression Revenue US128 million Gas lift and reinjection Gross Profit US68 million Sales line compression…
Build, Own, Operate and Maintain Total Enerflex Facilities Solution Wellhead Gas Lift and Operations & Processing Sales Line Axip International Compression Reinjection Maintenance and Treating Compression Acquisition 7 Asset…
Transaction Summary Consideration Financing US430 million (C473 million)(1), Financed with C125 million from subject to standard closing adjustments cash-on-hand, with the remainder from including a working capital adjustment a new…
STRATEGIC RATIONALE
Contracted Recurring Revenue Rental Business Provides Stable, Predictable and Repeatable Cash Flow Strong customer relationships: high cost to switching and production downtime Average contract duration of 3 7 years with high likelihood…
Pro Forma Financial Overview 2013 Revenue(1,2) 2013 EBITDA(1,2) C187 Canada & MM Canada & International Northern U.S. International Northern U.S. C127 MM 27% 26% 37% 34% 36% 40% Current Pro Forma Southern U.S. Southern…
Significant Increase in Size and Scale Axip International Represents a Launch Pad into the Mexican, South American and Eastern Hemisphere Markets Enerflex Axip International 12
New High Growth International Markets Technically Recoverable 2012A Shale Gas Resources(1,2) Production(1,2) Mexico: Expected influx of interest from domestic and international producers looking for single-source solutions for…
Strong International Management Team Assets Operated by a Global Network of 100+ Operations Managers and Field Technicians Local in-country expertise and long-standing customer relationships History of delivering major projects on time…
Access to New Customers Step Change in Enerflex's Relationships with Key Customers and Their (1) National Oil Companies Annual Upstream Budgets Largest new clients will be PEMEX and Petrobras who allocate a combined 60 billion…
Full Value Chain Offering Acquisition Adds Key Platform and Enhanced Cross-Sell Opportunities Significant Potential Fabrication Cross-Sell Opportunities Through Expanded Presence in Attractive International Regions Key identified…
Financing of the Transaction Financed with C125 Million from Cash-on-Hand and by Drawing on a Fully Committed New Revolving Credit Facility As at March 31, 2014, Enerflex had cash-on-hand of C219 million At closing, the expected pro…
Summary Enerflex the Leader at Delivering Innovative Turnkey Natural Gas Compression and Processing Solutions Globally Axip International is a Very Attractive, On- Strategy, Growth Acquisition Contracted recurring revenue More…
APPENDIX BACKGROUND OF AXIP INTERNATIONAL
Axip Energy Services, LP Houston Based Private Company Owned by TPG Capital Formerly known as Valerus Founded in 2002; acquired by TPG Capital in 2007 During early 2014 Kentz Corporation Limited completed a transaction to acquire…
Asset Profile Compression Equipment Fit for Purpose Multi-Stage Fleet, Aligned with Demand in Providers International Markets Small and large units to accommodate all ranges of natural gas transmission Wells experience rapidly…
Asset Profile Processing and Treating Major project in Tres Hermanos, Mexico for gas treating and conditioning Remove impurities from corrosive inlet gas stream 60 million cubic feet per day capacity 58 percent CO2 300 ppm H2S…
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