JANUARY 24, 2022 / 1:30PM GMT, Enerflex Ltd and Exterran Corp to Combine, Creating a Premier Integrated
Global Provider of Energy Infrastructure M&A Call
CORPORATE PARTICIPANTS
Marc Edward Rossiter Enerflex Ltd.President, CEO & Director
Sanjay Bishnoi Enerflex Ltd.Senior VP & CFO
Stefan Ali Enerflex Ltd.Director of Strategy, Risk & IR
CONFERENCE CALL PARTICIPANTS
Aaron MacNeil TD
Securities Equity ResearchEquity Research Analyst
Keith MacKey RBC Capital Markets, Research DivisionAnalyst
Sunil K. Sibal Seaport Global Securities LLCMD & Senior Energy Infrastructure Analyst
Tim Monachello ATB Capital Markets Inc., Research DivisionAnalyst of Institutional Equity Research for Energy Services
PRESENTATION
Operator
Good day, and thank you for standing by. Welcome to the Enerflex Transaction Conference Call. (Operator Instructions) Please be advised that todays
conference is being recorded. (Operator Instructions). I would now like to hand the conference over to your speaker today, Mr. Stefan Ali, Vice President of Investor Relations and Strategy. Mr. Ali, the floor is yours.
Stefan Ali Enerflex Ltd.Director of Strategy, Risk & IR
Thank you, operator, and thanks to everyone joining us today. This morning, Enerflex announced plans to combine with Exterran to create a leading global energy
infrastructure platform. On this mornings call are Marc Rossiter, Enerflexs President and Chief Executive Officer; and Sanjay Bishnoi, Enerflex Senior Vice President and Chief Financial Officer.
In addition to this mornings press release, Enerflex has posted an investor presentation on its website, which well refer to in this mornings
comment. Todays discussion will include forward-looking statements regarding expectations for future performance and business prospects.
Forward-looking information involves risks and uncertainties, and the stated expectations could differ materially from actual results or performance. For more
information, please see the advisory comments within our news release and presentation. Also note that all financial figures in the presentation and being discussed today are in U.S. dollars unless otherwise stated.
Well proceed on the basis that youve all taken the opportunity to read this mornings press release. Ill now turn the call over to Marc.
Marc Edward Rossiter Enerflex Ltd.President, CEO & Director
Thanks, Stefan, and good morning, everyone. Were very excited today to announce the execution of an agreement to combine Enerflex and Exterran, 2 global
leaders in modular energy solutions, each with decades of experience, diversified operations and outstanding safety and operational performance.
This
transaction is exciting for a multitude of reasons. First, Ill address the financial benefits to shareholders. The transaction approximately doubled adjusted EBITDA is over 50% accretive to Enerflex cash flow per share and subject to
final price allocation is roughly 50% accretive to earnings per share while presenting significant opportunities to improve efficiencies.
We are targeting
at least $40 million of annual run rate cost synergies to be fully realized within 12 to 18 months following transaction close. Second, our respective platforms are highly complementary. For decades, we have conducted business in similar
geographies, harnessing our respective expertise and modularized energy solutions. For Enerflex, our core competence as a single-source supplier of natural gas compression, gas processing, refrigeration and electric power generation equipment will
be enhanced by Exterrans expertise in cryogenic applications and produced water reuse and recycling.
In addition, the combined entity will have
greater financial and operational capabilities required to address both the core natural gas markets and energy transition initiatives, including carbon capture, utilization and storage, renewable natural gas, hydrogen and electrification.
|
|
|
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
©2022 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without
the prior written consent of Refinitiv. Refinitiv and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
|
|
2
|