Enerflex Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Enerflex fourth quarter of the year and 2020 results webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 1 on your telephone. If you require any further assistance, please press star 10. I would now like to use Phil's face to call Mr. Stephan Ali. You may begin.

Thank you, Operator, and good morning, everyone. Here with me are Mark Rossiter, Enerflex's President and Chief Executive Officer, Sanjay Dishnoi, Enerflex's Senior Vice President and Chief Financial Officer, and Ben Park, Enerflex's Vice President and Corporate Controller. During this call, we'll be providing our financial results for the three months ended December 31, 2020, a brief commentary on the performance of our three business segments, and a summary of our financial positions. Today's discussion will include forward-looking statements regarding Enerflex's 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, MD&A, and other regulatory filings. Approximately one hour following the completion of this call, a recording will be available on our website under the Investors section. During this call, unless otherwise dated, we'll be referring to the three months ended December 31, 2020, compared to the same period of 2019. We'll proceed on the basis that you've all taken the opportunity to read yesterday's press release. I'll now turn the call over to Mark.

Thanks, Stephan, and good morning, everyone. Despite the unprecedented volatility in energy markets in 2020, Interflex's fourth quarter results benefited from a combination of strong project execution and minimal business disruptions. a testament to the company's employees and their commitment to health, safety, and doing the right thing. Although engineered systems bookings were challenged throughout the year, more positive signals began to emerge in the fourth quarter, where the combination of improving commodity prices and refreshed customer capex budgets led to an increase in bidding activity. Normalizing for de-bookings of dormant projects from prior years, fourth quarter bookings were $77 million, the highest since the first quarter of 2020. While positive, the recovery in customer spending is in its early stages and engineer systems bookings will likely remain subdued through the first half of 2021 with expectations for a modest recovery later in the year. Our aftermarket services business remained resilient compared to prior downturns despite challenges associated with operational and travel restrictions caused by the pandemic. While restrained customer spending is expected during a downturn, recovery within the services business is usually a gradual process and we expect that dynamic to play out again. Ultimately, AMS is most impacted when production volumes decrease, but as wells are flowing, equipment must be serviced in order to run reliably. With a larger service footprint, including broader capabilities and personnel in all operating regions, Interflex is better positioned to manage an AMS downturn in any single region. Our global asset ownership platform demonstrated its resilience in the most challenging of environments. Fourth quarter results benefited from the contributions of three boom projects that were completed in Argentina and Brazil in the third quarter, while the fourth boom project in the Middle East and Africa region was completed during the quarter and began generating revenue in January of 2021. In addition, we finalized two 10-year renewals for natural gas infrastructure that were previously announced with our second quarter results. These extensions reinforce our strategic goal of generating long-term stable cash flows. In addition, despite recent energy market volatility, we continue to see demand for our gas and power infrastructure through our asset ownership model in our rest of world segments. In addition, our U.S. contract compression fleet of over 350,000 horsepower maintained an average utilization of 82% on steady demand driven by strengthening commodity prices during the quarter. Overall, I am proud of our team's efforts and successes throughout the year to keep our assets performing and our customers happy. Enerflex's global vision is transforming natural gas to meet the world's energy needs, and we believe that natural gas is an important place in the overall energy landscape. Natural gas is the cleanest burning fossil fuel that can provide a practical reduction in global carbon emissions while synergistically supporting a global energy transition. Enerflex's focus on stabilizing cash flows to defend against the natural yet unpredictable cyclicality in commodity markets has been put to the test throughout 2020. The investments we've made in our asset ownership and AMS businesses have helped in stabilizing the company's cash flow throughout this downturn. and will be an important part of our business going forward. We continue to exercise capital discipline with a focus on value creation via judicious capital allocation. Interflex believes that maintaining efficiency through optimized operations and preserving the strength of our balance sheet will allow the company to weather this downturn and will provide a stable foundation to succeed as the industry recovers. I will now turn things over to Sanjay to review our financial results.