Enerflex Ltd.

Good morning, ladies and gentlemen, and welcome to the EnarFlex first quarter 2022 results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct question and answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would not like to turn the conference over to your host, Stefan Ali, Vice President, Strategy and Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Here with me are Mark Rossiter, Enerflex's President and Chief Executive Officer, Sanjay Bishnoi, Enerflex's Senior Vice President and Chief Financial Officer, and Ben Park, Enerflex's Vice President, Corporate Controller. During this call, we'll be providing our financial results for the three months ended March 31, 2022, a brief commentary on the performance of our three business segments, and a summary of our financial position. 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's 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 stated, we'll be referring to the three months ended March 31st, 2022, compared to the same period of 2021. 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. We are pleased to report a successful first quarter and continued positive momentum across our business. Our ability to secure higher volumes of work in recent months is a function of robust supply and demand fundamentals in the oil and gas industry, where ongoing strength in commodity prices, improved balance sheets of our customers, and a renewed focus on energy security led to quarterly engineered systems bookings of over $230 million and grew our backlog for a fifth consecutive quarter. Increased industry activity is a first step towards normalizing engineered systems gross margins, and as a result of recent bookings, activity, we've generated a quarter-over-quarter gross margin improvement of 200 basis points in our manufacturing business, despite increased supply chain pressures. While we're cautiously optimistic about the trajectory of the recovery, we continue seeing many of our customers maintain their commitment toward capital discipline, and there remains some uncertainty in predicting the impact of geopolitical events on the global energy landscape and pace of energy development across our regions. Our recurring revenue businesses delivered stable, predictable contributions to our overall performance. Aftermarket service business continues to recover from the downturn and is expected to do so throughout the year, though we'll be contending with broad-based OEM supply chain challenges on the timely delivery of spare parts, along with inflationary operating cost pressures. Our energy infrastructure business continued its strong performance. Improved activity within key U.S. basins drove demand for our U.S. contract compression fleet, which grew to 405,000 horsepower during the quarter and maintained an average utilization of 91%. In our rest of world segment, our assets continued to perform as expected. We commenced operations for a 10-year natural gas infrastructure asset in early January and progressed another 10-year infrastructure contract that was awarded to Enerflex during the fourth quarter of 2021. Collectively, these assets reinforce our strategic goal of generating long-term stable cash flows. Overall, I am proud of our team's efforts to keep our assets performing to the benefit of our customers and stakeholders. In our energy transition business, we continue progressing several opportunities across the carbon capture, renewable natural gas, and hydrogen spaces. We are also seeing continued demand for electrified solutions across multiple regions. which are helping our customers eliminate Scope 1 emissions from their operations. Constructive public policy support will assist in promoting investment in this emerging market, which should benefit Enerflex in the coming years. Lastly, we continue to progress all necessary matters to close our all-share acquisition of Exterin that was announced in January of 2022. A number of regulatory approvals have already been obtained, and we are currently not aware of any reason that would prevent us from obtaining the remaining approvals. As we progress our pre-integration planning work, we are increasingly excited about the strategic fit of the two companies, the support of macroeconomic fundamentals for global natural gas production growth, and the support received by the market. Upon closing, this transaction will create a true energy infrastructure company, and Enerflex remains focused on delivering on the strategic rationale of the acquisition, including increasing recurring pro forma gross margin to approximately 70% of total, striving for a sustainable cost structure through synergy realization, and providing better capabilities to our global client base. I will now turn the call over to Sanjay Vishnoy to review our financial results. Thanks, Mark.