Enerflex Ltd.

Good morning, ladies and gentlemen, and welcome to Interflex's second quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. Following Interflex's prepared remarks, we will conduct a question and answer session. Instructions will follow at that time. As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Stephan Alley, Vice President, Strategy and Investor Relations. Please go ahead.

Thanks, operator. Good morning, everyone, and thank you for joining us on our second quarter 2022 earnings conference call. With me on the call today are Mark Rossiter, President and Chief Executive Officer, Sanjay Bishnoi, Senior Vice President and Chief Financial Officer, and Ben Park, Vice President, Corporate Controller. During this call, we'll touch on highlights from our second quarter 2022 results, comment briefly on the performance of our three business segments, and then provide an update on the proposed acquisition of Xerrin. Before I turn it over to Mark, I'll remind everyone that today's discussion will include non-IFRS and other financial measures, as well as 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 refer to the advisory comments within our news release, MD&A, and other regulatory filings, which are available on our website and under our CDAR profile. All dollar amounts discussed today are in Canadian dollars unless otherwise stated. With that, I'll turn it over to our President and CEO, Mark Roster.

Thanks, Stephan, and good morning, everyone. Enerflex posted another strong quarter, building on the momentum we established in the first quarter as we continue to recover from the lows of the pandemic. Reflecting the underlying strength of our base business and our ability to capitalize in improving market fundamentals, we increased our revenues, grew our margins, and reduced our net debt balance. Driven by North American activity, our engineered systems business continued its recovery. Quarterly bookings of $313 million doubled from the second quarter of 2021 and increased by 32% from the first quarter of 2022. Continued bookings momentum generated an engineered systems backlog of $737 million at June 30th. This is our largest backlog in three years, providing Enerflex with a clear line of sight to value creation over the coming quarters. Our teams have been working hard to capture expanded margins on these new bookings compared to the lower margin of work we secured during the pandemic. Though producers across North America continue to demonstrate capital discipline, rig counts in natural gas production are rising, which we view as a leading indicator for future bookings and backlog. Our energy infrastructure business continues to perform as expected. Within the US solid market fundamentals and the growing demand for LNG exports drove our contract compression fleet to an average utilization rate of 94% during the quarter, our highest on record and a clear indicator that there is demand for our products and services. In our rest of world segment, we continue to progress the construction of natural gas infrastructure asset that was awarded in the fourth quarter of 2021. Excellent project execution will see this asset come online later this year, which is ahead of schedule and significantly under budget. Lastly, despite broad-based OEM supply chain challenges on the timely delivery of parts, along with inflationary operating expense pressures, our service business saw a considerable increase in activity from a combination of improved part sales and general demand for maintenance solutions across all regions. Barring a significant change in macro fundamentals across the energy sector, we expect demand for our aftermarket services business to remain robust. With respect to inflation, we are diligently working to protect our margins and are actively managing supply chain and inflationary pressures across all regions. Most of the inflationary pressures we are observing relate to the availability of materials and escalating operating expenses. To mitigate this, we are being strategic in our inventory planning based on the bid pipeline and working closely with our customers to reduce any significant cost exposures and delivery delays. Finally, I'll touch on our energy transition business, where we are progressing several opportunities across the carbon capture, renewable natural gas, and hydrogen spaces. In addition to helping our customers eliminate Scope 1 GHG emissions through our electrified offerings, we are also meaningfully progressing discussions for larger scale infrastructure that will facilitate global decarbonization efforts. Constructive public policy will assist in promoting investment in this emerging market and could begin to benefit Enerflex as early as this year. I will now turn it over to our CFO, Sanjay Vishnoy, to touch on the financial highlights from the quarter.