Enerflex Ltd.

Good morning, ladies and gentlemen, and welcome to the Interflex third quarter 2022 earnings conference call. At this time, all participants are in a 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 Ali, Vice President, Strategy and Investor Relations. Please go ahead, sir.

Thank you, Operator. Good morning, everyone, and thank you for joining us on our third quarter 2022 earnings conference call. With me on the call today are Mark Rossiter, President and Chief Executive Officer, Sanjay Vishnoy, Senior Vice President and Chief Financial Officer, and Ben Park, Vice President, Corporate Controller. During today's call, we'll touch on highlights from our third quarter 2022 results, comment on the performance of our three business segments, and provide an update on the Excerin acquisition, which we close on October 13th. Unless we state otherwise, the results referenced today represent standalone Enerflex performance only. Before I turn it over to Mark, I'll remind everybody 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 statements within our news release, MD&A, and other regulatory filings, all of which are available on our website and under our CDAR and EDGAR profiles. 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 Rossiter.

Thanks, Stephan, and thanks to all our listeners for joining today's call. This is an exciting time in Interflex's history, having closed the external acquisition just four short weeks ago. Operationally, the timing of the acquisition is very good considering the strength of today's global macro natural gas environment. Natural gas is an increasingly important component of the global energy mix with energy security and decarbonization at the forefront, and Enerflex is ideally positioned with our technical capabilities, expanded offerings, and larger geographic footprint. Before I speak to our integration efforts and what lies ahead for Enerflex, I want to briefly address Enerflex's standalone third quarter results, as they were solid and represent current momentum of our industry. During the quarter, we recorded sequential improvements across all key financial metrics, including expanded margins in each of our product lines. Our engineered systems bookings were nearly $350 million, and included an impressive $100 million of energy transition projects, which I will speak to momentarily. Despite producers continuing to exercise capital restraint, our manufacturing capacity is tightening, which has allowed us to capture expanded margins on new bookings and grow our backlog to $884 million at period end. Together with Xterra's product sales backlog, our combined pro forma backlog of $1.5 billion represents excellent visibility into our revenue generating capabilities next year and it de-risks our near-term de-leveraging plan. Our USA segment continued to be a leading contributor to our business performance as Permian Basin activity and growth in LNG exports drove demand for our products and services. Notably, our USA contract compression fleet reached a record high average utilization rate of 95%. Our reference enrollment performed as expected, given the large portion of our business in Latin America and the Middle East that is recurring in nature. We are progressing construction of the large natural gas infrastructure project that was awarded last year in the Middle East, and expect to bring that facility online in the fourth quarter. And while we have seen year-over-year improvements in our Canadian business, we expect activity to increase once a mutually beneficial resolution is reached between the Blueberry River First Nations and Government of British Columbia regarding future resource development in the province. As I alluded to earlier, Enerflex continues to expand its energy transition business in earnest. We are seeing significant demand for our energy transition solutions as our customers look to reduce their corporate emissions and as we jointly drive the global decarbonization agenda forward. During the third quarter, we secured approximately $100 million in energy transition bookings which will collectively capture and permanently sequester over 1 million tons of CO2 per annum once the projects are in operation. For several decades, Enerflex has been a trusted partner in delivering these types of modularized integrated solutions to serve this growing market, and I look forward to continuing to report on the successes of our energy transition business over the coming quarters. Now turning to the Exterrin acquisition. Well, it's only been four weeks since we closed the acquisition, we have been busy integrating the two organizations. With operations in over 100 locations in more than 25 countries, we are quickly realizing the benefits of our highly complementary product lines and geographic footprints. I'm pleased with the progress the teams have made so far as we focus on delivering our expected annual run rate synergies of $60 million US as quickly and efficiently as possible. Currently, we are on track to capture about half of the expected synergies within six months of closing, and the balance over the course of 12 to 18 months, improving our free cash flow position and the underlying profitability of our business. We're also taking the time to learn and understand Xterra's cryogenic and produced water technologies in greater detail as we incorporate them into our broader portfolio. This includes completing three Xterra projects in the Middle East that are underway, two water facilities and one cryogenic natural gas facility. One of the water facilities became operational just this week and the other two projects will be completed in 2023. I'll now turn it over to Sanjay to touch on the financial highlights from the quarter.