Enerflex Ltd.

you will need to press star 11 on your telephone. You will then hear an automated message advising you your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Federley, Vice President, Corporate Development and Capital Markets. Please go ahead.

Thank you, Michelle, and good morning, everyone. With me today are Preet Dhinza, Interim President and CEO, Joel Adesir, Interim CFO, and Ben Park, Enerflex's Controller. During today's call, our prepared remarks will focus on three key areas, continued strong performance of Enerflex's business and our outlook, capital allocation, including planned spending and direct returns to shareholders, and three, our progress on near and long-term strategic priorities. Before I turn it over to Preet, 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, refer to the advisory statements within our news release, MD&A, and other regulatory filings, all available on our website and under our CDAR Plus and EDGAR profiles. As part of our prepared remarks, we will be referring to slides in our updated investor presentation, which is available through a link on this webcast and on our website under the investor relations section. I'll turn it over to Preet for comments.

Thanks, Jeff, and thank you all for joining us on this morning's call. We are pleased to report another strong quarter of financial and operating results. Our energy infrastructure and aftermarket services business lines continue to deliver steady performance and reinforce inter-flexibility to generate sustainable returns across our global platform. Energy infrastructure and aftermarket services contributed 70% of our gross margin before depreciation amortization in the first quarter of 2025. And we expect these business lines will continue to represent the core of inter-flexibility in 2025. Our strong operational performance and focus on maximizing free cash flow has resulted in a rapid deleveraging of our balance sheet. We exited the first quarter of 2025 at 1.3 times compared to 1.5 times at the end of Q4 2024. And now a few highlights for each of our business lines. The energy infrastructure business continues to perform well across our three core regions, the U.S., Latin America, and the Middle East. In the U.S., the fundamentals for contract compression remain strong, led by expected increases in natural gas production, notably in the Permian. We are pleased with the operational performance of our U.S. contract compression business, reflecting utilization at the mid-90% range for the quarter, and revenue per horsepower per month and profitability showing continued momentum. Slides 18 and 19 of our investor presentation to highlight our fleet composition and the strong relative operating performance of this part of our business. Demand for new contract compression equipment in the U.S. remains strong. We added approximately 20,000 horsepower during the quarter to exit 448,000 horsepower across our fleet. They expect to be over 475,000 horsepower by the end of this year. New units are being deployed under multi-year contracts in core operating regions, with a focus on larger horsepower, natural gas, and electric drive applications. Slide 16 and 17 highlight our international energy infrastructure business, which includes approximately 1.2 million horsepower of operating compression and 24 build, own, operate, and maintain or groom projects in the Middle East and Latin America. Our two produced water projects in Oman continue to perform very well, and we are in the process of expanding one of these sites, which we highlight on slide 20. Our international energy infrastructure business is supported by approximately $1.3 billion of contracted revenue and an average contract term of approximately five years. Turning to aftermarket services, this business line benefited from strong activity levels, including customer maintenance activities. We're especially pleased with the performance of our AMS business in countries where Enerflex also operates EI assets, reflective of differentiated solution and strong competitive position in core countries. On the engineering system side, we recorded bookings of $205 million during Q1. First quarter bookings were tempered by accelerated customer activity in the latter part of the fourth quarter of 2024, which resulted in select orders being pulled forward and customers pausing some decisions on expenditures due to commodity price volatility and evolving market conditions. We continue to have a strong ES backlog, exiting Q1 2025 with approximately $1.2 billion, the majority of which is expected to convert into revenue over the next 12 months. During 2025, ES gross margins are expected to align more closely with historical averages, reflecting both weaker domestic natural gas prices through much of 2024 and a shift in product mix. While near-term ES revenues expect to remain steady, Enerflex continues to closely monitor evolving market conditions and increase near-term uncertainty, including the impact of tariffs and lower oil prices, and we will adjust our business as appropriate. The company expects to be partially protected from the direct and indirect impact of tariffs through its diversified operations and ongoing risk management efforts. Enerflex's operations in the USA, Canada, and Mexico are largely distinct in the client partners and projects they serve. The United States is Enerflex's largest operating region, generating 45% of consolidated revenue on a trailing 12-month basis by destination of sale. And we believe the company is well-positioned to benefit from growth in domestic energy production. Enerflex's operations in Canada and Mexico generate 11% and 3% of consolidated revenue on a trailing 12-month basis, respectively. Despite increased near-term risk and uncertainty for the ES product line, recent domestic natural gas prices have been constructive, and the medium-term outlook for ES products and services remains attractive, supported by anticipated growth in the natural gas-produced water volumes across Enerflex's global footprint. I want to reiterate Enerflex's priorities in 2025. These include enhancing the profitability of core operations, two, leveraging the company's leading position in core operating countries to capitalize on expected increases in natural gas and produced water volumes, and three, maximizing free cash flow to strengthen Enerflex's financial position, provide direct shareholder returns, and invest in selective customer-supported opportunities for growth. Before I turn the call over to Joe, I would like to comment briefly on our recently announced leadership transition. On March 19, Enerflex announced that Mark Rosser stepped down as president, CEO, and director. Concurrently, I assume the role as interim president and CEO, and Joe Lattiser as interim CFO. The board is undertaking a comprehensive search to identify the company's permanent CEO and has retained a global executive search firm to assist with this process. The search process is making good progress, but we will not be commenting further. With that, I'll turn it over to Joe to speak about the financial side.