Enerflex : Third Quarter 2020 Presentation

COMPANY OVERVIEW

November 2020

FORWARD LOOKING STATEMENTS ADVISORY

This presentation is issued by Enerflex Ltd. ("Enerflex" or the "Company"). This presentation is for information purposes only and is not intended to, and should not be construed to, constitute an offer to sell or the solicitation of an offer to buy securities of Enerflex.

This presentation contains forward-looking information within the meaning of applicable Canadian securities laws. These statements relate to management's expectations about future events, results of operations and the Company's future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential", "objective" and "capable" and similar expressions are intended to identify forward-looking information. In particular, this presentation includes (without limitation) forward-looking information pertaining to: anticipated financial performance; future capital expenditures, including the amount and nature thereof; bookings and backlog; oil and gas prices and the impact of such prices on demand for Enerflex products and services; development trends in the oil and gas industry; seasonal variations in the activity levels of certain oil and gas markets; business prospects and strategy; expansion and growth of the business and operations, including market share and position in the energy service markets; the ability to raise capital; the ability of existing and expected cash flows and other cash resources to fund investments in working capital and capital assets; expectations regarding future dividends; expectations and implications of changes in government regulation, laws and income taxes; and other such matters. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances.

All forward-looking information in this presentation is subject to important risks, uncertainties, and assumptions, which are difficult to predict and which may affect the Company's operations, including, without limitation: the impact of economic conditions including volatility in the price of oil, gas, and gas liquids, interest rates and foreign exchange rates; industry conditions including supply and demand fundamentals for oil and gas, and the related infrastructure including new environmental, taxation and other laws and regulations; business disruptions resulting from the COVID-19 pandemic; the ability to continue to build and improve on proven manufacturing capabilities and innovate into new product lines and markets; increased competition; insufficient funds to support capital investments required to grow the business; the lack of availability of qualified personnel or management; political unrest; and other factors, many of which are beyond the Company's control. Readers are cautioned that the foregoing list of assumptions and risk factors should not be construed as exhaustive. While the Company believes that there is a reasonable basis for the forward-looking information and statements included in this presentation, as a result of such known and unknown risks, uncertainties and other factors, actual results, performance, or achievements could differ materially from those expressed in, or implied by, these statements. The forward-looking information included in this presentation should not be unduly relied upon. For an augmented discussion of the risk factors and uncertainties that affect or may affect Enerflex, the reader is directed to the section entitled "Risk Factors" in Enerflex's most recently filed Annual Information Form, as well as Enerflex's other publicly filed disclosure documents, available through the SEDAR website (www.sedar.com).

The forward-looking information contained herein is expressly qualified in its entirety by the above cautionary statement. The forward-looking information included in this presentation is made as of the date of this presentation and, other than as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. This presentation and its contents should not be construed, under any circumstances, as investment, tax or legal advice. Any person accepting delivery of this presentation acknowledges the need to conduct their own thorough investigation into Enerflex before considering any investment in its securities. More complete information pertaining to Enerflex, in particular historical financial information, can be accessed through the SEDAR website (www.sedar.com) or at the Company's website (www.enerflex.com).

All figures in Canadian funds unless otherwise indicated.

2

EXECUTIVE MANAGEMENT TEAM

Marc Rossiter		Sanjay Bishnoi			David Izett
President & CEO	SVP, Chief Financial Officer	SVP, General Counsel

Greg Stewart	Patricia Martinez	Phil Pyle
President, USA	President, Latin America	President, International

3

Transforming Natural Gas to Meet The World's Energy Needs

PROVEN TRACK RECORD OF VALUE CREATION

• Complementary product lines and regions driving balanced revenue growth.

• Investing in recurring revenue sources to increase and stabilize margins.

• Strong balance sheet and free cash flow generation through the cycles.

• Proud history dating back to 1980.

ENERGY ACCESS IS FUNDAMENTAL TO SOCIAL PROGRESS

5

CONSUMPTION TRACKS GDP GROWTH

Global Gross Domestic Product trillion 2010 US dollars

Global Aggregate Energy Consumption

('000 bcf equivalent)

300

250

200

150

100

HistoryProjections

non-OECD

High Economic

Growth

Reference

Low Economic Growth

High Economic Growth

Reference

1,000

History

Projections

non-OECD

800

600

400

50OECD

0

Low Economic Growth

200

OECD

0

2010

2020

2030

2040

2050

2010

2020

2030

2040

2050

World energy consumption rises over 40% between 2020 and 2050 in the EIA's Reference case

6

GLOBAL ENERGY DEMAND SATISFIED BY A DIVERSE FUEL MIX

Projected Global Energy Consumption

('000 bcf equivalent per year)

Natural gas is the world's fastest growing source of fossil fuel

Global natural gas

consumption is projected to increase by over 40% from 2020 to 2050

1000

900

800

700

600

500

400

300

200

100

0

134.7

+42%

(~ 57,000 bcf)

191.4

2010	2015	2020	2025	2030	2035	2040	2045	2050
		Liquids		Natural Gas		Coal			Nuclear			Renewables

		7
Source: EIA International Energy Outlook 2019.

WITH GAS CONSUMPTION INCREASING ACROSS ALL SECTORS…

Global Natural Gas Consumption by Sector

('000 bcf)

250

200	History	Projections

150

100

50

0

2010	2020	2030	2040	2050
		Buildings		Transportation			Power Generation		Industrial

Over time, natural gas use is expected to accelerate from increased industrial activity, natural gas-fired electricity generation, and transportation fueled by compressed and liquefied

natural gas

		8
Source: EIA International Energy Outlook 2019, Case: Reference.

…SUPPORTING A LESS CARBON-INTENSIVE WORLD…

Pounds of CO2 emitted per thousand cubic feet

				Up to
			49%
229
206	215 214	fewer CO2 emissions
				vs. other
				fossil fuels1
			161	157
				139

117

Coal	Coal	Coal	Coal	Diesel & Gasoline Propane	Natural
(Anth.)	(Bit.)	(Lig.)	(Sub-	Heating	Gas
			bit.)	Oil

Core products support a global transition

toward lower carbon fuel sources

Ancillary products support decarbonization

Flare gas recapture

CO2 sequestration

Biogas to Electric

Power

Electric drive compression

		9
1 Source: U.S. Energy Information Administration

…INCLUDING DURING AN ENERGY TRANSITION

Electricity generation from selected fuels (AEO2020 Reference case)

billion kilowatthours

6,000 2019

history projections

5,000

4,000				36%
				Natural gas
	37%
3,000				38%	Renewables
	19%
2,000
1,000	19%			12%
			Nuclear
	24%			13%
0			Coal
2010	2020	2030	2040	2050

Global energy demand will

continue to grow, primarily in the

form of electricity

Demand will likely be satisfied by a growing baseload of greener energy sources

Natural gas and renewables are projected to dominate market share to 2050

		10
1 Source: U.S. Energy Information Administration, AOE2020 Reference case.

POSITIONED FOR GROWTH

ALL PRODUCED GAS REQUIRES COMPRESSION AND PROCESSING

('000 bcf)
		+57
200		191.4
		Projected
150		consumption increase
134.7	of ~57,0001 bcf by
		2050 requires $billions
100		of compression,
		processing, and
		maintenance
50		investments
0	2020	2050

		12
1 Based on EIA International Energy Outlook 2019, Case: Reference.

GLOBAL LEADER IN DELIVERING NATURAL GAS SOLUTIONS

Business Overview*

	Revenue:	$1,393 MM
	Employees:	~2,100
	Operating Locations:	57
	Manufacturing Facilities:	3
	Countries:	17
	Fleet HP:	~715,000

0	90	Manufacturing Facility
Operating Location
bcf/d	bcf/d**

Owned, Operated and

Maintained Gas Infrastructure

*Trailing twelve-months for the period ended September 30, 2020.	13
** 2019 Global Production = 385 bcf/day.

COMPLEMENTARY OFFERINGS ON A GLOBAL SCALE

Engineered Systems

Customized offerings for: Gas Compression, Gas Processing Plants, refrigeration solutions, Cryogenic Plants, Electric Power Generation, CO2 facilities

Integrated Turnkey ("ITK")

Turnkey Engineered Systems, with local construction and installation capabilities

Asset Ownership

Any product on a leased or Build-Own-Operate- Maintain ("BOOM") basis in all target markets

After-Market Services

Installation, commissioning, O&M, after-market services, and parts support for all products

Vertically Integrated

platform

Focused on growth and maintenance of produced gas volumes

Recurring

Revenues

14

SOLUTIONS FROM THE WELLHEAD TO PIPELINE

DIVERSIFICATION STRATEGY

Complementary offerings of diversified product lines in diversified geographies

Vertically Integrated

platform provides

differentiation

Focused on growth and

maintenance of gas production volumes

USA

Canada

ROW

Engineered

Systems

AMS

Asset Ownership

16

ADDITIONAL FOCUS ON RECURRING REVENUE GROWTH

Recurring revenues stabilize financial

performance

Higher margins versus manufacturing

Strategic goal of generating

≥ 50% of revenue from recurring sources

Asset Ownership

Any product on a leased or Build-Own-Operate-

Maintain ("BOOM") basis in all target markets

After-Market Services

Installation, commissioning, O&M, after-market services, and parts support for all products

17

WHAT IS ASSET OWNERSHIP?

Products engineered, built, and ownedby Enerflex

Contracted revenues provide valuable source of stable, predictable revenues and profits

1	2	Leased to Customers for
	Asset Ownership	varying durations on a
	=	take-or-pay basis

Contract Compression

+

BOOM

4 3

May include long-term operations & maintenance component

18

RATIONALE FOR ASSET OWNERSHIP

Asset ownership stabilizes and balances financial performance against a cyclical manufacturing business

C$ in millions

$800

$600

$400

$200

$0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2012	2013	2014	2015	2016	2017	2018	2019	2020
		Engineered Systems Bookings			Trailing 12-Month EBITDA*

		19
* Normalized for Goodwill impairments.

CONTRACT COMPRESSION

Contract Compression = leasing of

necessary upstream gas

compression infrastructure

Demand is driven by both new production and maintenance of existing volumes

Take-or-pay arrangements

oriented toward customer opex

20

STRONG U.S. CONTRACT COMPRESSION FUNDAMENTALS

US Contract Compression Market1 (million horsepower)

Changing field conditions

16.0

14.0

12.0

History Projections

require continual equipment modification, making rental an attractive alternative to

7.6%

10.0CAGR

8.0

6.0

4.0

2.0

0.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Wellhead		Gas-Lift		Gathering		Processing

purchasing

Demand is expected to grow over the long term from both the maintenance and growth of produced gas volumes

		21
1 Spears & Associates Inc., October 2020.

CAPTURING OPPORTUNITIES IN A SUPPORTIVE MARKET

>160% 81%

Growth of US fleet from	USA contract
~130,000 hp to	compression fleet
> 350,000 hp since 2017	utilization %1

Low 39%

High 44%

Mid 17%

Diversified horsepower profile across contract compression fleet2

1 Average utilization for the three months ended September 30, 2020.	22
2 High ≥ 801 horsepower; Mid = 251 - 800 horsepower; Low ≤ 250 horsepower.

BUILD-OWN-OPERATE-MAINTAIN

BOOM

Build-Own-

Operate-Maintain

Engineering	Fabrication	Installation	Operations &
&	Maintenance
& Design
	Commissioning

Any Engineered System or

ITK product on a Build- Own-Operate-Maintain ("BOOM") basis in all target markets

Larger scale compression and processing facilities

Longer-term contracts vs.

contract compression

Take-or-pay arrangements

23

BOOM PORTFOLIO CONTINUES TO GROW

Early Production	Compression
Compression
Facility, USA
Facility,		Oman
2009			2014

Compression

Facility, USA

Compression

Facility, Bahrain

Compression

Facility, Oman

Processing and

Compression

Facility, Oman

Compression

Facility, Oman

Early

Development

Facility, Oman

Gas Compression

Facility, Colombia

2018

UPGN Processing

Facility, Brazil

Field Depletion

Compression

Facility, Oman

Compression	Gas Gathering
Facility,
Argentina	Facility, Colombia
	2020

UPGN Processing

Facility, Brazil

Gas Compression

Facility, Brazil

24

PRIORITY TO GROW RECURRING REVENUES

Recurring Revenue

C$ in millions

$600

$500

$400

$321.0 $323.5

$300

$200 262.2 284.2

$100

$0 58.8 39.3

+8%

				CAGR1							$596.9	$570.3
				$537.2					$521.1
$486.4				$471.5	$461.7
$375.0										394.6		363.8
					384.6			298.7				345.1
			387.9						308.2
	325.4
														202.3		206.4
								172.8				176.0
					152.6				153.5
			98.4
49.6

Recurring revenue

growth through Recurringorganicrevenueinvestmenthas grownandbystrategic$250 millionM&A (8% CAGR1) since 2011

2011	2012	2013	2014	2015	2016	2017	2018	2019 TTM Q3
			Asset Ownership Revenue			Service Revenue	2020

		25
1 Compound annual growth rate period from 2011 - 2019 inclusive.

ASSET OWNERSHIP RISKS

01 CreditCounterparty

03 PerformanceAsset

02	Well and/or
basin
dynamics

Risks mitigated when paired with financial + basin due diligence and Enerflex AMS

26

OPTIMIZED PLATFORM POSITIONED FOR GROWTH

1

3

VERTICAL INTEGRATION		FINANCIAL STRENGTH
Differentiated global		Manufacturing cash
platform with product		flows fund investment
line synergies		in Asset Ownership
		platform

DIVERSE OFFERINGS		VALUE CREATION
Growing all product		Growing profitability
offerings in all		while maintaining
geographies - We are		strong returns
where the gas is

2

4

27

COMMITTED TO SAFETY

2019 Global Consolidated Safety Record:1

0.09 0.55 0.28

LTI	TRIR	MVIR
Total # of Lost	Total Recordable	Motor Vehicle
Time Incidents	Injury Rate per	Incidents per
per 200,000	200,000 exposure	1,000,000 km
exposure hours.	hours.	driven.
2019 Target = 0.00	2019 Target = 0.62	2019 Target = 0.25

		28
1 As at December 31, 2019.

ENHANCING AND STRENGTHENING COMMUNITIES

Corporate citizenship through

wellness and community

development initiatives is an integral part of Enerflex's vision

29

FOCUSED REGIONAL PRESENCE

UNITED STATES

				Enerflex Manufacturing Facility
				Enerflex Operating
0 bcf/d	25 bcf/d
Location

USA1

Eng. Systems	$556 MM
Service	$163 MM
Rental	$ 89 MM
Total Revenue	$808 MM

Fleet: ~350,000 HP Average Fleet Utilization: 81%2

% of Consolidated Revenues1

Canada 21.7%

USA

ROW 58.0% 20.3%

Gas infrastructure demand driven by gas production from US shale plays

Enerflex is positioned to grow its asset ownership and after- market services platforms in key plays

Source: BP Statistical Review of World Energy 2020.	31
1 Trailing twelve-months for the period ended September 30, 2020.
2 For the three months ended September 30, 2020.

REST OF WORLD - LATIN AMERICA

Rest of World1

Eng. Systems	$ 29 MM
Service	$144 MM
Rental	$110 MM

Total Revenue $283 MM

Fleet: ~310,000 HP

% of Consolidated Revenues1

Canada 21.7%

USA

ROW 58.0%

20.3%

			Enerflex Operating Location
0 bcf/d
4 bcf/d

Enerflex BOOM Assets

Regional gas production is

TBD

expected to grow by approximately 80% by 2040

Continued success with ITK, BOOM, and recurring revenue projects is expected to lead Enerflex's growth

Source: BP Statistical Review of World Energy 2020.	32
1Trailing twelve-months for the period ended September 30, 2020.

REST OF WORLD - MIDDLE EAST / AFRICA

	Rest of World1
	Eng. Systems	$ 29 MM	% of Consolidated Revenues1
	Service	$144 MM
	Rental	$110 MM
Enerflex Operating Location	Total Revenue $283 MM	Canada
Fleet: ~310,000 HP
Enerflex BOOM Assets
		21.7%

USA

ROW 58.0%

20.3%

0 bcf/d	23 bcf/d

TheTBDMiddle East accounts for > 35% of the world's proven gas reserves*

• 100,000 horsepower of owned and installed gas compression and processing facilities

Positioned for growth in key markets including Oman, Bahrain, and Kuwait

*Source: BP Statistical Review of World Energy 2020.	33
1Trailing twelve-months for the period ended September 30, 2020.

CANADA

Canada1

Eng. Systems	$238 MM
Service	$	56 MM
Rental	$	8 MM

Total Revenue $302 MM

Fleet: ~55,000 HP

0 bcf/d	12 bcf/d

% of Consolidated Revenues1

Canada 21.7%

USA

ROW 58.0% 20.3%

Enerflex Manufacturing Facility Enerflex Operating Location

NGL recovery drives infrastructure demand in liquids-rich basins

Petrochemical projects will increase domestic consumption of NGLs

Electric power opportunities remain attractive

Source: Alberta Energy Regulator, 2020.	34
1Trailing twelve-months for the period ended September 30, 2020.

FINANCIAL OVERVIEW AND PROSPECTS

REVENUE GROWTH THROUGH COMPLEMENTARY OFFERINGS

C$ in millions

							$2,045.4
		$1,696.2	$1,629.0			$1,703.3	502.9
	$1,501.7				$1,553.4	299.9
	$1,405.0					$1,392.6
	529.4
		494.2				346.8
$1,227.1				418.6
500.4			$1,130.6		301.8
				422.8
	438.2
444.0		405.2		232.8	355.7		282.6
		456.6

397.5 376.4

360.6			431.7	1,195.7
				980.5
603.8	761.6	678.2	779.1	808.2
590.4
	466.1
422.5

2011 2012 2013 2014 2015	2016 2017 2018		2019 TTM Q3
					2020
		United States of America		Rest of World		Canada

TTM Q3 2020		2019
15%	19%	10%

26%	59%
71%

Engineered Systems		Service		Rentals

Exposure to several markets protects against spending fluctuations in any one particular segment

36

DISCIPLINED GROWTH THROUGH STRATEGIC INVESTMENTS

CAPEX, M&A and ROCE

Product						Organic							Stable
sale cash	Reinvestment		investment			Leads to			Growth +
	flows						+ M&A							Returns
C$ in millions												17.5%
$600
$500			13.3%
$400				9.7%	12.2%				9.4%	9.8%
8.8%												8.0%
$300
							6.2%	6.1%
$200
$100
$0
2011	2012	2013		2014	2015	2016*	2017*	2018*		2019* TTM Q3
														2020*
		Acquisition			Rental Additions		PP&E Additions				ROCE

~$1.5B reinvested over

the past nine years

• 90% of growth capex invested in recurring revenue assets

Investments promote

sustained earning power

while maintaining

sector-leading returns

		37
* ROCE derived from Adjusted EBIT, the latter calculated using adjusting amounts disclosed in the MD&A.

BUSINESS MIX DRIVES PROFITABILITY…

EBITDA and EBITDA Margin								Over $100 million increase in EBITDA
C$ in millions
									since 2011 coupled with increasing
400.0						16.8%			16.9%
							16.3%		EBITDA margins
350.0
						13.8%	13.2%	345.8		Supported by an asset ownership
300.0				11.4%	10.9%						platform underpinned by take-or-
											pay arrangements
250.0	10.4%	10.4%
200.0			9.0%					225.2		227.5
						214.1
			193.7		190.3			Revenue and Gross Margin1 by Product Line (TTM Q3 2020)
150.0				176.8
	156.8								Revenue	Gross Margin1
	127.0		126.9								(C$ in millions)	(C$ in millions)
100.0
50.0											363.8		93.7
-												822.3	179.0
2011	2012	2013	2014	2015	2016*	2017*	2018*	2019*	TTM	206.4
		113.9
										Q3
										2020*
			EBITDA	EBITDA Margin %

* Adjusted EBITDA as disclosed in the MD&A.	38
1 Gross Margin inclusive of depreciation and amortization.

GROSS MARGIN PROFILE

Revenues (C$ in millions) and Gross Margin %1 by Product Line

		Q3 2020	Q3 2019	Q3 2020	Q3 2019
		YTD	YTD
Engineered	Revenue	127.9	398.3	502.5	1,128.7
Systems	Gross Margin %	17.7%	22.0%	19.8%	18.5%
Rentals	Revenue	61.1	60.5	187.6	183.5
Gross Margin %	67.2%	64.5%	64.7%	61.8%
After-Market	Revenue	76.1	85.5	228.1	258.8
Services	Gross Margin %	21.5%	26.3%	22.7%	22.7%

		39
1 Gross Margin % is inclusive of depreciation and amortization. See appendix for reconciliation to amounts presented in the MD&A.

POSITIVE FREE CASH FLOW AND BALANCE SHEET STRENGTH

Free Cash Flow Before Net Capital Spending*

Net Debt to EBITDA

C$ in millions
300.0
250.0									240.8
200.0								190.4							2.38
150.0				114.2 126.5		136.2			144.7				1.79
	105.1		112.8
													1.31
100.0														1.19
		72.7												1.09
67.4													0.97
50.0											0.30						0.52
-	2011	2012	2013	2014	2015	2016	2017	2018	2019	TTM	2011	2012	2013	2014	2015 2016** 2017** 2018** 2019**TTM Q3
										Q3		(0.31)	(0.70)				2020**
										2020

Free cash flows fuel organic and	Balance sheet strength with a bank-
inorganic growth	adjusted net debt to EBITDA of 1.2

*Amounts	presented exclude M&A and net capital spending and are available in the financial statements and accompanying notes for the respective years. See Appendix for	40
reconciliation to Free Cash Flow.
** Calculated using Adjusted EBITDA as disclosed in the MD&A. See Appendix for composition of consolidated borrowings.

DIVIDEND HISTORY

Annually (C$/share)
$0.50									History	Projections
									$0.46
$0.45								$0.42
$0.40							$0.38
$0.35				$0.34	$0.34	$0.34
$0.30		$0.28	$0.30
$0.25	$0.24
$0.20										$0.18
$0.15
$0.10
	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020*

The Company has

maintained a

dividend through

the cycles since

2011

		41
* Annualized estimated 2020 dividend following March 17, 2020 press release.

IGNITING THE FUTURE OF ENERGY

CAPITAL ALLOCATION PRIORITIES

Balance Sheet strength  preserving

liquidity to weather downturns.

Organic growth of Asset Ownership platform in all Regions.

Opportunistic Inorganic growth  right assets, right places, right long-term returns.

ADDITIONAL ORGANIC + INORGANIC REINVESTMENT…

Up to 79% increase in EBITDA1 from next	C$ in millions		453.3
$1B of reinvestment			100.0
				79%
3-year average EBITDA1	$253.3M	253.3	100.0
Next $1B of CAPEX	$100M
@10x EBITDA multiple
@5x EBITDA multiple	$200M
	---------------------------------
	$353.3M
	$453.3M	3-year avg.	$1B CAPEX	$1B CAPEX
		EBITDA1	@ 10x	@ 5x
1 Three-year average adjusted EBITDA for the period of 2017 - 2019 inclusive. See adjusted EBITDA as disclosed in the MD&A.			44

…WITH OPTION TO CONSOLIDATE A FRAGMENTED MARKET

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

US Contract Compression Market

(total horsepower, 000's)

350

US contract compression market consists of 4 to 5 large players and several small players

Roll-up of smaller players may accelerate growth

		45
1 Source: Enerflex Ltd.

PIVOT TO RECURRING REVENUES SUPPORTS VALUATION

EV/NTM EBITDA Multiples1:

10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Sep-19	Dec-19	Mar-20	Jun-20	Sep-20
	EFX	Average Pure Play Contract Compression Peer

Implied multiple expansion with continued growth of recurring revenue product lines

		46
1 EV/NTM EBITDA multiple for Enerflex and the following companies: Archrock Inc., USA Compression Partners LLC. Source: Bloomberg

WHAT'S NEXT FOR ENERFLEX

• Current geographic platform provides the foundation for incremental growth in each operating region.
• Focus remains on profitably growing each of the Engineered Systems, After-MarketServices, and Asset Ownership product lines in all regions.
• Asset Ownership remains the best opportunity to stabilize earnings through the cycles.

EXECUTING ON A POWERFUL STRATEGY

Proven track record of Creating Shareholder Value

• Strong balance sheet and free cash flow allows Enerflex to pursue strategic growth opportunities to further expand the business.
• Revenues derived from complementary product lines and geographies.
• Improving margins from recurring revenue growth.
• Sustained value creation characterized by positive ROCE and healthy Free Cash Flow.
• Proud history dating back to 1980.

48

APPENDIX

RECONCILIATIONS

FREE CASH FLOW

									Dec-18	Dec-19	TTM Q3
		Dec-11	Dec-12	Dec-13	Dec-14	Dec-15	Dec-16	Dec-17	2020
Cash provided by operating activities	134,795	134,208	69,024	64,611	104,173	91,792	179,251	242,868	54,169	82,638
Net change in non-cash working capital and other	48,243	15,531	(28,929)	(61,053)	(55,251)	(41,385)	9,736	38,208	(221,749)	(91,578)
		86,552	118,677	97,953	125,664	159,424	133,177	169,515	204,660	275,918	174,216
Add back:
Net finance costs	7,011	5,661	5,518	9,771	15,310	14,056	12,727	19,145	18,578	23,113
Current income tax expense	17,293	22,435	23,256	45,949	32,097	20,742	27,525	20,871	31,720	20,627
Proceeds on the disposal of property, plant and
equipment								22,853	9,205	208
Proceeds on the disposal of rental equipment								6,935	4,454	4,413
Deduct:
Net interest paid	(8,525)	(6,356)	(5,408)	(8,999)	(13,657)	(13,116)	(11,957)	(18,373)	(18,398)	(22,805)
Net cash taxes (paid) received	(25,642)	(16,723)	(26,801)	(34,667)	(39,839)	(15,089)	(31,580)	(2,273)	(29,434)	(18,643)
Additions to property, plant and equipment								(16,920)	(46,322)	(16,942)
Additions to rental equipment:
Growth								(102,960)	(208,978)	(175,486)
Maintenance								(12,365)	(8,090)	(11,188)
Dividends paid	(9,266)	(18,606)	(21,798)	(23,499)	(26,804)	(26,921)	(30,066)	(33,676)	(37,548)	(31,832)
Net capital spending	33,993	(32,706)	(17,365)	(32,401)	(166,318)	4,244	(13,159)
Free cash flow		101,416	72,382	55,355	81,818	(39,787)	117,093	123,005	87,897	(8,895)	(54,319)
Free cash flow before net capital spending	67,423	105,088	72,720	114,219	126,531	112,849	136,164	190,354	240,836	144,676

51

GROSS MARGIN PROFILE BY PRODUCT LINE1

		52
1 For the three months ended September 30, 2020 versus the prior year period.

GROSS MARGIN PROFILE BY PRODUCT LINE1

		53
1 For the nine months ended September 30, 2020 versus the prior year period.

COMPOSITION OF BORROWINGS

($ Canadian thousands)	September 30, 2020	December 31, 2019
Drawings on Bank Facility1	106,214	121,328
Senior Notes due June 22, 2021	40,000	40,000
Senior Notes due December 15, 20241	155,060	151,374
Senior Notes due December 15, 20271	123,373	120,916
Deferred transaction costs	(2,475)	(3,131)
	422,172	430,487

		54
1 Includes a US dollar-denominated component and is therefore subject to foreign exchange fluctuations between the US and Canadian dollar.