Mr. Leonard Jaroszuk reports

ENTERPRISE GROUP ANNOUNCES RESULTS FOR FOURTH QUARTER AND FULL YEAR 2023

Enterprise Group Inc. has released its fourth quarter of 2023 and fiscal year 2023 results.

Enterprise Group president and chief executive officer Leonard Jaroszuk comments: "In the past fiscal year, Enterprise has seen notable achievements, including a record net income of $6,169,904 and the highest adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] of $13,285,880 since our transition to specialized equipment rental. Our success is underpinned by several key industry trends." Mr. Jaroszuk further adds: "Our customers are increasingly adopting technological advancements to drive efficiency, reduce emissions and cut costs. This shift has opened opportunities for Enterprise in providing natural gas power solutions, aligning with the growing demand for cleaner energy alternatives."

Mr. Jaroszuk continues: "Furthermore, the energy sector is witnessing a steady increase in capital spending, particularly in infrastructure investments aimed at improving market access and efficiency. This, coupled with heightened drilling and completion activity and favourable commodity prices, bodes well for Enterprise's continued growth and market presence. While these developments are encouraging, we remain focused on prudent and strategic decision-making to navigate the evolving landscape of the energy industry. Our commitment to delivering value to our shareholders and customers remains unwavering as we strive for sustained growth and profitability."

Highlights:

• The 2023 year is one of the strongest in recent history and activity in the first part of 2024 continues to be strong. Drilling and completion activity was higher throughout 2023 and the company saw many of its customers using more natural gas powered equipment to support site infrastructure and as a result, there was more demand for the company's products and services. The 2023 year did have some challenges in the second and fourth quarters, mainly from forest fires in Northern Alberta and British Columbia and project delays due to warm weather in the fourth quarter. Revenue for the three months ended Dec. 31, 2023, was $9,598,945 compared with $8,743,471 in the prior period, an increase of $864,474 or 10 per cent. Gross margin for the three months ended Dec. 31, 2023, was $4,844,194 compared with $4,157,875 in the prior period, an increase of $686,321 or 17 per cent. Adjusted EBITDA for the three months ended Dec. 31, 2023, was $4,374,735 compared with $3,238,612 in the prior period, an increase of $1,136,123 or 35 per cent. Revenue for the year ended Dec. 31, 2023, was $33,500,501 compared with $26,892,249 in the prior year, an increase of $6,608,252 or 25 per cent. Gross margin for the year ended Dec. 31, 2023, was $15,501,969 compared with $10,879,928 in the prior year, an increase of $4,622,041 or 42 per cent. Adjusted EBITDA for the year ended Dec. 31, 2023, was $13,285,880 compared with $8,149,223 in the prior year, an increase of $5,138,657 or 63 per cent. Increases in revenue, gross margin and EBITDA for the year are reflective of increased customer activity in 2023 while maintaining the operating efficiencies of the company.
• For the year ended Dec. 31, 2023, the company generated cash flow from operations of $13,530,272 compared with $5,910,830 in the prior year. This change is consistent with the higher activity levels during the year and the growth in the natural gas power generation business. The company continues to utilize a combination of cash flow and debt to right-size and modernize its equipment fleet to meet customer demands.
• During the year ended Dec. 31, 2023, the company acquired $15,110,693 of capital assets, primarily for natural gas power generation equipment and facilities, upgrading existing equipment, and meeting specific requests from customers. Also, the company purchased land to expand operations and is in the process of constructing a new facility. The company continues to see its customers switching to natural gas as a cleaner and more efficient alternative to diesel, increasing the demand for natural gas generators and micro-grid packages. During the year ended Dec. 31, 2023, the company repurchased and cancelled 1,278,500 shares at a cost of $512,085, or 40 cents per share. These shares had a carrying value of $1.32 per share for a total of $1,681,478 which has been removed from the share capital account. Since the initiation of the share buyback program, the company has purchased and cancelled 11,336,000 shares at a cost of $2,903,646 or 26 cents per share. These shares have a carrying value of $1.41 per share for a total of $15,970,630 which has been removed from the share capital account over the entire share buyback program. The company renewed its bid on Aug. 24, 2023, with a termination date of Aug. 29, 2024, or such earlier time as the bid is completed or terminated at the option of the company. Management will continue to acquire its shares as they believe its stock remains undervalued as the company's book value is 82 cents per share. Additionally, the company has available tax losses of 14 cents per share and is in the process of developing a consolidated tax plan to utilize those losses.
• On Sept. 29, 2023, the company made changes to its bank loan facility. The term has been extended for one additional year, now expiring on Sept. 29, 2025. The interest rate changed to 10.5 per cent and prepayment penalties have been removed. These changes give the company greater flexibility on financing choices to meet increased activity and the demands of its customers.
• On Jan. 23, 2023, the company's common shares began trading on the OTCQB Venture Market under the ticker symbol ETOLF. In addition to the listing, Enterprise's shares are now eligible for electronic clearing and settlement with the Depository Trust Company for trading in the United States. This listing will help to increase Enterprise's visibility and accessibility to a growing audience of U.S. investors.

About Enterprise Group Inc.

Enterprise Group is a consolidator of services-including specialized equipment rental to the energy/resource sector. The company works with particular emphasis on systems and technologies that mitigate, reduce or eliminate carbon dioxide and greenhouse gas emissions for itself and its clients.

We seek Safe Harbor.