Mr. Marc Rossiter reports

ENERFLEX LTD. REPORTS THIRD QUARTER 2023 FINANCIAL AND OPERATIONAL RESULTS

Enerflex Ltd. has released its financial and operational results for the three and nine months ended Sept. 30, 2023.

Q3 2023 FINANCIAL AND OPERATIONAL OVERVIEW

• Enerflex generated revenue of $778 million in Q3/2023, consistent with Q2/2023 levels, with results driven by continued strong performance from recurring businesses and the North American Engineered Systems product line.
• The Company's gross margin was $146 million, or 18.8% of revenue, compared to $147 million, or 18.9% of revenue during Q2/2023. Q3/2023 adjusted earnings before finance costs, income taxes, depreciation, and amortization ("adjusted EBITDA") was $122 million compared to $142 million in Q2/2023.
• In the quarter, EBITDA was impacted by $17 million of foreign exchange losses, which were partially offset by $3 million of gains on associated instruments. Additionally, there is $8 million of interest income that is not reflected in adjusted EBITDA.
• Repaid $41 million of long-term debt, consistent with the Company's focus on strengthening the balance sheet. However, reported long-term debt only declined by $5 million in the quarter due to the negative impact of a strengthening of the U.S. dollar on the outstanding debt balance.
• Cash provided by operating activities was $71 million, which included working capital recovery of $15 million. This is a $75 million improvement over cash used in operating activities in Q2/2023.
• Invested $26 million in capital expenditures, including $8 million of maintenance capital across the global Energy Infrastructure fleet, and $13 million of investments to satisfy customer commitments for electric drive equipment in the USA fleet.
• Recorded strong Engineered Systems bookings of $560 million in Q3/2023 and $1.4 billion during the first nine months of 2023, an increase of approximately $500 million year-over-year.
• Engineered Systems backlog increased to a record $1.6 billion, providing strong visibility into future revenue generation and business activity levels into late-2024.
• Remain on-track to achieve US$60 million of cost savings within 18-months of the closing of the transaction (the "Transaction") to acquire Exterran Corporation ("Exterran").
• Capitalized on continuing robust demand for natural gas, and for electric drive compression, as customers aim to decarbonize their operations. Customer activity levels remained strong in the quarter, particularly for cryogenic natural gas processing facilities, reflecting Enerflex's expanded product offering as a result of the transaction.

"We delivered solid operating results across Enerflex's geographies during the third quarter," said Marc Rossiter, Enerflex's President and Chief Executive Officer. "Our expanded global footprint has allowed for operational results that are less influenced by the economics, rig counts, and commodity prices of any single region or production basin. Our bookings in the quarter for compression, electrification, and cryogenic gas processing facilities reflect demand originating from three continents, multiple producing basins, and natural gas, NGL, CO2, and low carbon energy projects. Integration and synergy realization related to the Exterran transaction is progressing, including executing the streamlining of our global manufacturing facilities from five to three, exiting non-core geographies, and selective monetization of non-core assets that will lead to improvements in our cost structure for years to come. We expect these actions, coupled with our focus on profitable core operations, will enable continued debt reduction in the near term and enhance our ability to deliver shareholder returns over the mid-and-long term."

Preet Dhindsa, Enerflex's Interim Chief Financial Officer, added, "Enerflex delivered solid results for the third quarter, with a $1.6 billion backlog in Engineered Systems providing over twelve months of revenue visibility for our shareholders. The work ahead of us is clear, and with the support of Enerflex's strong leadership team and talented employees, we are improving the profitability and resiliency of the business, with an objective to generate sustainable cash flow, reduce debt levels, and position the company to make prudent capital allocation decisions. I am excited to have joined this team and to help unlock the business' full potential for the benefit of our shareholders, customers, employees, and other stakeholders."

SUMMARY RESULTS

Enerflex's unaudited interim condensed consolidated financial statements and notes (the "financial statements") and Management's Discussion and Analysis ("MD&A") as at and for the three and nine months ended September 30, 2023, can be accessed on the Company's website and under the Company's SEDAR+ and EDGAR profiles, respectively.

BALANCE SHEET

As at September 30, 2023, Enerflex's net debt balance was $1.2 billion, which includes $163 million of cash and cash equivalents, and the Company maintains strong liquidity with access to $328 million under its credit facility. Enerflex's bank-adjusted net debt-to-EBITDA ratio was approximately 2.7 times compared to 2.8 times at the end of Q2/2023 and 3.3 times at the end of Q4/2022.

DELIVERING SUSTAINABLE RETURNS TO SHAREHOLDERS

Enerflex is committed to paying an attractive and sustainable quarterly cash dividend to shareholders. The Board of Directors (the "Board") has declared a quarterly dividend of $0.025 per share, payable on January 10, 2024, to shareholders of record on November 21, 2023.

2023 GUIDANCE

Enerflex is reaffirming all of its full-year 2023 financial guidance as last provided with our second quarter results.

The Company anticipates adjusted EBITDA as currently reported to be at the low end of its guidance range, inclusive of the impact from volatility in foreign exchange markets. The ongoing devaluation of the Argentine Peso resulted in foreign exchange losses of $41 million during the nine months ended September 30, 2023, which is reported in SG&A. Also recorded in SG&A is $3 million of investment income earned from associated instruments that partially offsets the impact of these foreign exchange losses. Additionally, there is $23 million of interest income on cash and associated instruments reported as part of net finance costs.

Enerflex anticipates total 2023 PP&E and growth capital expenditures of US$80 million to US$90 million, approximately half of which is for the completion of two Build-Own-Operate-Maintain produced water projects that were originally anticipated in 2022 but were largely recognized in Q1/2023. In addition, Enerflex plans to invest in various small-scale, customer-sanctioned projects in the USA, Latin America and Eastern Hemisphere regions.

Enerflex expects its other non-discretionary expenditures, which includes net working capital, finance costs, cash income taxes and dividends, to total US$180 million to US$210 million.

OUTLOOK

Heading into 2024, Enerflex's performance will be underpinned by recurring Energy Infrastructure and After-market Services product lines, including a large platform of international assets that are expected to continue serving the growing need for reliable power and energy independence. The Company's USA contract compression fleet is expected to benefit from ongoing strength in customer demand.

Complementing Enerflex's recurring businesses is the Engineered Systems product line, which carries a record backlog of $1.6 billion. The Company expects the majority of its backlog to convert into revenue over the next 12 months.

Enerflex is targeting a disciplined capital program in 2024. In addition, the Company will continue to regularly review opportunities to optimize its geographic footprint and business platform. Enerflex will prioritize debt reduction, synergy realization, and operational efficiency. The company also continues to evaluate its target long-term capital structure and capital allocation parameters and expects to provide more clarity in coming months.

The long-term fundamentals for natural gas are robust, given its critical role in supporting global decarbonization efforts and future economic growth. Enerflex is poised to capitalize on the growing demand for low-carbon solutions through its vertically integrated natural gas and energy transition offerings.

CONFERENCE CALL AND WEBCAST DETAILS

Enerflex's senior leadership team will be hosting a conference call and webcast to discuss the Company's third-quarter 2023 results on Thursday, November 9, 2023 at 8:00 am (MST).

To participate, register on-line. Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The live audio webcast of the conference call will be available on the Enerflex website under the Investors section.

ABOUT ENERFLEX

Transforming Energy for a Sustainable Future. Enerflex is a premier integrated global provider of energy infrastructure and energy transition solutions, delivering natural gas processing, compression, power generation, refrigeration, cryogenic, and produced water solutions. Headquartered in Calgary, Alberta, Canada, Enerflex, its subsidiaries, and interests in associates and joint ventures, operate in over 85 locations in: Canada, the United States, Argentina, Bolivia, Brazil, Colombia, Mexico, Peru, the United Kingdom, the Netherlands, the United Arab Emirates, Bahrain, Oman, Egypt, Kuwait, India, Iraq, Nigeria, Pakistan, Saudi Arabia, Australia, Indonesia, and Thailand.

Enerflex's common shares trade on the Toronto Stock Exchange under the symbol "EFX" and on the New York Stock Exchange under the symbol "EFXT".

We seek Safe Harbor.