Mr. Marc Rossiter reports

ENERFLEX LTD. ANNOUNCES PARTIAL REDEMPTION OF SENIOR SECURED NOTES, FURTHER DEBT REDUCTION AND TIMING OF THIRD QUARTER RESULTS

Enerflex Ltd. has delivered a notice of partial redemption of its 9.00-per-cent senior secured notes due 2027.

All amounts presented are in U.S. Dollar ("USD") unless otherwise stated.

Partial redemption of senior secured notes

Enerflex has issued a notice of partial redemption for $62.5-million (or 10 per cent of the aggregate principal amount originally issued) of its notes. The redemption will be completed on Oct. 11, 2024 (the redemption date), at a redemption price of 103 per cent of the principal amount of the notes being redeemed, plus accrued and unpaid interest up to, but excluding, the redemption date. The redemption of the notes will be financed with available liquidity, which includes approximately $100-million of cash and cash equivalents as at Sept. 30, 2024, and the undrawn portion of Enerflex's lower cost $800-million revolving credit facility (the RCF).

As at Sept. 30, 2024, Enerflex's net debt1 balance was approximately $700-million, which reflects gross debt repayment of approximately $100-million during the third quarter. Debt repayment during the third quarter was financed through cash provided by operating activities, including a reduction in net working capital and cash balances. Enerflex continues to expect net working capital movements will be a modest source of cash during the second half of 2024 and for fiscal 2024.

Management commentary

"The partial redemption of our notes reflects ongoing focused efforts to reduce debt, lower net finance costs and optimize Enerflex's debt stack," said Preet Dhindsa, Enerflex's senior vice-president and chief financial officer. "We are pleased with the results of these efforts to date and expect to make further progress in coming quarters. The recent extension and expansion of the RCF provides ample liquidity to support our global business and we remain on track to reach our target leverage bank-adjusted net debt-to-EBITDA ratio of 1.5 times to 2.0 times."

Marc Rossiter, president and chief executive officer of Enerflex, commented: "Since completing the acquisition of Exterran approximately two years ago, we have effectively integrated the two companies and are generating solid free cash flow. We see a visible path for Enerflex to increase shareholder returns and look forward to providing further updates to stakeholders in coming months."

Third quarter results

Enerflex plans to release its financial results and operating highlights for the three and nine months ended Sept. 30, 2024, prior to market open on Thursday, Nov. 14, 2024. Results will be communicated by news release and will be available on the company's website and under the electronic profile of the company on SEDAR+ and EDGAR, respectively.

Investors, analysts, members of the media and other interested parties are invited to participate in a conference call and audio webcast on Thursday, Nov. 14, 2024, at 8 a.m. MT, where members of senior management will discuss the company's results. A question-and-answer period will follow.

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

About Enerflex Ltd.

Enerflex is a premier integrated global provider of energy infrastructure and energy transition solutions, deploying natural gas, low-carbon and treated water solutions -- from individual, modularized products and services to integrated custom solutions. With over 4,500 engineers, manufacturers, technicians and innovators, Enerflex is bound together by a shared vision: transforming energy for a sustainable future. The company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the energy transition and growing decarbonization efforts.

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.