Enerflex Rises On U.S. Compression Growth
11 November 2019
Enerflex Ltd. is continuing to stress expansion in the U.S., where its third quarter revenues were C$299 million, nearly double the C$157.4 million from its Canadian operations.
Enerflex’s rental fleet rose to 700,733 hp (522 MW) as of Sept. 30, 2019, up from 628,816 hp (469 MW) at the same point in 2018. Almost all of the expansion was in the U.S., particularly in the Permian Basin of West Texas.
“Since the acquisition of Mesa in 2017, our U.S. rental platform has grown by 100%,” to 280,000 hp (209 MW) said Marc Rossiter, President and CEO. “We added approximately 60,000 horsepower (45 MW) in 2019 alone, across a combination of wellhead, gas lift and midstream applications.”
The Calgary-based company expressed enthusiasm about its compression activities worldwide, except in Canada. “The Canadian market remains constrained by negative sentiment and the lack of consistent access to market that is causing uncertain pricing and limiting development potential,” it said.
The company said its 100,000 hp (75 MW) fleet in the Middle East continues to provide stable rental earnings. It is “cautiously optimistic” about near-term prospects in Argentina, Brazil, and Colombia, and mid- to longer-term prospects in Mexico.
Net earnings were C$63 million for the third quarter and C$120.7 million for the first nine months of the year, compared to C$37.7 million for the third quarter and C$68.9 million for the first nine months of 2018.