Enterprise Group Reflects on 2025: a Year of Progress and Positioning to Capture Growth in Canada's Inflecting Natural Gas Landscape

Executive Summary

• Enterprise Group completed the acquisition of FlexEnergy Solutions Canada, expanding its turbine fleet by 43% and positioning itself as the exclusive Canadian OEM representative for FlexEnergy.
• The company refinanced its credit facility, increasing it to $41 million (up from $30 M) with a Schedule 1 Canadian bank, while maintaining its normal‑course issuer bid.
• Enterprise outlined 2026 strategic priorities focused on higher fleet utilization, disciplined capital allocation, and continued balance‑sheet strength, citing a favorable outlook for Canada’s natural‑gas market and LNG export growth.

Key Details

• Acquisition of FlexEnergy Solutions Canada
• Purchase price equivalent to 4.3 × pre‑synergy EBITDA (exact dollar amount not disclosed).
• Added 43 % more turbines to Enterprise’s in‑field fleet.
• Secured long‑term leasing and servicing contracts for the newly acquired assets.

• Granted Enterprise exclusive OEM representation rights for FlexEnergy in Canada, enabling entry into commercial/industrial power‑generation and combined heat‑and‑power markets.

• Financing / Credit Facility

• Repaid existing debt and expanded the revolving credit facility to $41 million, up from $30 million.
• Facility provided by a Schedule 1 Canadian bank (name not disclosed).

• Company continues its normal‑course issuer bid (NCIB) program, supporting share price stability.

• 2026 Strategic Priorities

• Improve utilization rates of the existing turbine fleet to boost cash‑flow generation.
• Allocate capital prudently among growth initiatives, NCIB purchases, and balance‑sheet health.

• Apply disciplined internal rate of return (IRR) thresholds for selective growth investments.

• Market Outlook Highlights

• Canada’s natural‑gas production expected to rise with >31 Mtpa (~25 % of current output) added LNG export capacity from projects such as LNG Canada, Ksi Lisims, Woodfibre LNG, and Cedar LNG.
• Anticipated tighter Henry Hub–AECO spreads support a long‑term bullish outlook for Canadian natural gas.
• Ongoing major transactions in the Montney and Duvernay plays underscore confidence in Western Canadian gas assets.

Notable Quotes

• Leonard Jaroszuk, CEO & Chairman: “The acquisition of FlexEnergy Canada establishes Enterprise as a leading provider of power‑solutions across multiple industries, positioning us for sustainable growth and a potential valuation re‑rating.”
• Desmond O'Kell, President & Director: “Our strengthened balance sheet and strategic focus on fleet utilization will enable us to capture the expanding opportunities in Canada’s natural‑gas and LNG markets throughout 2026 and beyond.”