Enterprise Group looks back at 2025, ahead to 2026

Executive Summary

• Enterprise Group Inc. 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, and reaffirmed its normal‑course issuer bid.
• Management outlined 2026 strategic priorities focused on higher utilization of existing assets, disciplined capital allocation, and continued balance‑sheet strength.

Key Details

• Acquisition: FlexEnergy Solutions Canada purchased for a multiple of 4.3× EBITDA; adds a turbine fleet increased by 43% and long‑term leasing/servicing contracts.
• Strategic Impact: Grants Enterprise exclusive OEM representation for FlexEnergy in Canada, enabling expansion into commercial & industrial power and combined heat‑and‑power markets.
• Financial Position: Credit facility expanded from $30 million to $41 million with a Schedule 1 Canadian bank; normal‑course issuer bid remains active.
• 2026 Priorities:
• Improve utilization rates of existing turbine fleet.
• Optimize cash‑flow generation.
• Allocate capital between growth projects, issuer bid, and balance‑sheet health.
• Maintain disciplined internal rate of return thresholds for selective investments.
• Industry Context: Canadian natural gas production expected to grow with >31 million tonnes/yr of new LNG export capacity (LNG Canada, Ksi Lisims, Woodfibre LNG, Cedar LNG).
• Market Outlook: Anticipated tighter Henry Hub‑Alberta spreads and a long‑term bull market for Western Canadian gas assets (Montney & Duvernay plays).

Notable Quotes

“The acquisition of FlexEnergy solidifies our position as a leading provider of power solutions across Canada, enabling us to capture sustainable growth in the evolving natural gas landscape.” – Enterprise Group Management.