Enerflex Ltd. Announces Normal Course Issuer Bid
Enerflex (TSX: EFX) (NYSE: EFXT) has announced Board approval to implement a Normal Course Issuer Bid (NCIB), allowing the company to repurchase up to 5% of its public float over twelve months through the TSX, alternative Canadian trading systems, or NYSE.
The announcement follows two key shareholder-focused initiatives:
- A previously announced 50% increase in quarterly dividend
- The planned implementation of the NCIB share buyback program
According to Interim CEO Preet Dhindsa, these moves are possible as Enerflex is now operating within its target leverage range. The company believes the current market price of its common shares doesn't fully reflect their underlying value and considers the repurchase program an effective use of cash resources. The NCIB implementation is subject to TSX approval, with further details pending.
Enerflex (TSX: EFX) (NYSE: EFXT) ha annunciato l'approvazione del Consiglio per attuare un Normal Course Issuer Bid (NCIB), consentendo all'azienda di riacquistare fino al 5% del proprio flottante pubblico nell'arco di dodici mesi attraverso il TSX, sistemi di trading alternativi canadesi o NYSE.
L'annuncio segue due iniziative chiave focalizzate sugli azionisti:
- Un aumento del 50% del dividendo trimestrale precedentemente annunciato
- La pianificata attuazione del programma di riacquisto di azioni NCIB
Secondo il CEO ad interim Preet Dhindsa, queste mosse sono possibili poiché Enerflex sta ora operando all'interno del proprio intervallo di leva target. L'azienda ritiene che il prezzo di mercato attuale delle sue azioni ordinarie non rifletta pienamente il loro valore sottostante e considera il programma di riacquisto un uso efficace delle risorse di cassa. L'attuazione del NCIB è soggetta all'approvazione del TSX, con ulteriori dettagli in arrivo.
Enerflex (TSX: EFX) (NYSE: EFXT) ha anunciado la aprobación de la Junta para implementar una Oferta de Recompra Normal (NCIB), permitiendo a la compañía recomprar hasta el 5% de su flotante público durante doce meses a través del TSX, sistemas de negociación alternativos canadienses o NYSE.
El anuncio sigue a dos iniciativas clave centradas en los accionistas:
- Un aumento del 50% en el dividendo trimestral previamente anunciado
- La implementación planificada del programa de recompra de acciones NCIB
Según el CEO interino Preet Dhindsa, estas acciones son posibles ya que Enerflex está operando dentro de su rango objetivo de apalancamiento. La compañía cree que el precio de mercado actual de sus acciones comunes no refleja completamente su valor subyacente y considera que el programa de recompra es un uso efectivo de los recursos de efectivo. La implementación del NCIB está sujeta a la aprobación del TSX, con más detalles pendientes.
Enerflex (TSX: EFX) (NYSE: EFXT)는 이사회에서 정상적인 발행자 입찰(NCIB)을 시행하기로 승인했다고 발표했습니다. 이를 통해 회사는 TSX, 대체 캐나다 거래 시스템 또는 NYSE를 통해 12개월 동안 공공 유통 주식의 최대 5%를 재매입할 수 있습니다.
이번 발표는 두 가지 주요 주주 중심의 이니셔티브에 이어 이루어졌습니다:
- 이전에 발표된 분기 배당금 50% 인상
- NCIB 주식 재매입 프로그램의 계획된 시행
임시 CEO인 Preet Dhindsa에 따르면, 이러한 조치는 Enerflex가 현재 목표 레버리지 범위 내에서 운영되고 있기 때문에 가능하다고 합니다. 회사는 현재 보통주 시장 가격이 그 기초 가치를 완전히 반영하지 않는다고 생각하며, 재매입 프로그램을 현금 자원의 효과적인 사용으로 간주합니다. NCIB 시행은 TSX 승인을 받아야 하며, 추가 세부 사항은 추후 제공될 예정입니다.
Enerflex (TSX: EFX) (NYSE: EFXT) a annoncé l'approbation du Conseil pour mettre en œuvre une Offre de Rachat Normal (NCIB), permettant à l'entreprise de racheter jusqu'à 5 % de son flottant public sur une période de douze mois via le TSX, des systèmes de négociation alternatifs canadiens ou le NYSE.
L'annonce fait suite à deux initiatives clés axées sur les actionnaires :
- Une augmentation de 50 % du dividende trimestriel précédemment annoncée
- La mise en œuvre prévue du programme de rachat d'actions NCIB
Selon le PDG par intérim Preet Dhindsa, ces mesures sont possibles car Enerflex fonctionne désormais dans sa fourchette de levier cible. L'entreprise estime que le prix du marché actuel de ses actions ordinaires ne reflète pas pleinement leur valeur sous-jacente et considère le programme de rachat comme une utilisation efficace des ressources de trésorerie. La mise en œuvre du NCIB est soumise à l'approbation du TSX, avec d'autres détails à venir.
Enerflex (TSX: EFX) (NYSE: EFXT) hat die Genehmigung des Vorstands zur Umsetzung eines Normal Course Issuer Bid (NCIB) bekannt gegeben, das dem Unternehmen erlaubt, innerhalb von zwölf Monaten bis zu 5% seines öffentlichen Streubesitzes über die TSX, alternative kanadische Handelssysteme oder die NYSE zurückzukaufen.
Die Ankündigung folgt auf zwei wichtige, aktionärsorientierte Initiativen:
- Eine zuvor angekündigte Erhöhung der vierteljährlichen Dividende um 50%
- Die geplante Umsetzung des NCIB-Aktienrückkaufprogramms
Laut dem interimistischen CEO Preet Dhindsa sind diese Schritte möglich, da Enerflex nun innerhalb seines angestrebten Verschuldungsrahmens operiert. Das Unternehmen ist der Ansicht, dass der aktuelle Marktpreis seiner Stammaktien deren zugrunde liegenden Wert nicht vollständig widerspiegelt und betrachtet das Rückkaufprogramm als eine effektive Nutzung der liquiden Mittel. Die Umsetzung des NCIB unterliegt der Genehmigung der TSX, weitere Einzelheiten sind noch ausstehend.
- Board approved share buyback program for up to 5% of public float
- 50% increase in quarterly dividend
- Company operating within target leverage range
- Enhanced shareholder return initiatives
- Current share price trading below management's perceived underlying value
Insights
Enerflex's announcement of a Normal Course Issuer Bid (NCIB) represents a significant shift in capital allocation strategy that signals management's confidence in the company's financial position. The planned repurchase of up to 5% of public float over 12 months, coupled with their recently announced 50% increase in quarterly dividend, demonstrates a decisive move toward enhancing shareholder returns.
This dual approach to capital return suggests Enerflex has achieved sufficient financial stability within its target leverage range to begin redirecting cash flow to shareholders. The statement that current share prices "do not fully reflect their underlying value" indicates management believes the stock is undervalued – a key consideration when evaluating the timing of buyback programs.
Share repurchases typically benefit remaining shareholders by reducing shares outstanding, potentially boosting EPS and creating price support. For Enerflex, with a market cap of
The company's improved financial flexibility reflects strengthening fundamentals in the energy infrastructure sector, with Enerflex positioning itself to capitalize on both operational opportunities while simultaneously enhancing shareholder value through these capital return initiatives.
CALGARY, Alberta, March 19, 2025 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) (“Enerflex” or the “Company”) today announced Board approval to implement a Normal Course Issuer Bid (“NCIB”).
The Company intends to make an application to the Toronto Stock Exchange (“TSX”) to implement a NCIB that would permit the Company to purchase for cancellation, through the facilities of the TSX, alternative Canadian trading systems or the New York Stock Exchange, common shares representing up to
Preet Dhindsa, Enerflex’s Interim CEO stated, “With the Company operating within its target leverage range, Enerflex is positioned to increase direct shareholder returns. This is reflected through: (1) the previously announced
Enerflex believes that: (1) the repurchase of common shares would be an effective use of its cash resources and in the best interests of Enerflex and its shareholders; and (2) the current market price of its common shares does not fully reflect their underlying value.
Further details regarding the NCIB will be provided following TSX approval.
ADVISORY REGARDING FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with “forward-looking information”, “FLI”) within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are FLI. The use of any of the words “intend”, “will”, “may”, and similar expressions, are intended to identify FLI. In particular, this news release includes (without limitation) FLI and statements pertaining to the Company’s intention to implement a NCIB, the terms and conditions of such bid, the anticipated receipt of all regulatory approvals including the approval of the TSX, and the timing associated therewith and the Company’s positioning to increase direct shareholder returns.
FLI reflects management's current beliefs and assumptions with respect to such things as the impact of general economic conditions; commodity prices; the markets in which Enerflex's products and services are used; general industry conditions, forecasts, and trends; changes to, and introduction of new, governmental regulations, laws, and income taxes; increased competition; availability of qualified personnel; political unrest and geopolitical conditions; and other factors, many of which are beyond the control of Enerflex. More specifically, Enerflex’s expectations in respect of its FLI are based on a number of assumptions, estimates and projections developed based on past experience and anticipated trends, including that Enerflex has the financial capacity, regulatory compliance, and board approval necessary to pursue a NCIB and that market conditions will support such a buyback program within the anticipated timeframe. As a result of the foregoing, actual results, performance, or achievements of Enerflex could differ and such differences could be material from those expressed in, or implied by, the FLI. The principal risks, uncertainties and other factors affecting Enerflex and its business are identified under the heading "Risk Factors" in: (i) Enerflex's Annual Information Form for the year ended December 31, 2024, dated February 27, 2025; and (ii) Enerflex's Annual Report dated February 26, 2025, copies of which are available under the electronic profile of the Company on SEDAR+ and EDGAR at www.sedarplus.ca and www.sec.gov/edgar, respectively.
Readers are cautioned that the foregoing list of assumptions and risk factors should not be construed as exhaustive. The FLI included in this news release are made as of the date of this news release and are based on the information available to the Company at such time and, other than as required by law, Enerflex disclaims any intention or obligation to update or revise any FLI, whether as a result of new information, future events, or otherwise. This news release and its contents should not be construed, under any circumstances, as investment, tax, or legal advice.
ABOUT ENERFLEX
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 4,600 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". For more information about Enerflex, visit www.enerflex.com.
For investor and media enquiries, contact:
Preet S. Dhindsa
Interim Chief Executive Officer
E-mail: PDhindsa@enerflex.com
Jeff Fetterly
Vice President, Corporate Development and Capital Markets
E-mail: JFetterly@enerflex.com
FAQ
What percentage of shares can Enerflex (EFXT) repurchase under the new NCIB program?
How much did Enerflex increase its quarterly dividend before announcing the NCIB?
Where will Enerflex (EFXT) conduct its share buyback program?
When will Enerflex's NCIB program begin trading?
