Form 425 Exterran Corp Filed by: Enerflex Ltd.
Filed by Enerflex Ltd.
pursuant to Rule 425 of the Securities Act of 1933, as amended
and deemed filed in accordance with the rule 14a-12
under the Securities Exchange Act of 1934, as amended
Subject Company: Exterran Corporation
Commission file No. 001-36875
January 24, 2022
Marc Rossiter interview with BNN Bloomberg
Andrew: But first, Enerflex is buying a Houston-based company, expanding its business and, of course, expanding the product line it offers to its customers.
We are now joined by Mark Rossiter. CEO of Enerflex. Mark, thank you for giving us the time today.
Mark: Nothing. thank you for
Andrew: Busy day. You must be a bit disappointed with the stock’s reaction. Why do you think investors are worried?
Marc: We are disappointed but not surprised. We knew there would be uncertainty after the announcement.
Andrew: Will – now, correct me if I’m wrong, you’re taking something like $650 million of Exterran’s debt, so your leverage will increase accordingly.
Mark: It will, yes. Our leverage currently sits at a fairly conservative net debt of 1.7 to Ebitda and it will drop to 3.0 at close, that’s what we said in our press release today. , which we really think is quite manageable given the assets we’re getting as part of the deal and what the pro forma entity will have.
André: It’s interesting. You’re really looking south here, aren’t you? You are going to look for a quote in the United States.
Marc: Yes, that’s something we thought about for a long time to offer a lot of our investors in the United States the possibility of investing in their own currency. We are pleased.
Andrew: So we know you better for your huge natural gas compression equipment franchise. Is this the kind of thing that Exterran does or what is their main activity?
Marc: I mean, one of the reasons we’re really excited about the deal and why we’ve literally been looking at it for years is that Enerflex and Exterran have very similar cultures and those cultures are built in more than being really good at building this type of equipment. So very similar capabilities. Natural gas compression, natural gas processing, power generation, energy transition technologies and water treatment. So a lot of similar capabilities between the two companies.
Andrew: What are you doing, remind us of what you are doing in the field of energy transition. I know you’re building a franchise in carbon dioxide. Does it transport or capture C02?
Marc: Well, I’d like to say we’re not even building it. It’s built, to be honest with you. We have been treating C02 for over 40 years. We have 150 carbon capture projects to our credit and treat nearly 5 million tons of C02 per year with our current facilities. We certainly work with many infrastructure funds that are assembling pipelines to do large-scale C02 collection and sequestration in Alberta, the Midwest, the United States, and the United States Gulf Coast, and our expertise is to build the capture plants at the C02 emitters to get the C02 from the ethanol plants, fertilizer plants, power plants into the pipeline which will then be sequestered, so that’s a great thing for us and us believe this will have a significant impact on our revenues in the years to come.