ENERFLEX LTD. $15.48 - Toronto symbol EFX

ENERFLEX LTD. $15.48 (Toronto symbol EFX; TSINetwork Rating: Extra Risk)(403-387-6377; www.enerflex.com; Shares outstanding: 78.6 million; Market cap: $1.2 billion; Dividend yield: 2.2%) rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration gear and power generators.

On June 30, 2014, Enerflex completed its $431- million U.S. acquisition of two businesses owned by privately held Axip Energy Services LP: an international contract compression and processing subsidiary and a division that provides aftermarket services.

In the quarter ended September 30, 2014, Enerflex’s revenue rose 22.6%, to $479.0 million from $390.7 million a year earlier. Earnings per share jumped 37.5%, to $0.33 from $0.24.

Strong orders in the U.S. and Canada, plus international contributions from the Axip businesses, pushed up Enerflex’s results.

Backlog keeps on growing

Enerflex booked $342.2 million of orders in the latest quarter, up 38.2% from $247.6 million a year earlier. Its backlog now stands at $866.4 million, up 32.8% from $652.8 million a year ago.

The company holds cash of $114.1 million, or $1.45 a share. Its long-term debt of $450.1 million is a manageable 37.5% of its $1.2-billion market cap.

The stock trades at 11.9 times Enerflex’s forecast 2015 earnings of $1.30 a share. The company raised its quarterly dividend by 13.3% with the January 2015 payment, to $0.085 from $0.075. It now yields 2.2%.

Enerflex is still a buy.

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