06:54 AM EST, 01/13/2025 (MT Newswires) -- Enerflex ( EFXT ) on Monday provided its preliminary outlook for 2025 that reflects steady demand across its business lines and geographic regions.

The company projects total capital expenditures of US$110 million to US$130 million, including US$70 million for maintenance and property, plant and equipment capex.

The fundamentals for contract compression in the U.S. remain strong, led by expected increases in natural gas production in the Permian Basin and capital spending discipline from market participants, Enerflex ( EFXT ) noted.

Operating results will be supported by the highly contracted Energy Infrastructure product line and the recurring nature of After-Market Services. The two product lines are expected to account for about 65% of the company's gross margin before depreciation and amortization.

Enerflex's ( EFXT ) EI product line is supported by customer contracts that are expected to generate roughly US$1.5 billion of revenue during their current terms. The Engineered Systems product line had a backlog of about US$1.3 billion at the end of December, the majority of which is expected to convert to revenue over the next 12 months.

Near-term revenue for the ES product line is expected to remain steady and the medium-term outlook for ES products and services continues to be attractive due to expected increase in natural gas and produced water volumes across the company's footprint.

During 2025, Enerflex's ( EFXT ) priorities include enhancing the profitability of core operations, leveraging its position in core operating countries to capitalize on expected increases in natural gas and produced water volumes, and maximizing free cash flow to strengthen Enerflex's ( EFXT ) financial position, provide direct shareholder returns, and invest in selective customer supported growth opportunities.

Enerflex ( EFXT ) will release 2024 financial results before markets open on Feb. 27. A conference call discussing the results will be held on the same day.