Enterprise Group: Questions to Desmond O'Kell | Value Bridge

Archieve - Everything Desmond O'Kell Said

Oct 29, 2025

Business Summary

The company operates a fleet of natural gas microturbine systems in Canada, displacing diesel as the primary fuel for remote and mobile power. It currently manages about 30 natural gas systems, expected to rise to 45 by 2025, and following a recent acquisition, close to 60 systems are deployable. Its turbines, sourced through an exclusive partnership with Flex, achieve near 99.5% uptime in extreme conditions and are ruggedized for Canadian climates. Customers increasingly replace diesel with natural gas due to cost advantages—up to 86% fuel savings, equal to $3,000–$5,000 per site daily.

Growth has been driven by CapEx outlays consistently exceeding budget: $6 million planned versus $15 million spent in 2023, and $10 million planned versus $15 million in 2024. For 2025, Evolution Power’s 10 turbines alone required $10 million. Of this, about $2–2.5 million is earmarked annually for maintenance. Payback on equipment is targeted within 2–3 years. The business is funded mostly from strong cash flow, supported by a Tier 1 banking facility for incremental debt if needed. M&A remains disciplined, historically at 1–3x EBITDA, while organic growth from long-term MSAs (12–24 months) and near-100% client retention provides stability. Evolution Power has grown from 5% to 45% of company revenue over five years, now the largest and most profitable division.

Catalysts & Milestones

2023 - CapEx reached $15 million vs $6 million budget, driven by customer demand

2023 - $2 million land purchase included in CapEx

2024 - CapEx again hit $15 million vs $10 million budget

2024 - Evolution Power contributed 45% of gross revenue, up from 5% five years earlier

2024 - M&A pipeline identified 50-unit opportunity with Alberta manufacturer

2025 - Fleet expected to grow to about 45 natural gas systems, with 24–25 Flex units

2025 - Flex acquisition expanded operations to nearly 60 power systems deployable in Canada

Investment Highlights

Flex turbines achieve 99.5% uptime, unmatched in rugged mobile deployment
Fleet expansion from 30 systems today to 45–60 by 2025
CapEx overspending highlights demand: $15 million vs planned $6–10 million
Evolution Power grew from 5% to 45% of revenue in five years
Clients realize up to 86% fuel cost savings (~$3,000–$5,000 daily per site)

Future Growth Drivers

Expansion of Flex turbine fleet across Canada, scaling to 45–60 systems by 2025
Diversification into mining, CNG supply chains, and CHP applications beyond energy
Modular power plants replacing diesel as clients scale from 160 kW to 330 kW+ turbines
Repeat orders from Tier 1 customers driving organic growth and higher utilization
Ongoing partnership with Flex for larger 2 MW turbines to meet rising energy demand

Risk Factors

CapEx consistently overshoots budgets ($15 million vs planned $6–10 million)
Customer concentration remains high, with top 2 clients at 45% of revenue in 2024
Geographic focus limited to Canada; U.S. expansion ruled out near term
Wildfires disrupted 2023 operations and continue to defer projects in Alberta and BC
Dependence on Flex turbines may create supply or competitive risk if exclusivity shifts

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Capital Allocation

28/05/2024 What are the capital requirements for your business, and how do you split growth versus maintenance CapEx?

We are in a growth cycle, so we expect CapEx to remain around $10 million through this period. Out of that, approximately $2 million to $2.5 million is allocated for maintenance, with the balance used for growth initiatives.

28/05/2024 What is the average duration of your leases and the payback period on equipment?

Lease terms vary by equipment class, but in general, higher-cost units such as turbines have longer payback periods while smaller items like mobile structures and walkways recover costs much faster. For example, a turbine package can cost about $1 million, while mobile structures are closer to $250,000.

Our target is to achieve payback across the fleet within three years. Some assets are quicker, others a bit longer, but we do not stray far from that benchmark. Payback expectations are a critical factor in our CapEx decisions, as they determine how we allocate capital across equipment classes.

28/05/2024 How many natural gas microturbines are in the fleet, and how is that changing?

We currently have more than 25 natural gas systems, with two additional units arriving this week. Customer demand has been driving significant CapEx growth. In 2023, we budgeted $6 million but spent $15 million, including $2 million for land. Excluding land, that is $13 million versus the original $6 million budget, almost entirely customer-driven.

For 2024, CapEx is set at $10 million, and we are already $6 million into it. Demand continues to grow as clients adopt electrification across their sites. They typically start with a smaller generator, confirm reliability and cost benefits, then scale to larger or multiple units. Sites that once ran 160-kilowatt units now require 330-kilowatt turbines, often linked together into modular power plants. Remote monitoring gives our technicians real-time visibility on gas quality, pressures, and turbine performance, allowing us to address issues proactively and minimize downtime. This makes the technology both reliable and scalable as adoption accelerates.

28/05/2024 What does your M&A pipeline look like, and what is your strategy?

During the seven-year downturn, many well site shack manufacturers exited or shifted to modular housing, creating a shortage. We could use another 50 units in our operations and are in discussions with a small Alberta-based manufacturer. Since we are already one of his largest customers, an acquisition would be highly accretive and a natural fit. We hope to advance a deal this year.

Beyond that, there are larger opportunities we continue to evaluate. Our mandate has always been to pursue transactions that are profitable, accretive, and strategically aligned, while maintaining discipline.

28/05/2024 What multiples do you pay for acquisitions?

We have never paid more than 3x EBITDA, even in strong markets. In downturns, we have paid as low as 1x EBITDA for smaller companies. Our approach is not only about valuation multiples but also about integrating companies into our family of businesses.

In all past acquisitions, employees, management, and owners stayed on for five years under non-competes, and most remained for seven to nine years. This continuity has been critical to maintaining culture, knowledge, and long-term success.

21/11/2024 Is M&A still a priority, and what multiples do you target?

We continually evaluate M&A opportunities but remain disciplined. In the past, we have never paid more than 3.1x EBITDA. In select cases, asset values may justify paying slightly more, but our standard is strict.

For now, organic growth is the focus. CapEx investments generate strong returns, so reinvesting in our fleet takes priority while we keep watch for accretive deals where one plus one equals three.

21/11/2024 How should investors view your cash position and CapEx needs for 2025 and beyond?

We cannot forecast five years out, but to give perspective, CapEx for Evolution Power’s 10 turbines is about $10 million. Historically, we have overspent relative to plan, 2023 CapEx was budgeted at $6 million, but we spent $15 million. In 2024, the plan was $10 million, and again we spent $15 million. It is driven by customer demand, and we put equipment out to meet it. Cash flow is strong, and we are heading into our three strongest quarters with confidence.

We have established a relationship with a Tier 1 bank to support expansion. If acquisitions or excess CapEx arise, those would be funded by debt. We are not heavy users of debt, but we now have that option.

21/11/2024 If the industry fully converted to your gas platform, how large could the business be, and can you fund growth without raising capital?

Our natural gas power systems displace diesel, which remains the number one fuel for mobile or remote power. There are hundreds of sites where diesel can be replaced, though we have not quantified the total precisely. Currently, we estimate serving about 15% to 18% of the energy sector segment, so we are still at the early stage of a large opportunity. We are the only company in the energy sector offering this kind of comprehensive mobile power system, which gives us a strong growth position.

Operational cash flow has covered most of our CapEx, and we can continue to grow organically without raising external capital. We also have ample debt availability through our banking partners if needed, so we have no concerns about funding growth.

20/08/2025 What are the typical payback periods for deploying a new turbine on long-term contracts?

We don’t share specifics on individual turbines or contracts, but as a rule of thumb we want payback in less than three years. This varies depending on the type of equipment, since we often deploy turbines as part of a full package that includes distribution panels, cabling, light towers, and other supporting gear. Each piece has its own payback period.

Overall, we are comfortable saying that payback generally falls in the two- to three-year range.

20/08/2025 What is your capital deployment strategy, and how do you balance acquisitions, fleet modernization, buybacks, debt, or dividends?

There is no discussion of a dividend at this time. Most of our capital is going to CapEx to support robust demand and growth opportunities. We are not heavy users of debt, so you should not expect us to lever up or return to the capital markets. Growth is being funded through CapEx, and our focus is firmly on moving the company forward.

Competitive Advantage

28/05/2024 How are you the sole provider of low-emission site electrification systems, and what protects this position?

In the microturbine space, there are very few global manufacturers. Over the past five years, we have built a close partnership with a North American supplier, adapting their unit for mobile use and ruggedizing it for extreme conditions down to minus 40. Traditionally, microturbines were stationary for decades, but we engineered ours to be reliable in a mobile setting. That has given us a moat with proprietary know-how for cold-weather and mobile deployment.

We also shifted our workforce: about 45% of our employees are electricians, supported by journeyman and apprentice programs, to manage 480-volt systems. This transition from mechanical to electrical expertise further differentiates us. Competitors still rely on diesel, and none have matched our gas-to-microgrid systems. While competition may appear eventually, we have not seen any signs yet.

28/05/2024 How did you secure exclusivity with the proprietary microturbine technology?

Exclusivity is not formalized, but we are effectively first up and best dressed. The volume of orders and business we’ve generated with the manufacturer has made us a key partner. They see us as leaders in mobile operations for this technology, which is traditionally used only in stationary installations.

By proving the reliability of their equipment in mobile settings, particularly under harsh conditions, we’ve earned strong alignment and support from the manufacturer. They continue to back us closely as we expand.

21/11/2024 What percentage of customers use compressed natural gas (CNG) versus field gas, and how much treatment is required?

About 85% of sites use client-supplied gas, either directly from the field or through local gathering systems with one level of refinement. The remaining 15% rely on CNG.

Our exclusive Flex units are key here. They tolerate fuel imperfections up to 6,500 parts per million of H2S, handle wet gas, and operate reliably even at minus 40. Competing turbines often fail below minus 20 or when fuel quality is inconsistent. With our exclusive Flex agreement, we alone can deploy these units in the industry, ensuring near 100% uptime and securing a moat around this technology.

21/11/2024 What is your contract renewal rate, and what drives retention?

Our contracts are typically annual or two-year master service agreements. Retention has been essentially 100%. If issues existed, they would surface at renewal, but historically we have gained work from clients when competitors failed to deliver high-quality products or service.

Pricing is adjusted to ensure equipment payback within 1 to 3 years. Clients evaluate providers on safety, ESG compliance, and operational standards as part of a serious approval process. Our top-tier safety systems and performance records keep us in strong standing, and customers want to continue working with trusted suppliers like Enterprise.

21/11/2024 Given reliance on Flex, why not combine with them?

We are focused on taking one step at a time rather than pursuing that option at this stage.

20/08/2025 What is proprietary about your turbines, and why can’t larger competitors replicate them?

These turbines were purpose-built for combined heat and power applications. In the world of microturbines under half a megawatt, only three recognized manufacturers exist. We tested U.S.-built units and have six in our fleet, but they fail in the extreme conditions we operate in. The Flex unit, which achieves 99.5% uptime, outperforms others. A European competitor has only 10 units installed, none in North or South America, and their turbines are heavy, overbuilt, and unsuitable for extreme conditions. Flex is well-matched for commercial and industrial needs, and units can be paired to match power loads from one to multiple megawatts. Larger turbines from GE, Siemens, or Pratt & Whitney are a different class and not comparable.

Beyond the turbine itself, infrastructure is crucial. Clients need a full package, light towers, heaters, generators, and buildings, not just a turbine dropped at the door. Our mobile power systems come with delivery, setup, and guaranteed uptime service, which rental providers like United Rentals do not offer. This service model is as important as the technology itself.

Operations

28/05/2024 Do some of your customers contract across multiple business divisions or only one unit?

That can happen, but most of our business is through complete packages. All our subsidiaries cross-sell across divisions. For example, our heating division sells into every business line during winter operations, especially in Arctic conditions where heat is always required. Hart and Westar are good examples of full-service packages.

When clients adopt our gas-to-microgrid technology, those power systems are often bundled with the entire site package. It is common for customers to utilize the full range of our services rather than a single division.

28/05/2024 What is the lifespan, age, and utilization rate of your equipment?

Utilization rates vary by equipment class. Mobile structures and power systems are running at very high utilization due to demand, while other categories like lighting have lower rates. Some asset classes are overloaded, which is why we are adding more through CapEx. Overall, we operate in an expanding Canadian energy market with no slowdown in sight.

From an accounting perspective, large infrastructure assets such as turbines and mobile structures are depreciated over seven to ten years. Microturbines, with a major overhaul, can last up to two decades, similar to stationary installations. This provides a long useful life across our fleet.

21/11/2024 What internal metrics or KPIs do you use for customer contracts?

Our agreements are structured as master service agreements with clients, who then apply pricing to individual equipment. We target payback on all invested equipment within 2 to 3 years. Some items deliver returns as quickly as 90 days, but overall we ensure full recovery within that cycle. We do not apply a fixed percentage per item, but rather focus on achieving return within the 2 to 3 year timeframe.

21/11/2024 What is the length of contracts, and how recurring are revenues?

Clients often have drilling and completion programs lasting 2 to 3 years, moving from pad to pad. We may stay on a client program for several months or multiple years. Contracts are based on master service agreements, with all terms defined, and we are called to support client programs as needed. Some programs last longer depending on the client.

21/11/2024 Do longer-term contracts include organic growth provisions?

Customer growth is not explicitly built into agreements. If clients increase their development activity, we scale alongside them, but it is not contractually embedded.

MSAs typically last 12 to 24 months with defined pricing. At renewal, pricing is adjusted for market conditions and equipment updates. When new or significantly different equipment is added, we update the MSA accordingly.

21/11/2024 How is development of larger turbines progressing?

Flex has a 2 megawatt platform, which is a natural extension for us. We are discussing costs and lead times with them, and several clients have already expressed interest in larger power solutions. We are working with those clients on development plans for increased energy needs.

21/11/2024 What progress have you made with clients in industries like mining or data centers?

It is preliminary but promising. We have had discussions with compressed natural gas suppliers and a few mining companies about adapting our systems. Instead of natural gas wells, these applications would use CNG.

We have also received inquiries from small data centers that want independent power setups. These represent exciting new opportunities outside of natural gas, but our immediate focus remains on our core Canadian markets in Duvernay, Montney, and Port St. John, where demand from LNG Canada pipeline activity is strong.

21/11/2024 What is Flex’s manufacturing capacity, and how fast can they ramp up supply?

We recently met with Flex and discussed their production pipeline. They are currently delivering six 2 megawatt units, building 20 more of the 333 models for their own use, and fulfilling our order for 10 additional units. Their capacity is strong, and if we required 30 units, they could produce them, though sourcing specialized parts from around the world is a logistical challenge.

21/11/2024 How many units do you expect to have by the end of 2025?

Today we have about 30 complete natural gas systems. By the end of 2025, we expect to have around 45 natural gas systems in operation. For Flex units specifically, we anticipate being in the range of 24 to 25 units.

20/08/2025 How many turbines are now in service after the most recent acquisition?

We view our operations as complete power systems rather than individual turbines. With the acquisition, we are close to 60 natural-gas-based power systems that can be deployed. Each includes turbines and generators configured for specific applications.

20/08/2025 How many of your turbines are rented versus owned?

All of the units we acquired, plus our existing fleet, are rented to clients on varying terms. Some companies have purchased units outright, and for those we provide long-term maintenance through our FlexCare agreements. We do not disclose the exact number of individually owned units, but everything in our fleet is rented.

20/08/2025 What does your salesforce look like today, and how must it grow to meet demand?

Before acquiring Flex Canada, we had a VP of business development in Calgary and a seasoned field business development team. With the acquisition, we added a leader who has nearly a decade of experience with Flex Canada. He will continue driving energy sector opportunities and expand into build-and-design firm interfaces for CHP applications.

We are also broadening our regional presence, with Eastern Canada soon to have its own dedicated business development representation. This expanded team positions us to capture demand nationwide.

Growth

28/05/2024 Does your business generate recurring revenue, and how is it structured?

We sign two- to three-year master services agreements (MSAs) with clients, which ensure ongoing work. Projects typically last from one to fifteen months, and once one site is completed, we often move directly to another for the same client. As a rental company, we bill daily, and these contracts provide consistent revenue streams.

MSAs are highly valued by our customers and involve detailed reviews covering safety, ESG standards, and compliance. Securing an MSA signals a strong relationship. While project volumes vary by season and client activity, we work with many repeat customers annually, which provides a recurring revenue base.

28/05/2024 Do you currently operate in the U.S., and do you plan to expand there?

Our operations are concentrated in Western Canada, where our yards and shops are within two to three hours of project sites. We see ample runway in the Canadian energy sector and related industries, so we are staying disciplined and avoiding distraction from the U.S. market. It operates differently, and we do not claim the expertise to navigate it

The low-hanging fruit is here in Canada, particularly around the LNG Canada pipeline, which is behind schedule and driving urgent drilling activity. Our clients are doubling rigs and expanding electrical adoption to meet obligations. Expansion into the U.S. may be considered in the long term, but our focus is firmly on Canadian growth.

28/05/2024 What is the total addressable market for natural gas microgrid turbines, and can they serve industries beyond energy?

The opportunity is massive. Our core runway is in the energy sector, where we have a 20-year reputation and strong client demand. We are focused on staying disciplined and not losing sight of that core market.

That said, we are actively analyzing adjacent industries such as mining at both development and operations stages, remote construction projects, and even large-scale electrification of fracking operations. These can require 8 to 15 megawatts of power, and our manufacturer also produces 2.5-megawatt units that expand our capabilities. The technology has clear applications for industries like mining and construction, with potential to extend further in the future.

21/11/2024 Which subsidiary contributes most to earnings and future revenue growth?

Five years ago, we redirected focus into Evolution Power. At that time, it was 5% of gross revenue. Today, it represents more than 45% of our gross revenue, with extremely high margins and profitability.

21/11/2024 What challenges have you faced convincing traditional energy producers to adopt natural gas systems, and how did you address them?

Adoption is usually faster when we present to decision makers at the engineering or C-suite level, as they see the benefits of moving from diesel to natural gas quickly. At the field level, particularly with third-party site superintendents, there is sometimes more hesitation to change. To address this, we increased field sales exposure and recently hired a VP of Business Development in Calgary to target C-suites directly. This has already led to successes, such as a new flare gas opportunity.

For years, Evolution grew by word-of-mouth alone. Our first dedicated salesperson started just two months ago with a mandate to reach C-suite executives. The economics and ESG benefits sell themselves, and regardless of field resistance, decisions at the top drive adoption. That is the source of organic growth ahead.

21/11/2024 Are you seeing more growth from existing Tier 1 clients or new customers?

It is a mix. We regularly add new clients, but many Tier 1 clients we have worked with for over a decade are now converting from diesel to natural gas. That shift has been a significant driver.

Revenue growth is split between new and existing clients. Larger Tier 1 customers adapt more easily to turbine systems, while smaller clients may face project duration or location challenges. Organic growth within existing Tier 1s is strong, with some sites running multiple turbines for different purposes. At the same time, our new sales effort is expected to bring more mid-tier clients, particularly as ESG pressures mount.

21/11/2024 Do you plan to expand into the U.S. market?

No. Our focus is on Canada, where we have decades of reputational strength and significant opportunities in front of us. The U.S. market is not the same as Canada, and it would be a distraction from the opportunities we already have here.

We expect U.S. players will eventually come to us, because our assets are the best in the market. That may happen within the next year or two.

20/08/2025 Was the FlexPower acquisition only for Canada, and can you also sell or lease in the U.S.?

Yes, the acquisition covers Canada only. We are the OEM representative and took over Flex’s Canadian business. Flex USA continues operating their robust U.S. market, while we focus on Canada. This partnership works because Flex recognized Canada needed more dedicated attention than they could provide. Enterprise is well funded, operationally advanced, and enthusiastic, making us the natural choice to grow the Canadian market while Flex maintains global and U.S. opportunities.

Historically, Flex Canada pursued only the energy sector, which adopted the turbines well over 15 years. They did not expand into combined heat and power or broader industrial and commercial applications. Now, under Enterprise, our opportunity is to expand across the entire Canadian market and unlock applications far beyond energy.

20/08/2025 Which industries are you diversifying into, and what stage are those efforts at?

Mining is a strong fit, similar to the energy sector, because diesel is still widely used during initial mine buildouts. Gas turbines and microgrid solutions can displace diesel in these projects, and we are in discussions regarding opportunities in Northern BC and Northwestern Ontario. We are also developing synergies with compressed natural gas suppliers, with more details to come.

Beyond mining, combined heat and power (CHP) applications create further potential. For example, a recreation center in Grand Prairie installed two units as primary power and CHP four years ago. We are now working with engineering and design firms so they understand CHP’s cost and emissions savings and can incorporate it into future municipal and industrial projects. These opportunities have longer sales cycles, but our business development team is actively expanding in this direction.

20/08/2025 What challenges do you face in growing your customer base and driving adoption of natural gas turbines?

Currently our operations and infrastructure are based in Western Canada, so expanding nationwide requires building out more offices, yards, and business development resources. That is less a roadblock than a natural step in scaling the business.

Education and adoption are also challenges. Natural gas is one of the cheapest power sources globally, but our process is still new to many customers. We regularly host site visits to demonstrate performance, and while executives often buy in quickly, field-level staff can take more convincing. Still, after two or three months most new customers commit, and we expect significant progress over the next three months.

Financials

28/05/2024 How much of 2023 and Q1 revenue came from natural gas to power services?

That is not information we break down publicly. For competitive reasons, we do not disclose revenue by division or product line.

28/05/2024 What percentage of sales comes from your top five customers?

At March 31, 2024, two customers represented 45% of revenue for that quarter. In the prior year, three customers made up 37%. No other customers accounted for more than 10%.

Customer concentration shifts quarter to quarter depending on project timing, so while these figures are accurate, the specific clients vary over time.

28/05/2024 Is there seasonality in your business results?

Yes, seasonality is a consistent factor. Historically, Q1 and Q4 are our strongest quarters, with Q3 close behind. Q2 tends to be weaker due to spring road bans and weather-related slowdowns in the energy sector. This pattern has held true over the past several years.

28/05/2024 What savings do customers realize from electrification versus diesel?

The savings are substantial. Replacing a 350-kilowatt diesel unit with an equivalent microturbine using natural gas yields dramatic fuel cost reductions. With natural gas trading around $2 per MMBtu on Henry Hub versus oil at $78 per barrel, the cost advantage is clear. Even when third parties supply gas at $7 per MCF, the differential is significant.

The result can be up to an 86% fuel cost saving. On a per-site basis, this translates to $3,000 to $5,000 in daily savings, and in some cases even more depending on project scale.

21/11/2024 What is your internal return on capital for every $1 million invested?

We are not prepared to disclose that figure.

20/08/2025 What is your customer concentration, and how has the acquisition affected it?

We disclose customer concentration in our MD&A and financials as required. Our top customers remain in the energy sector, though the acquisition has introduced some diversification. Going forward, we expect growth to come increasingly from the power sector. This transition has already started and will continue as we expand.

Outlook & Guidance

28/05/2024 Closing remarks from management

We greatly appreciate everyone’s time and interest. We welcome one-on-one discussions to provide additional detail, and we thank our shareholders for their continued support.

We are excited about the opportunities ahead, confident in our disciplined growth strategy, and committed to building long-term value for both our customers and investors.

21/11/2024 How far in advance do you book customers, and what visibility do you have into 2025 and beyond?

Our industry typically lacks long-term visibility. We usually see 6 to 9 months out based on client program discussions. It is rare for clients to commit to solid 2 or 3 year programs in advance.

During MSA negotiations or renewals, clients provide heads-up on expected needs for a season or calendar cycle, allowing us to plan equipment availability. We are investing in both infrastructure and equipment aligned with customer demand, based on what they communicate to us.

21/11/2024 What are the main operational risks ahead, and will the next two quarters be stronger than Q3?

We operate in remote areas where heavy equipment can only be moved when the ground is frozen. As a result, activity is always more robust in the frozen quarters, making Q1 and Q4 the strongest periods. This seasonality is inherent to the Canadian energy sector.

From a financial perspective, Q1 has historically been the highest quarter, and we expect the same pattern going into 2025. Activity levels are currently increasing, and we see that trend continuing.

20/08/2025 Have you considered blending hydrogen with natural gas?

Yes. Our turbines can operate on a blend of hydrogen and natural gas. The limiting factor is the absence of a mature hydrogen economy. If the hydrogen sector develops further, we will be able to integrate it into our fleet.

Risks & Macro

28/05/2024 What caused the industry downturn, and what is driving today’s upturn?

The downturn was largely caused by underinvestment in oil and gas globally. Environmental pressure on banks, insurers, and funds led to limited capital for reserves and production, even as demand continued rising. As a result, supply was constrained at a time when consumption, outside of COVID, only grew. Very few new field discoveries have been made in the last decade, worsening the gap.

On the upturn side, long-term contracts for liquefied natural gas (LNG) are being signed for 27 to 30 years, reflecting confidence in demand. Canada is well positioned to play a role in meeting this global energy need. While cycles will remain volatile, the structural outlook is bullish, and we see significant long-term growth potential.

21/11/2024 Do wildfires create seasonality in Q3 results?

In recent years, wildfires have disrupted operations, especially across Alberta and Northern BC. In 2023, we even lost equipment at a site, and industry peers reported similar impacts. Entering 2024, the dry winter heightened client caution, leading some to defer projects later in the year.

We also expanded our fleet of fire suppression units, which are in demand and billed daily, adding another dozen units this season. Fires again affected Northern BC and oil sands areas. Fire season is now taken very seriously, and we expect some level of deferrals to continue.

21/11/2024 Do you gain carbon credits from your work?

No. Fuel expense and related carbon credits are the client’s responsibility. Any credits are earned by the operator, not by us.

20/08/2025 What impact do you foresee from tariffs south of the border?

We monitor both U.S. actions and Canada’s retaliatory responses. The initial Canadian tariff list, released earlier this year, has been updated, but heavy-duty equipment such as turbines has not been included. U.S. manufacturers like Caterpillar and John Deere remain unaffected so far. Importantly, any equipment compliant with USMCA still qualifies for exemption.

The tariff landscape can change quickly, but at this time, none of the equipment we source from U.S. manufacturers has been impacted.

20/08/2025 How do you measure emissions data presented in your materials?

Emissions data is gathered in compliance with regulatory standards by certified third-party providers. They conduct onsite sampling of exhaust and ambient air, and the results are reported under strict governance in both Canada and the U.S. While we own equipment to conduct our own checks, any published results must come from third-party certified providers.

This process is highly regulated, much like financial audits, and ensures that all emissions data is independently verified and credible.

Personal Questions

28/05/2024 How would you describe your corporate culture and employee incentives?

Good people are central to our success. We emphasize top-quality equipment, service, and staff, and provide competitive compensation to attract and retain talent. Many employees have grown within the company, starting in trades or operations and moving into management. This creates loyalty and long-term tenure, making it easier to build and maintain strong teams.

We truly operate like a family. Many employees have been with us for decades, including senior leaders who rose from frontline roles. We reward staff through stock options, bonuses, and tailored incentives. Ultimately, we focus on keeping people happy, motivated, and moving forward in their careers.

Disclaimer:

The following transcript and Q&A have been generated with the assistance of Artificial Intelligence (AI). While we strive for accuracy, completeness, and clarity, the content may contain errors, inaccuracies, or misinterpretations. Neither the company featured in this document nor ValueBridge assumes any responsibility or liability for the accuracy, reliability, or completeness of the information presented.

This material is for informational purposes only and should not be construed as official company communication, financial advice, or a definitive representation of the company’s views. Readers should independently verify any information before making decisions based on it.