Natural Gas Stock Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) Moves On Data Center News
The stock has made the TSX top gainer list again on data center news. Enerflex closed at $39.11 +4.85 (+14.16%) on volume of over 1 Million shares.
Recent news -
Natural Gas Stock Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) Soars on AI Data Center Contract
The stock is among the TSX top gainers after an Engineered Systems award of roughly 450 megawatts of behind-the-meter natural gas-fired power generation, with deliveries scheduled for 2027 and 2028.
announced it has been contracted to design, engineer, fabricate, and assemble over one gigawatt of low emission behind-the-meter natural gas-fired power generation units for a large-scale North American data center development. Combined with additional project awards, including approximately 450 megawatts announced on October 1, 2026, Enerflex's backlog of behind-the-meter natural gas-fired power generation now exceeds 1.75 gigawatts, with deliveries extending through 2028.
AdvertisementThe projects will be executed through Enerflex's North American manufacturing operations. To support the execution of the Company's behind-the-meter natural gas-fired power generation backlog and expected growth across Enerflex's core markets, the Company is investing in expanding the capabilities of its ES business line. As previously announced, Enerflex has authorized approximately $100 million of investments in its ES facilities and capabilities, $15 million of which is included in Enerflex's capital expenditure guidance for 2026. These investments, combined with on-going initiatives to enhance collaboration, leverage scale, improve operational efficiency, and solidify capabilities, are expected to significantly increase revenue capacity of Enerflex's ES business line.
Beyond the initial equipment scope, the Company's backlog of low-emission behind-the-meter natural gas-fired power generation units provides opportunities for future commissioning, installation, and after-market services support including digital solutions with Enerflex's ReliaCore(TM) Asset Performance Management ecosystem, aligning with Enerflex's commercial initiatives to support the full lifecycle requirements of behind-the-meter power generation development.
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 "anticipate", "believe", "could", "expect", "future", "may", "potential", "should", "will", and similar expressions, (including negatives thereof) are intended to identify FLI.
In particular, this news release includes (without limitation) FLI pertaining to: (i) the Company's backlog and the project awards that make up the backlog; (ii) the expected growth across Enerflex's core markets; (iii) the Company's 2026 guidance, including PP&E and infrastructure investments to support the Company's Engineered Systems business; (iv)expectations pertaining to increases in revenue capacity of Enerflex's Engineered Systems business and the timing associated therewith, if at all; (v) the ability of the Company to capitalize and convert its opportunity pipeline into meaningful commercial awards, the terms and conditions of such awards, and the timing associated therewith, if at all; and (vi) the ability of the Company to capitalize on opportunities including commissioning, installation, and after-market services support including digital solutions through Enerflex's ReliaCore Asset Performance Management ecosystem, and the timing of such opportunities, if at all, associated with the Company's backlog of low-emission behind-the-meter natural gas-fired power generation units.
FLI reflect 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 but not limited to: (i) the projects proceeding in accordance with the terms of the applicable contracts, including expected scope, timing, and customer performance obligations; (ii) deliveries extending through 2028 as currently scheduled; (iii) demand for low-emission behind-the-meter power generation solutions, including demand associated with data center and digital infrastructure development, remaining consistent with current expectations; (iv) Enerflex's ability to execute the project utilizing its existing and expanded manufacturing capabilities and supply chain resources; (v) the availability of labor, equipment, components, and transportation services on commercially reasonable terms; (vi) capital expenditures and other investments being completed substantially in accordance with the Company's current plans, timelines, and cost estimates; (vii) the Company's ability to realize anticipated operational efficiencies, increased manufacturing capacity, and revenue opportunities resulting from such investments; (viii) general economic, market, and industry conditions remaining substantially consistent with current expectations; and (ix) the Company's ability to secure and execute future opportunities for commissioning, installation, and after-market services including digital solutions.
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