Enterprise Group Reflects on 2025: a Year of Progress and Positioning to Capture Growth in Canada's Inflecting Natural Gas Landscape

Rhea-AI Summary

Enterprise Group (OTCQB: ETOLF) recapped 2025 and outlined 2026 priorities after completing a strategic acquisition and strengthening its balance sheet. Key facts: Enterprise acquired FlexEnergy Canada for 4.3x pre-synergy EBITDA, increasing its in-field turbine fleet by 43% and became FlexEnergy's exclusive Canadian OEM representative. The company expanded a Schedule 1 bank credit facility to $41M from $30M and renewed its normal course issuer bid while prioritizing fleet utilization, selective growth investments, and capital allocation across growth, buybacks, and balance sheet health.

Positive

• Fleet +43% increase after FlexEnergy Canada acquisition
• Acquired FlexEnergy at 4.3x pre-synergy EBITDA
• Exclusive Canadian OEM representative for FlexEnergy
• Credit facility expanded to $41M from $30M
• Renewal of normal course issuer bid to support stock

Negative

• Acquisition price of 4.3x pre-synergy EBITDA could pressure returns if synergies lag

St. Albert, Alberta--(Newsfile Corp. - January 28, 2026) - Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (the "Company" or "Enterprise"), provides natural gas turbine power generation and critical site infrastructure equipment to Tier One energy producers and industrial clients, displacing diesel to reduce fuel costs and emissions, while enabling fully operational, 24/7 remote projects in the most extreme Canadian northern conditions. Enterprise is pleased to reflect on its 2025 progress and outline its positive outlook for 2026 and beyond:

Corporate Progress Positions Enterprise to Capture Profitable, Sustainable Growth

• Completed Acquisition of FlexEnergy Solutions Canada: The strategic acquisition of Flex Canada set the cornerstone for Enterprise to be also known as a provider of power solutions for short-term, long-term and permanent installations. FlexEnergy turbines are recognized globally as the gold standard for uptime, reliability, and exceptional fuel tolerance. Acquired for 4.3x pre-synergy EBITDA, increased in-field turbine fleet by 43% backed by long-term leasing & servicing contracts, and bolstered the ability to scale solutions across multiple industries and mission-critical infrastructure applications. Enterprise is well known for providing critical site infrastructure equipment to both energy and industrial customers, this acquisition places Enterprise firmly in the power solutions industry in Canada.

• The acquisition establishes Enterprise as the exclusive Canadian OEM representative for FlexEnergy, enabling expansion into commercial and industrial markets for primary power and combined heat and power applications. This strategic shift broadens Enterprise beyond energy-sector solutions into a diversified power-solutions platform, positioning the Company for enhanced growth and a potential valuation re-rating

• Fortified Financial Position: Repaid & expanded credit facility to $41M from $30M with a Schedule 1 Canadian Bank while remaining active in supporting its stock though the renewal of its normal course issuer bid

• 2026 Strategic Priorities:
  • Improve utilization rates of existing fleet, optimizing cash flow generation
  • Diligently allocate capital between growth, NCIB, and balance sheet health
  • Maintain disciplined IRR thresholders for selective growth investments

Highlights

• Canada's natural gas activity is increasing as exports ramp

• "Nation-Building" LNG projects advancing with bi-partisan support represent >31 Mtpa of added export capacity, or ~25% of Canada's current gas production
  • LNG Canada: (Shell, Petronas, Mitsubishi, Petro China, Korea Gas)
  • Ksi Lisims: (Nisga'a FN, Rockies LNG LP, Western LNG LLC)
  • Woodfibre LNG: (Pacific Energy Corporation (Canada), Enbridge Inc.)
  • Cedar LNG: (Haisla FN, Pembina Pipeline Corporation)

• Increased exposure to global LNG markets supports tighter Henry Hub–AECO spreads and position Canada's natural gas production for a long-term bull market

• Major industry transactions involving leading E&Ps underscores confidence in Western Canadian natural gas assets, particularly Montney and Duvernay plays

Enterprise would like to thank all stakeholders for their support and reiterate its focus on building momentum throughout 2026 and beyond.

About Enterprise Group, Inc.

Enterprise Group, Inc is a consolidator of services, including specialized natural gas power generation equipment to the energy/resource and industrial sectors. The Company works with particular emphasis on systems and technologies that mitigate, reduce, or eliminate CO2, Greenhouse Gas (GHG) and other harmful emissions for itself and its clients. The Company is well known to local Tier One and international resource companies with operations in Western Canada. More information is available on the Company's website www.enterprisegrp.ca. Corporate filings can be found on www.sedarplus.ca. 

For questions or additional information, please contact:

Leonard Jaroszuk, CEO & Chairman, or
Desmond O'Kell, President & Director
780-418-4400
contact@enterprisegrp.ca

Forward-Looking Information
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements in this news release including, without limitation, the anticipated use of proceeds and opportunities available to the Company. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR+ website www.sedarplus.ca) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/281872

FAQ

What did Enterprise Group (ETOLF) announce about the FlexEnergy Canada acquisition on January 28, 2026?

Enterprise completed the acquisition of FlexEnergy Canada, increasing its in-field turbine fleet by 43%. According to the company, the deal was done at 4.3x pre-synergy EBITDA and establishes Enterprise as FlexEnergy's exclusive Canadian OEM representative.

How did Enterprise Group (ETOLF) change its credit facility as of January 28, 2026?

Enterprise expanded and repaid its credit facility, increasing it to $41M from $30M with a Schedule 1 Canadian bank. According to the company, this strengthens liquidity while supporting ongoing operations and strategic priorities.

What are Enterprise Group's (ETOLF) 2026 strategic priorities announced January 28, 2026?

The company prioritized improving fleet utilization, disciplined capital allocation, and maintaining IRR thresholds for investments. According to the company, capital will be split among growth, the NCIB, and balance sheet maintenance to support cash flow.

Does the January 28, 2026 announcement say Enterprise Group (ETOLF) will buy back shares?

Yes, Enterprise renewed its normal course issuer bid to support the stock. According to the company, the NCIB is part of a capital allocation mix alongside growth and balance sheet priorities.

How does the FlexEnergy acquisition position Enterprise Group (ETOLF) in Canadian power markets?

The acquisition positions Enterprise as a provider of short-term, long-term, and permanent power solutions and C&I combined heat and power. According to the company, exclusivity as FlexEnergy's Canadian OEM enables expansion into commercial and industrial markets.

How does Enterprise Group (ETOLF) view Canadian natural gas market trends in the January 28, 2026 update?

Enterprise highlighted increasing natural gas activity and advancing LNG projects totaling >31 Mtpa, roughly 25% of current production. According to the company, this strengthens exposure to global LNG markets and tighter spreads benefiting Canadian producers.