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IMPROVED CAPABILITIES.

NEW OPPORTUNITIES.

QUARTERLY REPORT FOR

FIRST THREE MONTHS ENDED MARCH 31, 2015

Suite 904, 1331 Macleod Trail SE, Calgary, AB, T2G 0K3 Canada

Tel: +1.403.387.6377 Toll-Free: +1.800.242.3178

www.enerflex.com

MANAGEMENT’S DISCUSSION AND ANALYSIS

MAY 6, 2015

The Management’s Discussion and Analysis (“MD&A”) for Enerflex Ltd. (“Enerflex” or “the Company”) should be read in conjunction

with the unaudited interim condensed financial statements for the three months ended March 31, 2015, the Company’s 2014 Annual

Report, the Annual Information Form for the year ended December 31, 2014, the Business Acquisition Report, relating to the business

acquired from Axip Energy Services, LP (“Axip” or “the Axip business”) dated September 5, 2014, and the cautionary statement

regarding forward-looking information and statements on page 10 of this report.

The MD&A focuses on information and key statistics from the unaudited interim condensed financial statements, and pertains to

known risks and uncertainties relating to the oil and gas service sector. This discussion should not be considered all-inclusive, as it

excludes possible future changes that may occur in general economic, political and environmental conditions.

FINANCIAL SUMMARY

Three months ended March 31,

($ Canadian thousands) (unaudited)

2015

2014

Total revenue

$ 475,323

$ 332,420

Gross margin

84,016

53,258

Selling and administrative expenses

51,324

45,823

Operating income

32,692

7,435

Earnings before finance costs and taxes (“EBIT”)

36,053

10,065

Net earnings

$ 22,858

$ 4,047

Key Financial Performance Indicators

1

Bookings

$ 140,600

$ 237,869

Backlog

$ 715,132

$ 801,884

Recurring revenue as a percentage of revenue

2

26.9%

28.4%

Gross margin as a percentage of revenue

17.7%

16.0%

EBIT as a percentage of revenue

2

7.9%

5.4%

Earnings before interest, tax, depreciation and amortization (“EBITDA”)

$ 54,389

$ 19,961

Return on capital employed

12.1%

8.4%

Net debt (cash) to EBITDA ratio

1.82:1

(1.64):1

Cash from operations

$ 21,798

$ 46,596

1

Key financial performance indicators used by Enerflex to measure its performance include revenue and EBIT. Certain of these key performance indicators are non-GAAP measures and certain

are additional GAAP measures. Further detail is provided in the

Non-GAAP Measures

sections.

2

Determined by taking the trailing 12-month period.