Enterprise Group

Growing Revenue by Serving Canada’s Infrastructure Industries

This profile is part of a paid investor education campaign.*


Enterprise Group Inc (TSX:E) is a specialized equipment rental company that provides rentals and services to the energy, utility, pipeline and transportation infrastructure industries. With an established footprint in Western Canada, particularly in Alberta and Northeastern British Columbia, Enterprise Group has grown its business by actively acquiring ‘best-in-class’ companies including Artic Therm International, Hart Oilfield Rentals and Westar Oilfield Rentals. Leading these business units, Enterprise Group has over $80 million in assets and equipment required by the various industries they serve.

Providing access to specialized, high-end technology at premium rates, Enterprise’s rental services include highly advanced heating and cooling units and full-service, modular oilfield site surface infrastructure. In offering rental services, the company can increase its profit margins and reduce its overhead, producing revenue values of $37.7 million in fiscal 2017.

Serving a sector that has experienced uncertainty and volatility, Enterprise has managed to remain cash flow positive during the downturn of the oil and gas market by implementing an earnings per share model. Most recently, as part of an initiative to become debt free, the company announced a letter of intent for the sale of its trenchless solutions business unit, Calgary Tunneling & Horizontal Augering (CT Underground)—which was originally acquired for $12 million—to a private purchaser. The sale of the business unit and its associated assets are expected to bring in over $21 million in total proceeds, which will be used entirely to eliminate Enterprise’s debt. Once debt free, the company will have access to prime acquisition opportunities with two credit lines totaling $40 million.

Moving forward, the company is also exploring opportunities for implementing blockchain as a billing and asset management tool. Additionally, Enterprise is also considering incorporating artificial intelligence capabilities into much of its equipment, with the goal of reducing energy usage and associated costs through automation and optimization.

Enterprise Group is led by a management team with vast experience in the industries relevant to their business. The management team is also significantly invested in the company, holding a total 20 percent of shares. They are also supported by a strategic institutional investor in Boston, which holds an additional 10 percent.

Company Highlights

  • Established position within various industries as a provider of rental equipment and services in Alberta and British Columbia
  • On-track to being debt-free with upcoming sale of Calgary Tunneling & Horizontal Augering division for $21 million
  • Over $80 million in assets
  • TTM EBITDA $7 million
  • TTM revenues of $37.7 million
  • Upcoming access to $40 million in credit lines for future acquisitions
  • Stable and diversified revenue streams from large portfolio of services
  • Multiple growth opportunities through future acquisitions
  • Leadership team with proven experience in target industries

Business Model

In working towards its goal of being a leading service and equipment provider to the utility, energy, pipeline and transportation infrastructure industries, Enterprise has deployed an acquisition-based business model by which it acquired its various business units. Each acquisition met the following criteria: status as a profitable, well run private business within relevant industries; strong operational and financial track record; viable potential for growth within three years; capacity for seamless integration into Enterprise; and existing growth revenue.

Having developed its various services, the company has provided these to leaders in the oil and gas, pipeline construction, transportation infrastructure industries based in Alberta and British Columbia. Total revenue in fiscal 2017 was $37.7 million with an EBITDA of $7 million.

Equipment Rental

As part of their business model, Enterprise has an extensive fleet of equipment that is rented to companies that need to build working environments at oilfields and other such remote locations. Its three equipment rental divisions are outlined below.

Hart Oilfield Rentals


Dedicated to supplying oilfields with the infrastructure required for conducting horizontal drilling and completion operations on their sites, Hart offers modular rental equipment packages from a fleet of 2,500 pieces. A vertically integrated business unit, Hart designs, manufactures and assembles its equipment under the scope of its 15 design patents.


So as to meet the demand of its clients, Enterprise dedicated over $13 million in capital expenditure for Hart in 2014. Hart is distributed across six centers in the Western Canada Sedimentary Basin, and the company has identified two additional locations for expansion opportunities.

Westar Oilfield Rentals


Enterprise acquired Westar in 2014 and has since developed an equipment fleet of over 450 pieces. Like Hart, the division offers full-service oilfield site infrastructure for oil and gas customers in Northern BC. Its equipment offerings include waste management, light towers, wellsite trailers and generators, among others.


Artic Therm International


Acquired in 2012, Artic Therm is a developer of flameless and contaminate-free heating and cooling units for industries working within the extreme Canadian climates. The units fulfill a variety of roles including wellhead heating, work site heating, plant outage support, grain drying, pipeline thermal expansion, emergency thawing and more. Artic Therm’s equipment is easily portable and uses proprietary technology. The current fleet is of over 180 units.



Leonard D. Jaroszuk—President, CEO and Chairman

Leonard D. Jaroszuk has nearly three decades of experience managing public companies engaged in real estate, construction, natural resources and exploration. He serves as director for several companies in both the manufacturing and oil and gas industries.

Desmond O’Kell—Senior VP, Corporate Secretary and Director

Desmond O’Kell has over 29 years of business build-out, finance and executive operations experience. He has been an integral member of the Enterprise team since the company’s inception.

Warren Cabral—CFO

Warren Cabral has over 20 years of financial experience. He is the former CFO for AIMCO, where he managed global investments for pensions, endowments and government funds in Alberta.

John Campbell—Director

John Campbell possesses more than 30 years of experience in the investment management industry. He currently serves as chairman of the board and chair of the Investment Review Committee of TriView Capital, a Canadian investment firm specializing in private investments.

John Pinsent, FCPA, FCA, ICD.D—Director

John Pinsent is a founding partner at St. Arnaud Pinsent Steman Chartered Accountants. He was awarded the ICAA in 2013. He also gained fellowship status, joining a select group of FCAs and has also earned an ICD.D designation.

Neil Darling—Director

Neil Darling is the president and founder of Ramdar Resource Management, a wellsite management service company. He has held this role since 1994.

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