Enterprise Group

Overview

The world is in need of more oil and gas. The Organization of the Petroleum Exporting Countries (OPEC) maintained its 2022 forecast that world oil demand will continue to rise against the backdrop of tight supply, while McKinsey & Company reported that the already-tight supply was squeezed even tighter due to the drop in exports from Libya as well as concerns about gas supply from Russia.

Canada is the fifth largest producer of oil and also the fifth largest producer of natural gas in the world. Currently, there are 70 operating oil and gas pipelines regulated by the Canada Energy Regulator across Canada-US borders. The Canadian natural gas industry is forecasted to generate $250 billion over the next 10 years, and to keep up with this, the Canada Energy Regulator's annual report suggested that western Canada will require additional oil pipeline capacity. At the 2022 Energy and Mines Ministers’ Conference, International Energy Agency Executive Director Fatih Birol put a spotlight on Canada’s leadership on driving clean growth for a secure energy future, and Europe’s need to replace Russian dependance on oil and gas with trading partners such as Canada.

One company ready to support this explosive growth in the energy industry is Enterprise Group (TSX:E, OTCQB:ETOLF), composed of specialized subsidiaries and is actively acquiring “best-in-class” equipment and service providers within its serviced industries. The company’s focus is Western Canada as it is a high growth region, where it is already generating revenue, and has an estimated enterprise value of US$33 million.

Enterprise Group helps its clients improve their Environment, Social and Governance (ESG) ratings by offering specialized equipment powered by natural gas or electricity rather than diesel. Senior Vice President and Director, Desmond O'Kell, explained to INN that it is necessary for most of their clients to track emissions right from extraction all the way up and downstream so they developed systems to serve this need. He shared, "... some of the things that we've been innovative--and we're first in our sector to do so--is transition from diesel to, in some cases, natural gas fired equipment. That difference, moving from diesel to natural gas, is meaningful and very significant. It is a needle mover.” He added, “We're helping the client with costs, we're helping them with emissions reductions in a very significant way. And of course, there's environmental and safety opportunities that also brings.”

Enterprise Group’s business model focuses on continually acquiring profitable and specialized businesses within the infrastructure sector that serves Western Canadian operations. The company utilizes its access to capital, expertise, relationships and existing businesses to accelerate the growth of new acquisitions.

The company presently has four subsidiaries, each targeting a different aspect of infrastructure: Evolution Power Projects, Western Oilfield Rentals, Artic Therm International and Hart Oilfield Rentals. Each subsidiary services essential aspects of the Western Canadian infrastructure market.

Enterprise Group is led by an experienced team of experts in finance, corporate management and investment management. Leonard D. Jaroszuk, CEO, brings 30 years of experience managing public companies, including companies in the construction sector. Warren Cabral, CFO, has over 25 years of experience in finance and has served as CFO for notable companies in the financial services industry. Senior VP, Corporate Secretary and Director Desmond O’Kell has over 30 years of experience in business build-out, finance, and executive operations. A diverse team of additional experts in their fields strengthens the management team’s ability to achieve the company's goals.

Company Highlights:

• The Canadian natural gas industry is forecasted to generate $250 billion over the next 10 years, with currently 70 operating oil and gas pipelines regulated by the Canada Energy Regulator across Canada-US borders.
• Canada will require additional oil pipeline capacity, creating a unique opportunity for Enterprise Group.
• Enterprise Group is currently generating revenue throughout its business lines. Revenue reported for the three months ended March 31, 2022, was $7,629,418, an increase of 30 percent from the prior period.
• The company’s enterprise value is currently estimated at US$33 million.
• The company is committed to mitigating, reducing, or eliminating CO2 and Greenhouse Gas emissions for small to Tier One resource clients
• An experienced management team leads Enterprise Group towards achieving its goals of supporting the Western Canada infrastructure and energy industry.

Company Subsidiaries

Evolution Power Projects

Enterprise Group’s power-focused subsidiary Evolution Power Projects leads the advancement of natural gas and electricity methods to power its clients. The company's goal is to help its clients leverage alternative energy sources to achieve significant reductions in emissions, reduce operating costs and increase safety.

Project Highlights:

• Leader in Natural Gas and Electricity Mobile Power: The subsidiary is a leader in alternative energy mobile power solutions for its clients. Its products allow companies to advance their ESG goals by significantly reducing emissions while also reducing operating costs.
• Able to Replace Diesel Generators: Evolution’s products can replace up to 15 diesel-fired generators per site. As a result, natural resource companies can eliminate fuel usage by up to 5,000 liters per day, alongside a significant reduction in on-site sound pollution.
• No Need to Handle Diesel Fuel: Depending on the client's needs, they may be able to eliminate or reduce the need to handle diesel, which poses safety risks. This fuel elimination or reduction enhances worker safety.

Westar Oilfield Rentals

Located in Fort St. John, British Columbia, Westar is a site infrastructure operation that fulfills the needs of top-tier energy producers within the region. In addition, the company provides services and equipment to support efficient energy production.

Project Highlights:

• Full-service Oilfield Infrastructure: Oil companies have strict requirements for on-site infrastructure. Westar provides equipment rental needs to satisfy the needs of these energy producers.
• Offers Both Natural Gas and Diesel Solutions: Westar has offerings that leverage natural gas and diesel-fired power generators. Clients can pick the option that best serves their needs.
• Ideally Located in Fort St. John: The subsidiary is located in a critical area in the current development of Western Canada’s LNG industry, including the Site C HydroElectric Dam project.

Artic Therm International Ltd.

Artic Therm is a pioneer in the field of thermal pipeline expansion. The subsidiary provides superior expertise in heating and provides patented flameless heaters capable of producing up to 3.3 million BTU and 15,000 CFM of airflow.

Project Highlights:

• Offering Portable and Proprietary Technology: Artic Therm offers efficient flameless heat to service the field of pipeline thermal expansion. The subsidiary’s products work well in extreme climate challenges that often accompany pipeline construction. The company offers both natural gas and diesel-fired flameless heat.
• Highly Versatile Product Line: The subsidiary’s product line offers several applications, such as dehumidifying, confined space entry, and vessel coating.
• Significant Existing Fleet: Presently, Artic Therm has a fleet of over 200 units.

Hart Oilfield Rentals

This subsidiary offers its clients a full-service oilfield site infrastructure service and related equipment. The subsidiary services top energy producers throughout Alberta. Additionally, the company offers specialized equipment and holds over 20 design patents. The company has three strategically located centers in the WCSB.

Project Highlights:

• A ‘One-stop-shop’ for Oilfield Infrastructure: Hart provides everything that oilfield companies need for a robust and reliable infrastructure. The subsidiary presently services multiple tier-one E&P clients.
• Conventional and Modular/Combo Rentals Available: The company has a fleet of approximately 2,500 pieces of equipment, including conventional equipment and next-gen natural gas products. Its offering supports horizontal drilling and completion operations.
• Patented Designs and Manufacturing: Hart designs, manufactures, and assembles its own modular combo equipment, which provides a distinct competitive advantage.

Management Team

Leonard D. Jaroszuk - President, CEO, and Chairman

Leonard Jaroszuk has over three decades of experience managing public companies, engaged in real estate, construction, natural resources, and exploration. He serves as Director of several companies in both the manufacturing and O&G industries and is a Co-Founder of Enterprise Group.

Desmond O'Kell - Senior VP & Corporate Secretary and Director

Desmond O’Kell has over 30 years of business build-out, finance and executive operations experience. He has served as an integral member of the Enterprise team since its inception in 2005 and is a Co-Founder of Enterprise Group.

Warren Cabral - Chief Financial Officer

Warren has over 25 years of financial experience. He was the former CFO for AIMCO, managing global investments for pensions, endowments, and governmental funds in Alberta.

John Pinsent - Director

John Pinsent is a founding partner with St. Arnaud Pinsent Steman Chartered Professional Accountants. In 2013, he was awarded the I.C.A.A. fellowship status joining a select group of FCAs and has also earned an ICD.D designation.

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 Tri-View Capital, a Canadian Investment firm specializing in private investments.

Neil Darling - Director

Neil Darling is the President and founder of Ramdar Resource Management, a wellsite management service company, since 1994. He is a highly skilled professional with over thirty-five years of project management, design and operations experience - both domestic and international. Experience includes design, drilling and completions of deep wells to 6000m. Neil's experience includes instruction at the Southern Alberta Institute of Technology (S.A.I.T.), as well as preparation and presentation of curriculum for domestic and international technical institutions.