03 Apr 2019

Enterprise’s Artic Therm Heats Up Shareholders

How Artic Therm is warming up the oil and gas sector
by Michael Kryton, EQUITY IR contributing writer

Heat and breathable clean air; two simple things — you would think. For Arctic Therm, a division of Enterprise Group Inc (TSX: E), these two simple necessities make it a company that shareholders find very appealing.

Artic Therm pioneered flameless heat technology, which is attracting growing demand in the oil and gas sector. Their portable, flameless, heating systems are becoming the definitive alternative to roughneck heating technology.The air being heated does not have emission contaminants coming into contact with workers and creating a hazardous environment in a building or a vessel like a roughneck heater would. It extracts as much of the potential energy from the diesel fuel burnt as possible, with an average thermal efficiency for all units being  92%  ±  4%.

[The air being heated does not have emission contaminants coming into contact with workers and creating a hazardous environment.]

Bryce Jouan, who oversees Engineering Solutions for the company, summarizes the impact Artic Therm’s technology has on cold weather field operations. “Our proprietary flameless heating systems are the only kind in the country. By adding more static pressure to push heat further distances, we create more airflow and eliminate pipeline expansion loops and even right of way issues. Not only do we provide heat, we can provide clean airflow in refinery tanks and grain silos.”

Demand for Artic Therm’s flameless heating systems continues to increase. Currently, the company serves Western Canada customers, providing them with a solution that helps them manage extreme cold weather challenges and, with the long cold snaps the West has been seeing, Artic Therm has added more trucks and heating units to its inventory.

The units are portable. Artic Therm’s growing truck fleets delivers them directly to the most remote locations in Western Canada, where their highly experienced techs set them up and service them on site.

When an Encana separator building froze up in -41 degree weather, they called Artic Therm to the rescue. An Encana supervisor was impressed with the turnaround time to get the facility up and running again. “The internal ambient temperature of our building was -29 degrees and within 2 hours it was above zero and ice was melting, water was running. At 4 hours the separator vessel was at 23 degrees and the water was evaporated. All the while our crews worked without the hazard or kerosene fumes which are one of our major safety concerns when heating buildings with manpower. The [Artic Therm] heater’s efficiency was impressive and it seriously improved working conditions over the week long course of our cold snap.”

It is no surprise that, as a result of the Artic Therm’s engineering innovations, Enterprise, the parent company, was named one of Alberta’s Fastest 50 Growth Companies (Alberta Venture Magazine 2014).

Artic Therm’s capacity to clean air and provide heat is so impressive, it has become Alberta’s top choice for grain dryers, a service introduced in 2017.

“When a company needs a steady, workable temperature and airflow in a facility,“Says Bryce Jouan, “we have that solution. When a grain silo needs to be dried, or workers are conducting maintenance in refinery tanks or any enclosed space, they need clean breathable air and reliable working temperatures. We’re very green in our thinking. Our solutions are innovative, safe and reliable. We’re very proud of that as well as the quality of our customer service.”

[Artic Therm has become Alberta’s top choice for grain dryers.]

Artic Therm International is one of three innovative companies in the Enterprise family. Hart Oilfield Rentals and Westar Oilfield Rentals, the other two, also reflect Enterprise’s strategy to push innovation. In addition to reporting successful growth thanks to a robust acquisition business model, a diversified cash flow, multiple avenues of growth, and exposure across Western Canada, Enterprise continues to differentiate itself through innovation, boasting28industrial design patents (Cdn and U.S.) for products they have invented, all of which are currently deployed in the field across the western region.

“The cold weather is our friend,” says Bryce Jouan. “We’ve continued to add trucks and heating systems to our fleet as a result of sustained cold snaps and increased demand for our services. With more units operating in the field, we are starting to get more inquiries across the country as people become more aware of what we do. The fact is, other companies have tried to replicate what we do, but they haven’t achieved the clean breathable air standard at the high heat and airflow that we have in our portable trucks.

One might say that the Artic Therm success story is both hot and cold — in a very good way as far as shareholders see it. To get the complete picture, check out the Enterprise Investor Presentation on their website. Continue watching this space for more news about this innovative company. TSX: E

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