Enerflex Ltd (EFXT) stock surged 5.32% in intraday trading on Friday, driven by the company's impressive third-quarter 2024 financial results and a significant increase in its quarterly dividend.

The energy services company reported strong operational performance in Q3, with solid execution across its business lines. Enerflex's adjusted earnings per share of $0.24 surpassed analyst estimates of $0.01, despite revenue of $601 million slightly missing expectations of $605 million.

Highlights from the company's Q3 performance included:

• Gross margin before depreciation and amortization of $176 million, or 29% of revenue
• Adjusted EBITDA of $120 million, up from $90 million in Q3 2023
• Free cash flow of $78 million, compared to $29 million in the prior-year quarter
• A solid backlog of approximately $1.6 billion for contracted energy infrastructure assets and $1.3 billion for engineered systems

Enerflex's strong financial discipline was reflected in its reduced leverage, now within the target range of 1.5x to 2.0x. Moreover, the company announced a 50% increase in its quarterly dividend to CAD0.0375 per share, demonstrating its commitment to enhancing shareholder returns.

The positive stock movement was further buoyed by RBC's decision to raise its price target on Enerflex to $12 from $9, while maintaining an Outperform rating on the stock.