HOUSTON--(BUSINESS WIRE)--Sept. 6, 2005--Hanover Compressor
Company (NYSE:HC) announced today that the Houston-based company has
been awarded a $12.5 million contract to develop a natural gas storage
facility for Underground Storage, LLC, in southeast Harris County,
Texas. Underground Storage, LLC, a subsidiary of Texas Brine Company,
LLC, is also based in Houston.
The facility will utilize an existing salt dome cavern to store
nearly 3 billion cubic feet (BCF) of natural gas to supply the Houston
area markets. Hanover will supply all surface equipment as well as the
engineering, project management and construction services for the
project. AMEC Paragon, also of Houston, will support Underground
Storage, LLC, as the owner's engineer and Hanover, by providing civil,
structural and detailed engineering.
The project is scheduled for completion during the second quarter
of 2006. This will give Underground Storage a significant
time-to-market advantage for the new facility that will serve the
energy marketplace, according to Mickey McDonald, Vice President for
U.S. Operations with Hanover Compressor.
"Time truly is money in today's energy market. Hanover's total
solution package provided Underground Storage with the time-to-market
and economic advantages that they were seeking," Mr. McDonald said.
"This is also an important win for our United States marketing
efforts, as Hanover continues to broaden its total solutions offering
with turn-key equipment and construction packages to meet our
customer's needs. We look forward to working with Underground Storage
and AMEC Paragon on this project."
About Hanover Compressor Company
Hanover Compressor Company (NYSE:HC) is a global market leader in
full service natural gas compression and a leading provider of
service, fabrication and equipment for oil and natural gas production,
processing and transportation applications. Hanover sells and rents
this equipment and provides complete operation and maintenance
services, including run-time guarantees for both customer-owned
equipment and its fleet of rental equipment. Founded in 1990,
Hanover's customers include both major and independent oil and gas
producers and distributors as well as national oil and gas companies.
Forward-looking Statements
Certain matters discussed in this presentation are
"forward-looking statements" intended to qualify for the safe harbors
established by the Private Securities Litigation Reform Act of 1995
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements can generally be identified as such
because of the context of the statement or because the statement
includes words such as "believes," "anticipates," "expects,"
"estimates," or words of similar import. Similarly, statements that
describe Hanover's future plans, objectives or goals or future
revenues or other financial measures are also forward-looking
statements. Such forward-looking statements are subject to risks and
uncertainties that could cause our actual results to differ materially
from those anticipated as of the date the statements were made. These
risks and uncertainties include, but are not limited to: our inability
to renew our short-term leases of equipment with our customers so as
to fully recoup our cost of the equipment; a prolonged substantial
reduction in oil and natural gas prices, which could cause a decline
in the demand for our compression and oil and natural gas production
and processing equipment; reduced profit margins or the loss of market
share resulting from competition or the introduction of competing
technologies by other companies; changes in economic or political
conditions in the countries in which we do business, including civil
uprisings, riots, terrorism, the taking of property without fair
compensation and legislative changes; changes in currency exchange
rates; the inherent risks associated with our operations, such as
equipment defects, malfunctions and natural disasters; governmental
safety, health, environmental and other regulations, which could
require us to make significant expenditures; our inability to
implement certain business objectives, such as international
expansion, integrating acquired businesses, generating sufficient
cash, accessing capital markets, refinancing existing or incurring
additional indebtedness to fund our business, and executing our exit
and sale strategy with respect to assets classified on our balance
sheet as assets held for sale; risks associated with any significant
failure or malfunction of our enterprise resource planning system and
our inability to comply with covenants in our debt agreements and the
decreased financial flexibility associated with our substantial debt.
A discussion of these and other factors is included in the Company's
periodic reports filed with the Securities and Exchange Commission.
CONTACT: Hanover Compressor Company, Houston
Media Relations Inquiries:
Richard Goins, 832-554-4918
rbgoins@hanover-co.com
or
Investor Relations Inquiries:
Stephen York, 832-554-4856
syork@hanover-co.com
SOURCE: Hanover Compressor Company