HOUSTON--(BUSINESS WIRE)--Nov. 6, 2008--Exterran Holdings, Inc.
(NYSE:EXH) and Exterran Partners, L.P. (NASDAQ:EXLP) today reported
financial results for the third quarter 2008.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported net income for the third quarter 2008
of $37.0 million, or $0.56 per share, compared to net income for the
second quarter 2008 of $21.7 million, or $0.33 per share, and a net
loss for the third quarter 2007 of $75.4 million, or a $1.55 loss per
share.
Revenue was $796.0 million for the third quarter 2008 compared to
$812.2 million for the second quarter 2008 and $744.6 million for the
third quarter 2007. EBITDA, as adjusted (as defined below), was $192.8
million for the third quarter 2008 compared to $166.1 million for the
second quarter 2008 and $165.9 million for the third quarter 2007.
The merger of Hanover Compressor Company and Universal Compression
Holdings, Inc. was completed on August 20, 2007, and periods prior to
the merger reflect only Hanover's results. Third quarter 2008 results
included pretax charges that totaled $4.7 million, or $0.04 per share,
including $3.7 million for merger and integration related expenses and
$1.0 million for asset impairment charges related to units lost or
damaged in Hurricane Ike. Second quarter 2008 results included pretax
charges of $33.3 million, or $0.30 per share, including $31.8 million
for estimated cost overruns in the fabrication segment and $1.5
million for merger and integration expenses. Third quarter 2007
results included pretax charges related to merger, integration and
refinancing activities and asset impairment charges that totaled
$179.9 million, or $2.37 per share. All share and per share amounts
have been retroactively adjusted to reflect the merger conversion
ratio of 0.325 shares of Exterran Holdings common stock for each share
of Hanover common stock for all periods discussed or presented.
Stephen A. Snider, Exterran Holdings' Chief Executive Officer
said, "Our overall operating performance in the third quarter improved
despite challenges in our markets, as demonstrated by sequential
increases in gross margin contribution in each of our North America
contract operations, international contract operations and fabrication
segments. We continue to experience good demand for our products and
services and an ongoing backlog of new business for our contract
operations and sale activities.
"While we are optimistic about the long-term prospects for our
business, many of our North American customers have announced or are
currently considering reductions in their 2009 capital spending, which
may have a negative impact on the demand for our products and
services. Nevertheless, we continue to believe there is potential for
increased demand for outsourced compression and other services, and
our service infrastructure and fleet position us well to capture that
demand. Further, we continue to see positive developments in the
international sector and we again added new business to our contract
operations backlog in the third quarter, which now stands at more than
$135 million of annualized revenues."
J. Michael Anderson, Senior Vice President and Chief Financial
Officer, added, "With our healthy financial position, we are well
positioned to fund existing capital projects and take advantage of
growth opportunities. We expect cash generated by our operations to
sustain our maintenance and growth capital expenditures for the
foreseeable future. In addition, we have significant unused
availability under our credit facilities to fund short-term needs and
other activities."
Exterran Holdings repurchased 1,087,038 shares of its common stock
during the third quarter at an average price of $45.94 per share for a
total of approximately $50 million. Including the repurchases made in
late 2007, Exterran Holdings has now repurchased approximately $150
million of its common stock under its $200 million share repurchase
program.
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $44.4 million for the third
quarter 2008 compared to $35.0 million for the second quarter 2008 and
$34.7 million for the third quarter 2007. Net income was $9.4 million
for the third quarter 2008 compared to $6.1 million for the second
quarter 2008 and $7.5 million for the third quarter 2007. EBITDA, as
further adjusted (as defined below), totaled $22.7 million for the
third quarter 2008 compared to $20.3 million for the second quarter
2008 and $19.1 million for the third quarter 2007. Distributable cash
flow (as defined below) totaled $14.8 million for the third quarter
2008 compared to $14.0 million for the second quarter 2008 and $13.5
million for the third quarter 2007.
"Third quarter highlights for Exterran Partners included strong
cash flow generation as well as the completion of the acquisition of
an additional 254,000 horsepower from Exterran Holdings on July 30,"
commented Mr. Snider, Chairman and Chief Executive Officer of Exterran
Partners' general partner. "Exterran Partners' outlook remains
positive due to its financial position and continuing relationship
with Exterran Holdings."
On October 28, 2008, Exterran Partners announced a cash
distribution of $0.4625 per limited partner unit for the third quarter
2008, compared to $0.425 per limited partner unit for the second
quarter 2008 and $0.40 per limited partner unit for the third quarter
2007. The third quarter 2008 per unit distribution is 15.6 percent
higher than that for the third quarter of 2007 and reflects the
contribution of the additional contract operations assets Exterran
Partners purchased from Exterran Holdings.
Conference Call Details
Exterran Holdings, Inc. (NYSE: EXH) and Exterran Partners, L.P.
(NASDAQ: EXLP) announce the following schedule and teleconference
information for their third quarter 2008 earnings release:
-- Teleconference: Thursday, November 6, 2008 at 11:00 a.m.
Eastern Time (10:00 a.m. Central Time). To access the call,
United States and Canadian participants should dial
888-727-7721. International participants should dial
913-312-0381 at least 10 minutes before the scheduled start
time. Please reference Exterran conference call number
3429588.
-- Live Webcast: The webcast will be available in listen-only
mode via the Companies' website: www.exterran.com.
-- Webcast Replay: For those unable to participate, a replay will
be available from 1:30 p.m. Eastern Time on Thursday, November
6, until 1:00 p.m. Eastern Time on Thursday, November 13,
2008. To listen to the replay, please dial 888-203-1112 in the
United States and Canada, or 719-457-0820 internationally, and
enter access code 3429588.
With respect to Exterran Holdings, EBITDA, as adjusted, a non-GAAP
measure, is defined as net income plus income taxes, interest expense
(including debt extinguishment costs and gain or loss on termination
of interest rate swaps), depreciation and amortization expense,
impairment charges, merger and integration expenses, minority
interest, excluding non-recurring items, and extraordinary gains or
losses.
With respect to Exterran Partners, EBITDA, as further adjusted, a
non-GAAP measure, is defined as net income plus income taxes, interest
expense, depreciation and amortization expense, non-cash selling,
general and administrative expenses and any amounts by which cost of
sales and selling, general and administrative costs are reduced as a
result of caps on these costs contained in the Omnibus Agreement,
which amounts are treated as capital contributions from Exterran
Holdings for accounting purposes, and excluding non-recurring items.
With respect to Exterran Partners, distributable cash flow, a
non-GAAP measure, is defined as net income plus depreciation and
amortization expense, non-cash selling, general and administrative
expenses, interest expense and any amounts by which cost of sales and
selling, general and administrative costs are reduced as a result of
caps on these costs contained in the omnibus agreement to which
Exterran Holdings and Exterran Partners are parties (the "Omnibus
Agreement"), which amounts are treated as capital contributions from
Exterran Holdings for accounting purposes, less cash interest expense
and maintenance capital expenditures, and excluding gains/losses on
asset sales and non-recurring items.
With respect to Exterran Holdings, Gross Margin, a non-GAAP
measure, is defined as total revenue less cost of sales (excluding
depreciation and amortization expense).
With respect to Exterran Partners, Gross Margin, as adjusted, a
non-GAAP measure, is defined as total revenue less cost of sales
(excluding depreciation and amortization expense) plus any amounts by
which cost of sales are reduced as a result of caps on these costs
contained in the Omnibus Agreement, which amounts are treated as
capital contributions from Exterran Holdings for accounting purposes.
About Exterran Holdings and Exterran Partners
Exterran Holdings, Inc. is a global market leader in full service
natural gas compression and a premier provider of operations,
maintenance, service and equipment for oil and gas production,
processing and transportation applications. Exterran Holdings serves
customers across the energy spectrum--from producers to transporters
to processors to storage owners. Headquartered in Houston, Texas,
Exterran and its over 10,000 employees have operations in more than 30
countries.
Exterran Partners, L.P. was formed by Exterran Holdings to provide
natural gas contract operations services to customers throughout the
United States. Exterran Holdings indirectly owns a majority interest
in Exterran Partners.
For more information, visit www.exterran.com.
Forward-Looking Statements
All statements in this release (and oral statements made regarding
the subjects of this release) other than historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of uncertainties and factors, many of
which are outside the control of Exterran Holdings and Exterran
Partners (the "Companies"), which could cause actual results to differ
materially from such statements. Forward-looking information includes,
but is not limited to: Exterran Holdings' expectation of continuing
healthy market conditions for the remainder of 2008; the ability of
Exterran Holdings to experience attractive returns from its North
America and international contract operations backlog; the Companies'
operational and financial strategies, and the Companies' ability to
successfully effect those strategies; the Companies' financial and
operational outlook and ability to fulfill that outlook; demand for
the Companies' products and services and growth opportunities for
those products and services, including demand arising from an
increased interest in outsourcing services; the expected benefits to
Exterran Partners from its relationship with Exterran Holdings; and
the Companies' expected ability to fund operations, capital
expenditures and growth opportunities.
While the Companies believe that the assumptions concerning future
events are reasonable, they caution that there are inherent
difficulties in predicting certain important factors that could impact
the future performance or results of their business. Among the factors
that could cause results to differ materially from those indicated by
such forward-looking statements are: local, regional, national and
international economic conditions and the impact they may have on the
Companies and their customers; changes in master limited partnership
equity markets and overall financial markets that impact the effect of
the drop-down of additional assets to Exterran Partners; changes in
tax laws that impact master limited partnerships, including drop-downs
of additional assets to Exterran Partners; conditions in the oil and
gas industry, including a sustained decrease in the level of supply or
demand for oil and natural gas and the impact on the price of oil and
natural gas; Exterran Holdings' ability to timely and cost-effectively
obtain components necessary to conduct the Companies' business;
changes in political or economic conditions in key operating markets,
including international markets; changes in safety and environmental
regulations pertaining to the production and transportation of oil and
natural gas; and, as to each of the Companies, the performance of the
other entity.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and uncertainties
described in Exterran Holdings' Annual Report on Form 10-K for the
year ended December 31, 2007, as amended by Amendment No. 1 thereto,
Exterran Partners' Annual Report on Form 10-K for the year ended
December 31, 2007, and those set forth from time to time in the
Companies' filings with the Securities and Exchange Commission, which
are currently available at www.exterran.com. Except as required by
law, the Companies expressly disclaim any intention or obligation to
revise or update any forward-looking statements whether as a result of
new information, future events or otherwise.
(Tables Follow)
EXTERRAN HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2008 2008 2007
------------- --------- -------------
Revenues:
North America contract
operations $ 197,926 $194,607 $ 148,986
International contract
operations 135,153 125,854 88,457
Aftermarket services 98,275 97,706 75,045
Fabrication 364,608 394,044 432,114
------------- --------- -------------
795,962 812,211 744,602
------------- --------- -------------
Costs and expenses:
Cost of sales (excluding
depreciation and amortization
expense):
North America contract
operations 84,440 86,303 64,581
International contract
operations 53,884 48,128 35,439
Aftermarket services 78,306 76,681 58,049
Fabrication 292,978 355,284 364,749
Selling, general and
administrative 94,533 95,339 71,191
Merger and integration
expenses 3,728 1,543 34,008
Early extinguishment of debt - - 70,150
Depreciation and amortization 94,286 92,415 66,040
Fleet impairment 1,000 - 61,945
Interest expense 33,364 30,105 38,680
Equity in (income) loss of
non-consolidated affiliates (6,657) (6,962) 5,005
Other (income) expense, net 5,689 (8,612) (13,578)
------------- --------- -------------
735,551 770,224 856,259
------------- --------- -------------
Income (loss) before income
taxes and minority interest 60,411 41,987 (111,657)
Provision (benefit) for income
taxes 20,350 17,084 (38,692)
Minority interest, net of taxes 3,028 3,243 2,426
------------- --------- -------------
Net income (loss) $ 37,033 $ 21,660 $ (75,391)
============= ========= =============
Earnings (loss) per share - (1):
Basic $ 0.57 $ 0.33 $ (1.55)
============= ========= =============
Diluted (2) $ 0.56 $ 0.33 $ (1.55)
============= ========= =============
Weighted average common and
equivalent shares outstanding
(1):
Basic 64,940 65,217 48,771
------------- --------- -------------
Diluted 68,537 65,904 48,771
------------- --------- -------------
(1) Adjusted for the Hanover common share conversion ratio in the
merger of Hanover and Universal for the period ended September 30,
2007.
(2) Net income for the diluted earnings per share calculation for the
three-month periods ending September 30, 2008, June 30, 2008 and
September 30, 2007 is adjusted to add back interest expense and
amortization of financing costs, net of tax, relating to the
Company's convertible senior notes totaling $1.2 million, zero and
zero, respectively.
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
---------------------------------------
September 30, June 30, September 30,
2008 2008 2007
------------- ----------- -------------
Revenues:
North America contract
operations $ 197,926 $ 194,607 $ 148,986
International contract
operations 135,153 125,854 88,457
Aftermarket services 98,275 97,706 75,045
Fabrication 364,608 394,044 432,114
------------- ----------- -------------
Total $ 795,962 $ 812,211 $ 744,602
============= =========== =============
Gross Margin (1):
North America contract
operations $ 113,486 $ 108,304 $ 84,405
International contract
operations 81,269 77,726 53,018
Aftermarket services 19,969 21,025 16,996
Fabrication 71,630 38,760 67,365
------------- ----------- -------------
Total $ 286,354 $ 245,815 $ 221,784
============= =========== =============
Selling, General and
Administrative $ 94,533 $ 95,339 $ 71,191
% of Revenues 12% 12% 10%
EBITDA, as adjusted (1) $ 192,789 $ 166,050 $ 165,909
% of Revenues 24% 20% 22%
Capital Expenditures (2) $ 119,831 $ 153,664 $ 90,714
Less: Proceeds from Sale of
PP&E (18,418) (23,724) (8,591)
------------- ----------- -------------
Net Capital Expenditures $ 101,413 $ 129,940 $ 82,123
============= =========== =============
Gross Margin Percentage:
North America contract
operations 57% 56% 57%
International contract
operations 60% 62% 60%
Aftermarket services 20% 22% 23%
Fabrication 20% 10% 16%
Total 36% 30% 30%
Reconciliation of GAAP to Non-
GAAP Financial Information:
Net income (loss) $ 37,033 $ 21,660 $ (75,391)
Depreciation and
amortization 94,286 92,415 66,040
Fleet impairment 1,000 - 61,945
Impairment of investment in
non-consolidated affiliates - - 6,743
Early extinguishment of debt - - 70,150
Interest expense 33,364 30,105 38,680
Merger and integration
expenses 3,728 1,543 34,008
Minority interest 3,028 3,243 2,426
Provision (benefit) for
income taxes 20,350 17,084 (38,692)
------------- ----------- -------------
EBITDA, as adjusted (1) 192,789 166,050 165,909
Selling, general and
administrative 94,533 95,339 71,191
Equity in (income) loss of
non-consolidated affiliates (6,657) (6,962) 5,005
Impairment of investment in
non-consolidated affiliates - - (6,743)
Other (income) expense 5,689 (8,612) (13,578)
------------- ----------- -------------
Gross Margin (1) $ 286,354 $ 245,815 $ 221,784
============= =========== =============
September 30, June 30, September 30,
2008 2008 2007
------------- ----------- -------------
Debt $2,467,773 $2,273,087 $2,246,063
Stockholders' Equity 3,239,237 3,239,728 3,151,359
------------- ----------- -------------
Capitalization $5,707,010 $5,512,815 $5,397,422
Total Debt to Capitalization 43.2% 41.2% 41.6%
(1) Management believes disclosure of EBITDA, as adjusted, and Gross
Margin, both non-GAAP measures, provides useful information to
investors because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our
performance than GAAP results alone. Management uses EBITDA, as
adjusted, and Gross Margin as supplemental measures to review current
period operating performance, comparability measures and performance
measures for period to period comparisons. In addition, EBITDA, as
adjusted, is used by management as a valuation measure.
(2) Excludes $108.4 million to acquire EMIT Water Discharge
Technology, LLC during the three months ended September 30, 2008.
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands; dollars in millions)
September 30, June 30, September 30,
2008 2008 2007
------------- -------- -------------
Total Available Horsepower (at
period end):
North America contract
operations 4,540 4,504 4,475
International contract
operations 1,478 1,456 1,442
------------- -------- -------------
Total 6,018 5,960 5,917
============= ======== =============
Total Operating Horsepower (at
period end):
North America contract
operations 3,452 3,472 3,719
International contract
operations 1,359 1,367 1,290
------------- -------- -------------
Total 4,811 4,839 5,009
============= ======== =============
Horsepower Utilization (at period
end):
North America contract
operations 76% 77% 83%
International contract
operations 92% 94% 89%
Total 80% 81% 85%
September 30, June 30, September 30,
2008 2008 2007
------------- -------- -------------
Fabrication Backlog:
Compression & accessory $ 359 $ 327 $ 395
Production & processing 732 821 720
------------- -------- -------------
Total $ 1,091 $ 1,148 $ 1,115
============= ======== =============
EXTERRAN PARTNERS, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit amounts)
Three Months Ended
------------------------------------
September 30, June 30, September 30,
2008 2008 2007
------------- -------- -------------
Revenue $ 44,390 $34,999 $ 34,711
Costs and expenses:
Cost of sales (excluding
depreciation and amortization) 19,900 15,937 14,986
Depreciation and amortization 7,542 5,811 5,160
Selling, general and
administrative 2,423 4,745 3,400
Interest expense 4,967 3,445 3,560
Other (income) expense, net - (1,129) (9)
------------- -------- -------------
Total costs and expenses 34,832 28,809 27,097
------------- -------- -------------
Income before income taxes 9,558 6,190 7,614
Income tax expense 147 111 132
------------- -------- -------------
Net income $ 9,411 $ 6,079 $ 7,482
============= ======== =============
General partner interest in net
income $ 432 $ 186 $ 150
------------- -------- -------------
Limited partner interest in net
income $ 8,979 $ 5,893 $ 7,332
============= ======== =============
Weighted average limited partners
units outstanding:
Basic 18,305 16,679 16,285
------------- -------- -------------
Diluted 18,320 16,779 16,334
------------- -------- -------------
Earnings per limited partner
unit:
Basic $ 0.49 $ 0.35 $ 0.45
============= ======== =============
Diluted $ 0.49 $ 0.35 $ 0.45
============= ======== =============
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands, except per unit amounts)
Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2008 2008 2007
------------- --------- -------------
Revenue $ 44,390 $ 34,999 $ 34,711
Gross Margin, as adjusted (1) $ 28,063 $ 22,561 $ 22,572
EBITDA, as further adjusted (1) $ 22,694 $ 20,313 $ 19,116
% of Revenue 51% 58% 55%
Capital Expenditures $ 4,390 $ 7,503 $ 7,627
Less: Proceeds from Sale of
Compression Equipment - (5,275) -
------------- --------- -------------
Net Capital Expenditures $ 4,390 $ 2,228 $ 7,627
============= ========= =============
Gross Margin percentage, as
adjusted 63% 64% 65%
Distributable cash flow (2) $ 14,798 $ 14,039 $ 13,496
Distributions per Limited
Partner Unit $ 0.4625 $ 0.425 $ 0.40
Distribution to All Unitholders,
including Incentive
Distributions $ 9,264 $ 8,346 $ 6,808
Distributable Cash Flow
Coverage 1.60x 1.68x 1.98x
September June 30, September
30, 30,
2008 2008 2007
------------- --------- -------------
Debt $399,750 $217,000 $220,000
Total Partners' Capital 175,151 151,214 147,769
------------- --------- -------------
Capitalization $574,901 $368,214 $367,769
Total Debt to Capitalization 70% 59% 60%
EBITDA, as further adjusted (1)
to Interest Expense 4.6x 5.9x 5.4x
(1) Management believes disclosure of EBITDA, as further adjusted, and
Gross Margin, as adjusted, both non-GAAP measures, provides useful
information to investors because, when viewed with our GAAP results
and accompanying reconciliations, they provide a more complete
understanding of our performance than GAAP results alone. Management
uses EBITDA, as further adjusted, and Gross Margin, as adjusted, as
supplemental measures to review current period operating performance,
comparability measures and performance measures for period to period
comparisons. In addition, EBITDA, as further adjusted, is used by
management as a valuation measure.
(2) Distributable cash flow, a non-GAAP measure, is a significant
liquidity metric used by management to compare basic cash flows
generated by us to the cash distributions we expect to pay our
partners. Using this metric, management can quickly compute the
coverage ratio of estimated cash flows to planned cash distributions.
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
------------------------------------
September 30, June 30, September 30,
2008 2008 2007
------------- -------- -------------
Reconciliation of GAAP to Non-
GAAP Financial Information:
Net income $ 9,411 $ 6,079 $ 7,482
Income tax expense 147 111 132
Depreciation and amortization 7,542 5,811 5,160
Cap on operating and selling,
general and administrative costs
provided by Exterran Holdings
("EXH") 3,589 3,499 2,847
Non-cash selling, general and
administrative costs (2,962) 1,368 792
Non-recurring cash selling,
general and administrative
reimbursement (1) - - (848)
Interest expense, net of interest
income 4,967 3,445 3,551
------------- -------- -------------
EBITDA, as further adjusted (2) 22,694 20,313 19,116
Cash selling, general and
administrative costs 5,385 3,377 2,608
Plus: Non-recurring cash selling,
general and administrative
reimbursement (1) - - 848
Less: cap on selling, general and
administrative costs provided by
EXH (16) - -
Less: other income, expense, net - (1,129) -
------------- -------- -------------
Gross Margin, as adjusted for
operating cost caps provided by
EXH (2) $ 28,063 $22,561 $ 22,572
Other income, expense, net - 1,129 -
Less: Gain on sale of compression
equipment - (1,119) -
Less: Cash interest expense (4,835) (3,286) (3,501)
Less: Cash selling, general and
administrative, as adjusted for
cost caps provided by EXH (5,369) (3,377) (2,608)
Less: Income tax expense (147) (111) (132)
Less: Maintenance capital
expenditures (2,914) (1,758) (1,987)
Less: Non-recurring cash selling,
general and administrative
reimbursement (1) - - (848)
------------- -------- -------------
Distributable cash flow (3) $ 14,798 $14,039 $ 13,496
============= ======== =============
Cash flows from operating
activities $ 10,311 $11,824 $ 11,305
Amortization of debt issuance
cost (94) (88) (59)
Amortization of fair value of
acquired interest rate swaps (38) (71) -
Cap on operating and selling,
general and administrative costs
provided by EXH 3,589 3,499 2,847
Interest expense, net of interest
income 4,967 3,445 3,551
Cash interest expense (4,835) (3,286) (3,501)
Maintenance capital expenditures (2,914) (1,758) (1,987)
Change in assets and liabilities 3,812 474 2,188
Less: Non-recurring cash selling,
general and administrative
reimbursement (1) - - (848)
------------- -------- -------------
Distributable cash flow (3) $ 14,798 $14,039 $ 13,496
============= ======== =============
(1) Consists of a cash reimbursement from Exterran Holdings of non-
cash merger-related expenses incurred by Exterran Partners.
(2) Management believes disclosure of EBITDA, as further adjusted, and
Gross Margin, as adjusted, both non-GAAP measures, provides useful
information to investors because, when viewed with our GAAP results
and accompanying reconciliations, they provide a more complete
understanding of our performance than GAAP results alone. Management
uses EBITDA, as further adjusted, and Gross Margin, as adjusted, as
supplemental measures to review current period operating performance,
comparability measures and performance measures for period to period
comparisons. In addition, EBITDA, as further adjusted, is used by
management as a valuation measure.
(3) Distributable cash flow, a non-GAAP measure, is a significant
liquidity metric used by management to compare basic cash flows
generated by us to the cash distributions we expect to pay our
partners. Using this metric, management can quickly compute the
coverage ratio of estimated cash flows to planned cash distributions.
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
Three Months Ended
------------------------------------
September 30, June 30, September 30,
2008 2008 2007
------------- -------- -------------
Total Available Horsepower (at
period end) 1,017 742 703
============= ======== =============
Total Operating Horsepower (at
period end) 909 651 664
============= ======== =============
Average Operating Horsepower 816 652 632
============= ======== =============
Horsepower Utilization:
Spot (at period end) 89% 88% 95%
Average 89% 89% 95%
Combined U.S. Contract Operations
Horsepower of Exterran Holdings
and Exterran Partners covered by
contracts converted to service
agreements (at period end) 1,716 1,624 1,201
Total Available U.S. Contract
Operations Horsepower of
Exterran Holdings and Exterran
Partners (at period end) 4,428 4,393 4,365
% of U.S. Contract Operations
Horsepower of Exterran Holdings
and Exterran Partners covered by
contracts converted to service
agreements (at period end) 38.8% 37.0% 27.5%
CONTACT:
Exterran, Houston
Investors: David Oatman, 281-836-7035
or
Media: Pat (Patricia) Wente, 281-836-7308
SOURCE:
Exterran