HOUSTON--(BUSINESS WIRE)--Apr. 30, 2009--
Exterran Holdings, Inc. (NYSE:EXH) today announced that we expect to
record a first quarter 2009 non-cash charge of approximately $97 million
($88 million after tax) related to our investments in non-consolidated
affiliates in Venezuela.
We have a 30.0% ownership interest in PIGAP II and a 33.3% ownership
interest in EL Furrial, both of which own and operate natural gas
compression plants, and a 35.5% ownership interest in the SIMCO/Harwat
Consortium, which owns and operates water injection plants. We are not
the managing partner in, and do not operate, these joint ventures.
In late February 2009, as previously disclosed, the Venezuelan national
guard occupied SIMCO’s facilities and has since transitioned its
operation to the Venezuelan state-owned oil company. PIGAP II and El
Furrial each sent a notice of default to their sole customer, the
Venezuelan state-owned oil company, in April 2009 due to its lack of
payments for services rendered.
The charge related to the impairment of our investments in
non-consolidated affiliates is not expected to impact our liquidity
position or compliance with debt covenants. Based upon our current
expectations, we do not expect to record future earnings from these
investments in non-consolidated affiliates.
Aside from these investments, we also have significant wholly-owned
operations in Venezuela that accounted for approximately 5% of our
revenues in 2008. As previously disclosed, we are experiencing longer
cycles of outstanding receivables in Venezuela, as are many other
service providers. We have not issued a notice of default regarding
these operations. We continue to operate under our contract operations
arrangements in Venezuela, but do not plan to pursue any new projects
there until the situation improves.
We will provide more detail on our operations in Venezuela and our
investment in non-consolidated affiliates in Venezuela, including the
impairment charges detailed above, in our quarterly earnings conference
call scheduled for May 7, 2009 and in our quarterly report on Form 10-Q
for the first quarter of 2009.
About Exterran Holdings
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. Exterran is headquartered in Houston,
Texas, and has over 10,000 employees and operations in over 30 countries.
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. You can identify many of these statements
by looking for words such as “believes,” “expects,” “intends,”
“projects,” “anticipates,” “estimates” or similar words or the negative
thereof. 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 (the “Company”), which could cause actual results to
differ materially from such statements. Forward-looking information
includes, but is not limited to: the Company’s expectations with respect
to the impact of the situations with its Venezuelan joint ventures and
operations, described above; the Company’s operational and financial
strategies and ability to successfully effect those strategies,
including its plans with respect to operations in Venezuela; and the
Company’s financial and operational outlook and ability to fulfill that
outlook.
While the Company believes that the assumptions concerning future events
are reasonable, we caution that there are inherent difficulties in
predicting certain important factors that could impact the future
performance or results of our 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
Company and its customers; changes in tax laws that impact master
limited partnerships; 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; the
Company’s ability to timely and cost-effectively obtain components
necessary to conduct its business; changes in political or economic
conditions in key operating markets, including international markets;
and changes in safety and environmental regulations pertaining to the
production and transportation of oil and natural gas.
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, 2008, and those set forth from time to time in the
Company’s filings with the Securities and Exchange Commission, which are
currently available at www.exterran.com.
Except as required by law, the Company expressly disclaims any intention
or obligation to revise or update any forward-looking statements whether
as a result of new information, future events or otherwise.
Source: Exterran Holdings, Inc.
For Exterran
Investors:
David Oatman,
281-836-7035
Media:
Susan Nelson, 281-836-7297