News Release

Exterran Holdings, Inc. Financial Results

Exterran Holdings reported net income attributable to Exterran stockholders for the fourth quarter 2009 of $22.6 million, or $0.37 per diluted share, compared to net income attributable to Exterran stockholders for the third quarter 2009 of $18.2 million, or $0.30 per diluted share, and a net loss attributable to Exterran stockholders for the fourth quarter 2008 of $1,055.4 million, or $16.70 per diluted share.

Net loss from continuing operations attributable to Exterran stockholders for the fourth quarter 2009 was $16.9 million, or $0.27 per diluted share. These results include a significantly higher than expected effective tax rate and exclude the following items:

• $50.0 million benefit related to an insurance recovery on a portion of the loss attributable to the expropriation of our assets and operations in Venezuela, which is recorded in income from discontinued operations, net of tax in our consolidated statements of operations;
• $22.3 million of gains, primarily on the sale of our Cawthorne Channel investment in Nigeria;
• $19.0 million of income tax charges related to a legal entity restructuring and a foreign tax assessment for a prior period;
• $4.3 million non-cash impairment charge related to our North America fleet; and
• a $2.3 million restructuring charge primarily related to severance and the consolidation of our fabrication facilities in North America.

Revenue was $654.7 million for the fourth quarter 2009, compared to $679.7 million for the third quarter 2009 and $791.9 million for the fourth quarter 2008. EBITDA, as adjusted (as defined below), was $139.6 million for the fourth quarter 2009, and excludes the benefit related to the Venezuela insurance recovery and the gain on the sale of the Cawthorne Channel investment. EBITDA, as adjusted, was $161.1 million for the third quarter 2009 and $193.1 million for the fourth quarter 2008.

Net income from continuing operations for the third quarter 2009 attributable to Exterran stockholders, excluding charges, was $24.8 million, or $0.38 per diluted share, and net income from continuing operations for the fourth quarter 2008 attributable to Exterran stockholders, excluding charges, was $43.7 million, or $0.67 per diluted share.

Ernie L. Danner, Exterran Holdings' President and Chief Executive Officer, said, "In the fourth quarter we experienced a continued reduction in our North America contract operations activity levels, although at a moderating rate. However, we achieved increased revenues and gross margin dollar contribution in our international contract operations business over third quarter results and an improved level of bookings for our product offerings that led to a stabilization of our fabrication backlog. With a continued focus on operating and capital costs, we generated significant cash flow and reduced our outstanding debt balance by $125 million in the fourth quarter.

"Looking ahead to 2010, we are encouraged by some positive indicators in the North American natural gas market including reduced storage levels, increased drilling activity and a moderate increase in customer inquiry levels across our product lines. However, overall market conditions remain challenging in this key market, where we will continue to focus on managing our total costs and redeploying our idle units. In our Latin America and Eastern Hemisphere operations, we will focus on the successful startup of new international contract operations projects throughout 2010. We expect net capital expenditures of $250 million to $300 million in 2010. With expected continuing positive cash flow, we plan to continue reducing our debt balances during 2010."

Exterran Partners, L.P. Financial Results

Exterran Partners reported revenue of $47.1 million for the fourth quarter 2009, compared to $41.3 million for the third quarter 2009 and $49.1 million for the fourth quarter 2008. Net income was $3.3 million, or $0.13 per diluted limited partner unit, for the fourth quarter 2009, compared to $2.0 million, or $0.09 per diluted limited partner unit, for the third quarter 2009 and $7.8 million, or $0.39 per diluted limited partner unit, for the fourth quarter 2008. Excluding a $0.2 million non-cash fleet impairment charge, net income for the fourth quarter 2009 was $3.5 million, or $0.14 per diluted limited partner unit.

Exterran Partners' EBITDA, as further adjusted (as defined below), totaled $21.6 million for the fourth quarter 2009, compared to $18.4 million for the third quarter 2009 and $23.8 million for the fourth quarter 2008. Distributable cash flow (as defined below) totaled $13.2 million for the fourth quarter 2009, compared to $10.6 million for the third quarter 2009 and $14.1 million for the fourth quarter 2008.

"Fourth quarter highlights included the completion of the acquisition of an additional 270,000 horsepower from Exterran Holdings on November 10, 2009, which enhanced the distributable cash flow and financial position of Exterran Partners," commented Mr. Danner, President and Chief Executive Officer of Exterran Partners' managing general partner. "In connection with this acquisition, Exterran Partners entered into a new $150 million asset-backed securitization facility, $30 million of which was used to partially fund the transaction and the remainder of which is available to fund additional transactions."

On January 29, 2010, Exterran Partners announced a cash distribution of $0.4625 per limited partner unit for the fourth quarter 2009, the same level as in the third quarter 2009 and the fourth quarter 2008. This distribution was paid on February 12, 2010 to unitholders of record as of the close of business on February 9, 2010.

Conference Call Details

Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P. (NASDAQ:EXLP) announce the following schedule and teleconference information for their fourth quarter 2009 earnings release:

• Teleconference: Thursday, February 25, 2010 at 11:00 a.m. Eastern Time, 10:00 a.m. Central Time. To access the call, United States and Canadian participants should dial 800-446-1671. International participants should dial 847-413-3362 at least 10 minutes before the scheduled start time. Please reference Exterran conference call number 26412721.
• 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 2:00 p.m. Eastern Time on Thursday, February 25, 2010, until 2:00 p.m. Eastern Time on Thursday, March 4, 2010. To listen to the replay, please dial 888-843-8996 in the United States and Canada, or 630-652-3044 internationally, and enter access code 26412721.

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With respect to Exterran Holdings, EBITDA, as adjusted, a non-GAAP measure, is defined as income (loss) from continuing operations 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, restructuring charges, 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 (loss) 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, non-cash selling, general and administrative ("SG&A") expenses and any amounts by which cost of sales and SG&A 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, 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, impairment charges, non-cash SG&A expenses, interest expense and any amounts by which cost of sales and SG&A 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, 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 over 30 countries.

Exterran Partners, L.P. provides 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: the Companies' operational and financial strategies and ability to successfully effect those strategies; the Companies' expected future capital expenditures; the Companies' expectations regarding future economic and market conditions; and the Companies' financial and operational outlook, including expected levels of cash flows, and ability to fulfill that outlook.

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 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; 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, 2008, Exterran Partners' Annual Report on Form 10-K for the year ended December 31, 2008, 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.

SOURCE: Exterran Holdings, Inc. and Exterran Partners, L.P.

Exterran
Investors:
David Oatman, 281-836-7035
Media:
Susan Nelson, 281-836-7297