HOUSTON--(BUSINESS WIRE)--Mar. 25, 2012--
Exterran Holdings, Inc. (NYSE:EXH) today announced that WilPro Energy
Services (El Furrial) Limited and WilPro Energy Services (PIGAP II)
Limited, the joint ventures owned by subsidiaries of Exterran and
Williams (NYSE:WMB), have completed the sale of the El Furrial and PIGAP
II assets to PDVSA Gas, S.A. in connection with the 2009 nationalization
of those assets. After satisfying amounts owed to the WilPro joint
ventures’ lenders and taking into account other closing adjustments,
Exterran received an initial payment of approximately $37.6 million in
cash at closing. The remaining amount of approximately $74.8 million due
to Exterran is payable in periodic cash payments through the first
quarter of 2016.
“We are pleased that the WilPro joint ventures have sold the El Furrial
and PIGAP II assets to PDVSA Gas,” said Exterran President and Chief
Executive Officer Brad Childers. “We intend to use the initial payment
of $37.6 million and the remaining amounts we receive for the repayment
of Exterran Holdings’ indebtedness and for general corporate purposes.
Also, we expect to recognize as income the initial payment of $37.6
million in the first quarter of 2012, and we expect to recognize as
income the remaining $74.8 million as we receive periodic cash payments.”
Prior to the nationalization of the El Furrial and PIGAP II assets in
2009, the WilPro joint ventures provided natural gas compression and
injection services to an affiliate of Petroleos de Venezuela, S.A.
(PDVSA). Exterran has a 33.3 percent ownership interest in WilPro El
Furrial and a 30 percent ownership interest in WilPro PIGAP II. During
the first quarter of 2009, Exterran recognized an impairment of
approximately $90 million to write off its investment in the WilPro
joint ventures.
In connection with the sale of the El Furrial and PIGAP II assets, the
WilPro joint ventures and an affiliate of Williams have agreed to
suspend their previously filed arbitration proceeding against Venezuela
pending payment in full by PDVSA Gas of the purchase price for the
nationalized assets.
Exterran’s subsidiary, Universal Compression International Holdings,
S.L.U. (UCIH), has previously filed a separate arbitration proceeding
against Venezuela related to its assets and investments which were
nationalized in 2009. The sale of the WilPro joint ventures’ assets has
no effect on the separate UCIH claim.
About Exterran
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 natural gas production,
processing and transportation applications. Exterran serves customers
across the energy spectrum—from producers to transporters to processors
to storage owners. Headquartered in Houston, Texas, Exterran has
approximately 10,000 employees and operates in approximately 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 Section 21E of the
Securities Exchange Act of 1934, as amended, including, but not limited
to: statements regarding the transaction, including the proceeds
expected to be received; Exterran’s expected use of proceeds from the
transaction; and statements related to Exterran’s ongoing UCIH
arbitration proceeding. These statements are based upon current
expectations and are subject to a number of risks, uncertainties and
assumptions, which are more fully described in Exterran's Annual Report
on Form 10-K for the year ended December 31, 2011, and those set forth
from time to time in Exterran Holdings’ filings with the Securities and
Exchange Commission, which are currently available at www.exterran.com.
These risks, uncertainties and assumptions could cause actual results to
differ materially from those described in the forward-looking
statements. Except as required by law, Exterran 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.
Exterran Holdings, Inc.
David Oatman, 281-836-7035 (Investors)
Susan
Moore, 281-836-7398 (Media)