HOUSTON--(BUSINESS WIRE)--Apr. 20, 2015--
Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P. (NASDAQ:
EXLP) today announced that Exterran Partners has acquired assets from
Exterran Holdings for consideration valued at $102.3 million, including
customer contracts serving 60 customers together with 244 compressor
units used to provide compression services under those contracts. Those
compressor units represent approximately 151,000 horsepower of
compression and approximately 4 percent (by available horsepower) of the
combined U.S. contract operations business of Exterran Holdings and
Exterran Partners.
In addition, the acquisition includes 179 compressor units comprising
approximately 66,000 horsepower previously leased from Exterran Holdings
to Exterran Partners. The consideration paid to Exterran Holdings’
affiliates consisted entirely of Exterran Partners’ equity, composed of
3,963,138 common units and 80,341 general partner units.
“We are pleased with this transaction, which expands Exterran Partners’
fee-based business and increases its leading market position as a
provider of natural gas contract compression services in the United
States,” said Brad Childers, President and Chief Executive Officer of
Exterran Holdings. “We plan for Exterran Partners to continue to be the
growth vehicle for our U.S. contract services business.”
“In addition, we believe the transaction will be accretive to Exterran
Partners’ distributable cash flow per limited partner unit and enhances
Exterran Partners’ capital position,” said David Miller, Senior Vice
President and Chief Financial Officer of Exterran Partners’ managing
general partner.
The transaction was approved by the conflicts committee of the board of
directors of Exterran Partners’ managing general partner. The conflicts
committee, which is composed entirely of independent directors, retained
independent legal and financial advisors to assist it in evaluating the
transaction.
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
has approximately 10,000 employees and operates in approximately 30
countries.
Exterran Partners, L.P., a master limited partnership, is the leading
provider of natural gas contract compression services to customers
throughout the United States. Exterran Holdings owns an equity interest
in Exterran Partners, including all of the general partner interest.
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. 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’ financial and operational strategies and
ability to successfully effect those strategies; the expected benefits
of the transaction discussed in this press release; Exterran Holdings’
intention for Exterran Partners to continue to be the growth vehicle for
its U.S. contract services business; the Companies’ expectations
regarding future economic and market conditions; the Companies’
financial and operational outlook and ability to fulfill that outlook;
and demand for the Companies’ products and services and growth
opportunities for those products and services.
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 or natural
gas or a sustained decrease in the price of oil or natural gas; Exterran
Holdings’ ability to timely and cost-effectively execute larger
projects; changes in political or economic conditions in key operating
markets, including international markets; any non-performance by third
parties of their contractual obligations; changes in safety, health
environmental and other regulations; 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, 2014, Exterran Partners’ Annual Report on Form 10-K for the
year ended December 31, 2014, 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 Holdings, Inc. and Exterran Partners, L.P.
Media
Susan
Moore, 281-836-7398
Investors
David Oatman, 281-836-7035
David
Miller, 281-836-7895