Exterran Partners Buys Compression Assets from Parent
Friday, February 24, 2012
Exterran Partners LP is buying more compression and processing assets from parent firm Exterran Holdings Inc. for US$184 million.
The deal includes compression contracts with 40 customers and 400 compressor units totaling 188,000 hp (140 MW); 140 compressors totaling 75,000 hp (56 MW) that Exterran Partners has been leasing from Exterran Holdings; and an undisclosed 10 MMcfd (283 x 103 m3/d) gas processing plant in the northeastern United States.
The transaction will expand Exterran Partners’ contract operations fleet to 2.1 million hp (1565 MW), which will be 58% (by horsepower) of the combined U.S. contract business of the two firms.
Brad Childers, Exterran Holdings president and CEO, said his firm plans to continue selling U.S. contract operations to Exterran Partners over time.
Separately, Exterran Holdings posted a US $66 million loss for the fourth quarter of 2011, less than the US $216 million loss in the same period of 2010. Exterran Partners reported a profit of US $3.6 million, compared with a loss of US $23.5 million a year earlier.
“Exterran Holdings recorded improved operating performance and increased fabrication backlog levels in the fourth quarter,” Childers said. “We continue to see solid demand in North America, particularly in liquids rich and shale gas areas, although uncertainties remain due to relatively low natural gas prices.
“As was the case last year, the first quarter of 2012 is expected to be the low point of the year with revenues expected to be somewhat lower than first-quarter 2011 levels. We are implementing several initiatives to improve our profitability and cash flow and to reduce Exterran parent debt levels over the remainder of 2012 and beyond.”
For more information: www.exterran.com