Exterran Partners Acquires Compression Assets from Exterran Holdings
April 20 2015 - 6:00AM
Business Wire
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.
Exterran Holdings, Inc. and Exterran Partners, L.P.MediaSusan
Moore, 281-836-7398InvestorsDavid Oatman, 281-836-7035David Miller,
281-836-7895
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