Capstone Secures Multi-Megawatt 16 Unit Order for Repeat Oil and Gas Customer
November 29 2016 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that it received a
sixteen unit follow-on order for a C800, two C600s, and multiple
C65 and C30 microturbines totaling in excess of 2.6 megawatts for a
repeat oil and gas customer in the Mancos and Gallup shale plays,
situated in the San Juan Basin.
Horizon Power Systems, Capstone’s distributor for the Eagle
Ford, Permian, Barnett, Mancos, San Juan and Wattenberg shale
plays, placed the order, which is expected to be commissioned in
three phases beginning in December 2016. Capstone microturbines
were selected based on the end users long experience with Capstone
products and Horizon’s excellent local support.
“Despite the prolonged slump in the energy industry, oil and gas
producers continue to look for ways to reduce their operational
costs and meet the increasingly stringent flaring requirements,
which is a long term catalyst for our business,” said Darren
Jamison, President and Chief Executive Officer at Capstone. “This
order is a positive sign as this is the largest oil and gas order
we have received in nearly a year and is further significant in
light of the drop in our oil and gas business to 8% of product
revenue in this year’s second quarter compared to 26% of product
revenue for the second quarter a year ago,” added Mr. Jamison.
The dual mode microturbines will be installed at various
locations within the San Juan basin to help boost production using
a growing microgrid system. Clean power generated by the
microturbines will drive artificial lifts and assist with the
transfer of oil and water to various points of the production
field.
The long term repeat oil and gas customer installed its first
Capstone microturbine back in 2000 to establish a central power
system for shale gas production in the San Juan Basin. After years
of expanding its operations with additional microturbines, the
customer decided to introduce Capstone’s larger microturbine
systems to the field. The customer’s production operation continues
to be powered entirely by Capstone microturbines.
"With some microturbines in the microgrid system
having over 100,000 operating hours, the producer is confident
in building upon that proven reliability,” said Bryan Hensley,
Horizon Power's Executive Vice President of North American
Sales. “That reliability and more than 15 years of teaming
with this customer shows how committed they are to using cutting
edge, highly reliable Capstone microturbines,” added Mr.
Hensley. “We are beginning to see some positive movement in our oil
and gas business as customers continue to see the value in the
scalability of Capstone microturbine technology and production
field operations are able to expand incrementally and seamlessly as
the volume of production increases over time,” said Jim Crouse,
Capstone’s Executive Vice President of Sales and Marketing.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST) is the world's leading producer of low-emission
microturbine systems and was the first to market commercially
viable microturbine energy products. Capstone has shipped
approximately 9,000 Capstone Microturbine systems to customers
worldwide. These award-winning systems have logged millions of
documented runtime operating hours. Capstone is a member of
the U.S. Environmental Protection Agency's Combined Heat
and Power Partnership, which is committed to improving the
efficiency of the nation's energy infrastructure and reducing
emissions of pollutants and greenhouse gases. A UL-Certified ISO
9001:2015 and ISO 14001:2015 certified company, Capstone is
headquartered in the Los Angeles area with sales and/or
service centers in the United States, Latin America, Europe,
Middle East and China.
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about the rebound
of the oil and gas market and the advantages of Capstone’s
products, including their ability to reduce operations costs and
meet flaring requirements, as well as their reliability and
scalability. Forward-looking statements may be identified by words
such as "expects," "objective," "intend," "targeted," "plan" and
similar phrases. These forward-looking statements are subject to
numerous assumptions, risks and uncertainties described in
Capstone's filings with the Securities and Exchange Commission that
may cause Capstone's actual results to be materially different from
any future results expressed or implied in such statements.
Capstone cautions readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Capstone undertakes no obligation, and specifically
disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of
unanticipated events.
"Capstone" and "Capstone Microturbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks
mentioned are the property of their respective owners.
CONTACT:
Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
Capstone Turbine (NASDAQ:CPST)
Historical Stock Chart
From Aug 2024 to Sep 2024
Capstone Turbine (NASDAQ:CPST)
Historical Stock Chart
From Sep 2023 to Sep 2024