Exterran Corporation Announces Impact from Hurricane Harvey
September 12 2017 - 4:52PM
Business Wire
Third Quarter 2017 Oil and Gas Product Sales
Revenue and Gross Margin Lowered Due to Factory Downtime
Exterran Corporation (NYSE: EXTN) (“Exterran” or the “Company”)
today announced the impact of Hurricane Harvey on the Company’s
operations.
No material damage was reported to the Company’s two
Houston-area manufacturing facilities. Both facilities have
returned to full operations. However, both locations were closed
for more than a week due to the catastrophic flooding in and around
the Houston area. As a result, it is estimated that production
downtime will result in up to $20 million of revenue and up to $3
million in gross margin shifting from the third quarter of 2017 to
future periods. The delayed revenue and gross margin will impact
the Company’s oil and gas product sales segment. No material
changes to other line items are anticipated.
Andrew Way, Exterran’s President and CEO, said, “Hurricane
Harvey was an unprecedented disaster for Houston and Southeast
Texas, impacting all of our stakeholders. Our thoughts are with our
employees and members of the community who have suffered a loss as
a result of the storm. At the same time, we would like to thank our
employees who have rallied to support other employees and the
community in general. We had many employees who joined in
life-saving activities during the storm and many more involved in
post-storm recovery and humanitarian efforts. Our Houston
facilities are back to full production and we are working hard to
make up the lost production to meet our customers’ needs.”
About Exterran Corporation
Exterran Corporation (NYSE: EXTN) is a global market leader in
natural gas processing and treating, compression and production
products and services, providing critical midstream infrastructure
solutions to customers throughout the world. Outside the United
States, Exterran Corporation is a leading provider of full-service
natural gas contract compression and water treatment solutions, and
a supplier of new, used, OEM and aftermarket parts and services.
Exterran Corporation is headquartered in Houston, Texas and
operates in approximately 30 countries.
For more information, visit www.exterran.com.
Non-GAAP Financial Information
Gross Margin is defined as revenue less cost of sales (excluding
depreciation and amortization expense). Gross margin percentage is
defined as gross margin divided by revenue. The Company evaluates
the performance of its segments based on gross margin for each
segment.
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 statements
may include words such as “guidance,” “anticipate,” “estimate,”
“expect,” “forecast,” “project,” “plan,” “intend,” “believe,”
“confident,” “may,” “should,” “can have,” “likely,” “future” and
other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events. Examples of forward-looking
information in this release include, but are not limited to:
Exterran’s financial and operational strategies and ability to
successfully effect those strategies; Exterran’s expectations
regarding future economic and market conditions; Exterran’s
financial and operational outlook and ability to fulfill that
outlook; demand for Exterran’s products and services and growth
opportunities for those products and services; and statements
regarding industry activity levels and infrastructure build-out
opportunities.
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 Exterran’s
control, which could cause actual results to differ materially from
such statements. As a result, any such forward-looking statements
are not guarantees of future performance or results. While Exterran
believes that the assumptions concerning future events are
reasonable, it cautions that there are inherent difficulties in
predicting certain important factors that could impact the future
performance or results of its 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
Exterran and its customers; Exterran’s reduced profit margins or
loss of market share resulting from competition or the introduction
of competing technologies by other companies; Exterran’s ability to
secure new oil and gas product sales customers; 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’s ability to timely
and cost-effectively execute larger projects; changes in political
or economic conditions in key operating markets, including
international markets; changes in current exchange rates, including
the risk of currency devaluations by foreign governments, and
restrictions on currency repatriation; the inherent risks
associated with Exterran’s operations, such as equipment defects,
malfunctions and natural disasters; any non-performance by third
parties of their contractual obligations; changes in safety,
health, environmental and other regulations; Exterran’s ability to
implement appropriate changes to its internal controls and
procedures in a timely and cost efficient manner; the effectiveness
of Exterran's internal controls going forward, including the
existence of any control deficiencies identified in the future; the
resolution of Exterran’s pending Securities and Exchange Commission
investigation; the results of governmental actions relating to
pending investigations; and the results of any shareholder actions
relating to the recent restatement of Exterran’s financial
statements.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and
uncertainties described in Exterran’s Annual Report on Form 10-K
for the year ended December 31, 2016, and other filings with the
Securities and Exchange Commission available on the Securities and
Exchange Commission’s website www.sec.gov. A discussion of these risks is
expressly incorporated by reference into this release. 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.
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Exterran CorporationInvestorsGreg Rosenstein,
281-854-3199orMediaGeorge Smalley, 281-854-3163
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