Capstone Signature Series Product to Power Onshore Oil and Gas Operation in California
December 14 2017 - 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 an
order for a C600 Signature Series microturbine to power an oil and
gas facility in California. Cal Microturbine, one of Capstone’s
distributors for California, secured the order.
The C600 Signature Series microturbine will utilize the
associated gas that occurs as a natural byproduct of the oil
extraction process. Typically, this gas is sold off as a separate
byproduct or flared into the atmosphere. However, the Signature
Series microturbine converts this wasted gas into clean and green
electricity. The facility has recognized that the value of the
electricity produced with the microturbine is greater than what it
would make selling the gas on its own.
“Because Brent crude oil prices have remained above fifty
dollars a barrel since August we are starting to see an increase in
our oil and gas business,” said Darren Jamison, President and Chief
Executive Officer of Capstone. “Many of the headwinds we have faced
over the last three years are now easing and potentially becoming
tailwinds. Oil being above fifty dollars a barrel, our continued
efforts to restructure our key Russian distribution channel and the
growth of our aftermarket service business are three critical
factors that are contributing to our focused effort to get to
Adjusted EBITDA breakeven for the very first time in company
history. These top-line revenue growth drivers, when combined with
our extraordinary reduction in operating expenses, will drive
future profitability,” added Mr. Jamison.
The Signature Series unit will be deployed in a grid-connect
mode. The microturbine will help reduce the facility’s dependence
on the local utility by reducing the company’s operating costs
while improving on-site reliability should the grid ever fail.
Additionally, California has some of the strictest emissions in the
world, but Capstone microturbines easily meet these restrictions
and reduce the impact on the environment compared to other
technologies.
“Capstone has a long history of successful operation in all
phases of oil and gas industry around the world,” said Jim Crouse,
Executive Vice President of Sales and Marketing for Capstone. “As
the oil and gas market continues to recover, we expect to see more
companies adopt our technology to reduce their operational expenses
while simultaneously reaching their environmental goals,” added Mr.
Crouse.
Adjusted EBITDA is defined as net income before interest,
provision for income taxes, depreciation and amortization expense,
stock-based compensation expense, the change in warrant valuation
and restructuring charges. Adjusted EBITDA is not a measure of our
liquidity or financial performance under GAAP and should not be
considered as an alternative to net income or any other performance
measure derived in accordance with GAAP, or as an alternative to
cash flows from operating activities as a measure of our
liquidity.
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 over
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
Asia.
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about the
advantages of our CHP applications and sales into the oil and gas
industry. 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 CorporationInvestor and investment
media inquiries:818-407-3628ir@capstoneturbine.com
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