Capstone Secures 6.9 Megawatt Multimillion-Dollar FPP Contract with Key Oil & Gas Producer
January 10 2018 - 8:00AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that it has secured a
6.9 megawatt (MW) multimillion-dollar long-term Factory Protection
Plan (FPP) aftermarket service contract.
E-Finity Distributed Generation, Capstone’s exclusive
distributor for the Mid-Atlantic and Southeastern United States and
a leading power solutions provider in the Marcellus and Utica shale
regions, secured the FPP aftermarket service agreement to cover a
major gas producer’s microturbine fleet at multiple locations in
the Appalachian Basin. E-Finity maintains a fleet of over 600
microturbines in continuous duty operation. This new FPP contract
covers a total of 36 Capstone units, ranging from 65 kilowatts (kW)
to 800kW, deployed at various remote oil and gas locations.
Capstone’s FPP is an industry leading aftermarket service plan,
delivering peace of mind, predictable maintenance costs and remote
monitoring capabilities at an economical price. The all-inclusive
long-term FPP contract helps ensure business continuity while
normalizing maintenance costs with a simple fixed maintenance fee
per year regardless of the annual scheduled or unscheduled
maintenance required.
“Capstone continues to execute management’s profitability plan,
and a key component of that plan is to increase our quarterly
aftermarket service revenue and expand gross margins all while
providing customers increased uptime and improved system
reliability and performance,” said Darren Jamison, President and
Chief Executive Officer of Capstone.
This particular oil and gas company had growing concerns over
unpredictable weather patterns, such as arctic blasts and
increasingly severe storms. Many of the oil and gas sites are in
remote locations that experience harsh weather conditions,
especially during winter storms where temperatures regularly
plummet to sub-zero conditions.
“Most natural gas producers in the Appalachian Basin operate in
remote locations where traditional utility power is not very
reliable or economical. Capstone’s microturbines are a
reliable, low emission power source that our customers rely on 24/7
to help maintain the critical natural gas infrastructure. The
factory-backed long-term FPP service product gives them peace of
mind that their equipment will be well maintained and continuously
monitored – delivering excellent system uptime over many years,”
said Jim Bondi, Executive Vice President of E-Finity.
The 6.9MW multimillion-dollar FPP service contract means that
Capstone’s total long-term FPP service contract backlog continues
to hit record levels and is approaching $80 million.
“Capstone continues to expand its aftermarket service business
from both a revenue and margin perspective while partnering with
our distribution partners to provide increased uptime and system
reliability at an extremely competitive price for our critical
end-use customers,” said Jeff Foster, Senior Vice President of
Customer Service for Capstone.
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.
Forward-Looking Statements
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about the
advantages and increased adoption of our FPP. 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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