Capstone Continues to Execute Substantial Long-Term Service Contracts in Texas’ Eagle Ford Shale Basin
May 28 2019 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST), the world’s leading clean technology manufacturer of
microturbine energy systems, announced today that Lone Star Power
Solutions, its exclusive Distributor for Texas, Arizona and the
Gulf States, signed another 3 megawatt (MW) Factory Protection Plan
(FPP) long-term service contract in the Eagle Ford Shale Basin in
South Texas. This new contract adds to their already signed 12 MWs
of FPP contracts previously secured in the same shale region during
March of 2019.
Capstone’s industry-leading FPP product will initially provide
five years of service coverage on 3 MWs of Capstone microturbines
for a large international oil and gas end-user. The Capstone
microturbines, originally commissioned back in 2013 and 2014, are
used for 24x7 prime power in midstream central gathering
facilities. In purchasing the long-term service contract for their
Capstone microturbines, the end-use customer has furthered their
commitment to the technology in order to maintain the high
availability that their facilities have experienced over the past
five-plus years.
“Our collaboration with Capstone allows Lone Star Power
Solutions to offer our customers a comprehensive maintenance
program unseen in this industry,” said Douglas Demaret, President
of Lone Star Power Solutions. “The reliability of Capstone products
coupled with the FPP allows us to assist our customers in fixing
their operational costs while solving their need for reliable
on-site power in remote locations,” added Mr. Demaret. “This proven
reliability, durability and low emission profile have many of our
customers choosing Capstone products even when utility power is
available,” added Mr. Demaret.
“We are very pleased to see customers in the oil and gas sector
continuing their transition over to our industry-leading service
products,” said Jeff Foster, Capstone’s Sr. Vice President of
Customer Service and Product Development. “We believe this is
further validation that our FPP service offering is the best value
in the market, affording our customers the peace of mind coming
from both our turbine’s high reliability and fixed support
expenditures over the long life of this critical capital asset,”
added Mr. Foster.
“These types of long-term service contracts underpin Capstone’s
stated goal of achieving 100% absorption of all of Capstone’s
operating expenses from the aftermarket service business gross
margin by providing a predictable recurring revenue stream,” said
Darren Jamison, Capstone’s President and Chief Executive Officer.
“These continuing FPP wins of new service business in the oil and
gas sector have been, and continue to be, a major focus for the
Capstone team as it’s a critical element of our strategic plan for
long-term profitability, sustainability and growth,” concluded Mr.
Jamison.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST) is the world’s leading producer of highly efficient,
low-emission, resilient microturbine energy systems. Capstone
microturbines serve multiple vertical markets worldwide, including
natural resources, energy efficiency, renewable energy, critical
power supply, transportation and microgrids. Capstone offers a
comprehensive product lineup, providing scalable systems focusing
on 30 kWs to 10 MWs that operate on a variety of gaseous or liquid
fuels and are the ideal solution for today's distributed power
generation needs. To date, Capstone has shipped over 9,000 units to
73 countries and have saved customers an estimated $253 million in
annual energy costs and 350,000 tons of carbon.
For more information about the company, please visit
www.capstoneturbine.com. Follow Capstone Turbine on Twitter,
LinkedIn and YouTube.
Forward-Looking Statements
This press release contains “forward-looking statements,” as
that term is used in the federal securities laws. Forward-looking
statements may be identified by words such as “expects,”
“believes,” “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
Integra Investor RelationsShawn M.
Severson415-226-7747cpst@integra-ir.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/d378fb3a-9094-4534-adf8-3dd2dbc9be1c
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