Chart Industries, Inc. (“Chart”) (Nasdaq: GTLS) announced a
strategic investment in Stabilis Energy, Inc. (NASDAQ: SLNG)
(“Stabilis”) of up to $7 million for up to 9% of common equity. The
transaction is scheduled to close within the next thirty days
subject to both parties meeting certain closing conditions. The
actual investment and ownership will be determined by an agreed
upon formula at closing.
Small-scale LNG is a key aspect of the global
LNG infrastructure buildout, as these smaller liquefaction plants
serve specific uses such as marine bunkering, fuel for over the
road transport, gas-LDC peak storage and power generation. Stabilis
and Chart together built a 100,000 LNG gallon per day liquefier in
Texas, with the intended purpose to service multiple end markets,
including energy, industrial, mining, and Mexican exports. Chart
supplied the liquefaction train, storage, gas pre-treatment, and
truck loading facilities, which contributed to the record
production levels of the plant.
“We are pleased to announce this strategic
investment in Stabilis Energy,” said Jill Evanko, Chief Executive
Officer of Chart. “We look forward to providing equipment and
process to Stabilis and other customers as they expand in the
small-scale and utility-scale LNG market. We expect over $650
million of opportunity in this market for our products in the next
three years.”
“Stabilis welcomes Chart Industries as a
shareholder,” commented James Reddinger, President and Chief
Executive Officer of Stabilis. “As a global market leader in LNG
production equipment and process systems, we appreciate Chart’s
confidence in us. This transaction better positions Stabilis to
pursue our North American small-scale LNG growth strategy, which is
currently focused on plant development opportunities in the United
States and Mexico.”
Reddinger continued, “Chart’s investment will
increase our publicly traded float and total shares outstanding,
thereby helping Stabilis meet its NASDAQ listing requirements.
Furthermore, the investment will reduce our financial leverage and
give us a stronger balance sheet to support our growth plans.”
Stabilis completed a share exchange transaction
with American Electric Technologies, Inc. on July 26, 2019 and
subsequently commenced trading on the Nasdaq Capital Market under
the ticker symbol “SLNG” on July 29, 2019.
Chart Industries and Stabilis Energy will hold a
joint conference call at 1:30pm eastern time tomorrow, August 6,
2019. Participants may join the call by using the toll-free dial-in
number of 877-312-9395, or internationally 970-315-0456. The
conference ID is 1987854.
About Chart Industries
Chart Industries, Inc. is a leading independent
global manufacturer of highly engineered equipment servicing
multiple market applications in Energy and Industrial Gas. Chart’s
unique product portfolio is used throughout the liquid gas supply
chain in the production, storage, distribution and end-use of
atmospheric, hydrocarbon, and industrial gases. Chart has domestic
operations located across the United States and an international
presence in Asia, Australia, Europe and Latin America. To learn
more, visit www.chartindustries.com.
About Stabilis Energy
Stabilis Energy, Inc. is a vertically integrated
provider of small-scale liquefied natural gas (“LNG”) production,
distribution and fueling services to multiple end markets in North
America. Stabilis has safely delivered over 200 million gallons of
LNG through more than 20,000 truck deliveries during its 15-year
operating history in the LNG industry, which it believes makes it
one of the largest and most experienced small-scale LNG providers
in North America. Stabilis’ customers use LNG as a fuel source in a
variety of applications in the industrial, energy, mining,
utilities and pipelines, commercial, and high horsepower
transportation markets. Stabilis’ customers use LNG as an
alternative to traditional fuel sources, such as distillate fuel
oil and propane, to lower fuel costs and reduce harmful
environmental emissions. Stabilis’ customers also use LNG as a
“virtual pipeline” solution when natural gas pipelines are not
available or volumes are curtailed. To learn more,
visit www.stabilisenergy.com.
Investor Contacts – Chart Industries:
Tom Pittet Vice President, Investor Relations
678-596-0982thomas.pittet@chartindustries.com
Investor Contacts – Stabilis Energy:
Andrew PuhalaChief Financial
Officer832-456-6500andy.puhala@stabilisenergy.com
Certain statements made in this news release are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements concerning the Company’s business
plans, products and technology, cost synergies and efficiency
savings, objectives, future orders, product demand and customer
requirements, revenues, margins, earnings or performance, liquidity
and cash flow, capital expenditures, business and industry trends,
project status and other information that is not historical in
nature. Forward-looking statements may be identified by terminology
such as "may," "will," "should," "could," "expects," "anticipates,"
"believes," "projects," "forecasts," “outlook,” “guidance,”
"continue," or the negative of such terms or comparable
terminology.
Forward-looking statements contained in this
news release or in other statements made by the Company are made
based on management's expectations and beliefs concerning future
events impacting the Company and are subject to uncertainties and
factors relating to the Company's operations and business
environment, all of which are difficult to predict and many of
which are beyond the Company's control, that could cause the
Company's actual results to differ materially from those matters
expressed or implied by forward-looking statements. Factors that
could cause the Company’s actual results to differ materially from
those described in the forward-looking statements include those
found in Item 1A (Risk Factors) in the Company’s most recent Annual
Report on Form 10-K filed with the SEC, which should be reviewed
carefully. The Company undertakes no obligation to update or revise
any forward-looking statement.
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