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Exterran Partners Agrees To Acquire Compression And Processing Assets From Exterran Holdings

Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P. (NASDAQ:EXLP) today announced that Exterran Partners has agreed to acquire compression and processing assets from Exterran Holdings for consideration valued at approximately $184 million.

Assets to be acquired by Exterran Partners include:

  • Compression services. Contracts serving approximately 40 customers of Exterran Holdings and its affiliates, together with approximately 400 compressor units used to provide compression services under those contracts, comprising approximately 188,000 horsepower and representing approximately 5 percent (by available horsepower) of the combined U.S. contract operations business of Exterran Holdings and Exterran Partners. In addition, the acquisition includes approximately 140 compressor units comprising approximately 75,000 horsepower currently being leased from Exterran Holdings to Exterran Partners.
  • Processing services. A natural gas processing plant with a capacity of 10 million cubic feet per day located in the northeastern United States used to provide processing services pursuant to a long-term services agreement.

“We are pleased with this transaction, which will expand Exterran Partners’ fee-based business and enhance its leading market position as a provider of natural gas contract operations services in the United States. The acquisition will increase Exterran Partners’ contract operations fleet to approximately 2.1 million horsepower, which would comprise approximately 58 percent by available horsepower of the combined U.S. contract operations business of Exterran Holdings and Exterran Partners,” said Brad Childers, Chairman, President and Chief Executive Officer of Exterran Partners’ managing general partner.

“Exterran Holdings expects to benefit from its continued ownership in Exterran Partners and expects to continue to offer the balance of its U.S. contract operations business to Exterran Partners over time. Exterran Holdings expects to use a portion of the transaction proceeds to enhance its capital position through the reduction of debt at the Exterran parent level,” added Childers, President and Chief Executive Officer of Exterran Holdings.

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