Exterran Partners To Acquire Compression Assets From Exterran Holdings

Exterran Holdings, Inc. (NYSE: EXH) and Exterran Partners, L.P. (NASDAQ: EXLP) today announced that Exterran Partners will acquire assets from Exterran Holdings for consideration valued at $174 million including customer contracts relating to the operation of approximately 259,000 horsepower of compressor units.

Highlights of this transaction include:
  • Assets to be acquired by Exterran Partners include Exterran Holdings’ contracts serving 50 customers together with approximately 370 compressor units used to provide compression services under those contracts, representing approximately 253,000 horsepower and approximately 8 percent (by available horsepower) of the combined U.S. contract operations business of Exterran Holdings and Exterran Partners.
  • In addition, the acquisition will include contracts covering approximately 6,000 horsepower owned by Exterran Partners which are currently being leased to Exterran Holdings and approximately 200 compressor units comprising approximately 100,000 horsepower currently being leased from Exterran Holdings to Exterran Partners.
  • The consideration to be paid to Exterran Holdings’ affiliates will consist entirely of Exterran Partners’ equity, comprised of approximately 7.1 million common units and approximately 145,000 general partner units.
  • The transaction is subject to regulatory approval and other closing conditions and is expected to close in March or April 2013.

“This transaction is another important step in our plan for Exterran Partners to be the growth vehicle for our contract operations business in the United States. The acquisition will increase Exterran Partners’ contract operations fleet to approximately 2.4 million horsepower, bolstering its leading market position as a provider of natural gas contract operations services in the United States. We plan to continue to create value through Exterran Partners by continued growth through dropdown transactions, organic growth and third party acquisitions,” said Brad Childers, President and Chief Executive Officer of Exterran Holdings.

“We believe the transaction will create economic value for Exterran Partners by increasing distributable cash flow and enhancing its capital position,” said David Miller, Senior Vice President and Chief Financial Officer of Exterran Partners’ managing general partner. “Additionally, we believe we are making further progress in our goal to reduce and eventually eliminate the need for cost cap contributions from Exterran Holdings.”

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