Exterran Holdings and Exterran Partners Report Third Quarter 2009 Results
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HOUSTON--(BUSINESS WIRE)-- Exterran Holdings, Inc. (NYSE: EXH) and Exterran Partners, L.P. (NASDAQ: EXLP) today reported financial results for the third quarter 2009.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported net income attributable to Exterran stockholders for the third quarter 2009 of $18.2 million, or $0.30 per diluted share, compared to a net loss attributable to Exterran stockholders for the second quarter 2009 of $530.8 million, or $8.66 per diluted share, and net income attributable to Exterran stockholders for the third quarter 2008 of $37.0 million, or $0.57 per diluted share.
Net income from continuing operations attributable to Exterran stockholders for the third quarter 2009 was $24.8 million, or $0.38 per diluted share, excluding pretax charges that totaled $3.6 million, including a $2.6 million restructuring charge related to the consolidation of our fabrication facilities in North America and a $1.0 million charge related to our investments in non-consolidated affiliates in Venezuela. Due to the expropriation of our assets and operations in Venezuela, our Venezuelan contract operations and aftermarket services businesses are reflected as discontinued operations in our current and prior period financial results.
Net income from continuing operations for the second quarter 2009 attributable to Exterran stockholders, excluding charges, was $24.4 million, or $0.39 per diluted share, and net income from continuing operations for the third quarter 2008 attributable to Exterran stockholders, excluding charges, was $24.0 million, or $0.37 per diluted share.
Revenue was $679.7 million for the third quarter 2009, compared to $678.0 million for the second quarter 2009 and $756.3 million for the third quarter 2008. EBITDA, as adjusted (as defined below), was $161.1 million for the third quarter 2009, compared to $151.4 million for the second quarter 2009 and $172.4 million for the third quarter 2008.
Ernie L. Danner, Exterran Holdings' President and Chief Executive Officer, said, "I am pleased with our overall performance in the third quarter despite challenging industry conditions. With solid execution by our operating and support groups, we generated a strong level of cash flow and reduced our debt balances by $124 million. We also commenced the operation of two new contract operations projects in the Eastern Hemisphere in early October, and have a significant backlog of international contract operations projects scheduled to begin operations through mid-2010.
"Although we are encouraged by the recent increase in North American natural gas prices, we expect continuing overall weak market conditions and, in particular, declining activity levels for our North America contract operations business into 2010. We expect our net capital expenditures to be $200 million to $300 million in 2010, down from approximately $375 million to $400 million in 2009. Building on our third quarter success, we expect to generate positive cash flow after capital expenditures in the fourth quarter of 2009 and in 2010."
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $41.3 million for the third quarter 2009, compared to $45.1 million for the second quarter 2009 and $44.4 million for the third quarter 2008. Net income was $2.0 million, or $0.09 per diluted limited partner unit, for the third quarter 2009, compared to $2.7 million, or $0.13 per diluted limited partner unit, for the second quarter 2009 and $9.4 million, or $0.49 per diluted limited partner unit, for the third quarter 2008. Net income for the second quarter 2009 was $5.7 million, or $0.28 per diluted limited partner unit, excluding a $3.0 million non-cash fleet impairment charge.
Exterran Partners' EBITDA, as further adjusted (as defined below), totaled $18.4 million for the third quarter 2009, compared to $21.1 million for the second quarter 2009 and $22.7 million for the third quarter 2008. Distributable cash flow (as defined below) totaled $10.6 million for the third quarter 2009, compared to $12.7 million for the second quarter 2009 and $14.8 million for the third quarter 2008.
"In October, Exterran Partners agreed to acquire contracts and equipment representing approximately 273,000 horsepower of compression from Exterran Holdings for approximately $143 million, excluding transaction costs, to be financed with approximately $57 million of borrowings under its new $150 million asset-backed securitization facility and existing revolving credit facility and the issuance of approximately 4.7 million common units and approximately 97,000 general partner units to Exterran Holdings. The acquisition, anticipated to close in mid-November, is expected to strengthen Exterran Partners' market position in the United States and enhance its distributable cash flow," commented Mr. Danner, President and Chief Executive Officer of Exterran Partners' managing general partner.
On October 30, 2009, Exterran Partners announced a cash distribution of $0.4625 per limited partner unit for the third quarter 2009, the same level as in the second quarter 2009 and the third quarter 2008.
Conference Call Details
Exterran Holdings, Inc. (NYSE: EXH) and Exterran Partners, L.P. (NASDAQ: EXLP) announce the following schedule and teleconference information for their third quarter 2009 earnings release:
-- Teleconference: Thursday, November 5, 2009 at 11:00 a.m. Eastern Time,
10:00 a.m. Central Time. To access the call, United States and Canadian
participants should dial 888-895-5271. International participants should
dial 847-619-6547 at least 10 minutes before the scheduled start time.
Please reference Exterran conference call number 25723798.
-- Live Webcast: The webcast will be available in listen-only mode via the
companies' website: www.exterran.com.
-- Webcast Replay: For those unable to participate, a replay will be
available from 2:00 p.m. Eastern Time on Thursday, November 5, 2009,
until 2:00 p.m. Eastern Time on Thursday, November 12, 2009. To listen
to the replay, please dial 888-843-8996 in the United States and Canada,
or 630-652-3044 internationally, and enter access code 25723798.
With respect to Exterran Holdings, EBITDA, as adjusted, a non-GAAP measure, is defined as income (loss) from continuing operations plus income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of interest rate swaps), depreciation and amortization expense, impairment charges, merger and integration expenses, restructuring charges, excluding non-recurring items, and extraordinary gains or losses.
With respect to Exterran Partners, EBITDA, as further adjusted, a non-GAAP measure, is defined as net income (loss) plus income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of interest rate swaps), depreciation and amortization expense, impairment charges, non-cash selling, general and administrative ("SG&A") expenses and any amounts by which cost of sales and SG&A costs are reduced as a result of caps on these costs contained in the omnibus agreement to which Exterran Holdings and Exterran Partners are parties (the "Omnibus Agreement"), which amounts are treated as capital contributions from Exterran Holdings for accounting purposes, and excluding non-recurring items.
With respect to Exterran Partners, distributable cash flow, a non-GAAP measure, is defined as net income plus depreciation and amortization expense, impairment charges, non-cash SG&A expenses, interest expense and any amounts by which cost of sales and SG&A costs are reduced as a result of caps on these costs contained in the Omnibus Agreement, which amounts are treated as capital contributions from Exterran Holdings for accounting purposes, less cash interest expense and maintenance capital expenditures, and excluding gains/losses on asset sales and non-recurring items.
With respect to Exterran Holdings, Gross Margin, a non-GAAP measure, is defined as total revenue less cost of sales (excluding depreciation and amortization expense).
With respect to Exterran Partners, Gross Margin, as adjusted, a non-GAAP measure, is defined as total revenue less cost of sales (excluding depreciation and amortization expense) plus any amounts by which cost of sales are reduced as a result of caps on these costs contained in the Omnibus Agreement, which amounts are treated as capital contributions from Exterran Holdings for accounting purposes.
About Exterran Holdings and Exterran Partners
Exterran Holdings, Inc. is a global market leader in full service natural gas compression and a premier provider of operations, maintenance, service and equipment for oil and gas production, processing and transportation applications. Exterran Holdings serves customers across the energy spectrum--from producers to transporters to processors to storage owners. Headquartered in Houston, Texas, Exterran and its over 10,000 employees have operations in over 30 countries.
Exterran Partners, L.P. provides natural gas contract operations services to customers throughout the United States. Exterran Holdings indirectly owns a majority interest in Exterran Partners.
For more information, visit www.exterran.com.
Forward-Looking Statements
All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of Exterran Holdings and Exterran Partners (the "Companies"), which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: the Companies' operational and financial strategies and ability to successfully effect those strategies; the Companies' expected future capital expenditures; the ability of the Companies to complete their proposed transaction and the expected timing of the closing of the transaction; the expected benefits of the transaction to Exterran Partners; Exterran Holdings' ability to execute on its backlog of international contract operations projects and the ability of those projects to begin generating revenues through mid-2010; the Companies' expectations regarding future economic and market conditions; and the Companies' financial and operational outlook, including expected levels of cash flows, and ability to fulfill that outlook.
While the Companies believe that the assumptions concerning future events are reasonable, they caution that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of their business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional, national and international economic conditions and the impact they may have on the Companies and their customers; changes in tax laws that impact master limited partnerships; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil and natural gas and the impact on the price of oil and natural gas; Exterran Holdings' ability to timely and cost-effectively obtain components necessary to conduct the Companies' business; changes in political or economic conditions in key operating markets, including international markets; changes in safety and environmental regulations pertaining to the production and transportation of oil and natural gas; and, as to each of the Companies, the performance of the other entity.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Exterran Holdings' Annual Report on Form 10-K for the year ended December 31, 2008, Exterran Partners' Annual Report on Form 10-K for the year ended December 31, 2008, and those set forth from time to time in the Companies' filings with the Securities and Exchange Commission, which are currently available at www.exterran.com. Except as required by law, the Companies expressly disclaim any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
EXTERRAN HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
Revenues:
North America contract operations $ 167,567 $ 178,455 $ 197,926
International contract operations 96,420 95,448 99,680
Aftermarket services 75,526 78,504 94,044
Fabrication 340,193 325,561 364,608
679,706 677,968 756,258
Costs and expenses:
Cost of sales (excluding
depreciation and amortization
expense):
North America contract operations 74,556 74,420 84,440
International contract operations 37,850 37,897 40,504
Aftermarket services 59,360 61,778 75,193
Fabrication 278,036 275,561 292,978
Selling, general and administrative 81,600 86,380 89,564
Merger and integration expenses - - 3,728
Depreciation and amortization 87,781 85,903 83,029
Fleet impairment - 86,684 1,000
Restructuring charges 2,616 8,076 -
Goodwill impairment - 150,778 -
Interest expense 33,371 29,163 33,401
Equity in (income) loss of 1,011 567 (6,657 )
non-consolidated affiliates
Other (income) expense, net (12,768 ) (9,433 ) 7,835
643,413 887,774 705,015
Income (loss) before income taxes 36,293 (209,806 ) 51,243
Provision for (benefit from) income 13,691 (23,177 ) 27,252
taxes
Income (loss) from continuing 22,602 (186,629 ) 23,991
operations
Income (loss) from discontinued (3,834 ) (343,323 ) 16,070
operations, net of tax
Net income (loss) 18,768 (529,952 ) 40,061
Less: net income attributable to (576 ) (818 ) (3,028 )
the noncontrolling interest
Net income (loss) attributable to $ 18,192 $ (530,770 ) $ 37,033
Exterran stockholders
Basic income (loss) per common
share:
Income (loss) from continuing
operations attributable to Exterran $ 0.36 $ (3.06 ) $ 0.32
stockholders
Income (loss) from discontinued
operations attributable to Exterran (0.06 ) (5.60 ) 0.25
stockholders
Net income (loss) attributable to $ 0.30 $ (8.66 ) $ 0.57
Exterran stockholders
Diluted income (loss) per common
share:
Income (loss) from continuing
operations attributable to Exterran $ 0.35 $ (3.06 ) $ 0.32
stockholders
Income (loss) from discontinued
operations attributable to Exterran (0.05 ) (5.60 ) 0.25
stockholders
Net income (loss) attributable to $ 0.30 $ (8.66 ) $ 0.57
Exterran stockholders
Weighted average common and
equivalent shares outstanding:
Basic 61,579 61,277 64,940
Diluted 77,509 61,277 65,423
Income (loss) attributable to
Exterran stockholders:
Income (loss) from continuing $ 22,026 $ (187,447 ) $ 20,963
operations
Income (loss) from discontinued (3,834 ) (343,323 ) 16,070
operations, net of tax
Net income (loss) attributable to $ 18,192 $ (530,770 ) $ 37,033
Exterran stockholders
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands, except percentages)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
Revenues:
North America contract operations $ 167,567 $ 178,455 $ 197,926
International contract operations 96,420 95,448 99,680
Aftermarket services 75,526 78,504 94,044
Fabrication 340,193 325,561 364,608
Total $ 679,706 $ 677,968 $ 756,258
Gross Margin (1):
North America contract operations $ 93,011 $ 104,035 $ 113,486
International contract operations 58,570 57,551 59,176
Aftermarket services 16,166 16,726 18,851
Fabrication 62,157 50,000 71,630
Total $ 229,904 $ 228,312 $ 263,143
Selling, General and Administrative $ 81,600 $ 86,380 $ 89,564
% of Revenues 12 % 13 % 12 %
EBITDA, as adjusted (1) $ 161,072 $ 151,365 $ 172,401
% of Revenues 24 % 22 % 23 %
Capital Expenditures $ 74,983 $ 106,075 $ 112,831
Less: Proceeds from Sale of PP&E (4,060 ) (10,256 ) (18,418 )
Net Capital Expenditures $ 70,923 $ 95,819 $ 94,413
Gross Margin Percentage:
North America contract operations 56 % 58 % 57 %
International contract operations 61 % 60 % 59 %
Aftermarket services 21 % 21 % 20 %
Fabrication 18 % 15 % 20 %
Total 34 % 34 % 35 %
Total Available Horsepower (at
period end):
North America contract operations 4,339 4,340 4,540
International contract operations 1,220 1,214 1,151
Total 5,559 5,554 5,691
Total Operating Horsepower (at
period end):
North America contract operations 2,983 3,125 3,452
International contract operations 1,015 1,037 1,046
Total 3,998 4,162 4,498
Total Operating Horsepower
(average):
North America contract operations 3,052 3,207 3,456
International contract operations 1,025 1,037 1,049
Total 4,077 4,244 4,505
Horsepower Utilization (at period
end):
North America contract operations 69 % 72 % 76 %
International contract operations 83 % 85 % 91 %
Total 72 % 75 % 79 %
Fabrication Backlog:
Compression & accessory $ 211,012 $ 291,633 $ 359,392
Production & processing equipment 570,751 652,772 731,874
Total $ 781,763 $ 944,405 $ 1,091,266
Debt to Capitalization:
Debt $ 2,385,748 $ 2,509,777 $ 2,467,773
Exterran stockholders' equity 1,606,444 1,570,256 3,239,237
Capitalization $ 3,992,192 $ 4,080,033 $ 5,707,010
Total Debt to Capitalization 59.8 % 61.5 % 43.2 %
(1) Management believes disclosure of EBITDA, as adjusted, and Gross Margin,
both non-GAAP measures, provides useful information to investors because, when
viewed with our GAAP results and accompanying reconciliations, they provide a
more complete understanding of our performance than GAAP results alone.
Management uses EBITDA, as adjusted, and Gross Margin as supplemental measures
to review current period operating performance, comparability measures and
performance measures for period to period comparisons. In addition, EBITDA, as
adjusted, is used by management as a valuation measure.
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands, except per share amounts)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
Reconciliation of GAAP to Non-GAAP
Financial Information:
Income (loss) from continuing $ 22,602 $ (186,629 ) $ 23,991
operations
Depreciation and amortization 87,781 85,903 83,029
Fleet impairment - 86,684 1,000
Restructuring charges 2,616 8,076 -
Investment in non-consolidated 1,011 567 -
affiliates impairment
Goodwill impairment - 150,778 -
Interest expense 33,371 29,163 33,401
Merger and integration expenses - - 3,728
Provision for (benefit from) income 13,691 (23,177 ) 27,252
taxes
EBITDA, as adjusted (1) 161,072 151,365 172,401
Selling, general and administrative 81,600 86,380 89,564
Equity in (income) loss of 1,011 567 (6,657 )
non-consolidated affiliates
Investment in non-consolidated (1,011 ) (567 ) -
affiliates impairment
Other (income) expense, net (12,768 ) (9,433 ) 7,835
Gross Margin (1) $ 229,904 $ 228,312 $ 263,143
Net income (loss) attributable to $ 18,192 $ (530,770 ) $ 37,033
Exterran stockholders
(Income) loss from discontinued 3,834 343,323 (16,070 )
operations
Charges, after-tax:
Fleet impairment - 55,153 640
Restructuring charges 1,731 5,344 -
Investment in non-consolidated 1,011 567 -
affiliates impairment
Goodwill impairment - 150,778 -
Merger and integration expenses - - 2,349
Net income from continuing
operations attributable to Exterran $ 24,768 $ 24,395 $ 23,952
stockholders, excluding charges
Diluted Income (loss) from
continuing operations attributable $ 0.35 $ (3.06 ) $ 0.32
to Exterran stockholders
Adjustment for charges, after-tax, 0.03 3.45 0.05
per common share
Diluted net income from continuing
operations attributable to Exterran $ 0.38 $ 0.39 $ 0.37
stockholders per common share,
excluding charges (1)
(1) Management believes disclosure of EBITDA, as adjusted, diluted income
(loss) attributable to Exterran stockholders per common share, excluding
charges, and Gross Margin, non-GAAP measures, provides useful information to
investors because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our performance
than GAAP results alone. Management uses EBITDA, as adjusted, diluted income
per common share from continuing operations, excluding charges, and Gross
Margin as supplemental measures to review current period operating performance,
comparability measures and performance measures for period to period
comparisons. In addition, EBITDA, as adjusted, is used by management as a
valuation measure.
EXTERRAN PARTNERS, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit amounts)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
Revenue $ 41,317 $ 45,077 $ 44,390
Costs and expenses:
Cost of sales (excluding depreciation 19,802 20,176 19,900
and amortization)
Depreciation and amortization 9,042 8,678 7,542
Fleet impairment - 2,995 -
Selling, general and administrative 4,961 5,551 2,423
Interest expense 5,039 4,805 4,967
Other (income) expense, net 324 - -
Total costs and expenses 39,168 42,205 34,832
Income before income taxes 2,149 2,872 9,558
Income tax expense 141 134 147
Net income $ 2,008 $ 2,738 $ 9,411
General partner interest in net income $ 289 $ 304 $ 432
Limited partner interest in net income $ 1,719 $ 2,434 $ 8,979
Weighted average limited partners' units
outstanding:
Basic 19,125 19,107 18,305
Diluted 19,148 19,113 18,320
Earnings per limited partner unit:
Basic $ 0.09 $ 0.13 $ 0.49
Diluted $ 0.09 $ 0.13 $ 0.49
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands, except per unit amounts)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
Revenue $ 41,317 $ 45,077 $ 44,390
Gross Margin, as adjusted (1) $ 23,500 $ 26,353 $ 28,063
EBITDA, as further adjusted (1) $ 18,405 $ 21,077 $ 22,694
% of Revenue 45 % 47 % 51 %
Capital Expenditures $ 3,341 $ 4,152 $ 4,390
Proceeds from Sale of Compression - - -
Equipment
Net Capital Expenditures $ 3,341 $ 4,152 $ 4,390
Gross Margin percentage, as 57 % 58 % 63 %
adjusted
Distributable cash flow (2) $ 10,633 $ 12,714 $ 14,798
Distributions per Limited Partner $ 0.4625 $ 0.4625 $ 0.4625
Unit
Distribution to All Unitholders, $ 9,277 $ 9,277 $ 9,264
including Incentive Distributions
Distributable Cash Flow Coverage 1.15 x 1.37 x 1.60 x
September 30, June 30, September 30,
2009 2009 2008
Debt $ 384,500 $ 387,750 $ 399,750
Total Partners' Capital $ 173,809 $ 175,205 $ 175,151
Total Debt to Capitalization 69 % 69 % 70 %
EBITDA, as further adjusted (1) 3.7 x 4.4 x 4.6 x
to Interest Expense
(1) Management believes disclosure of EBITDA, as further adjusted, and Gross
Margin, as adjusted, both non-GAAP measures, provides useful information to
investors because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our performance
than GAAP results alone. Management uses EBITDA, as further adjusted, and
Gross Margin, as adjusted, as supplemental measures to review current period
operating performance, comparability measures and performance measures for
period to period comparisons. In addition, EBITDA, as further adjusted, is
used by management as a valuation measure.
(2) Distributable cash flow, a non-GAAP measure, is a significant liquidity
metric used by management to compare basic cash flows generated by us to the
cash distributions we expect to pay our partners. Using this metric,
management can quickly compute the coverage ratio of estimated cash flows to
planned cash distributions.
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income $ 2,008 $ 2,738 $ 9,411
Income tax expense 141 134 147
Depreciation and amortization 9,042 8,678 7,542
Fleet impairment - 2,995 -
Cap on operating and selling, general
and administrative costs provided by 1,985 1,452 3,589
Exterran Holdings ("EXH")
Non-cash selling, general and 190 275 (2,962 )
administrative costs
Interest expense, net of interest 5,039 4,805 4,967
income
EBITDA, as further adjusted (1) 18,405 21,077 22,694
Cash selling, general and 4,771 5,276 5,385
administrative costs
Less: cap on selling, general and - - (16 )
administrative costs provided by EXH
Less: other (income) expense, net 324 - -
Gross Margin, as adjusted for
operating cost caps provided by EXH $ 23,500 $ 26,353 $ 28,063
(1)
Other income (expense), net (324 ) - -
Expensed acquisition costs 324 - -
Less: Cash interest expense (4,915 ) (4,677 ) (4,835 )
Less: Cash selling, general and
administrative, as adjusted for cost (4,771 ) (5,276 ) (5,369 )
caps provided by EXH
Less: Income tax expense (141 ) (134 ) (147 )
Less: Maintenance capital (3,040 ) (3,552 ) (2,914 )
expenditures
Distributable cash flow (2) $ 10,633 $ 12,714 $ 14,798
Cash flows from operating activities $ 16,182 $ 22,773 $ 10,311
Amortization of debt issuance cost (87 ) (91 ) (94 )
Amortization of fair value of (37 ) (37 ) (38 )
acquired interest rate swaps
Cap on operating and selling, general
and administrative costs provided by 1,985 1,452 3,589
EXH
Interest expense, net of interest 5,039 4,805 4,967
income
Expensed acquisition costs 324 - -
Cash interest expense (4,915 ) (4,677 ) (4,835 )
Maintenance capital expenditures (3,040 ) (3,552 ) (2,914 )
Change in current assets/liabilities (4,818 ) (7,959 ) 3,812
Distributable cash flow (2) $ 10,633 $ 12,714 $ 14,798
Net income $ 2,008 $ 2,738 $ 9,411
Fleet impairment - 2,995 -
Net income, excluding charge $ 2,008 $ 5,733 $ 9,411
Diluted earnings per limited partner $ 0.09 $ 0.13 $ 0.49
unit
Adjustment for charge per limited - 0.15 -
partner unit
Diluted earnings per limited partner $ 0.09 $ 0.28 $ 0.49
unit, excluding charge (1)
(1) Management believes disclosure of EBITDA, as further adjusted, diluted
earnings per limited partner unit, excluding charge, and Gross Margin, as
adjusted, non-GAAP measures, provides useful information to investors because,
when viewed with our GAAP results and accompanying reconciliations, they provide
a more complete understanding of our performance than GAAP results alone.
Management uses EBITDA, as further adjusted, diluted earnings per limited
partner unit, excluding charge, and Gross Margin, as adjusted, as supplemental
measures to review current period operating performance, comparability measures
and performance measures for period to period comparisons. In addition, EBITDA,
as further adjusted, is used by management as a valuation measure.
(2) Distributable cash flow, a non-GAAP measure, is a significant liquidity
metric used by management to compare basic cash flows generated by us to the
cash distributions we expect to pay our partners. Using this metric, management
can quickly compute the coverage ratio of estimated cash flows to planned cash
distributions.
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands, except percentages)
Three Months Ended
September 30, June 30, September 30,
2009 2009 2008
Total Available Horsepower (at period 1,039 1,034 1,017
end)
Total Operating Horsepower (at period 808 840 909
end)
Average Operating Horsepower 819 859 829
Horsepower Utilization:
Spot (at period end) 78 % 81 % 89 %
Average 79 % 83 % 89 %
Combined U.S. Contract Operations
Horsepower of Exterran Holdings and
Exterran Partners covered by contracts 1,861 1,917 1,716
converted to service agreements (at
period end)
Available Horsepower:
Total Available U.S. Contract
Operations Horsepower of Exterran 4,233 4,234 4,428
Holdings and Exterran Partners (at
period end)
% of U.S. Contract Operations Available
Horsepower of Exterran Holdings and
Exterran Partners covered by contracts 45 % 45 % 39 %
converted to service agreements (at
period end)
Operating Horsepower:
Total Operating U.S. Contract
Operations Horsepower of Exterran 2,927 3,066 3,384
Holdings and Exterran Partners (at
period end)
% of U.S. Contract Operations Operating
Horsepower of Exterran Holdings and
Exterran Partners covered by contracts 65 % 63 % 51 %
converted to service agreements (at
period end)
Source: Exterran Holdings, Inc. and Exterran Partners, L.P.
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