Exterran Corporation (NYSE: EXTN) (“Exterran” or the “Company”)
updated its third quarter and full year 2020 guidance.
Andrew Way, Exterran’s President and Chief Executive Officer
commented, “The third quarter, thus far, has delivered stronger
operational performance than prior guidance, driven by productivity
and additional cost focus. With this performance we are increasing
our third quarter 2020 adjusted EBITDA guidance to around $35
million and as a result, we are also adjusting the full year
guidance range up to $125-140 million of adjusted EBITDA.”
About Exterran CorporationExterran
Corporation (NYSE: EXTN) is a global systems and process
company offering solutions in the oil, gas, water and power
markets. We are a leader in natural gas processing and treatment
and compression products and services, providing critical midstream
infrastructure solutions to customers throughout the
world. Exterran Corporation is headquartered
in Houston, Texas and operates in approximately 25
countries.
For more information, contact:Blake Hancock,
Vice President of Investor Relations, at 281-854-3043Or visit
www.exterran.com
Non-GAAP and Other Financial InformationGross
margin is defined as revenue less cost of sales (excluding
depreciation and amortization expense). Gross margin percentage is
defined as gross margin divided by revenue. The Company evaluates
the performance of its segments based on gross margin for each
segment.
EBITDA, as adjusted, a non-GAAP measure, is defined as net
income (loss) excluding income (loss) from discontinued operations
(net of tax), cumulative effect of accounting changes (net of tax),
income taxes, interest expense (including debt extinguishment
costs), depreciation and amortization expense, impairment charges,
restructuring and other charges, non-cash gains or losses from
foreign currency exchange rate changes recorded on intercompany
obligations, expensed acquisition costs, gain on extinguishment of
debt and other items.
Management believes EBITDA, as adjusted, is an important measure
of operating performance because it allows management, investors
and others to evaluate and compare our core operating results from
period to period by removing the impact of our capital structure
(interest expense from outstanding debt), asset base (depreciation
and amortization), our subsidiaries’ capital structure (non-cash
gains or losses from foreign currency exchange rate changes on
intercompany obligations), tax consequences, impairment charges,
restatement related charges (recoveries), restructuring and other
charges, expensed acquisition costs, gain on extinguishment of
debt, and other items. Management uses EBITDA, as adjusted, as
supplemental measures to review current period operating
performance, comparability measures and performance measures for
period to period comparisons. In addition, the Company's
compensation committee has used EBITDA, as adjusted, in evaluating
the performance of the Company and management and in evaluating
certain components of executive compensation, including
performance-based annual incentive programs.
Non-GAAP financial information supplements should be read
together with, and are not an alternative or substitute for, the
Company’s financial results reported in accordance with GAAP.
Because non-GAAP financial information is not standardized, it may
not be possible to compare these financial measures with other
companies’ non-GAAP financial measures having the same or similar
names.
Forward-Looking StatementsAll 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 Section 21E of the Securities
Exchange Act of 1934, as amended. These statements may include
words such as “guidance,” “anticipate,” “estimate,” “expect,”
“forecast,” “project,” “plan,” “intend,” “believe,” “confident,”
“may,” “should,” “can have,” “likely,” “future” and other words and
terms of similar meaning in connection with any discussion of the
timing or nature of future operating or financial performance or
other events. Examples of forward-looking information in this
release include, but are not limited to: Exterran’s financial and
operational strategies and ability to successfully effect those
strategies; Exterran’s expectations regarding future economic and
market conditions; the expected impact of COVID-19 and oil price
declines on Exterran’s business; Exterran’s financial and
operational outlook and ability to fulfill that outlook; demand for
Exterran’s products and services and growth opportunities for those
products and services; and statements regarding industry activity
levels and infrastructure build-out opportunities.
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 Exterran’s
control, which could cause actual results to differ materially from
such statements. As a result, any such forward-looking statements
are not guarantees of future performance or results. While Exterran
believes that the assumptions concerning future events are
reasonable, it cautions that there are inherent difficulties in
predicting certain important factors that could impact the future
performance or results of its business. Among the factors that
could cause results to differ materially from those indicated by
such forward-looking statements are: conditions in the oil and
natural gas industry, including a sustained imbalance in the level
of supply or demand for oil or natural gas or a sustained low price
of oil or natural gas, which could depress or reduce the demand or
pricing for Exterran’s natural gas compression and oil and natural
gas production and processing equipment and services; reduced
profit margins or the loss of market share resulting from
competition or the introduction of competing technologies by other
companies; economic or political conditions in the countries in
which Exterran does business, including civil developments such as
uprisings, riots, terrorism, kidnappings, violence associated with
drug cartels, legislative changes and the expropriation,
confiscation or nationalization of property without fair
compensation; risks associated with natural disasters, pandemics
and other public health crisis, and other catastrophic events
outside of Exterran’s control, including the continued spread and
impact of, and the response to, the COVID-19 pandemic; changes in
currency exchange rates, including the risk of currency
devaluations by foreign governments, and restrictions on currency
repatriation; risks associated with cyber-based attacks or network
security breaches; changes in international trade relationships,
including the imposition of trade restrictions or tariffs relating
to any materials or products (such as aluminum and steel) used in
the operation of Exterran’s business; risks associated with
Exterran’s operations, such as equipment defects, equipment
malfunctions, environmental discharges and natural disasters; the
risk that counterparties will not perform their obligations under
their contracts with Exterran or other changes that could impact
Exterran’s ability to recover its fixed asset investment; the
financial condition of Exterran’s customers; Exterran’s ability to
timely and cost-effectively obtain components necessary to conduct
its business; employment and workforce factors, including
Exterran’s ability to hire, train and retain key employees;
Exterran’s ability to implement its business and financial
objectives, including: (i) winning profitable new business, (ii)
timely and cost-effective execution of projects, (iii) enhancing or
maintaining Exterran’s asset utilization, particularly with respect
to its fleet of compressors and other assets, (iv) integrating
acquired businesses, (v) generating sufficient cash to satisfy
Exterran’s operating needs, existing capital commitments and other
contractual cash obligations, including Exterran’s debt
obligations, and (vi) accessing the financial markets at an
acceptable cost; Exterran’s ability to accurately estimate its
costs and time required under its fixed price contracts; liability
related to the use of Exterran’s products and services; changes in
governmental safety, health, environmental or other regulations,
which could require Exterran to make significant expenditures; and
Exterran’s level of indebtedness and ability to fund its
business.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and
uncertainties described in Exterran’s Annual Report on Form 10-K
for the year ended December 31, 2019, and other filings with the
Securities and Exchange Commission available on the Securities and
Exchange Commission’s website www.sec.gov. A discussion of these
risks is expressly incorporated by reference into this release.
Except as required by law, Exterran expressly disclaims any
intention or obligation to revise or update any forward-looking
statements whether as a result of new information, future events or
otherwise.
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