Exterran Partners to Acquire Assets from MidCon Compression

  Exterran Partners to Acquire Assets from MidCon Compression

  *New acquisition adds 110,000 horsepower
  *The majority of the horsepower is under a five-year contract operations
    services agreement

Business Wire

HOUSTON -- July 14, 2014

Exterran Partners, L.P. (NASDAQ:EXLP) and Exterran Holdings, Inc. (NYSE:EXH)
today announced that Exterran Partners has entered into an agreement to
acquire natural gas compression assets from MidCon Compression, L.L.C., a
subsidiary of Chesapeake Energy Corporation (NYSE:CHK), for approximately $135
million. The assets to be acquired include 162 compression units, with a total
horsepower of approximately 110,000.

The majority of the units currently are being used to provide compression
services to BHP Billiton Petroleum in Arkansas’ Fayetteville Shale. In
connection with the acquisition, the contract operations services agreement
with BHP Billiton Petroleum will be assigned to Exterran Partners effective as
of the closing.

“We are pleased to acquire an additional fleet of modern, highly standardized
assets from MidCon and continue to deliver on our strategy of growing our core
contract operations business,” said Brad Childers, Chairman, President and
Chief Executive Officer of Exterran Partners’ managing general partner.

“We expect the transaction to be immediately accretive to distributable cash
flow per limited partner unit,” said David Miller, Senior Vice President and
Chief Financial Officer of Exterran Partners’ managing general partner. “As a
result of this acquisition, we expect to recommend to the Board of Exterran
Partners’ managing general partner that Exterran Partners increase the
distribution to limited partner unit holders by an incremental $0.02 per
limited partner unit on an annualized basis, or an incremental $0.005 per
limited partner unit on a quarterly basis, beginning in the quarter that the
transaction closes.”

Exterran Partners and Exterran Holdings do not expect that the Omnibus
Agreement between Exterran Partners and Exterran Holdings will be amended to
adjust the caps on operating costs or selling, general and administrative
costs as a result of this transaction.

The acquisition, which is expected to be financed using credit available under
Exterran Partners’ revolving credit facility, is subject to closing conditions
and is expected to close in the third quarter 2014.

About Exterran Partners

Exterran Partners, L.P., a master limited partnership, is the leading provider
of natural gas contract compression services to customers throughout the
United States. Exterran Holdings, Inc. owns an equity interest in Exterran
Partners, including all of the general partner interest. For more information,
visit www.exterran.com.

About Exterran Holdings

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 has approximately 10,000 employees
and operates in approximately 30 countries. Exterran Holdings owns an equity
interest, including all of the general partner interest, in Exterran Partners.

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 Section 21E of the Securities Exchange Act of
1934, as amended. 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’ financial and operational
strategies and ability to successfully effect those strategies; demand for the
Companies’ products and services and growth opportunities for those products
and services; statements regarding Exterran Partners’ ability to complete the
proposed transaction and the expected timing of the closing of the
transaction; Exterran Partners’ expected use of availability under its
revolving credit facility to finance the transaction; statements relating to
the contract operations services agreement with BHP Billiton Petroleum; the
expectation not to amend the Omnibus Agreement between the Companies to adjust
the caps on operating costs or selling, general and administrative costs as a
result of the transaction; and the expected benefits of the transaction,
including the expected accretion to distributable cash flow per limited
partner unit and the expected increase in limited partner distributions in the
quarter that the transaction closes.

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:
changes in the capital and financial markets that impact the effect of the
transaction on Exterran Partners; 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 or natural gas or a sustained decrease in
the price of oil or natural gas; Exterran Holdings’ ability to timely and
cost-effectively execute larger projects; changes in economic conditions in
key operating markets; changes in safety, health, environmental and other
regulations; as to each of the Companies, the performance of the other entity;
and the failure of any party to the transaction to satisfy the conditions to
the closing of the transaction.

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,
2013 and its Quarterly Report on Form 10-Q for the quarter ended March 31,
2014, and Exterran Partners’ Annual Report on Form 10-K for the year ended
December 31, 2013 and its Quarterly Report on Form 10-Q for the quarter ended
March 31, 2014, as well as 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.

Contact:

Exterran Partners, L.P. and Exterran Holdings, Inc.
Media
Susan Moore, 281-836-7398
or
Investors
David Oatman, 281-836-7035
David Miller, 281-836-7895
 
Press spacebar to pause and continue. Press esc to stop.