Largest Oil and Gas User of Capstone Microturbines Adds Another 2 MW's of Long-Term Service Contracts in the Marcellus and Utica Shale Region for a Total of 14.5 MWs
VAN NUYS, CA / ACCESSWIRE / December 4, 2019 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that E-Finity Distributed Generation, Capstone's exclusive distributor for the Mid-Atlantic and Southeastern United States & the Caribbean, signed Factory Protection Plan (FPP) long-term service contracts in the Marcellus and Utica shale regions in the Appalachian Basin covering an additional 2 megawatts (MW) of Capstone microturbines for Capstone's single largest Oil and Gas end-use customer.
This customer's entire Capstone fleet, consisting of 7 x C30's, 39 x C65's, 1 x C200, 5 x C600's, 2 x C800's and 7 x C1000's, are now covered under Capstone's industry-leading FPP aftermarket service product providing years of comprehensive service coverage, including scheduled and unscheduled maintenance. The 14.5 MW of Capstone microturbines, commissioned between 2012-2019, are used for 24x7 prime power in multiple midstream central gathering facilities in the Appalachian Basin.
"Improving our FPP service contract attachment rates from today's approximately 38% to 45% in the near-term is one of our most critical strategic profitability initiatives, which should lead to a reduced quarterly cash burn and improved gross margins," said Darren Jamison, President and Chief Executive Officer of Capstone. "By securing this newest contract, our aftermarket business segment, including our high margin rental fleet, is expected to be the backbone for Capstone's planned recurring, predictable, and profitable revenue and free cash flow for many years," added Mr. Jamison.
"The high adoption rate of our FPP, especially with our continued wins in the Oil and Gas market, is continuing to drive our profitable aftermarket business to new highs," stated Jeff Foster, Capstone's Senior Vice President of Customer Service and Product Development. "Capstone has recently updated our innovative and flexible FPP service product offering, providing both multiple standard service options for up to 20 years and also standard options for Capstone's many product configurations and applications," concluded Mr. Foster.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world's leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, providing scalable systems focusing on 30 kWs to 10 MWs that operate on a variety of gaseous or liquid fuels and are the ideal solution for today's distributed power generation needs. To date, Capstone has shipped over 9,000 units to 73 countries and have saved customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.
This press release contains "forward-looking statements," as that term is used in the federal securities laws. Forward-looking statements may be identified by words such as "expects," "believes," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
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Released December 4, 2019