EXH
Exterran Holdings Inc.
Industrial/Transportation, Energy
06/21/2013
Presented
| Date | 06/18/2013 |
| Price | $29.17 |
| Market Cap | $1.86B |
| Ent Value | $3.63B |
| P/E Ratio | 22.44x |
| Book Value | $26.56 |
| Div Yield | 1.9% |
| Shares O/S | 0.00M |
| Ave Daily Vol | 570,000 |
| Short Int | 9.36% |
Current
| Price | $21.01 |
| Market Cap | $3.30B |
| Exterran Holdings, Inc., together with its subsidiaries, provides operations, maintenance, service, and equipment for the oil and natural gas production, processing, and transportation applications. The company’s Contract Operations segment offers natural gas compression and production, and processing services, as well as engages in the engineering, procurement, and on site construction of natural gas compression stations and/or crude oil or natural gas production and processing facilities. As of December 31, 2012, this segment provided contract operations services primarily using a fleet of 7,651 natural gas compression units with an aggregate capacity of approximately 3,376,000 horsepower in North America; and a fleet of 1,032 units with an aggregate capacity of approximately 1,265,000 horsepower internationally. Its Aftermarket Services segment sells parts and components; and provides operation, maintenance, overhaul, and reconfiguration services for compression, production, treating, and oilfield power generation equipment. The company’s Fabrication segment engages in the design, engineering, installation, fabrication, and sale of natural gas compression units, and accessories and equipment used in the production, treatment, and processing of crude oil and natural gas; provision of engineering, procurement, and fabrication services primarily related to the manufacturing of critical process equipment for refinery and petrochemical facilities; and fabrication of tank farms, and evaporators and brine heaters for desalination plants. Its products include line heaters, oil and natural gas separators, glycol dehydration units, condensate stabilizers, dewpoint control plants, water treatment, mechanical refrigeration and cryogenic plants, and skid-mounted production packages designed for onshore and offshore production facilities. Exterran Holdings, Inc. was founded in 1990 and is based in Houston, Texas. |
Highlights
Exterran Holdings (EXH) is a “dropdown story” involving its 50% ownership in MLP Exterran Partners (EXLP). EXH’s core business is natural gas compression, and although the presenter said the capital equipment leasing business is not the most exciting/ best business to be in, EXH offers investors an interesting opportunity on the long side because it plans to drop its remaining North American compression gas business into the MLP by early 2014. This move will allow the company to right size its capital structure (pay down some relatively expensive debt), and given the free cash flow generation at EXH they could potentially start paying a dividend.
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