Capstone Continues to Expand its Presence in the Permian Basin with a 2 MW Long-Term Rental for One of the World’s Largest ...
October 08 2018 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST), the world’s leading clean technology manufacturer of
microturbine energy systems, announced today it continues to expand
into the Permian Basin with a 2 megawatt (MW) long-term rental for
one of the world’s largest oil and gas producers. The long-term
rental order, secured by Capstone’s new distribution partner, Lone
Star Power Solutions, is expected to be delivered and commissioned
in November.
The Permian Basin is a sedimentary basin spanning much of West
Texas and Southeastern New Mexico. It is widely considered one of
the most abundant oil and natural gas geologic basins in the United
States and reportedly holds the largest crude oil fields in the
United States, including more than 20 of the nation’s top 100 oil
fields. Additionally, improved oil recovery techniques and
technologies including water flooding and carbon dioxide injection
have increased production levels in the basin. Capstone, therefore,
considers penetrating existing and new customers in the Permian
Basin to be a critical part of its near-term double-digit growth
strategy.
“This long-term 2 MW rental is a significant opportunity for us
as this is our first foray of Capstone microturbine technology with
this major oil and gas company in the Permian,” said Darren
Jamison, Capstone’s President and Chief Executive Officer. “This
significant oil and gas company is primarily focused on the
exploration, development, production, refining and marketing of oil
and natural gas, as well as related chemicals, and this rental, if
successful, could potentially lead to additional long-term rentals
and future product purchases as they operate in more than 70
countries worldwide,” concluded Mr. Jamison.
The oil and gas company sought a flexible and scalable energy
solution that could be quickly and easily deployed within 45 days
and be seamlessly expanded in the future to accommodate the growing
energy needs of its installations. Capstone microturbines are
extremely reliable, modular, inherently redundant by design and can
be easily expanded or relocated to accommodate changes in
customer’s future site loads.
Natural gas generators are gaining popularity in the rental
market due to their lower emission profile compared to the high
environmental impact of diesel rental generators. Capstone
microturbines are recognized as the low emission leader in the
stationary power space. Rental customers are also looking to
capitalize on the benefits offered by Capstone microturbine
technology. According to a study by Technavio on the global power
rental market from 2016-2020, the rental gas generator segment was
valued at $846 million in 2015 and is expected to reach $1.2
billion by 2020, growing at a CAGR of 6.7%.
“It is great to see another win for one of our newest
distribution partners as they capitalize on the flexibility of our
C1000 Signature Series product,” said Jim Crouse, Capstone’s
Executive Vice President of Sales and Marketing. “With today’s high
oil prices we continue to see expanding opportunities in the North
American energy market as customer activity picks up and they
continue to find value in our compact, quiet and reliable
microturbines,” added Mr. Crouse.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST) is the world’s leading producer of low-emission microturbine
systems and was the first to market commercially viable
microturbine energy products. Capstone has shipped over 9,000
Capstone Microturbine systems to customers worldwide. These
award-winning systems have logged millions of documented runtime
operating hours. Capstone is a member of the U.S.
Environmental Protection Agency’s Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A DQS-Certified ISO 9001:2015 and ISO
14001:2015 certified company, Capstone is headquartered in
the Los Angeles area with sales and/or service centers in
the United States, Latin America, Europe, Middle East and
Asia.
For more information about the company, please visit
www.capstoneturbine.com. Follow Capstone Turbine on Twitter,
LinkedIn and YouTube.
Forward-Looking Statements
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.
“Capstone” and “Capstone Microturbine” are registered trademarks
of Capstone Turbine Corporation. All other trademarks
mentioned are the property of their respective owners.
CONTACT:
Capstone Turbine CorporationInvestor and investment media
inquiries:818-407-3628ir@capstoneturbine.com
Integra Investor RelationsShawn M.
Severson415-226-7747cpst@integra-ir.com
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