Exterran Corp. said the consolidation of its two compression facilities in Houston is on track for completion by the end of the year.
It is closing its plant at 12001 N. Houston Rosslyn Road and streamlining all manufacturing at 4444 Brittmoore Road.
Andrew Way, president and CEO, said the action is an example of Exterran’s drive to adjust its business to improve cash flow and returns.
“We’re scrutinizing every product and service we have to drive acceptable returns and cash flow,” Way said. “Our strategy hasn’t changed with the near-term headwinds the industry has been facing, and the longer-term macro landscape remains very supportive of our business.”
Exterran posted a net loss of $7.3 million for the second quarter of 2019, as compared to loss of $5.4 million in the first quarter of 2019 and net income of $0.1 million for the second quarter of 2018.
During the quarter, the company repurchased a million shares for $14 million, bringing buybacks to $19 million this year. It has reduced its 2019 capex to around $200 million.
“The new era of oil and gas investment is here,” Way said. “We’re seeing changes in our customers’ behaviors as they look to minimize capex to improve their cash flows and returns. I believe the industry is beginning to better understand this new normal.
“It’s still maybe a couple of quarters before due course of business resumes. It does feel like our customers are beginning to look beyond the coming quarters at their longer-term needs.”
Exterran also announced a produced-water technology suite for oil and gas producers. The Separon system is a turnkey solids removal and transport system capable of treating up to 750,000 b/d.
With the addition of Separon, the company’s suite of integrated technologies includes desanders, deoilers, multiphase hydrocyclones and microbubble flotation technology for oil and solids removal.