Capstone Secures 2.8MW Order for Repeat Oil and Gas Customers in Marcellus Shale Play
CHATSWORTH, Calif., Feb. 14, 2017 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it received a new order and order releases for a C800 Signature Series microturbine and two C1000 Signature Series microturbines for two repeat oil and gas customers operating in the Marcellus Shale play.
E-Finity Distributed Generation, Capstone’s distributor for the Mid-Atlantic and Southeastern United States, secured the projects, which are both expected to be commissioned in July 2017. Capstone microturbines were selected again based on proven reliability in the field, the responsiveness of the E-Finity service team and the improvements made to the new Capstone Signature Series product offering.
“A rebound in the oil and gas market is important to Capstone as we continue to improve our vertical market mix, with oil, gas and other natural resources comprising 38% of revenue compared with 22% of revenue in last year’s third quarter,” said Darren Jamison, Capstone’s President and Chief Executive Officer.
The three microturbines, fueled by wellhead natural gas taken directly from the pipeline, will provide primary electrical power for multiple compression stations. The microturbines will act as the primary energy source for these remote sites and ensure a steady flow of power while keeping area emissions ultra low.
According to the U.S. Energy Information Administration (EIA), natural gas production in the Appalachian basin from the Marcellus and Utica shales has grown significantly. A number of new pipeline projects, of which are in various stages of the approval process, could significantly boost the takeaway capacity out of the region by the end of 2018.
“We believe these orders, by two of our largest repeat customers, is an indication of a resurgence in the Marcellus and Utica Shale and a sign of activity for new feeder pipeline projects to come,” said Jeff Beiter, E-Finity’s Managing Partner. “This activity will have a significant impact for E-Finity’s planned downstream combined heat and power (CHP) projects, throughout its Mid-Atlantic and Southeastern territories, as it will provide more affordable natural gas to end-use customers,” added Mr. Beiter.
“As the oil and gas industry starts to rebound, we are beginning to see a revitalization of the Marcellus Shale play,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Repeat orders like these allow us to further showcase Capstone’s industry-leading technology and save our customers money at the meter,” 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 approximately 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 UL-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.
This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the advantages and reliability of Capstone products, the improvements related to Capstone’s Signature Series product offerings, the rebound of the oil and gas market, and the increase of sales into such markets. Forward-looking statements may be identified by words such as "expects," "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 Corporation Investor and investment media inquiries: 818-407-3628 ir@capstoneturbine.com
Released February 14, 2017
