Capstone Secures 4.4 MW of Five Year Long-Term Service Contract Renewals with a Key U.S. Oil & Gas Producer
VAN NUYS, Calif., July 11, 2018 (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 has secured several significant Factory Protection Plan (FPP) aftermarket long-term service contract renewals from a key U.S. oil and gas producer. The FPP renewals are for nine separate contracts, of which seven are five year extensions and two are four year and four month extensions.
E-Finity Distributed Generation, Capstone’s exclusive distributor for the Mid-Atlantic and Southeastern United States and a leading power solutions provider in the Marcellus and Utica shale regions, secured the follow-on FPP contract renewals to cover a major gas producer’s growing microturbine fleet at multiple locations.
E-Finity maintains a fleet of approximately 600 microturbines in continuous duty operation. The renewal FPP contracts cover a total of 4.4 MWs and include C30, C65 and C1000 series microturbines. As a result of these latest contract extensions, E-Finity now has 68% of its commissioned Capstone turbines under long-term FPP contracts.
Capstone’s innovate FPP program is an industry-leading aftermarket service plan, delivering peace of mind, predictable maintenance costs and remote monitoring capabilities at an economical price. The all-inclusive long-term FPP contract helps ensure business continuity while normalizing maintenance costs with a simple fixed maintenance fee per year regardless of the annual scheduled or unscheduled maintenance required.
“A key component to Capstone’s growth strategy is to increase our quarterly aftermarket accessories, parts and service revenue to the point that it covers our quarterly operating expenses,” said Darren Jamison, President and Chief Executive Officer of Capstone.
“Many energy producers in the U.S. shale regions operate in remote locations where traditional utility power is not very reliable and less economical than onsite generation. The FPP offers tremendous value and security to our customers. Capstone’s microturbines are a reliable, low emission power source that our customers rely on 24/7 to help maintain critical energy infrastructure,” said Jim Bondi, Executive Vice President of E-Finity.
“Capstone continues to expand its aftermarket service offering to be more competitive in the distributed generation marketplace and is now bundling our product, accessories and service contracts to make our value proposition even more compelling to the end-use customer,” said Jeff Foster, Senior Vice President of Customer Service for Capstone.
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.
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," "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.
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Released July 11, 2018