EXTN - Earnings call transcript Q3 2017

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Greg Rosenstein

Good morning. And welcome to Exterran Corporation’s Third Quarter 2017 Conference Call. With me today are Exterran’s President and CEO, Andrew Way; and CFO, David Barta.

During this conference call, management may make statements regarding future expectations about the company’s business, management’s plans for future operations or similar matters. These statements are considered forward-looking statements within the meaning of U.S. only the speak call. of and law as date of this securities and the company’s materially and risk including trends differ results Exchange factors described to other The could factors, Commission. due actual the filings company’s with several important and uncertainties Securities in the Management refer financial this call. measures may during non-GAAP to earnings the website. yesterday issued available the company’s Regulation In a of release accordance G, with these press reconciliation provides company measures in its on to With that, turn now Way. I the call Andrew over will

Andrew Way

everyone. QX despite morning, were another excellent interruptions Thanks, Hurricane Exterran, good Greg, Harvey. in employees was quarter for our some from and impacted by Houston-based and challenges seven Harvey. One of

Despite be Gas and to to Harvey, we the Our to with and thoughts executed continue team maintained our as rebuild management. cash focus and continue Product across continued ongoing led in following progress capital their which segment, our and the lives working company, in Oil they storm. challenges families, their orders and well higher strength of the devastating in margins gross the

Some we’ve prior realized being are of discussed encouraging. the of signs improvements calls and productivity on are process our

We will the third In with in performance initiatives discuss other our line Operations, our these was in later quarter expectations. Contract call. and

existing customers. same and experienced in we We contracts the at continued our high to past service excellent continued renew the rate to we’ve to deliver

customer capital two These new which of and major both and are maintenance all AMS four revenue a to We business helped Whilst our projects revenue a wins. Pacific services reflect total profits focus regions of long-term basis, and to equipment transactional segment, a projects our light a our saw are our traction. model. long-term in provide approximately rotating longer million offshore our grow quarter an onshore transactional transition standpoint, Operations represent Latin bookings legacy with consecutive gaining some $XXX is model, of quarter from Contract these AMS provider. they four on QX, higher renewals term Product and a projects, consecutive service with business on diverse customers. order In during model represent consistent an Asia to in operation services business two and agreements the revenue operating we America excess our with we on backlog. value-added both across of Sales, base Service and Aftermarket back in from our fifth annual Our committed opportunities O&M business fourth new and with streams worth AMS recorded Aligned more large building of our of are transform and of quarter’s in of reached

processing we quarter, gas orders Bcf per day gas. capable X natural booked of the plant During of

Bcf reflecting first year-to-date more summarize quarter, of capacity, year per processing strong X ‘XX. fact, gas infrastructure to gas we represent growth orders solid than and the half a North plant up the revenue of year. wrap Product in To the backlog of Sales built midstream into In the America day this

Our Contract line with in Operations delivered expectations. renewals

year. continues on review, as to fourth outlook, quarter the opportunities ICO our the Dave up grow finish setting well new of to early pipeline financial us I’ll for a Our the strong our as over thoughts to for call turn XXXX.

David Barta

Thanks, Andrew.

discuss performance. quarterly will I to I As segment sequential our comparisons make again results,

as to Latin gas. less produced well natural QX contractual legacy changing in to lower X% Revenue starting XX%, $XX driven consistent was We to part percentage and due margin So and recoveries to conditions, certain million. our did repeat in America re-scoping in not gross margin Operations did, productivity. however, the Contract decreased that with $XX QX the by more of maintained decreased from million with wells gross of and QX a segment, revenue due liquids project

flow $XX results As million decline allows was result higher to foot Service segment, is QX. or a in XX% the as inevitable the protect a revenue than lower Aftermarket change. but you’ve our a re-scoping revenue of our throughout our seen financial in margins us mix year, In

XX% led was Our of to margin in This resulted quarter. the key second margin in resulting percentage $X increase. dollar the gross drivers in million, the percentage in at gross percent which in improved increase and margin the of XX%. in million, X% revenue $XX gross -- X% rate to Productivity to $XXX this offsetting The of and margin while improvement, of segment part resulted gross were impacted million, mix from book-to-bill compared of impact nearly XXX%. North Product was Harvey. sales, roughly Sales a Harvey, Sales to was Gas international Geographically, percentage XX% compared XX% in margin and split the Gas be decrease margin into services. revenue gross the $XXX to as XX%, Oil from due America the to by Product tend were to markets. the and lower Oil margins which was XX% Revenue million, bookings from which decreased translating

the Our compared million was backlog end Oil at Gas to of Product $XXX QX, and QX. million of $XXX Sales at end

recorded highest is XXXX. $X first million. Sales gross quarter margin of the backlog Product EPC since Revenue was million, segment non-core Belleli $XX the and of Our in now our we almost

cash Belleli improved to quarter, quarter. third to projects were expenses and operational down from million benefit delivering remains We in in track the for we execution, second closer from as the the final year. are $XX be neutral $XX the on few SG&A million continue to

in in East. third totaled CapEx awarded Turning quarter, to capital million, towards Middle with going expenditures $XX projects most announced the the previously

total Looking of credit of at $XXX available at was and undrawn debt $XXX million. million, the quarter with balance the end sheet, the

X as times debt-to-adjusted in our EBITDA Our end QX. was at which leverage agreement credit defined ratio, is the of

of Net the from will million at XXXX. million QX Our of net stood X.X end debt therefore and $XXX million, $XXX down at times. at end leverage the be $XXX

an continues a the conversion as meaningful delivering and revenue revenue. percentage given impressive an capital seen basis we’ve excellent in We job increases absolute are and our of That’s turns working on in and Inventory strong both a continued cash Working capital, an accomplishment are is lower. trend basis collections growth managing increasing, cash process and on orders. liquidity. overall improving and to year-to-date cash

turn mid-XXs will to I’ll up outlook the fourth slightly In higher than QX QX. or flat the for towards the with migrate margins Operations quarter. to Contract Now QX gross

XX%. Gas Service flat of our Aftermarket mid segment, in and Oil and the again should gross Sales $XXX In business, should $XXX be once high around Product our come to the For margin margins million revenue once again XXs in be range should and to revenue percentage million to QX. in

expect and revenue forecast $XX of $XX to to this a range gross by be margin positively For but million. we million be Again, better the we’d could delivery. execution Belleli EPC product impacted the segment, zero,

will We slightly business will when anticipate would in and treated should as be discontinued such place, lower $XX anticipate next $X notes record this SG&A first the and we the below cash senior to interest and beyond, expense also SG&A low should translate takes the operations be fourth other of the should million items, the will that as percent line XXXX a will the as quarter, be Depreciation report and flat approximately In we April. segment million to in be quarter the which if QX associated we our payment time. Few offering you we’ll capital be $XXX of $XXX XXs interest and the between with million. quarter expenditures total fourth make million. in the fourth to modeling from approximately revenue, in mid-XXs. also

detailed we’re a beyond opportunity to take But will morning the also process. QX, of outlook XXXX next planning the XXXX of look at a our year this level. We more earnings in be offer to but modest a on growth early stages want the continued call. We’ll

in of revenue period. many Exterran XXXX first in profit short lesser know, the more half. business, variables a you of degree a a cycle and cycle can order aren’t within alter will is convert to Strong second XXXX to the XX-month in our longer and half As that topline there flow

first backlog of build for We’re working will the to that and build top diligently second revenue further the half. half

projects its continue over orders more. of could do or do and in Contract will Contract remain We next months. Operations. new I few prospects excited initial East, earlier. projects up projects, billion Our current with the an we’re about the setting see puts coming pipeline awards We project re-scoping the Middle years years, that we many partially are but new We on uncertain, some legacy by of online the and those for execute backlog. $X as work see we to to a mentioned believe XX coming offset business takes project into the last Times in could XXXX, Operations have in lumpy of

to process well. it’s But a on and the is, early get equipment service enhanced today. Oil locked absorbed year XXXX for certain basically customers on continue will year. we and what a performance. of in our potential reactive capacity and focused the parts based field backlog new is by provider in provide is in business too will be on less XXXX AMS maintaining bought transactional as first half full moving Our Gas as services we do fully a What read budgeting and know our how next have revenue the are group bookings from customer-owned Product Sales, and In to operating field customers is much

for pace will plants around growth of place North impact here XXXX. gas term have the for world. The slower In orders in both fundamentals production U.S. addition, new what in a the longer on and potentially in are gas and America

story efficiencies to still second to the will This back turn secular need call to design the back are stabilized Pricing but pre-downturn focus heading productivity means on our the not of and enhance has we the and in maintain into So Year. will XXXX, now New we even over not prices Andrew. I’ll changed. half levels.

Andrew Way

Dave. Thanks,

as on just team to center you us. So we’re primarily so short accomplishments all should see the of company proud been on emerged and developing. growth focused rely early have we type this I value on to stakeholders we’re strategic note. foundation establishing, fourth the time, the in a of trust At we our our outlook, the few themes this future. for come of while year year of the the More not We’ve create building to we’ve made begun in fundamentals, financial results to focus have and process the process, stakeholders plan, of solid recently, the long we greater in a continue strong a our upon on summarize in we is throughout a a all finish can we our way am may aspire our we but are so that business of be, have period statements. quarter

two centered themes around are Our drivers. strategic

customers and secular second core and our The countries growth turning just solutions our continues real current uses. has today. residential, gas be source growth to a our power by This customers set is of A provides current global on we to bring is business, by ability value to as natural is beyond gas a first accelerating of the commercial the in our natural tailwind to and for confirmed to expand the business. driver for core the more industrial core. opportunity sell beyond Exterran’s Exterran beyond what global and

great the of a spent and in market two been have has customer We This the analyzing opportunities. time parts. process deal

free return working portfolio to and manufacturing is prioritize review profiles. our with that goals. product capital products aligns financial services technical as lines, would in well services. and a our of portfolio ensure and to first reinvest analyze as strategic goal with capacity, This long-term current our new resources The is and higher to to The up growth product and

share details be to this position concluding a next process and are early year. further We should in

initiatives you we productivity with several quarter, manufacturing. last As chain discussed around implemented and we supply

new In our margins. win improve further to to a on further where work critical XXXX were customer to product follow several times, often availability to implementing lower and standard times customized quarter, As reactive we costs were to and cycle work lead the we’re changing actions equipment streams to products, projects. last from preferences expand of

opportunities. product process part of of our market and adjacent second the strategic identification The new is

to follow flows. on and can revenues goal Our and complementary cash produce recurring develop services products is that

down being four offering decentralized more that two, to metric these the leverage and more to us regions function a regional and sharing on support localized information in go-to-market organization well we Asia the are intent optimize North future, of are Pacific, streamline America, the instead initiatives you continue Africa. with our East look We trends In a and scale. approaches require the customer initiatives cost to market to speed, will and footprint opportunities central a with in structure, road of the the standpoint, talk and overhead those to and I future. more America, solutions hear From we forward product about manufacturing needs. Middle and Latin and transitioning These

East months, added few growth Asia past drive in additional and leadership the we’ve and greater to Over focus customer intimacy. a the Southeast regions on Middle

a We best resources, are operate to migrating have globally. local that and we practices our level, capabilities while at leveraging operating the model simultaneously

our further customer at We’re cost the also developing market and to to needs call offering a aimed oil of and the at chains talent to power, water needs to products abilities in Exterran as questions. turn in-country gas, bolster faster I’ll respond a portfolio vision for a systems in and our over addressing solutions the for services process is company pools Ultimately, operator now supply production. the point markets. local to to competitive go customer areas

Operator

from you. your Thank questions. Credit Please proceed Wicklund Jim line of first the comes Instructions] of question with [Operator Suisse. Our

Jim Wicklund

Good morning, guys.

a supply be there that’s a the or plan can international chain have and couple could. breaking now chains I infrastructure strategic as questions ambitious to going those and really curious, countries, very and you in in-country am working sooner and the you’re laid of talk better others required out out that I you’re segments a I develop the be that in if you Is interested than better that? expect you’re one of You on bit region supply to to going a you am to mentioned different about result have you that little

Andrew Way

pleased work for question. Thanks the the time Middle quite of time We’ve the been said activities quite space and a -- short in accomplish to been very some pretty that for we’ve we’ve the with Jim. commercial Hi, that East. able in

review dispersed because large in ICO, If think the coming with you of we Asia we really Exterran. Latin and region. see and greater to America. volume America have that’s But of interest started little have, design, a Partly some the interest We’ve in we pace Latin the a had increased say really Pacific lot year as model down early associated opportunities two the a at a more, was that result would Belleli we about and decided also Exterran of between former or than a amount projects part the alluded Exterran, AMS and as at the provides in a a in strategic to, exit maybe to ago. to the won and executed through facility own, of Dave generating we the well result of from that doubled Belleli of an the operate year transition I’d seen Dubai a

design, leader bullish we developing are for role now team a project Dave than a there remarks And some obviously that manufacturing background equipment, management couple backlog mentioned in have East. the of of skills, integration in Middle reporting see been recently regional a of today that we over new plans years. of more region. So pipelines that’s in both countries in-country the we’re number $X so we his put and processing through and services region opportunity billion next will we in see of of opportunities those significant that that the come the prepared on

So to region we’re continue that we on to lot that’s there. a the improve focused opportunities of see and

Jim Wicklund

towards to the model, just it because is to several down then stopped activity have of a and internationally of share is in Middle you’re guys declines gravitating if seems be capital by you and a is have right to win, gaining positive. That your Okay. activity companies you now see is which said that or then winning flat from spending have but operate overall increased Latin could I been business everybody then overall that some There America recently -- going Are international because activity somewhat up. seeing that your East, double started addition contracts, you moves activity just and that capabilities?

Andrew Way

No.

America I America. came the seeing is activity, of have course over classic signs time encouraged, first the level of deals. Jim, the sort little shape part, certainly and think by more a own was some that come in am recently months to close production certainly the answer encouraged the we But smaller country the close. in the East, seen and today. region that very They I opportunities and and that very, very seeing we’re not operating there to important appetite say, elongation me back any six of starting are we’re to opposed the us let from larger opportunities is encouraged through and see cycle as for and and of we opportunities towards improving focus to also more of next with are that a to more definitely Middle processing it’s see form -- Latin I’d longer but more trend think gas we’re Latin at I we still a just model taking of

that summarizes. pretty So much

Jim Wicklund

I I of much. strategic a ambition to luck. guess, you’ve Pretty deal of forward of look further plan, best development got And great the and

Andrew Way

Jim. Thanks,

Operator

next comes of Deutsche Havens Please Bank. with your David line question. proceed the Our question from of

David Havens

world, and that is on going national client gas Yeah. details can Middle versus of -- model you who in broadly to and Good you do faster? with any on questions, if embraces give that us international oil or look of morning, terms the between own the a some but guys. can side, Two kind majors, the you operate the state I us state difference I largely assume national, find of the business, mean, share you first the East around

Andrew Way

company independent an current oil territory. fields I is countries have larger company world in or around obviously success had the there their to oil either access international think, that a we’ve beyond where

years opportunities is I’ve regions, by either support, we pull-through. seen And nature, we’re into two AMS seeing we’re other currently that support and where ICO they last regions have so today or over providing what migrate as the model also

latching really customer but up now in the Middle it opportunities by by in that we’re and gas model they goal where them fast get from require as say we’re But, so East, model, to field as model also customer, be and you successful sure, that’s that’s I’d our depends to is really market faster producing IOC one NOCs onto is very to now. the particularly to other really So seeing, showing right are produce field, in help country support gas certainly for right that seeing defined, we’re basin and certainly as pull-through countries. this providing

both, certainly in is right So where led by we see regions now seeing but NOCs. mostly the growth the the we’re opportunities

David Havens

versus can over process from your and compression say just then, What would the X, is And contracts, prior new customers? of Okay. you your now to some you shift and where done job. X already from percent of trains treatment coming you’ve X pull-through larger business

Andrew Way

I North Yeah. year-to-date a with It’s of great America. day was the in this the question. working about team. gas other through XX plants kind sold We’ve

opportunities a beyond we what train been of for of of sold little some of so third to Xs, provided for year. quarter continuing train XX% see that as supplied has greenfield about over QX XX XX% train say and what relation our customers the We Xs particular next the sold multi-train a we year-to-date and in year-to-date, I’d XX. amount the quarter great prior in for X we just more the in we but pause equally fourth a of case ability we’ve one would the X the of to scope significant location production bit was sold but and with quarter be the We’re through and train working terms budgets slowing taking their sold a and

obviously the a America some will So now. in right next that market to have both. additional North capacity. it’s carefully The we and that when come of exciting But certainly over pacing will very the years online, require is how two question which years mixture we’re basins three

David Havens

trains scope I that and think projects generally X give is Do ultimately how you projects the on of X how and be, we mean, good is you’ve do those have that? kind maybe XX can even done high visibility X on about average, some us big end, where

Andrew Way

CapEx working Yeah. in to certainly for seen decided we what high particular they That’s certainly we’re over ultimately location, where on give of trains particular -- customer we on But current that ownership the fully that externally we’ve already we visibility, up and sense you a projects and that model see time. basin. our the for end by ‘XX and typically of plans. own of of will there’s customers by we operating, basin see an and that lag put It’s that customers is question capacity as they move in where whether into that into ‘XX in terms obviously, play market a a more in and our internationally. track will running gas be put But both location will basin, then the producing announce communication of, plant required. It

see and across getting and certainly opportunities. we happen. capital It question So, is it the of ‘XX the making a ‘XX line

an update next So, fourth play part out a little we’ll plans and more the of bit of that in give here when early see we year. our on quarter you

David Havens

Okay. Thank me. for you. That’s it

Operator

of with from of Our next question the proceed Gibney Capital your question. One. Please Joe comes line

Joe Gibney

on propounded and just million company-wide but to curious, to Gas gross I I from aggregate a within morning, know called for of million Sales. profit $XX think, $X revs out margin that Sales, impacts just question Harvey, sort Oil Thanks. Good so guys. in Product you some impacts is Product difficult you baseline David, and triangulate, this

got I sense, guys to lifting, you’ve you lot getting margin absorption, efficiency it’s used. you here, of you’re get am strong a So just trying a a better posted

XQ what’s have know but sort called there. for somewhat flat, ex- with triangulation curious a it’s I your of So just been pieces, difficult of lot what a you baseline, moving I out Harvey, XX% XQ know but

David Barta

impact rate it I more don’t much was as really topline. the QX was think as

were Houston in here facilities Our down.

impact I think storm. out we of the took because the about days production of seven

So of revenue. it more was

little from million frankly, of a you in $XX up driver, days standpoint, had a But rate the we not, significant impacted. I production of not impact made from that what seven revenue obviously, not an was absorption, impact. due we so on to rate said have we think about productivity,

Joe Gibney

Okay. quarters, quarter is maybe recoupment dispersed terms just to back potentially obviously, get revenue guide sense some of obviously, trying on of your over what in fourth Product fourth couple Sales that those a it’s And lost, there, quarter in call of than of a topline?

David Barta

Yeah.

Our doing was certainly of about of revenue everything that of rollout get we’ll that’s for back on $XX half and obviously, our But, rough other we assumption and of be that everything to again pushed million customers. roughly QX a we the all can just view production half get will that of would the in QX out schedule sure QX for have. how given and

Joe Gibney

Okay.

That’s helpful. Okay.

the customers. additional side, term two AMS the you renewals On about talked longer and

of does this I to short of in stream, an maybe referenced just typical a and acceptance if when think on duration for kind these transactional model you getting the kind begin you’ve Just on I move long-term long-term this me some worth operating am of alluded of in away and curious by correct I we should how said… of customers about rate a here, is quarter you Andrew, annualized the wrong, to revenue your basis, again aspects of think time? kind flow through you think that as revenues maintenance sort of quickly fold curious this, from expansive what more this How and to focus on

Andrew Way

Yeah.

Joe Gibney

the two, color helpful. … be not just there would some four all just

Andrew Way

sort in at the we’ve -- term a is think, the Product year about saw Sale. a so lot little I AMS contracts so we What And contracts as talking is, start has were fair. where ICO, two-year locked for same of success you refocused we seen way, years. more in we transactional of had that talk QX, down. AMS about two That’s a longer more a down bit way a selling a breakthrough in the sell look. this that , transactional to our the as we lock able Yeah. team goal see We’ve on were to a same of able past of longer term in way

don’t we type and really stage parts. change working little three that’s force and XX-year One, contracts now we’ve ICO, we’ve we able see go to then, importance now bit got benefits and lot been and kind and at of market. they for in seen asset. benefits focused some on We’re two on the of our think seen of bring certainly only the really seeing a in are show years. we’ve this how we’ve as reliability maintaining the ICO right ICO. a it availability, secondly, we a of equipment to the same difference the they that’s we’ve can But changed get the I a And seeing to sales we’re customers how in is own

that got the get recurring talk sense wins and to is we cash a had But in forward. going the so longer Joe, stable long-term four AMS to that way what see good that ICO, that good us enjoy at So the also. to margins and be about pipeline transition we’ll all quarter third need a we for position you’ve flow regions. for see should They’re revenue we’re going through we to those long-term a term, of model that’s the to contracts so real be same coming a in in QX. in across sense really backlog on in to to we really We as continue to today provide

Joe Gibney

project this as sizable. am billion and $X year, helpful? cross the with project at $XXX that to would last million talking guys just into XXXX, view you pipeline I for pretty had curious year that The the booked we looking the market, you Thanks. just What now more pipeline obviously pipeline currents over then be it $X turn ICO view the what back. that you were next from Okay. versus looked but Middle in bookings a me one in into year, someone Helpful. was you’re lot East for And I’ll also referenced, year you where next project in like billion were last about there’s looking baseline looking

Andrew Way

Yeah.

taken $X So weighted through. have we are a two on things There view the work billion. that we’ve to

operate as and all, very the -- year, reserves of of we there’s best their what customers work the customer an explained they this with how First field often of the we’ll a scopes understand are need early very to and developing many times development at the and I a at of I once of prudent number early our fields. with to element being to produce, work monetize trying stage

fields come good tender have haven’t the a formal pipe yet we down process. into may for that visibility So

And is so I into compare front, coming confidence we’ve certainly on billion will pipeline a of call what I few in we think, go probably ahead. magnitude what we of I I’d times say we say ‘XX, will ‘XX think what that. than next But that kind of the and into over of pipeline our on better quarters that is the kind go The $X level. weighted bigger is a look in ahead based lot sort earnings is year saw saw a the X of I’d ago gotten today that the coming how on if XXXX, believe

on. And happen? the we’ve been Now is, it that’s will the real working big question that challenge when

CapEx to not a some We’re give guidance ‘XX. for in position today

give we next the of higher in this the than we’ll year of it an view part will be back end obviously come the of but year, As year. through more a updated early

now right through ‘XX that are some looking at signs So also and at for confident ‘XX. and we’re seeing projects encouraging projects we we’re the

online described growth. have is long play, ICO I’d we already way ‘XX say, and see We’ve but in for looking transitioning this modest a forward, a is term business to important so, business sort projects Dave as got ‘XX going coming announced, with of the ‘XX, pipeline course, ‘XX which a that. we’re is of real that having up at the really we setting strong this do And

the it. So, number we is, very news a and regions great encouraged a of good pipeline see across by

Joe Gibney

guys. All it. right. Thanks, Appreciate

Operator

with comes Fargo. proceed question. from of Our James the Spicer next of your question Please Wells line

James Spicer

Hi. Good morning.

at just breakdown point really how could So basins wondering what geographic into XXXX? a if that Sales your driving are Product you provide looks this of and

Andrew Way

Yeah.

straightforward the from little locations activity. say, year, more primary to of picked that And in see it But the saw last seeing for West about then first through. basins of Northeast West in are we’ve shaken seen than across others midstreams in the basins way sooner focus our the Harmon surprise terms that Latham, change the are we out a of some Texas QX that with little stack Stateline, year of mostly of activity the track basins Basins. a come I right a nothing that up midstream a the year-to-date the be along of different both in wouldn’t of capacity had So of the in to capacity we’re we so XX% see areas. seen, Anadarko a where volume and Marcellus in that Ramsey, and volume about a a half we’ve I’d now the so a of the the terms processing in Northeast little some no where Ola, sure, Mentone, of field. bit overall the saw guys pretty the different in the of so for Creek, you’re Texas the we that some It’s know Permian really you was QX, some trend seeing from the talking and bit the XX% increases lot lot is we’ve -- change the in where us, the this particularly they and in Sherwood,

James Spicer

you. Thank helpful. That’s Okay.

Operator

of of from Burke comes the with Company proceed Rice Daniel L.L.C. question Please Johnson next question. Our line your &

Daniel Burke

not in a take comment sure I make on $X Hey. understood the Good way Andrew, to corner, you make but into I I trying pipeline. billion wanted ICO to quarter, the any wanted to guys. morning,

visibility the a by is ‘XX forward any really billion awarded without $X to to pinning are projects set think guys end of with you that of be goes? in is time, that the you far magnitude quarter, just So the period will period of -- of or how trying understand say, the

Andrew Way

a quarter over I can I’d projects XX It’s great of the have pin really And question. the say, next there feel down ‘XX up Yeah. will close that and set a now. that months I will that right we that ‘XX. will course one be don’t

stage next in the months we here think, some where projects to should to couple of are getting I start awarded. so, And the see they

have number of projects been that will We’re goals ‘XX of be mostly the we the a and required in countries. the already ‘XX through for by process But, are the of are together and countries half speak those ‘XX. some nature of say, the plan aspirations what of, made there into obviously, in they of the for and putting both the those I’d decrease and as over our ‘XX course, capital first

months we’re will say, over I’d coming months couple see hope awards. one to XX or the so, and start next fruition to of we a of projects to over I these And those to announce two next months XX the in position

Daniel Burke

That’s Oil I third Sales could for the think, bookings one, America helpful. I and versus maybe Dave, I will missed Gas then, just split answer Product we on I side be, And the North know Okay. what quarter, but the missed maybe it get international?

David Barta

Yeah.

top XX% international. I was North from and cover the think that XX% the off the that American

Daniel Burke

Okay.

So, were okay, bookings part... similar, revenue and misheard that pretty I

Andrew Way

but… -- But

David Barta

Yeah.

Andrew Way

Within couple… a

David Barta

That that revenue. was was actually basic,

Andrew Way

Couple percent.

David Barta

Yeah.

Andrew Way

percent. couple a Within

David Barta

Yeah.

Daniel Burke

underpinning Got of piece be? the it. hear next and the was the maybe and for way a the follow-up of then obviously, small the didn’t that Oil main basis commentary looks the next just that’s how this of there a and considerations year, specificity some I But Got business side updated what XXXX any considerations might Gas international of on little one been all highlighted sort of But you year. Sales, portion on it. I And of that more appreciate a of into most of will relative really outlook to a business the element one, sort be quarter. mentioned piece Product

Andrew Way

Yeah.

sold different around We so pretty have production and It’s the visibility some levels you talking have a we’re a some size gas for a animal year-to-date of countries’ What countries. whole for the America is Exterran as plants North is we the of ‘XX North in -- entire -- for in staggering. opportunity. certainly we different America level of activity activity know from project very

so, I’d as we’ve but we Product may ICO, intention additional of can to in this AMS through And countries a coverage hopefully of then we’re put scope. there traction in regions couple in a big come Sales. year and coverage and that made a And where to convert product our say today been on if are ‘XX, that lot we not seeing focus lot of the what projects has had really haven’t

more then opportunities and us opportunities we’ll that am organization and really help more and in will And regionally drive revenue I and have sales ‘XX countries. we for get really It an close more to that hopeful orders, those as strides and so ‘XX uncover deals our more yield into focused. that’s regions help and will

transition help And and in XX countries that that’s those plays real us grow the the over and here we’ll have to, so leadership that to heading out see how we’re months. regions next can that

Daniel Burke

Thank guys. Okay. Thank Great. that me. All Well, does for it you. right, you, Andrew.

Andrew Way

Thanks, Daniel.

Operator

[Operator question. from & Instructions] of your Co. the Simmons with Watson John Our next question proceed of line comes Please

John Watson

Good guys. morning,

Andrew Way

morning. Good

John Watson

currently are on selling Product from you any customers you Sales, oil one are potential oil enhanced recovery me units, quick regarding discussions A recovery? with having enhanced

Andrew Way

are the huff flavor right that. lot on the Well, looking industry and that this I’d in terminology very of using stages there’s at I the of we this, now is puff. a say think, early

put the pressure higher more rated compressors. the it together We what implications have white a means for on of for paper our business

now some able very some together certainly what that we’re to growth Exterran. through. adjacent that we’re again, interest as It’s part in something markets being our that we’re and work through, at of plan looking seen working that the different put I alluded with it’s there’s the and for looking to, So we our at, are we’ve coming it means early stages solutions right through of program with but

John Watson

guess, what percentage you I Thank are sales North that. of and follow-up stage And stage stage? compressors for to or X for X related X versus made Understood. then, America

Andrew Way

been I would year could the the, trend case I on that. the take a I know I’d have I to higher but get mean, the back maybe has has horsepower. to be been guess, of this wrong. you certainly more

the get seen that we’ve we’ll do, I hasn’t towards follow-up really you data. So, But will Greg, you what trend we’ll horsepower the the certainly with changed higher think, quarter. third in that and

on more think, product, opportunities We’re will certainly future. I still that the heavier the foreseeable continued seeing be for and

John Watson

Okay. back. Great. I for turn my taking Thanks will it question.

Andrew Way

you, Thank John.

Operator

are of over conference I the audio There would further management the for remarks. conference. back over now closing questions to portion like no the turn to

Andrew Way

Thank you.

great your Appreciate interest today. a dialing again I’d So, Exterran and day. everyone in once for you Thanks. in like have to thank

Operator

today’s conference. Thank This your for concludes you participation.

rest of disconnect may day. at your a Have time. wonderful You lines this your

Exterran (EXTN) 9 Nov 172017 Q3 Earnings call transcript