EXTN - Earnings call transcript Q4 2019

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Operator

Greetings and welcome to Exterran’s Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the conference over to your host, Mr. Blake Hancock, Vice President of Investor Relations. Thank you.

begin. may You

Blake Hancock

Officer; welcome call. and Chief Corporation’s quarter Chief fourth Officer, Operating Exterran’s Good Officer. me to today conference Financial Exterran’s Barta, With Way; and Girish are XXXX Saligram, Andrew Chief morning David Exterran and Exterran’s Executive President

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

that, With to now call Andrew. the over will I turn

Andrew Way

from and Thanks, a events full on then quarter, by start our everyone call on followed press by during XXXX Blake. the that first the and recap level will quarter subsequent Good release some morning, today. commentary the covering of year I thanks joining for XXXX. key a the brief few high fourth occurred

our strategic business. we U.S. business not can going finalizing U.S. close fabrication advise you our of being press the forward. core our in review release, We we As are we foresee fabrication part compression to decision the our a of compression that do in stated

global footprint plan and we our the to for the own we plant utilize contract for to U.S. sales. both market integrated U.S. where compression providers, operations international have markets partner equipment provide our to with product However, need compression support and

of and less has products been have higher orientated lines. a on allow part us margin, North months key last need a This cyclicality, been value-added to our has the XX particular segment service in more highlighted focus history, focus product this compression legacy to of the on revenue returns big services. decision our part and recurring will While and America higher

the end To overall to sales insight product some dilutive million. XXXX, of was this were margins with sales XX% the give on reported year during awarded of our business during product which the was during equipment, quarter the revenue order business O&M gross at our quarter, Backlog was for $XXX provide product integrated roughly first margins. in gas history, East. all project we first sale integrated Middle order a the processing This sale services in will a along agreement. plant as product largest award fully X-year management, we and a booked was the with Also

for We train to platform awarded the future relationships. excess of start considering the first which typically excited $XXX X have are a this orders especially to to-date provides very strong the in opportunity in Total that extremely year. now for is are quarter been million, win

quarter. debt bring to our we This allowing net the flow positive the cash territory guidance of down strong as us to on million something a $XX full focused which end we range EBITDA of quarter cash from our $XXX free of $XXX operations million. from high-end the $XX company the at to delivered for all of also flow pushed was million at This and quarter fourth as adjusted year was year. the for is operating continuing The third million, generated

cash very debt, to pleased faced that in are new to flow of ‘XX, industry challenges our we pay during second business. while projects the the in down half the the investing ability Given with

accomplishments XXXX, to about slowdown want a Looking back the moved in some of challenging time talking of get spend orders. macro little the decisively environment. despite the to I ahead at The organization

We in Houston, facilities same take at costs are the our to react and the consolidation OpEx with two over able quick $XX of very out while both driving between compression million efficiencies, of time to SG&A.

XX%, at testament huge which moved. fourth the was in organization in year-over-year the looking it Just SG&A the a speed our quarter, to down over

facilities made to integrated key manifest that and we and an While competencies critical we processing over protect abate the will cost preserve This as on our and in under-absorption made quarters. inroads decision engineering and out expertise global treating significant taking manufacturing the QX will in business. XXXX, important supporting coming capabilities, in

that put the We culture to we’ve One and controls days. incident-free place during strong continued continued deeply system. focus we XXX spin the entrenched risk year, since refine management our in is And our around value enterprise safety. recorded in our

a lost-time in organization. at resulting Keeping of to XX% incidents employees continue peer to top the a contractors recorded will Looking for benchmark compared priority benchmarks, our our and industry fewer safe TRIR remain and X.XX. recordable we

overall Turning are markets have invested we key to to will to in market where share prior gain in the similar infrastructure build-out. in believe market be well-positioned XXXX, we critical years we XXXX, but

driven to orders the to especially exited as quarters, headed represent revenue expect begin revenue, backlog through. in first XXXX. to The expand first begin margins would later lower into in EBITDA flow quarter by will We the margins and trough and quarter

continues we million, to that bid which sits us in now gives which activity the over confidence grow, getting $XXX traction marketplace. are water Our

globally. continue expand technology team while We to customer and our our growing reach

can unconventional, we distinct conventional, three address: now are and offshore. There that recently, markets

our cover market The here and number cuts Flotation and customers We costs North of oil With is development the the Middle customers. operating and no that conventional is a an with water We space performing American produced our the critical. ESG able in an years the Micro-Bubble a we operational grow unconventional universal ended reducing participant market have North space have significantly that as products addressable fields the patented towards Only rapidly at higher in can very East. and industry active of efficiencies, that in clear making look with guidelines. water and a are even to our management greater small smaller water America management growing emerging are fragmented our opportunity. several mobile have for currently but technology technology, water Customers and supports today, challenge strategies countries for We treated emphasis water is mature been goals. Today, portion more market. separate or on water well. standards

to untreated disposal matures, believe an at well-positioned industry are the economic to SWDs. we we that As alternative provide an freshwater,

water the a over pipeline a increasing in recovering our projects while solutions XXXX treatment to over U.S. the million and segment I already look of our of organization and and XXX,XXX the growing water for the have production breakout that today growth years produced barrels business a for customers. starting seen water, optimism the will experience our much larger in year. technology not standardize the can well what We given of know treated oil our year the growth are confidence this our one course treating keeping and coming demand interest to over XXXX, significant barrels large over believe I to for in growth. by driver installed tied who XXX is our year. have forward footprint their This In that current the I updated you technology. the of of backed we is anticipate and and be see water business as My using patented the on as is all customers

want and business. product I becoming fabricating platform reiterate over ECO, return Before higher our processing cyclical oil We gas sustainable that and the a along a Girish, launch water customers result choices environmentally providing have. from I great integrated with with less solutions turn solutions lines our business, process compared margin, from of complete it power and alternative provide AMS, transitioning higher corporate systems and to to believe as equipment goal to may our to to and primarily a

we complex, company and portions and provide create by revenue several I that are with we many great and even the journey can about to afforded. unique Our are the of the energy Coupled very margins stable of excited expectations all that our the excited characteristics, global the solid to business create business This compared to our employees, on the company many future and of of The a to journey our recurring far is holds. industry start far return XXXX. am along about what how come this exceed has stakeholders, value for designed energy nature streams and customers. are the not ECO more exemplified investors, the benefits on affords we within and long-term AMS footprint within us believe

With I to it that, turn over now Girish. will

Girish Saligram

the both cases, will longer on like we take two In with projects therefore, ECO our have contribute and elected facilities our would I and to of Andrew. the ECO customers they to Thanks, to that margins. no call. revenue third ownership start quarter discussed

operations both integrated the projects that guidance have the in effectiveness the included. or year services maintenance a these The while ECO negotiate In each will and decision provides a our with, lease total always were for in we of facilities, extensions the will our versus line hope the balancing and first the renewals these to providing and our time, for than Dave in targeted quarter not business which returns. same cases, was variables. if be some that at At of segment. be we AMS to at model, once our own While demonstration reported both deals, greater for least will renewed multiple full of point, make, these of our is return customers

touch little see across this provides industry supply situation value opportunities geographies, chain can Currently, dive therefore, global to coronavirus impact minimal supply on diversify both on many like Being and situations is I impact base, operations but our a I us chain. our and want to our Before of. create the the company projects we the business aware ramifications do into that supply services. on broader everyone on chain

of challenges still reliable and foremost, duration many with for could equipment customers to with on providers We providing committed along their outbreak time employees is first and safe, create the remain the satisfaction. However, to fluid ultimately keeping around and our globe. and the severity our

respond to and continue this closely appropriate. will We as monitor

of and with sets are of less a projects what companies, more I react to experienced never and social many it commodity well and global the provide as volatility That to there jobs, with markets. power are as nature of long-term where those facilities in may improving to economics, operations, evidenced conjunction see have will dimension near-term before. for spending to Similar and oil in I a creation that East continues want have start quarter. the our is a to internationally. a we to regions during industrialization to to The focused develop projects. we have the activity Middle price first reiterate to on gas Moving on work their award you other continue factor the heard that projects. on by moving community from large Customers as international the opportunity project development strategic many and hotspot gas be

to sales. product continue progressing projects We see both ECO and in

and work along lines product projects from traditional have Our previously. we follow-on won with water,

set is and water customer also themselves well that region. We more have roughly for as to potential to testament expertise here, are of in our history, and past Andrew this pipeline fields. This focus. project operating as seeing as out we their a book solid every the three discussed, the a around immense the coming is region year now for our award new seen present the opportunities for conventional record, largest This bid providing company teams support

continued this of of book relationships and half the had Latin ECO opportunities been Middle has on are Up well. America extensions. to a over region But the we as both water to to is in customers. to us see for opportunities build and new of this sales. product at steady projects continues enhanced most acceleration business Roughly region several quarters, beginning over with by have past success the of the the around looking with our be is point in we as East an systems long-standing we are point,

an countries facility and come as differentiation both the The We for beyond for are their conventional arise our providing additional sales, beginning aftermarket region is but fields. to beginning tenders to grow our from to see more region in product back, perspective. unconventional is opportunities, Asia-Pacific also look

wait slow to to are market, their turning to cycle and they order aware the all to Lastly, drive cash returns. This is access as focus of flow the U.S. U.S. clearly, mid-streamers customers free plans. from and you their causing producers producers’

and continue opportunities but conversion. on with processing have projects, remain that months. to large XX low the laser-focused see customers bring the for We in looking volume to with and are very present We are who on treating plant to opportunities conversations and integrated constructive next continue additional

from midstream U.S. with in CapEx is lower, continue reduced in growth our allocation the CapEx products. ample the for growth for in and customers Clearly, the be we CapEx still opinion, biggest migrating to the see but takeaway gas demand in this is there of to along additional our continues driver need Permian. space, the Capital capacity

will online for drive processing come facilities. these coming needs As in and also additional years, it the treating

to beyond growth. our starting traditional on out flaring also of focuses solutions the industry would add carve P&T time, At are our provide same looking I versus environmental gas. more space the areas solutions cryo facilities greener that and much as new the we

months, analyzing scalable Over of the standardization with our value modularization, competencies will chain, with spaces can innovative provide gas we solutions. a and additional core coming the be customers in platform

business to gain months. to of U.S. the customers dramatically have water in water companies spectrum Our several traction customers increased mid-streamers past with in and the Conversations potential service the producers. continues with from full

this versus options As the economically recycle full fresh by water that also versus everyone viable our be but water, and/or water friendly. can is reusing only treatment water reuse to environmentally look to and driven is the for fact and not sustainable treating fresh beginning is

commercial, transformation engineering This versus said I will strong believe and operational echo a up, just provider differentiator of a global and to with all having us and prove to equipment. over would solutions regarding years. to be integrated services on our fabricating teams wrap footprint what focus leads a To coming for sustainable the I being strong and greater projects pull-through that like our Andrew complex

Dave results. discuss I will our now to financial pass over to quarter it fourth

David Barta

was performance quarter and The end free be of year, $XXX million for expectations. high revenue Operating another leading to fourth of cash was our reflects million the million us repurchases. as at of adjusted, the quarter Thanks, excluding full $XX the flow Girish. EBITDA, and strong on million for with $XX flow share cash $XXX year, positive the for

$XX fluctuations From as segment. rate million, segment margin gross a contract operations our perspective, a XX%, flat ECO $XX sequentially of there gross posted are margin relatively while in resulting of revenue limited within million, was both

margin of million. in a Revenue gross gross segment a million million This For was a $XX gross and Sequential products the quarter. and in AMS, were the the rate for result revenue was was $XX quarter $XXX XX%. margin resulted increase revenue for pickup million. the in margin was rate $XXX margin resulted $X and X%, bookings of of sales gross part million, was of

driving $XX the compared across product efficiencies of sales were down million, at Our on as $XXX was we expenses end XX% at backlog organization. focus continue quarter million the fourth end over the to the of million to year. $XXX year-over-year SG&A prior the

quarter $XXX $X balance $XXX available debt quarter the shares, repurchase end a credit at deployed million. the to million with the bringing total $XX fourth million to of the million. little the of in was year-to-date XXX,XXX over sheet, We Moving repurchases to

our leverage employees great of third shape the X.Xx the along quarter flow testament our the The to Our to is the efforts resiliency in ratio compared X.Xx during is strong of conversion at of quarter. a end cash at with business. the

changed. hasn’t strategy allocation capital Our

responsible growth. We for prioritize will funding be and organic sheet the balance

However, buyback will remain M&A and options.

was in also certain related our decision of result as quarter, we non-cash value of charges contract idle compression the in a million primarily total to U.S. of idle the $XX operations release, review segment, the U.S. to our remainder compression the million impairment to tied business. the As our and to we discussed The recorded and monetize of the related business the assets. impairment in press compression $XX fourth review assets to

ranges present. the I compression that guidance to of compression quarter ranges the year change exclusion business I clarify for business, want not provide of guidance include does U.S. provide all fabrication Before full the first of I we however, our the the U.S. XXXX, and fabrication EBITDA

XXXX, point quarter the more as This of quarter, adjusted, be second-half For year $XXX of a we driven million from as a full by EBITDA in in the loaded between bookings. and million. be low first strong the will $XXX EBITDA, work should impact first

mid-XX% revenue be $XXX guidance, the million, margins in segment the million million Regarding should low range. range. ECO should between AMS and $XXX between $XXX the $XXX million margins and in with to with mid-XX% revenue be

continue the million orders little point, between included. U.S. very the million CapEx million, backlog there Product between million committed at on and $XX what $XX is those be is upside and timing around be sales million. $XXX XXXX wildcard between with and SG&A conversion and for should the be our on and to the to interest reimbursable primarily depending in $XX $XX with If taxes orders. growth and cash $XX picks internationally million between $XXX CapEx is expense speculative up, should $XX and million. $XX $XX expected be this for CapEx guidance today million year maintenance for of is And could million $XX should million be around million. XXXX other based Currently

will low $XX be with should Contract in mid to operations first I in revenue million turn to the Now the quarter. mid-XX% gross range, the range. margins

margins In should million AMS, segment $XX our revenue the high U.S. million be business our range. $XX should between sales fabrication compression the for million, results. be product in includes should segment, For in to revenue this and range be $XXX the and mid-XX% mid and

the and revenue million. between would business, compression fabrication be million U.S. $XX Excluding $XX

should remind million. for million. $XX impacted EBITDA million. to to between want without the U.S. quarter and over between expect the negatively $XX that as earlier, $XX million be you our million be unfavorable point compression the be range SG&A said be will of with $X absorption Lastly, would valid $XX low EBITDA should adjusted as included. And for I product I or this by be being year. margins we and the first gross of business

turn And back to remarks. I’ll his with call the now that, Andrew for closing

Andrew Way

Thanks, Dave.

positive more This First, several our operations That worked industry projects to XXXX on while the are energy with much stronger to executing to contract is we ECO producing backlog than free have cash deliver market that global teams to hopeful the cash will expected. and flow for several number proved internationally by along entering the a we operating a to U.S. footprint the around tracking. had investment The many to are in solutions be in customers our sustainable year. XXXX flow said, for allows manner. accordingly efficient to year in specific that deliver and projects contracts us investing multiyear year. made tirelessly challenging key globe and we led a we off much a Exterran rebound had strong driven for the the flex safe start, our strong

the goal our of our Our improving by returns, with business differentiation to generation, is cash power the global and flow reach. along in leveraging demonstrate focus

is in and services And to a us company. XXXX representative lead traditional the of sustainable Our less that start products of true direction. solutions I a be strong is believe step in this provider a long-term energy

a provide of industry and sustainability a the the in of a across getting Permian unique huge attention we’ve topic region. set offerings is lot our to stakeholders. Flaring, clearly We as heard, also

the these addressing Our coming integrated years. an role in plant concerns solution important can provide in

that fracking you amount the drastically allows this I While freshwater the our reinjection. modular and immediate to fact for environmental us scalable benefit for solutions, both or the reduce with all needed treating water understand of of technology think allows our business,

and with to their Our manner. in needs customers is a friendly sustainable goal help environmentally our

you company become. to we like leave are again would I with that to looking the all

will chain its part last look to As investments more contracted reiterate, This more industrial These an we significant more margins, the all of multibillion-dollar with can even I year across segment mission-critical will with sales predictable investment not those are we goals, to our you of stable, cost a than align if margins will backlog, additional have cycles and given but be our on quarter, believe and and market all strategic to portfolio, are well infrastructure. offerings forward product course transformation, requires the much compression higher EBITDA ones smaller our think of updating product criticality the resilient over of continue aspirational providing achieve while model returns greater the of that mentioned well is I of although I with into. supply our all lines aligned being plan. consistency slows. company successes a new business. capital, This we have product above our and the XX%, realizes With of regions.

And the turn to with that, call I the will now back operator.

Operator

line from Kyle comes [Operator May Securities. Our Instructions] One your the with shoot Please first question of question. Capital

Kyle May

Hey, David factored you be is, I And start bit segment this revenue I card. product a should to going good year? want your guidance product quantify your business? that to are could I wondering this think with sales guess, help about mentioned that the was guidance. us morning. wild we sales into of XXXX a how if of the

David Barta

wide given that on with what We is know Sure, amount even said, really yes, revenue really again, based business, our the would in the we we’ll a I range. that wildcard a nature, on product the pretty as I Kyle. expect. visibility. visibility say, this have now certainly longer I longer-term have to is would business. core you good a and side And U.S. of sales better I think think But guidance, iterate cycle

You truck would $XXX that point. probably a we to $XXX this million range that drive be through. could provided at million But

Kyle May

Got it.

already seen this about year have think next should part the of helpful. ‘XX? XXXX into early And that of also the and and in Okay. business we the growth with of surge business profile That’s year how then early you the

Andrew Way

pipeline work building pipeline, the think continues I the Kyle, has a quarter and demonstrated was build. very So, we last put really that year and first to that solid in

That’s there’s at not of we described. card what of terms Dave in why just so wild the here end some pipeline. are of part the And

or this are I think we compression. that with the provide year, guidance comfortable we without

can you impact really have as a of play next here out doesn’t couple material in clean months. we kind So the on depending on the company, from It of how that.

we’re backlog today, the what we and a in Already confident of backlog building in a EBITDA year, year next very that certainly will a see more terms flow this provided, For we see year not rest ‘XX year. that lot build balance the as And feel and is far with that of numbers next orders, to and growth throughout the year projects year. be of continue solid then the continue the looks the we through we to year. the outlook a for ‘XX that very of

Kyle May

last the it. sales you in it. quantify the Middle more details sounds product prepared your mentioned and remarks, one me And the us East. Got on significant That in for those you projects Got good. there? revenue Can new give the

Girish Saligram

Sure, Kyle. This is Girish.

demonstrates processing well it of in last really the million is as business getting It’s what over also of together platform and really there sales again, ECO range. modular both of has in the the facility different the together dehydration, comprehensive capabilities a more Andrew have. what all hopefully stream order $XXX it years. gas typically, growth plant this gives utilities, mentioned, it has we coming years, services management coming And that plant, And that we in have as north in it solution, and facility. balance to we relationships gas provide an it a a of us million and $XXX lot couple and where This and out Cryo have million. build-outs, associated is then we $XXX of with the is years coming of the and for has leads maintenance a a seen whole and the project confidence for that is integrated all product deals first and of announced five Over particular future excess operations

years. So the excited of executing we’ll about project, over next the we couple are be it and very

Kyle May

Thanks, me. Okay, great. That’s guys. all for

Operator

comes Tim question your next AltaCorp Our of line from Capital. Instructions] with Please [Operator the question. Monachello shoot

Tim Monachello

Hey good morning, guys.

few a Just me. for

And material review just possible outline on incremental any from divestitures proceeds here? if from that rate fabrication wondering outcomes any expect you process? could some The first process. one, the compression review of you the I’m downs if or

David Barta

Yes.

business Dave, I this core the will not between said, going forward. and down. part And as think, we prepared of release Tim, comments, press this be is are the we narrowing it our

outcomes So within leads to details. narrowed probably we’ll those potential any at standpoint I share From think a we’ve I as that to. more you options, not point, that think this

provide more with hopefully, matter and think, I this the that until update so, hopefully, some or within, of that business a something probably weeks on time of we’re the wait forth. is numbers we back with and an to you so color where were historic

Tim Monachello

good. sounds Okay,

ago just that get that encouraging bid In looked a here, number management like so business, got pretty would terms of around can we a year the you’ve water What substantial some pipeline out $XXX direction? have today. million

Andrew Way

time we question, of $XXX ago, So, a line about probably good about sight bidding. year in had This terms of Tim. pipeline million

pipeline. in XX the a last months done that things have We few increase to

commercialize. technology been in put out invest does engineering First North start into we’ve team, having business lot technology. has own a and just of all, an have in to Canada, a new where technical built Middle role, here we some the our team to both to got our integrate leading the We’ve our the teams We patented in result of headquarters and full-time that we a able from engineering around commercial And have operations moved now world. East. as dedicated also work into role to continued Roger leader, America, to and the the water, lab a in of George

many successful with customers past very years, few customers. relationships more lot Middle number the we’ve talked we’ve close the of well a seen of our in that over in both the about production facilities, East, ECO a the facilities, building-integrated and key as we’ve that same with deals So existing been for separation had customers water the very with last where the opportunity the we’re as with early are

their into technology. to And build their so we our continue into standards technology

applications that It’s And we’re million with that and solutions. XXX deliver the region in terms be some able of of we now barrels the produced pre-feed even so over very additional to process working that we in of closely water to year, have. last

better So capability can we’ve state bring with providers North And to very large in the today got America, are looking of state. multitude midstream we’ve a fairly but where the been it that with of on from we larger a even certain applications a active in then region. working are for already that working departments doing whole footprint technology to

a time got for very a build. it’s continuing very exciting great so good backlog is pipeline a us. And to and and we’ve And

to so convert And that’s got we’ve pipeline, and the that few focus next months. in our now

Tim Monachello

Okay. That’s color. really good a

North In mentioned there’s You strength $XXX been are weakness that America? product accelerating. in have And in could American help the think sounds million, more a how in that XXXX? that it you in would backlog do like North much that the that some backfill of really traditional of chance orders sales bids that

Andrew Way

where fill A we although suit our water business own lot model Well, purposely have now We together about is way integrated our less externally technology work partners that that water internal processing to bid capabilities growing. U.S. factories. we has pipeline, traditional IP, U.S. total is to decided necessarily limited mean made of scaled of million we build that we amount though we outside and than from of I we of probably it would help an a been over $XXX a $XXX capacity. that the back in purposed have. decision a to the and the million the have of us inside have is built, North so that a the That the was we a that technology with the footprint, the manufacturing years in It manufacturing few to think ago. that we plant to Of doesn’t million $XXX think it activity put and even of have that America treating

mode. grow. U.S. trial a in We’ve today think I to lot the market will field that’s the technology in got continue of

have works, that that the months of customer for have But business that is about low We cycles, the workforce few to that that organization. do the that with months drive and for units building there higher hourly and we’ve build, now talked will have managing have going a next I that multiple put want and been additional utilization and can through business to less additional trials us need ability margins this be fields. several the to constantly in reiterate are and doesn’t we’re more capabilities the we in if a that that cyclicality, the for are few to high will this we’ve trying field that cycles which the in go

to So continue we’re journey. very positioned on the well

I a think and region. East XXXX is water Middle our going to year, by our breakthrough be led

Tim Monachello

for then quantify that. you from the was XXXX? one the customers those should for here options last a impact the could lot thanks ownership contracts Okay, to or versus XXXX And me, purchase on if wondering I for two the ECO

Girish Saligram

Sure.

a have come revenue being that we really to providing AMS sense. purchase are quarter mentioned business that still be we’ll but $XX contracts the impact is back importantly, And puts taken us a as So in the and And some offsets arrangements again, the margins. but we that’s the operations as portion of itself, additional segment. there we’ll where also And is report typical then the I that sort we’ve mentioned, services. look, on of but the will of what on we our will rough million earlier, the with order remainder our see we that model provided. had takes that The facilities be pull-through about is as guidance integrated the will commercial of some first over, in And it quarters. maintenance with into on, magnitude, baked of already it’s and to more bring sort

Tim Monachello

Okay. And also, more got question. I one

sales, been getting the continue of In the product at would still your that U.S. languish have Have terms market. Are have since end any sense the across quarter? of materially things levels structurally? changed where to changed last things you they obviously, inquiry

Girish Saligram

remains No. conversion Look, seeing pretty still the strong. a we inquiries, lot are rate but of

deploy talking that’s today. an very good it’s a to the There and actually macro-environment operators standpoint appetite limiting We all the of customer that to are overall capital, having from but conversations. is

in immediate that don’t we over the see noticeably term. the longer So remain future, but changing optimistic

Andrew Way

and an to have uptick will third Girish of a bids mix now when question as I compression, that others when sure. orders. we quarter, seen specific the from decline on seen of rate. that’s reported, And into year Tim, in consistent these inquiries, fourth bit have for it’s to And they have And but convert first around go already with think we mentioned, conversion lot out a a a little over year of already

lot line are in gives we a that guidance already And solid a the the is a have not front booked growth the strength backlog company continues that back we what will we confidence first The of two mode. what we’re better provided. moving the quarter us today whole into the already pipeline talking And America have So we where about if gives on enormous North then for of us. the have got with year. getting we in year into with great see, it the in us very XXXX, go years banking

Tim Monachello

turn I’ll guys. back. great. Okay, Thanks it

Operator

the We Mr. for question-and-answer back remarks. to And reached over I to like session. end any the turn have closing Way of call would Andrew our

Andrew Way

and and for listening this in everyone, I quarter. would all first company. to remarks, updating appreciate the like in the the dialing you. I everyone, Thanks, you after thank Thank interest morning Okay. to forward to the and look I prepared

Operator

teleconference. today's concludes This

time. at a your lines day. this have Thank your disconnect may you participation for and wonderful You

Exterran (EXTN) 28 Feb 202019 Q4 Earnings call transcript