Exterran Holdings Inc (NYSE:EXH) Q2 2015 Earnings Conference Call - Final Transcript

Aug 04, 2015 • 11:00 am ET


Exterran Holdings Inc (NYSE:EXH) Q2 2015 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Exterran Holdings' and Exterran Partners' Second Quarter 2015 earnings call. At this time, I'd like to inform you this conference is being recorded, and that all participants are in a listen-only mode. We will open the teleconference for questions after the presentation. Earlier today, Exterran Holdings and Exterran Partners released their financial results for the second quarter 2015. If you have not received a copy, you can find the information on the Company's website at exterran.com.

During today's call, Exterran Holdings may be referred to as Exterran or EXH, and Exterran Partners as either Exterran Partners or EXLP. Because EXLP's financial results and position are consolidated into Exterran, the discussion of Exterran will include Exterran Partners, unless otherwise noted. Also, the term international will be used to refer to Exterran's operations outside the US and Canada, and the combination of US and Canada will be referred to as North America.

(Forward-looking Cautionary Statements)

And your host for this morning's call is Brad Childers, President and CEO. And I would now like to turn the call over to him. Mr. Childers, you may now begin your conference.

Brad Childers

Thank you, operator and good morning everyone. By way of introduction, because we've not yet completed our separation transaction, the format for this second quarter call be the same as we have used for past calls. That is, we'll discuss the Company's results overall and not broken out into Archrock and Exterran Corporation's results. So with that format in mind, joining me today for the call will be Jon Biro, CFO of Exterran Holdings and David Miller, CFO of Exterran Partners.

Before we begin our review of the Exterran Holdings and Exterran Partners results, let me start by addressing the status of our separation transaction. In November 2014, we announced our separation plan with a goal of completing the transaction during the second half of 2015. Over the past eight months, we've made tremendous progress to be in a position to do just that. So much so, that today we are prepared internally to separate the companies into Exterran Corporation, our international services and global fabrication business and Archrock, our domestic contract service business early in the third quarter.

On our first quarter conference call, with this progress well in hand, we tightened our time frame for the separation from the first half of 2015 to the third quarter. Our preparation to separate required significant investment as time, energy and effort on the part of our employees and we were able to prepare ourselves for the separation faster than anticipated. And we did this while maintaining our focus on delivering high quality products and services to our customers and managing our operational and financial performance to deliver stable and profitable results for our investors.

On July 13, we launched one of the final steps in the separation process, a senior notes offering for Exterran Corporation or SpinCo. The proceeds from this offering were to be used to