Exterran Holdings Inc. is the global market leader in full service natural gas compression and a premier provider of sales operations maintenance fabrication service and equipment for oil and gas production processing and transportation applications. Exterran serves customers across the energy spectrum from producers to transporters to processors to storage owners. Exterran Holdings Inc. has a market cap of $1.31 billion; its shares were traded at around $20.97 with a P/E ratio of 8.9 and P/S ratio of 0.4. Exterran Holdings Inc. had an annual average earning growth of 8.8% over the past 10 years.
Highlight of Business Operations:We are the indirect majority owner of the Partnership, a master limited partnership that provides natural gas contract operations services to customers throughout the U.S. As of September 30, 2009, public unitholders held a 43% ownership interest in the Partnership and we owned the remaining equity interest, including the general partner interest and all incentive distribution rights. The general partner of the Partnership is our subsidiary and we consolidate the financial position and results of operations of the Partnership. It is our intention for the Partnership to be the primary vehicle for the growth of our U.S. contract operations business and for us to continue to contribute U.S. contract operations customer contracts and equipment to the Partnership over time in exchange for cash, the Partnerships assumption of our debt and/or additional interests in the Partnership. As of September 30, 2009, the Partnership had a fleet of approximately 2,519 compressor units comprising approximately 1,038,607 horsepower, or 25% (by available horsepower) of our and the Partnerships combined total U.S. horsepower.
Natural Gas Consumption. Natural gas consumption in the U.S. for the twelve months ended July 31, 2009 decreased by approximately 3.8% over the twelve months ended July 31, 2008. Total natural gas consumption in the U.S. is projected by the Energy Information Administration (EIA) to decline by 2.0% in 2009 and by 0.2% in 2010, but is expected to increase by an average of 0.7% per year until 2030. Total natural gas consumption worldwide is projected to increase by an average of 2.4% per year until 2030, according to the EIA.
In 2008, the U.S. accounted for an estimated annual production of approximately 20 trillion cubic feet of natural gas, or 19% of the worldwide total, compared to an estimated annual production of approximately 90 trillion cubic feet in the rest of the world. The EIA estimates that the U.S.s natural gas production level will be approximately 23 trillion cubic feet in 2030, or 15% of the worldwide total, compared to an estimated annual production of approximately 130 trillion cubic feet in the rest of the world.
Read the The complete ReportEXH is in the portfolios of John Griffin of Blue Ridge Capital, Richard Aster Jr of Meridian Fund, PRIMECAP Management.