Follow-On for Customer in the Mancos and Gallup Shales
Is Said to Be Good News for the Oil & Gas Business Sector
Capstone Turbine has reported its largest oil and gas sector order in nearly a year: 16 gas-fueled microturbines for a repeat customer in the Mancos and Gallup shale areas of the San Juan Basin.
The order includes an 800-kilowatt C800 turbine unit, two C600s, “and multiple C65 and C30 microturbines totaling in excess of 2.6 megawatts,” Capstone said yesterday.
Horizon Power Systems, Capstone’s distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan and Wattenberg shale regions, placed the order. The equipment is expected to be commissioned in three phases beginning this December.
The turbines “were selected based on the end user’s long experience with Capstone products and Horizon’s excellent local support,” states a release.
“Despite the prolonged slump in the energy industry, oil and gas producers continue to look for ways to reduce their operational costs and meet the increasingly stringent flaring requirements, which is a long term catalyst for our business,” Capstone president and CEO Darren Jamison says in the 2.6-megawatt order release.
‘Beginning to See Some Positive Movement’
“This order is a positive sign as this is the largest oil and gas order we have received in nearly a year and is further significant in light of the drop in our oil and gas business to 8% of product revenue in this year’s second quarter compared to 26% of product revenue for the second quarter a year ago,” Jamison said.
“We are beginning to see some positive movement in our oil and gas business as customers continue to see the value in the scalability of Capstone microturbine technology and production field operations are able to expand incrementally and seamlessly as the volume of production increases over time,” said Capstone sales and marketing EVP Jim Crouse.
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Source: Capstone Turbine Corp with Fleets & Fuels follow-up