Exterran Corporation

Welcome to the Exterrin Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to your host, Blake Hancock, Vice President of Investor Relations. You may begin.

Good morning. and welcome to Exterin Corporation's third quarter 2021 conference call. With me today are Exterin's president and chief executive officer, Andrew Way, and David Barta, Exterin's chief financial officer. During this conference call, we 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 the U.S. securities laws and speak only as of the date of this call. The company's actual results could differ materially due to several important factors, including the risk factors and other trends and uncertainties described in the company's filings with the Securities and Exchange Commission. Management may refer to non-GAAP financial measures during this call. In accordance with Regulation G, the company provides a reconciliation of these measures in its earnings press release issued yesterday and a presentation located in the investor relations portion of the company's website. With that, I will now turn the call over to Andrew.

Thanks, Blake. Good morning, everyone, and welcome to our third quarter results for 2021. Exterrin performed well in the third quarter as we executed on our global backlog and capitalized on a robust and growing commercial pipeline. Overall, the quarter came in line with our expectations on EBITDA as adjusted basis, net debt decreased by 15 million, and commercially, we achieved success with over 125 million in eco-renewals in Latin America, in addition to closing a long sought after water contract. In regards to the 125 million in extensions, this increases our renewals in Latin America to over 450 million since the start of 2020. Additionally, these extensions have added the benefit of requiring minimal CapEx investment, With our contract operations backlog now over 1.4 billion, the highest in nearly three years, we have excellent visibility to our eco outlook for the next several years. The product sales pipeline remains robust and continues to improve. As I've stated in the past, projecting timing of these awards is challenging given the size and scope of the projects, along with the fact that many projects have multiple partners involved in the decision-making process. We continue to pursue many larger near-term projects, and we anticipate closing in the next several months. As previously announced in September, I'm happy to share an update on the significant contract Exterrin Water Solutions was awarded. This is a long-term, multi-year contract that will treat over 150,000 barrels of water a day, leveraging our gas flotation technology. With this win, Water now comprises over 25% of our eco backlog. This award, along with the prior significant water contract award in the first quarter of this year, underpins our transition as we continue to position ourselves as a fully integrated gas and water solutions company. Moving on to operations, COVID-19 and its variants continue to pose potential hurdles for the industry. The environment continues to remain dynamic and we have experienced some minor logistical challenges in transporting people and equipment to site. However, we continue to make great operational strides and have seen no meaningful delays in the execution of our projects. While we continue to work to mitigate these risks, we anticipate potential challenges through the remainder of this year and into the early part of next. Lastly, over the past few quarters, we have spoken about the capital structure review we undertook to position ourselves to take full advantage of our commercial pipeline. We are in the midst of 2022 planning and continue to feel very positive about the forecast of 15% growth in EBITDA year over year. Additionally, we continue to pursue operational items that can enhance liquidity, leverage, or both. This could include improved working capital, asset sales, or contract renewals. To close in summary, we're performing well today and see significant opportunities to continue growing as we transition to a fully integrated gas and water solutions company. And with that, I'll turn it over to Dave.