Capstone Secures Microturbine Order For US Oil & Gas Application

Capstone's C1000 Signature Series microturbine

Capstone Turbine Corp., a manufacturer of microturbine energy systems, has received a new 4-MW purchase order for a portable power oil and gas project in the United States. The order consists of four natural gas-fueled C1000 Signature Series systems that will provide power to critical equipment at the wellhead to ensure continuous operation of the oilfield.

The new project, which is scheduled to ship during the first quarter of fiscal 2019, was secured utilizing the company’s new bundled solutions sales program.

As part of Capstone’s new bundled solutions program, these four microturbines come with a long-term Factory Protection Plan (FPP) that covers all scheduled and unscheduled maintenance, providing fixed operating costs. Under the terms of the new program, the equipment and long-term FPP service contract must be prepaid at the time of order.

“This order is significant as it is our largest order to date under our new bundled solutions program which is designed to improve customer project economics and shorten customer payback periods. Historically the oil and gas industry has been challenging for our aftermarket service business, but we believe our new bundling strategy will help to improve our success in the sector as demonstrated by this notable order,” said Darren Jamison, President and Chief Executive Officer of Capstone. “The program was specifically created to provide customers with a comprehensive product package, while positively impacting Capstone’s revenue growth rates as well as improve working capital and cash flow.