Compressco Partners, L.P. Announces 2014 Financial Guidance
OKLAHOMA CITY, Feb. 10, 2014 /PRNewswire/ -- Compressco Partners, L.P. (NASDAQ: GSJK) today announced 2014 financial guidance of $130 to $135 million in revenues and $24 to $28 million in pretax profit.
Ronald J. Foster, President of Compressco Partners, remarked, "Our estimated mid-range 2014 guidance of $132.5 million in revenues and $26 million in pretax profits represents a double-digit growth rate and sequential improvement over anticipated 2013 results. This improvement is driven by our expectation of increased demand for and utilization of our compression based production enhancement services in the markets we currently serve, and expansion into the adjacent 80 – 300 horsepower market space using our new high pressure three-stage SuperJack™ compressor packages primarily aimed at gas-lift applications. We believe domestic demand for production enhancement should increase in 2014 as commodity prices have increased in our conventional gas markets. Plus, we see strong demand for unconventional applications for oil, liquids and associated gas utilizing the GasJack®, V-Jack™ and our newest product line, the SuperJack™. Our Latin American operations are expected to be flat for the first half of 2014 with steady improvement during the last two quarters. We also look for continued improvement in demand in the Canadian, South American, European and Asian markets in which we operate. We continue to pursue and review acquisition opportunities that would be accretive and expand our market presence. Finally, we made positive steps in 2013 to improve our profit margins through supply chain optimization, cost reductions and field operating efficiencies. We expect 2014 results to benefit from the on-going implementation of these cost initiatives.
"We anticipate total capital expenditures of approximately $34 million and depreciation expense of approximately $16 million during 2014. Our 2014 capital expenditure plans support ongoing investments to upgrade and expand our GasJack® and V-Jack™ compressor fleet, along with continued investments in SuperJack™ three-stage compressor packages."
Compressco Partners is a provider of compression-based production enhancement services, which are used in both conventional wellhead compression applications and unconventional compression applications, and in certain circumstances, well monitoring and sand separation services. Compressco Partners provides services to a broad base of natural gas and oil exploration and production companies operating throughout many of the onshore producing regions of the United States. Internationally, Compressco Partners has significant operations in Mexico and Canada and a growing presence in certain countries in South America, Europe, and the Asia-Pacific region. Compressco Partners is managed by Compressco Partners GP Inc., which is an indirect, wholly owned subsidiary of TETRA Technologies, Inc. (NYSE: TTI).
Forward Looking Statements
This press release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as "may," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume," "could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements. These forward-looking statements include statements concerning expected results of operations for 2014, anticipated activities by our customers, financial guidance, estimated distributable cash, estimated earnings, earnings per unit, and statements regarding Compressco Partners' beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. These forward-looking statements are based on certain assumptions and analyses made by Compressco Partners in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of Compressco Partners. Investors are cautioned that any such statements are not guarantees of future performances or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in Compressco Partners' Annual Report on Form 10-K for the year ended December 31, 2012, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the U.S. Securities and Exchange Commission. Compressco Partners undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
SOURCE Compressco Partners, L.P.