EXTN - A Weak Short-Term Guidance Undermines Exterran's Valuation
Exterran Has Many Short-Term Concerns
Exterran Corporation (EXTN) serves the natural gas processing and the midstream infrastructure business in the energy sector. It also provides aftermarket parts and services. While a low natural gas price may keep its stock price under pressure in the short-term, I think it will produce steady returns in the medium-to-long term due to increased demand for natural gas processing and related services, including midstream infrastructure.
The company’s Product Sales segment growth and backlog fell significantly in the past three quarters. Although the Contract Operations segment backlog has remained