EXTN - Exterran Puts Strategic Initiatives To Counter The Operational Concerns
Exterran Faces Concerns
Given the persistently low natural gas price, Exterran Corporation (EXTN) will reduce its exposure to the U.S. compression fabrications business. Instead, it will look to rely on servicing the Middle East and Latin American energy production. The steady ECO (Exterran Contract Operations) segment backlog suggests better revenue visibility in the coming quarters. On the other hand, the Product Sales segment backlog fell significantly in 2019, indicating a lack of demand in the coming quarters.
Although it has no debt repayment risks in the short-term, negative FCF and leverage higher than