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Subsequent Event

12 Months Ended

Dec. 31, 2011

24. SUBSEQUENT EVENT

In February 2012, we entered into a Contribution, Conveyance and Assumption Agreement to sell to the Partnership contract operations customer service agreements with approximately 40 customers and a fleet of approximately 400 compressor units used to provide compression services under those agreements, comprising approximately 188,000 horsepower, or 5% (by then available horsepower) of our combined U.S. contract operations business. In addition, the assets to be sold include approximately 140 compressor units, comprising approximately 75,000 horsepower, that we currently lease to the Partnership, and a natural gas processing plant with a capacity of 10 million cubic feet per day used to provide processing services pursuant to a long-term services agreement. Total consideration for the transaction is expected to be approximately $184 million excluding transaction costs. In connection with this transaction, we expect to enter into an amendment to our omnibus agreement with the Partnership that would, among other things, increase the cap on SG&A costs we allocate to the Partnership based on such costs we incur on the Partnership’s behalf and extend the term of the caps on the Partnership’s obligation to reimburse us for SG&A costs and operating costs we allocate to the Partnership based on such costs we incur on the Partnership’s behalf for an additional year such that the caps would now terminate on December 31, 2013.

EXTERRAN HOLDINGS, INC.

SELECTED QUARTERLY UNAUDITED FINANCIAL DATA

In the opinion of management, the summarized quarterly financial data below contains all appropriate adjustments, all of which are normally recurring adjustments, considered necessary to present fairly our financial position and the results of operations for the respective periods (in thousands, except per share amounts):


	March 31			June 30			September 30			December 31
2011(1):
Revenue from external customers	$	618,479		$	657,572		$	704,478		$	702,941
Gross profit(3)		105,058			91,594			105,714			102,483
Net loss attributable to Exterran stockholders		(30,030	)		(28,026	)		(215,974	)		(66,578	)
Loss per common share attributable to Exterran stockholders:
Basic	$	(0.48	)	$	(0.45	)	$	(3.44	)	$	(1.06	)
Diluted		(0.48	)		(0.45	)		(3.44	)		(1.06	)

2010(2):
Revenue from external customers	$	576,308		$	643,822		$	625,623		$	615,780
Gross profit(3)		128,000			113,251			104,688			46,925
Net income (loss) attributable to Exterran stockholders		16,662			17,526			(17,985	)		(118,028	)
Income (loss) per common share attributable to Exterran stockholders:
Basic	$	0.27		$	0.28		$	(0.29	)	$	(1.90	)
Diluted		0.27			0.28			(0.29	)		(1.90	)

(1)	In the third quarter of 2011, we recorded a $196.1 million goodwill impairment charge (see Note 8) and $2.9 million of restructuring charges (see Note 14). In the fourth quarter of 2011, we recorded $8.7 million of restructuring charges.

(2)	In the fourth quarter of 2010, we recorded a $142.2 million long-lived asset impairment charge, primarily for idle units we retired from our fleet and expect to sell (see Note 13).

(3)	Gross profit is defined as revenue less cost of sales, direct depreciation and amortization expense and long-lived asset impairment charges.