18. Supplemental Guarantor Financial Information

Exterran Holdings, Inc. (“Parent”) is the issuer of our 7.25% senior notes with an aggregate principal amount of $350.0 million due December 2018 (the “7.25% Notes”). Exterran Energy Solutions, L.P., EES Leasing LLC, EXH GP LP LLC and EXH MLP LP LLC (each a 100% owned subsidiary; together, the “Guarantor Subsidiaries”), have agreed to fully and unconditionally on a joint and several senior unsecured basis guarantee Parent’s obligations relating to the 7.25% Notes. As a result of these guarantees, we are presenting the following condensed consolidating financial information pursuant to Rule 3-10 of Regulation S-X. These schedules are presented using the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions. The Other Subsidiaries column includes financial information for those subsidiaries that do not guarantee the 7.25% Notes.

Condensed Consolidating Balance Sheet

March 31, 2014

(In thousands)

	Parent		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS

Current assets	$	11,562	$	692,080	$	538,962	$	—		$	1,242,604
Current assets associated with discontinued operations	—		—		358		—			358
Total current assets	11,562		692,080		539,320		—			1,242,962
Property, plant and equipment, net	—		1,137,134		1,697,054		—			2,834,188
Investments in affiliates	1,901,851		1,730,833		—		(3,632,684		)	—
Intangible and other assets, net	7,876		31,446		142,245		—			181,567
Intercompany receivables	578,500		14,501		647,329		(1,240,330		)	—
Long-term assets associated with discontinued operations	—		—		20,219		—			20,219
Total long-term assets	2,488,227		2,913,914		2,506,847		(4,873,014		)	3,035,974
Total assets	$	2,499,789	$	3,605,994	$	3,046,167	$	(4,873,014	)	$	4,278,936

LIABILITIES AND EQUITY

Current liabilities	$	13,902	$	318,420	$	256,590	$	—		$	588,912
Current liabilities associated with discontinued operations	—		—		2,113		—			2,113
Total current liabilities	13,902		318,420		258,703		—			591,025
Long-term debt	782,384		1,444		801,595		—			1,585,423
Intercompany payables	—		1,225,829		14,501		(1,240,330		)	—
Other long-term liabilities	716		158,450		101,930		—			261,096
Long-term liabilities associated with discontinued operations	—		—		344		—			344
Total liabilities	797,002		1,704,143		1,177,073		(1,240,330		)	2,437,888
Total equity	1,702,787		1,901,851		1,869,094		(3,632,684		)	1,841,048
Total liabilities and equity	$	2,499,789	$	3,605,994	$	3,046,167	$	(4,873,014	)	$	4,278,936

Condensed Consolidating Balance Sheet

December 31, 2013

(In thousands)

	Parent		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS

Current assets	$	141	$	710,801	$	509,747	$	—		$	1,220,689
Current assets associated with discontinued operations	—		—		442		—			442
Total current assets	141		710,801		510,189		—			1,221,131
Property, plant and equipment, net	—		1,143,111		1,677,161		—			2,820,272
Investments in affiliates	1,851,131		1,680,215		—		(3,531,346		)	—
Intangible and other assets, net	20,060		29,555		126,451		(11,230		)	164,836
Intercompany receivables	536,382		14,818		633,678		(1,184,878		)	—
Long-term assets associated with discontinued operations	—		—		20,918		—			20,918
Total long-term assets	2,407,573		2,867,699		2,458,208		(4,727,454		)	3,006,026
Total assets	$	2,407,714	$	3,578,500	$	2,968,397	$	(4,727,454	)	$	4,227,157

LIABILITIES AND EQUITY

Current liabilities	$	2,963	$	369,829	$	264,681	$	—		$	637,473
Current liabilities associated with discontinued operations	—		—		3,233		—			3,233
Total current liabilities	2,963		369,829		267,914		—			640,706
Long-term debt	742,661		1,539		757,955		—			1,502,155
Intercompany payables	—		1,170,060		14,818		(1,184,878		)	—
Other long-term liabilities	—		185,941		95,710		(11,230		)	270,421
Long-term liabilities associated with discontinued operations	—		—		447		—			447
Total liabilities	745,624		1,727,369		1,136,844		(1,196,108		)	2,413,729
Total equity	1,662,090		1,851,131		1,831,553		(3,531,346		)	1,813,428
Total liabilities and equity	$	2,407,714	$	3,578,500	$	2,968,397	$	(4,727,454	)	$	4,227,157

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended March 31, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	340,903		$	346,638		$	(44,533	)	$	643,008
Costs of sales (excluding depreciation and amortization expense)	—			245,916			208,139			(44,533		)	409,522
Selling, general and administrative	46			45,812			46,720			—			92,578
Depreciation and amortization	—			35,407			50,115			—			85,522
Long-lived asset impairment	—			1,321			2,486			—			3,807
Restructuring charges	—			4,443			379			—			4,822
Interest expense	18,480			258			9,570			—			28,308
Intercompany charges, net	(8,963		)	8,243			720			—			—
Equity in income of affiliates	(38,822		)	(42,431		)	(4,693		)	81,253			(4,693		)
Other (income) expense, net	10			595			(3,039		)	—			(2,434		)
Income before income taxes	29,249			41,339			36,241			(81,253		)	25,576
Provision for (benefit from) income taxes	(3,347		)	2,517			10,239			—			9,409
Income from continuing operations	32,596			38,822			26,002			(81,253		)	16,167
Income from discontinued operations, net of tax	—			—			18,727			—			18,727
Net income	32,596			38,822			44,729			(81,253		)	34,894
Less: Net income attributable to the noncontrolling interest	—			—			(2,298		)	—			(2,298		)
Net income attributable to Exterran stockholders	32,596			38,822			42,431			(81,253		)	32,596
Other comprehensive income attributable to Exterran stockholders	1,318			998			1,153			(2,151		)	1,318
Comprehensive income attributable to Exterran stockholders	$	33,914		$	39,820		$	43,584		$	(83,404	)	$	33,914

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	535,427		$	377,390		$	(102,921	)	$	809,896
Costs of sales (excluding depreciation and amortization expense)	—			429,448			258,627			(102,921		)	585,154
Selling, general and administrative	102			45,689			39,083			—			84,874
Depreciation and amortization	—			34,032			48,614			—			82,646
Long-lived asset impairment	—			1,895			1,668			—			3,563
Interest expense	20,023			485			7,366			—			27,874
Intercompany charges, net	(9,085		)	8,147			938			—			—
Equity in income of affiliates	(57,703		)	(53,188		)	(4,665		)	110,891			(4,665		)
Other (income) expense, net	9			(7,007		)	(2,810		)	—			(9,808		)
Income before income taxes	46,654			75,926			28,569			(110,891		)	40,258
Provision for (benefit from) income taxes	(3,551		)	18,223			311			—			14,983
Income from continuing operations	50,205			57,703			28,258			(110,891		)	25,275
Income from discontinued operations, net of tax	—			—			33,516			—			33,516
Net income	50,205			57,703			61,774			(110,891		)	58,791
Less: Net income attributable to the noncontrolling interest	—			—			(8,586		)	—			(8,586		)
Net income attributable to Exterran stockholders	50,205			57,703			53,188			(110,891		)	50,205
Other comprehensive loss attributable to Exterran stockholders	(5,443		)	(5,335		)	(4,863		)	10,198			(5,443		)
Comprehensive income attributable to Exterran stockholders	$	44,762		$	52,368		$	48,325		$	(100,693	)	$	44,762

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Cash flows from operating activities:
Net cash provided by (used in) continuing operations	$	4,856		$	(20,344	)	$	68,341		$	—		$	52,853
Net cash provided by discontinued operations	—			—			1,039			—			1,039
Net cash provided by (used in) operating activities	4,856			(20,344		)	69,380			—			53,892
Cash flows from investing activities:
Capital expenditures	—			(32,264		)	(66,950		)	—			(99,214		)
Proceeds from sale of property, plant and equipment	—			5,490			5,373			—			10,863
Escrow deposit for MidCon acquisition	—			—			(17,000		)	—			(17,000		)
Capital distributions received from consolidated subsidiaries	—			12,971			—			(12,971		)	—
Return of investments in non-consolidated affiliates	—			—			4,890			—			4,890
Investment in consolidated subsidiaries	—			(6,156		)	—			6,156			—
Cash invested in non-consolidated subsidiaries	—			—			(197		)	—			(197		)
Return of investments in consolidated subsidiaries	7,481			—			—			(7,481		)	—
Net cash provided by (used in) continuing operations	7,481			(19,959		)	(73,884		)	(14,296		)	(100,658		)
Net cash provided by discontinued operations	—			—			16,726			—			16,726
Net cash provided by (used in) investing activities	7,481			(19,959		)	(57,158		)	(14,296		)	(83,932		)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt	241,500			—			91,000			—			332,500
Repayments of long-term debt	(208,000		)	—			(47,500		)	—			(255,500		)
Payments for settlement of interest rate swaps that include financing element	—			—			(913		)	—			(913		)
Proceeds from stock options exercised	8,520			—			—			—			8,520
Proceeds from stock issued pursuant to our employee stock purchase plan	404			—			—			—			404
Purchases of treasury stock	(5,349		)	—			—			—			(5,349		)
Dividends to Exterran stockholders	(9,989		)	—			—			—			(9,989		)
Stock-based compensation excess tax benefit	6,470			—			—			—			6,470
Distributions to noncontrolling partners in the Partnership	—			—			(28,840		)	12,971			(15,869		)
Capital distributions to affiliates	—			(7,481		)	—			7,481			—
Capital contributions received from consolidated subsidiaries	—			—			6,156			(6,156		)	—
Borrowings (repayments) between consolidated subsidiaries, net	(45,862		)	48,373			(2,511		)	—			—
Net cash provided by (used in) financing activities	(12,306		)	40,892			17,392			14,296			60,274
Effect of exchange rate changes on cash and cash equivalents	—			—			(4,409		)	—			(4,409		)
Net increase in cash and cash equivalents	31			589			25,205			—			25,825
Cash and cash equivalents at beginning of period	11			1,554			34,100			—			35,665
Cash and cash equivalents at end of period	$	42		$	2,143		$	59,305		$	—		$	61,490

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Cash flows from operating activities:
Net cash provided by (used in) continuing operations	$	6,851		$	19,866		$	(7,493	)	$	—		$	19,224
Net cash provided by discontinued operations	—			—			3,518			—			3,518
Net cash provided by (used in) operating activities	6,851			19,866			(3,975		)	—			22,742
Cash flows from investing activities:
Capital expenditures	—			(68,670		)	(41,698		)	3,378			(106,990		)
Proceeds from sale of property, plant and equipment	—			13,522			4,801			(3,378		)	14,945
Capital distributions received from consolidated subsidiaries	—			8,069			—			(8,069		)	—
Return of investment in non-consolidated subsidiaries	—			—			4,665			—			4,665
Investment in consolidated subsidiaries	—			(5,357		)	—			5,357			—
Net cash used in continuing operations	—			(52,436		)	(32,232		)	(2,712		)	(87,380		)
Net cash provided by discontinued operations	—			—			30,674			—			30,674
Net cash used in investing activities	—			(52,436		)	(1,558		)	(2,712		)	(56,706		)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt	405,001			—			799,036			—			1,204,037
Repayments of long-term debt	(398,251		)	—			(747,000		)	—			(1,145,251		)
Payments for debt issuance costs	—			—			(11,373		)	—			(11,373		)
Proceeds from stock options exercised	2,576			—			—			—			2,576
Proceeds from stock issued pursuant to our employee stock purchase plan	345			—			—			—			345
Purchases of treasury stock	(3,368		)	—			—			—			(3,368		)
Stock-based compensation excess tax benefit	1,311			—			—			—			1,311
Distributions to noncontrolling partners in the Partnership	—			—			(23,331		)	8,069			(15,262		)
Capital contributions received from parent	—			—			5,357			(5,357		)	—
Borrowings (repayments) between consolidated subsidiaries, net	(14,391		)	22,693			(8,302		)	—			—
Net cash provided by (used in) financing activities	(6,777		)	22,693			14,387			2,712			33,015
Effect of exchange rate changes on cash and cash equivalents	—			—			(454		)	—			(454		)
Net increase (decrease) in cash and cash equivalents	74			(9,877		)	8,400			—			(1,403		)
Cash and cash equivalents at beginning of period	24			10,461			24,116			—			34,601
Cash and cash equivalents at end of period	$	98		$	584		$	32,516		$	—		$	33,198