20. 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”). EESLP, 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 (subject to customary release provisions) 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

June 30, 2015

(In thousands)

	Parent		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS

Current assets	$	2,097	$	615,751	$	576,924	$	—		$	1,194,772
Current assets associated with discontinued operations	—		—		397		—			397

Total current assets	2,097		615,751		577,321		—			1,195,169

Property, plant and equipment, net	—		973,693		2,366,942		—			3,340,635
Investments in affiliates	1,819,718		1,732,009		—		(3,551,727		)	—
Goodwill	—		—		3,738		—			3,738
Intangible and other assets, net	4,827		31,441		189,260		—			225,528
Intercompany receivables	708,876		29,480		438,313		(1,176,669		)	—
Long-term assets associated with discontinued operations	—		—		16,506		—			16,506

Total long-term assets	2,533,421		2,766,623		3,014,759		(4,728,396		)	3,586,407

Total assets	$	2,535,518	$	3,382,374	$	3,592,080	$	(4,728,396	)	$	4,781,576


LIABILITIES AND EQUITY

Current liabilities	$	2,485	$	260,013	$	232,535	$	—		$	495,033
Current liabilities associated with discontinued operations	—		—		929		—			929

Total current liabilities	2,485		260,013		233,464		—			495,962

Long-term debt	706,500		891		1,382,371		—			2,089,762
Intercompany payables	—		1,147,189		29,480		(1,176,669		)	—
Other long-term liabilities	—		154,563		109,613		—			264,176
Long-term liabilities associated with discontinued operations	—		—		154		—			154

Total liabilities	708,985		1,562,656		1,755,082		(1,176,669		)	2,850,054

Total equity	1,826,533		1,819,718		1,836,998		(3,551,727		)	1,931,522

Total liabilities and equity	$	2,535,518	$	3,382,374	$	3,592,080	$	(4,728,396	)	$	4,781,576

Condensed Consolidating Balance Sheet

December 31, 2014

(In thousands)

	Parent		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS

Current assets	$	4,846	$	649,719	$	610,574	$	—		$	1,265,139
Current assets associated with discontinued operations	—		—		537		—			537

Total current assets	4,846		649,719		611,111		—			1,265,676

Property, plant and equipment, net	—		1,124,786		2,202,106		—			3,326,892
Investments in affiliates	1,786,572		1,744,614		—		(3,531,186		)	—
Goodwill	—		—		3,738		—			3,738
Intangible and other assets, net	5,966		33,292		204,114		—			243,372
Intercompany receivables	727,896		12,023		529,274		(1,269,193		)	—
Long-term assets associated with discontinued operations	—		—		17,469		—			17,469

Total long-term assets	2,520,434		2,914,715		2,956,701		(4,800,379		)	3,591,471

Total assets	$	2,525,280	$	3,564,434	$	3,567,812	$	(4,800,379	)	$	4,857,147


LIABILITIES AND EQUITY

Current liabilities	$	2,520	$	353,851	$	252,281	$	—		$	608,652
Current liabilities associated with discontinued operations	—		—		2,066		—			2,066

Total current liabilities	2,520		353,851		254,347		—			610,718

Long-term debt	725,500		1,107		1,300,295		—			2,026,902
Intercompany payables	—		1,257,170		12,023		(1,269,193		)	—
Other long-term liabilities	—		165,734		100,431		—			266,165
Long-term liabilities associated with discontinued operations	—		—		317		—			317

Total liabilities	728,020		1,777,862		1,667,413		(1,269,193		)	2,904,102

Total equity	1,797,260		1,786,572		1,900,399		(3,531,186		)	1,953,045

Total liabilities and equity	$	2,525,280	$	3,564,434	$	3,567,812	$	(4,800,379	)	$	4,857,147

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended June 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	352,159		$	410,547		$	(78,874	)	$	683,832

Costs of sales (excluding depreciation and amortization expense)	—			273,130			242,735			(78,874		)	436,991
Selling, general and administrative	46			37,341			46,487			—			83,874
Depreciation and amortization	—			29,579			64,746			—			94,325
Long-lived asset impairment	—			13,594			1,826			—			15,420
Restructuring and other charges	—			14,196			5,408			—			19,604
Interest expense	9,299			118			18,981			—			28,398
Intercompany charges, net	(8,711		)	8,040			671			—			—
Equity in (income) loss of affiliates	969			(18,403		)	(5,062		)	17,434			(5,062		)
Other (income) expense, net	10			(1,218		)	2,213			—			1,005

Income (loss) before income taxes	(1,613		)	(4,218		)	32,542			(17,434		)	9,277
Provision for (benefit from) income taxes	(224		)	(3,249		)	5,215			—			1,742

Income (loss) from continuing operations	(1,389		)	(969		)	27,327			(17,434		)	7,535
Income from discontinued operations, net of tax	—			—			254			—			254

Net income (loss)	(1,389		)	(969		)	27,581			(17,434		)	7,789
Less: Net income attributable to the noncontrolling interest	—			—			(9,178		)	—			(9,178		)

Net income (loss) attributable to Exterran stockholders	(1,389		)	(969		)	18,403			(17,434		)	(1,389		)

Other comprehensive income attributable to Exterran stockholders	3,788			3,728			4,146			(7,874		)	3,788

Comprehensive income attributable to Exterran stockholders	$	2,399		$	2,759		$	22,549		$	(25,308	)	$	2,399

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended June 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	377,333		$	427,654		$	(65,717	)	$	739,270
Costs of sales (excluding depreciation and amortization expense)	—			291,922			257,091			(65,717		)	483,296
Selling, general and administrative	104			42,419			53,189			—			95,712
Depreciation and amortization	—			35,204			76,752			—			111,956
Long-lived asset impairment	—			7,856			1,991			—			9,847
Restructuring and other charges	—			155			198			—			353
Interest expense	17,135			980			14,607			—			32,722
Intercompany charges, net	(9,208		)	8,299			909			—			—
Equity in income of affiliates	(17,607		)	(32,058		)	(4,909		)	49,665			(4,909		)
Other (income) expense, net	10			1,186			(4,867		)	—			(3,671		)

Income before income taxes	9,566			21,370			32,693			(49,665		)	13,964
Provision for (benefit from) income taxes	(2,811		)	3,763			9,918			—			10,870

Income from continuing operations	12,377			17,607			22,775			(49,665		)	3,094
Income from discontinued operations, net of tax	—			—			17,769			—			17,769

Net income	12,377			17,607			40,544			(49,665		)	20,863
Less: Net income attributable to the noncontrolling interest	—			—			(8,486		)	—			(8,486		)

Net income attributable to Exterran stockholders	12,377			17,607			32,058			(49,665		)	12,377

Other comprehensive loss attributable to Exterran stockholders	(1,403		)	(1,842		)	(1,726		)	3,568			(1,403		)

Comprehensive income attributable to Exterran stockholders	$	10,974		$	15,765		$	30,332		$	(46,097	)	$	10,974

Condensed Consolidating Statement of Operations and Comprehensive Income

Six months Ended June 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	724,936		$	827,535		$	(139,557	)	$	1,412,914

Costs of sales (excluding depreciation and amortization expense)	—			551,238			485,380			(139,557		)	897,061
Selling, general and administrative	109			77,693			92,758			—			170,560
Depreciation and amortization	—			62,012			128,121			—			190,133
Long-lived asset impairment	—			21,441			6,711			—			28,152
Restructuring and other charges	—			18,986			5,408			—			24,394
Interest expense	18,620			225			36,851			—			55,696
Intercompany charges, net	(17,445		)	15,832			1,613			—			—
Equity in income of affiliates	(31,606		)	(56,090		)	(10,068		)	87,696			(10,068		)
Other (income) expense, net	20			(427		)	9,253			—			8,846

Income before income taxes	30,302			34,026			71,508			(87,696		)	48,140
Provision for (benefit from) income taxes	(451		)	2,420			16,264			—			18,233

Income from continuing operations	30,753			31,606			55,244			(87,696		)	29,907
Income from discontinued operations, net of tax	—			—			18,967			—			18,967

Net income	30,753			31,606			74,211			(87,696		)	48,874
Less: Net income attributable to the noncontrolling interest	—			—			(18,121		)	—			(18,121		)

Net income attributable to Exterran stockholders	30,753			31,606			56,090			(87,696		)	30,753

Other comprehensive loss attributable to Exterran stockholders	(7,616		)	(8,580		)	(7,971		)	16,551			(7,616		)

Comprehensive income attributable to Exterran stockholders	$	23,137		$	23,026		$	48,119		$	(71,145	)	$	23,137

Condensed Consolidating Statement of Operations and Comprehensive Income

Six months Ended June 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	718,236		$	774,292		$	(110,250	)	$	1,382,278

Costs of sales (excluding depreciation and amortization expense)	—			537,838			465,230			(110,250		)	892,818
Selling, general and administrative	150			88,231			99,909			—			188,290
Depreciation and amortization	—			70,611			126,867			—			197,478
Long-lived asset impairment	—			9,177			4,477			—			13,654
Restructuring and other charges	—			4,598			577			—			5,175
Interest expense	35,615			1,238			24,177			—			61,030
Intercompany charges, net	(18,171		)	16,542			1,629			—			—
Equity in income of affiliates	(56,429		)	(74,489		)	(9,602		)	130,918			(9,602		)
Other (income) expense, net	20			1,781			(7,906		)	—			(6,105		)

Income before income taxes	38,815			62,709			68,934			(130,918		)	39,540
Provision for (benefit from) income taxes	(6,158		)	6,280			20,157			—			20,279

Income from continuing operations	44,973			56,429			48,777			(130,918		)	19,261
Income from discontinued operations, net of tax	—			—			36,496			—			36,496

Net income	44,973			56,429			85,273			(130,918		)	55,757
Less: Net income attributable to the noncontrolling interest	—			—			(10,784		)	—			(10,784		)

Net income attributable to Exterran stockholders	44,973			56,429			74,489			(130,918		)	44,973

Other comprehensive loss attributable to Exterran stockholders	(85		)	(844		)	(573		)	1,417			(85		)

Comprehensive income attributable to Exterran stockholders	$	44,888		$	55,585		$	73,916		$	(129,501	)	$	44,888

Condensed Consolidating Statement of Cash Flows

Six months Ended June 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Cash flows from operating activities:
Net cash provided by (used in) continuing operations	$	(1,607	)	$	(3,412	)	$	190,980		$	—		$	185,961
Net cash provided by discontinued operations	—			—			1,351			—			1,351

Net cash provided by (used in) operating activities	(1,607		)	(3,412		)	192,331			—			187,312

Cash flows from investing activities:
Capital expenditures	—			(65,335		)	(188,845		)	—			(254,180		)
Proceeds from sale of property, plant and equipment	—			2,964			16,384			—			19,348
Capital distributions received from consolidated subsidiaries	—			30,735			—			(30,735		)	—
Return of investments in non-consolidated affiliates	—			—			10,068			—			10,068
Proceeds received from settlement of note receivable	—			—			5,357			—			5,357
Return of investments in consolidated subsidiaries	20,743			—			—			(20,743		)	—

Net cash provided by (used in) continuing operations	20,743			(31,636		)	(157,036		)	(51,478		)	(219,407		)
Net cash provided by discontinued operations	—			—			16,560			—			16,560

Net cash provided by (used in) investing activities	20,743			(31,636		)	(140,476		)	(51,478		)	(202,847		)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt	518,500			—			247,000			—			765,500
Repayments of long-term debt	(537,500		)	—			(165,500		)	—			(703,000		)
Payments for debt issuance costs	—			—			(1,311		)	—			(1,311		)
Payments for settlement of interest rate swaps that include financing elements	—			—			(1,877		)	—			(1,877		)
Net proceeds from the sale of Partnership units	—			—			1,268			—			1,268
Proceeds from stock options exercised	1,005			—			—			—			1,005
Proceeds from stock issued pursuant to our employee stock purchase plan	910			—			—			—			910
Purchases of treasury stock	(3,736		)	—			—			—			(3,736		)
Dividends to Exterran stockholders	(20,743		)	—			—			—			(20,743		)
Stock-based compensation excess tax benefit	2,379			—			—			—			2,379
Distributions to noncontrolling partners in the Partnership	—			—			(71,226		)	30,735			(40,491		)
Capital distributions to affiliates	—			(20,743		)	—			20,743			—
Borrowings (repayments) between consolidated subsidiaries, net	20,044			56,222			(76,266		)	—			—

Net cash provided by (used in) financing activities	(19,141		)	35,479			(67,912		)	51,478			(96		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(783		)	—			(783		)

Net increase (decrease) in cash and cash equivalents	(5		)	431			(16,840		)	—			(16,414		)
Cash and cash equivalents at beginning of period	42			655			39,042			—			39,739

Cash and cash equivalents at end of period	$	37		$	1,086		$	22,202		$	—		$	23,325

Condensed Consolidating Statement of Cash Flows

Six months Ended June 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Cash flows from operating activities:
Net cash provided by (used in) continuing operations	$	(7,624	)	$	20,896		$	106,865		$	—		$	120,137
Net cash provided by discontinued operations	—			—			2,466			—			2,466

Net cash provided by (used in) operating activities	(7,624		)	20,896			109,331			—			122,603

Cash flows from investing activities:
Capital expenditures	—			(69,033		)	(169,177		)	—			(238,210		)
Proceeds from sale of property, plant and equipment	—			7,271			6,128			—			13,399
Payment for business acquisition	—			(9,400		)	(351,121		)	—			(360,521		)
Capital distributions received from consolidated subsidiaries	—			26,641			—			(26,641		)	—
Increase in restricted cash	—			—			(245		)	—			(245		)
Return of investments in non-consolidated affiliates	—			—			9,799			—			9,799
Investment in consolidated subsidiaries	—			(11,128		)	—			11,128			—
Cash invested in non-consolidated affiliates	—			—			(197		)	—			(197		)
Return of investments in consolidated subsidiaries	252,482			—			—			(252,482		)	—

Net cash provided by (used in) continuing operations	252,482			(55,649		)	(504,813		)	(267,995		)	(575,975		)
Net cash provided by discontinued operations	—			—			33,276			—			33,276

Net cash provided by (used in) investing activities	252,482			(55,649		)	(471,537		)	(267,995		)	(542,699		)

Cash flows from financing activities:
Proceeds from borrowings of long-term debt	825,001			—			564,798			—			1,389,799
Repayments of long-term debt	(769,500		)	—			(281,500		)	—			(1,051,000		)
Payments for debt issuance costs	—			—			(6,923		)	—			(6,923		)
Payments above face value for redemption of convertible debt	(15,007		)	—			—			—			(15,007		)
Payments for settlement of interest rate swaps that include financing elements	—			—			(1,894		)	—			(1,894		)
Net proceeds from the sale of Partnership units	—			—			169,471			—			169,471
Proceeds from stock options exercised	10,767			—			—			—			10,767
Proceeds from stock issued pursuant to our employee stock purchase plan	897			—			—			—			897
Purchases of treasury stock	(6,315		)	—			—			—			(6,315		)
Dividends to Exterran stockholders	(19,990		)	—			—			—			(19,990		)
Stock-based compensation excess tax benefit	7,820			—			—			—			7,820
Distributions to noncontrolling partners in the Partnership	—			—			(61,932		)	26,641			(35,291		)
Net proceeds from sale of general partner units	—			—			3,573			(3,573		)	—
Capital distributions to affiliates	—			(252,482		)	—			252,482			—
Capital contributions received from parent	—			—			7,555			(7,555		)	—
Borrowings (repayments) between consolidated subsidiaries, net	(278,461		)	295,227			(16,766		)	—			—

Net cash provided by (used in) financing activities	(244,788		)	42,745			376,382			267,995			442,334

Effect of exchange rate changes on cash and cash equivalents	—			—			(4,000		)	—			(4,000		)

Net increase in cash and cash equivalents	70			7,992			10,176			—			18,238
Cash and cash equivalents at beginning of period	11			1,554			34,100			—			35,665

Cash and cash equivalents at end of period	$	81		$	9,546		$	44,276		$	—		$	53,903