75 Capstone Turbine C65s Ordered

August 2014 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for seventy five C65 microturbines, scheduled for shipment through December 2014, from Horizon Power Systems for several U.S. Oil and Gas Customers.

The order was placed by Horizon Power Systems, Capstone’s distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan, and Wattenberg shale plays. Recognizing Capstone’s demonstrated success in oil and gas operations, multiple customers are again choosing clean and green microturbine technology to power their production and compression operations.

This order will expand Horizon’s fleet to approximately 700 Capstone microturbines, the majority of which serve the demanding oil and gas market. The microturbines will provide prime power and serve all stages of oil and gas production including central processing station power, wellhead operation, transmission, and flare reduction.

The U.S. shale plays continue to see consistent growth with no slowdown in sight. According to the latest government data as cited in an October 2013 article in Investors Daily, the Permian Basin oil production is quickly approaching one million barrels per day. Estimates suggest there is still $3 trillion worth of oil and more than $300 billion of natural gas yet to be extracted from this shale play alone.

Furthermore, the U.S. Energy Information Administration (EIA) states that the Eagle Ford shale play produces over one million barrels of oil per day with a total estimate of over three billion barrels yet untapped. Additionally, according to the EIA, the Barnett Shale play has the largest producible reserves of any onshore natural gas field in the U.S. with a current output of over four billion cubic feet per day, and Wattenberg shale play has more than 22,000 active wells extracting more than 100,000 barrels of oil and 740 million cubic feet of gas per day according to the EIA. These shale plays alone demonstrate how robust and rich the oil and gas market continues to be in the U.S.

Capstone’s proven track record of producing ultra-low emission, low maintenance, and extremely reliable microturbines is exemplified by the repeat business from our customers, especially in the oil and gas sector. Successful operation of microturbines in this sector strengthens Capstone’s position in the market as the preferred option for many producers.

Capstone microturbines do not require lubricants or coolants and have only one moving part thanks to a patented air bearing. This ensures around the clock availability and uptime, which maximizes oil and gas production. Also, the microturbines are very clean with extremely low emissions, meeting Tier 4 emission standards without a requirement for after treatment unlike many reciprocating engine manufacturers.

Sam Henry, President of Horizon Power Systems, stated, “Customers rely on Horizon and Capstone for clean, reliable power through all weather conditions. 105 degrees F, 90% humidity in the Eagle Ford Shale, 105 degrees F and very low humidity in the Permian Shale, and 0 to 100 degrees F in the Mancos Shale. Oil and gas producers love the rugged Capstone microturbines because they can handle these conditions and operate continuously with minimal maintenance requirements.”

9MW FPP Secured

August 2014 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, today announced that it has signed a Factory Protection Plan (FPP) contract for nine C1000s increasing the total contract backlog for Capstone FPPs to a record of over $55 million. This $55 million in service backlog is in addition to the record $175 million product backlog as of June 30, 2014.

Horizon Power Systems, a leading energy supplier in the Oil and Gas market boasting a fleet of over 600 Capstone microturbines in operation, secured the FPP service contract to cover a major oil and gas producer’s nine Capstone C1000 power packages at multiple locations.

Capstone microturbine is already the top choice in the low emission distributed generation oil and gas market due to its ability to deliver clean, reliable, and cost-effective power solutions. The Capstone FPP is unmatched in the industry and is designed to secure the reliability of the Capstone system by offering a risk-transfer solution aimed at limiting the monetary risk of any unplanned maintenance over the life of the contract.

“Most oil and gas producers work in remote locations where an electric utility grid is not an option or unreliable. The Capstone microturbine becomes the sole source of critical low emission power that our customers have come to rely on,” said Sam Henry, President of Horizon Power Systems.

The nine C1000 systems currently operate in remote central gas gathering plants belonging to one of the largest natural gas operators in the Rocky Mountain and Mid-Continent regions, and the sites are now further protected under the inclusive Capstone FPP contract for a full nine years.

“The Capstone system is unique in its capability to drastically reduce flared gas and instead capture this gas and cycle it back into the production process, allowing our customers the ability to conduct business in a safe and environmentally responsible manner. The addition of the FPP will provide our customer with the peace of mind that they are covered by the Capstone factory for an additional nine years,” adds Henry.

Darren Jamison, Capstone President and Chief Executive Officer, said, “We have seen steady adoption of our Factory Protection Plan offering, and I am pleased to have exceeded $55 million in backlog in such a short period of time.”