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.”