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Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced that it has secured a 6.9 megawatt (MW) multimillion-dollar long-term Factory Protection Plan (FPP) aftermarket service contract.

E-Finity Distributed Generation, Capstone’s exclusive distributor for the Mid-Atlantic and Southeastern United States and a leading power solutions provider in the Marcellus and Utica shale regions, secured the FPP aftermarket service agreement to cover a major gas producer’s microturbine fleet at multiple locations in the Appalachian Basin. E-Finity maintains a fleet of over 600 microturbines in continuous duty operation. This new FPP contract covers a total of 36 Capstone units, ranging from 65 kilowatts (kW) to 800kW, deployed at various remote oil and gas locations.

Capstone’s FPP is an industry leading aftermarket service plan, delivering peace of mind, predictable maintenance costs and remote monitoring capabilities at an economical price. The all-inclusive long-term FPP contract helps ensure business continuity while normalizing maintenance costs with a simple fixed maintenance fee per year regardless of the annual scheduled or unscheduled maintenance required.

“Capstone continues to execute management’s profitability plan, and a key component of that plan is to increase our quarterly aftermarket service revenue and expand gross margins all while providing customers increased uptime and improved system reliability and performance,” said Darren Jamison, President and Chief Executive Officer of Capstone.

This particular oil and gas company had growing concerns over unpredictable weather patterns, such as arctic blasts and increasingly severe storms. Many of the oil and gas sites are in remote locations that experience harsh weather conditions, especially during winter storms where temperatures regularly plummet to sub-zero conditions.

“Most natural gas producers in the Appalachian Basin operate in remote locations where traditional utility power is not very reliable or economical.  Capstone’s microturbines are a reliable, low emission power source that our customers rely on 24/7 to help maintain the critical natural gas infrastructure. The factory-backed long-term FPP service product gives them peace of mind that their equipment will be well maintained and continuously monitored – delivering excellent system uptime over many years,” said Jim Bondi, Executive Vice President of E-Finity.

The 6.9MW multimillion-dollar FPP service contract means that Capstone’s total long-term FPP service contract backlog continues to hit record levels and is approaching $80 million.

“Capstone continues to expand its aftermarket service business from both a revenue and margin perspective while partnering with our distribution partners to provide increased uptime and system reliability at an extremely competitive price for our critical end-use customers,” said Jeff Foster, Senior Vice President of Customer Service for Capstone.

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