Capstone Turbine (CPST) announced this morning follow on orders of $3 million from two large oil and gas companies in Australia and New Mexico. The orders are for forty-two C30s, one C600 and one C1000 and are scheduled for delivery before the end of Capstone’s fiscal year on March 31st 2010.
The Australian order is from a company that has been pleased with the use of the C30 microturbines in their gas exploration operations and are purchasing more as they expand drilling operations. The New Mexico order is for one C600 and one C1000 for one of the largest natural gas transmission companies in North America. They are being used in remote pipeline stations in harsh environments, where traditional components may break down much quicker.
CPST isn’t really moving much on the news today, up just 2%. It still looks quite bullish on the daily chart and attempting to bounce off the 50 day moving average after an orderly pull back in the past couple weeks.
The order for more C30s going to Australia is especially significant given the article about coal bed methane induced water pollution in Pennsylvania at http://www.post-gazette.com/pg/09277/1002919-113.stm. This is a tough problem and Aquatec-Maxcon in Australia seems to have it resolved using Capstones for its source of power and heat to drive their “forward osmosis” process.