U.S. Well Services Finalizes Contract to Provide Power Generation Capacity in Mexico

Rhea-AI Summary

U.S. Well Services (Nasdaq: USWS) has secured a contract to lease a 30-megawatt mobile natural gas turbine generator to a customer in Mexicali, Mexico. The deployment is anticipated in Q3 2020. President and CEO Joel Broussard emphasized the significance of this contract, highlighting the company’s diversification beyond the oil and gas sector and the potential for mobile power generation services. U.S. Well Services is known for its electric frac technology, which enhances operational efficiency and significantly reduces emissions.

Positive

• Secured a contract for a 30-megawatt mobile natural gas turbine generator.
• Diversification into power generation services outside the oil and gas industry.
• Market opportunity identified for rapid-response mobile power generation.

Negative

• None.

HOUSTON, June 22, 2020 (GLOBE NEWSWIRE) -- U.S. Well Services, Inc. (Nasdaq: USWS) today announced it has executed a contract to lease a turbine generator for peaking power and other power generation needs to a customer in Mexicali, Mexico.  U.S. Well Services will deploy one of its PW Power Systems FT8 MOBILEPAC® 30 megawatt mobile natural gas turbine generators to Mexico and expects to place the unit into service during the third quarter of 2020.

“I am pleased that U.S. Well Services will be deploying its assets to provide power generation services for customers outside the oil and gas industry.  This contract is a testament to the critical nature of our equipment and the Company’s ability to diversify its business mix,” said Joel Broussard, U.S. Well Services’ President and Chief Executive Officer.  “We believe there is a substantial market opportunity for providing rapid-response, mobile power generation services for a variety of end-users and look forward to continuing to allocate our equipment in a manner that creates value for our customers and shareholders.”

About U.S. Well Services, Inc.

U.S. Well Services, Inc. is a leading provider of hydraulic fracturing services and a market leader in electric fracture stimulation. The Company’s patented electric frac technology provides one of the first fully electric, mobile well stimulation systems powered by locally-supplied natural gas, including field gas sourced directly from the wellhead. The Company’s electric frac technology dramatically decreases emissions and sound pollution while generating exceptional operational efficiencies, including significant customer fuel cost savings versus conventional diesel fleets. For more information visit: www.uswellservices.com. Information on our website is not part of this release.

Contacts:
U.S. Well Services
Josh Shapiro
Vice President, Finance and Investor Relations
IR@uswellservices.com

Dennard Lascar Investor Relations
(713) 529-6600
USWS@dennardlascar.com

Source: U.S. Well Services, Inc.

FAQ

What contract did U.S. Well Services announce on June 22, 2020?

U.S. Well Services announced a contract to lease a 30-megawatt mobile natural gas turbine generator to a customer in Mexicali, Mexico.

When will the turbine generator be deployed in Mexico?

The turbine generator is expected to be placed into service during the third quarter of 2020.

What is the significance of the new contract for USWS?

The contract signifies U.S. Well Services' ability to diversify its business mix and tap into the mobile power generation market.

What technology does U.S. Well Services utilize for its power generation?

U.S. Well Services uses patented electric frac technology, which is powered by locally-supplied natural gas.

How does U.S. Well Services' technology impact emissions?

The electric frac technology significantly decreases emissions and sound pollution compared to conventional diesel fleets.