Exterran Corporation – EGI

Exterran Corporation

Key Takeaway

Hands-on restructuring

Exterran, a global systems and process company for oil, gas, water and power, was a small equity investment we made in late 2005 and subsequently grew into a meaningful position following the company’s failed merger integration. We took a more active role on the board to assist with integration and help set a clear and competitive business strategy. One of our senior executives, Mark Sotir, was elected Executive Chairman and commuted part-time to Exterran’s headquarters in Houston to guide the new senior leadership team on a day-to-day basis. We recommended and the board agreed to split the company’s two businesses into separate entities, which enabled the businesses to clarify valuations specific to their respective markets. The transition was supported by shareholders and positively received by the Street. Mark Sotir, now our Co-President, remains Chairman of Exterran today.