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COMPRESSION

The natural gas contract compression services we provide, subsequent to our acquisition of CDM, include designing, sourcing, owning, insuring, installing, operating, servicing, repairing, and maintaining compressors and related equipment for which we guarantee our customers 98 percent mechanical availability for land installations and 96 percent mechanical availability for over-water installations.  We focus on meeting the complex requirements of field-wide compression applications, as opposed to targeting the compression needs of individual wells within a field.  These field-wide applications include compression for natural gas gathering, natural gas lift for crude oil production and natural gas processing.  We believe that we improve the stability of our cash flow by focusing on field-wide compression applications because such applications generally involve long-term installations of multiple large horsepower compression units.  Our contract compression operations are primarily located in Texas, Louisiana, and Arkansas.