Usa Compression Partners, Lp · NYSE:USAC
Usa Compression Partners, Lp — Q1 2024 Earnings Presentation
20 slides from Usa Compression Partners, Lp's earnings presentation, May 7, 2024
Slide 1: USA Compression Partners, LP Earnings Presentation First-Quarter 2024
USA Compression Partners, LP Earnings Presentation First-Quarter 2024
Slide 2: Forward-Looking Statements and Ownership Structure
Forward-Looking Statements and Ownership Structure This presentation contains forward-looking statements related to the operations of the Partnership that are based on management’s current expectations, estimates, and projections about its operations. You can identify many of these forward-looking s
Slide 3: First-Quarter Highlights
First-Quarter Highlights Operational and Financial Accomplishments ✓ 45 consecutive quarters of distributions (USAC has never cut its distribution) Record Record ✓ Returned ~$1.8 billion to unitholders since IPO Average revenue- Horsepower generating HP Utilization ✓ Ample distribution coverage ✓ Q-
Slide 4: Preferred Unitholder Partial Conversions of Preferred Units
Preferred Unitholder Partial Conversions of Preferred Units • On January 22, 2024, and April 2, 2024, EIG Veteran Equity Aggregator, L.P. and FS Specialty Lending Fund (collectively “EIG”) converted 40,000 and 280,000 Series A Perpetual Preferred Units (the “Preferred Units”), respectively, of the P
Slide 5: Illustrative Examples of Potential Preferred Unit Conversions
Illustrative Examples of Potential Preferred Unit Conversions Three Months Ended March 31, 2024 6 As Reported Pro Forma 7 8 ($ in thousands) 64% Converted 100% Assumption Distributable Cash Flow ("DCF") 2 $ 86,589 $ 86,589 Pro Forma increase upon Preferred Unit Conversion - 4,388 DCF $ 86,589 $ 90,9
Slide 6: Operational and Financial Performance
Operational and Financial Performance Average Revenue-generating HP (000s) and Utilization Revenue ($MM) 3,600 96% $250 3,473 $225 $229 3,500 94% $217 3,409 $207 3,400 3,356 92% $197 3,321 3,310 $200 $190 $179 $180 3,300 3,241 90% $169 $171 3,191 $162 $158 $158 $157 $159 $160 $163 3,172 3,200 88% 3,
Slide 7: USAC's Asset Base Supports Declining Leverage
USAC’s Asset Base Supports Declining Leverage USAC Historical Leverage 3 Cumulative Pre-CDM Acquisition Non-Predecessor4 Post-CDM Acquisition4, 9 Leverage Capex Ratio $2,500 5.50 $2,250 5.00 $2,000 4.50 $1,750 4.00 $1,500 5.50 3.50 $1,250 5.00 3.00 $1,000 4.50 5.18 2.50 4.90 4.84 4.76 $750 4.00 4.63
Slide 8: Stable Cash Flows Throughout Commodity Cycles
Stable Cash Flows Throughout Commodity Cycles USAC Adjusted EBITDA2 ($MM) Pre-CDM Acquisition Non-Predecessor4 Post-CDM Acquisition4, 9 Horsepower Nominal pandemic- HH Nat Gas Utilization induced utilization $/MMBTU Growth during decline and swift up cycles 100.0% $10 recovery thereafter 90.0% $9 $5
Slide 9: History of Stable Distributions and Strong Returns to Unitholders
History of Stable Distributions and Strong Returns to Unitholders History of stable distributions paid through commodity price cycles Pre-CDM Acquisition Non-Predecessor4 Post-CDM Acquisition4, 9 $2.20 $2.09 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.10 $2.01 $2.00 $1.80 $1.60 $1.40 $1.20 $1
Slide 10: USAC Customer Overview
USAC Customer Overview Top 10 Customers: Diverse Counterparties and Long-Term Relationships % of Length of ✓ Low revenue concentration risk – top Customer Rev13 relationship Total HP14 10 customers are 40% of total revenue Major O&G 12% > 10 Years 309K Independent Public E&P 6% > 20 Years 234K ✓ 7 o
Slide 11: Capitalization Overview
Capitalization Overview Capitalization as of March 31, 2024 Maturity Profile $1.6B Revolving Credit Facility due December 8, 2026; drawn as of 3/31/24 6.875% Senior Unsecured Notes due September 1, 2027 ($MM) % of cap 9.75% Series A Preferred Equity (convertible) 7 7.125% Senior Unsecured Notes due
Slide 12: Appendix
Appendix —— COMPRESSION
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2024 2023 2022 2021 2020 Adjusted gross margin ($ in thousands) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total revenues $ 229,276 $ 225,049 $ 217,085 $ 206,920 $ 197,124 $ 190,112 $ 179,613 $ 171,461 $ 163,412 $ 159,943 $ 158,627 $ 156,562 $ 157,513 $ 158,367 $ 161
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Post-CDM Acquisition4,9 Pre-CDM Acquisition Non-Predecessor 4 Years Ended December 31, $ in thousands 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Net income (loss) $ 68,268 $ 30,318 $ 10,279 $ (594,732) $ 39,132 $ (10,551) $ 11,440 $ 12,935 $ (154,273) $ 24,946 $
Slide 15: Non-GAAP Reconciliations for Illustrative Examples
Non-GAAP Reconciliations for Illustrative Examples Three Months Ended March 31, 2024 As Reported Pro Forma6 7 8 $ in thousands 64% Converted 100% Assumption Net income $ 23,573 $ 23,573 Non-cash interest expense 1,995 1,995 Depreciation and amortization 63,251 63,251 Non-cash income tax expense 60 6
Slide 16: Non-GAAP Reconciliations: 2024 Guidance
Non-GAAP Reconciliations 2024 Guidance 2024 Guidance Net income $95.0 to $115.0 million Plus: Interest expense, net 184.0 million Plus: Depreciation and amortization 260.0 million Plus: Income tax expense 1.0 million EBITDA $540.0 million to $560.0 million Plus: Unit-based compensation expense and o
Slide 17: Investor Relations Contact Information
Investor Relations Contact Information IR@usacompression.com 16 © 2024 USA COMPRESSION PARTNERS, LP | CONFIDENTIAL
Slide 18: Notes to Presentation
Notes to Presentation 1 As of May 2, 2024, Energy Transfer LP held 46.1 million common units, including 8.0 million common units held by USA Compression GP, LLC (the Partnership’s general partner), public unitholders held 70.9 million common units, and the Partnership had 117.0 million common units
Slide 19: Notes to Presentation (continued)
Notes to Presentation (continued) 16 The Preferred Units are convertible, at the option of the holder, into common units. On or after April 2, 2028, each holder of the Preferred Units will have the right to require us to redeem all or a portion of their Preferred Units, subject to certain minimum re
Slide 20: Basis of Presentation; Explanation of Non-GAAP Financial Measures
Basis of Presentation; Explanation of Non-GAAP Financial Measures This presentation includes the non-U.S. generally accepted accounting principles (“non-GAAP”) financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio. Adjusted
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