15 slides from Usa Compression Partners, Lp's earnings presentation, Feb 11, 2025
Slide 1: Earnings Presentation Fourth Quarter 2024
Earnings Presentation Fourth Quarter 2024
Slide 2: Forward-Looking Statements and Disclaimer
Forward-Looking Statements and Disclaimer Forward Looking Statements 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
Slide 3: Fourth Quarter and Full Year 2024 Highlights
Fourth Quarter and Full Year 2024 Highlights Q4 2024 FY 2024 Record Record Record Record Average revenue- $ per revenue- Average revenue- $ per revenue- generating HP generating HP generating HP generating HP 3.56 MM $20.85 3.53 MM $20.43 0.1% Q-o-Q 1% Q-o-Q 6% Y-o-Y 8% Y-o-Y Record Record Record Re
Slide 4: USAC is Well Positioned to Benefit from Natural Gas Demand Growth
USAC is Well Positioned to Benefit from Natural Gas Demand Growth 9 127 15 Projected U.S. Gas Demand (bcf/d) 103 A marked increase in U.S. natural gas demand is projected primarily from increased LNG exports and the electrification of everything (“EoE”) 2024 LNG EoE 2030 exports USAC’s active fleet
Slide 5: Operational and Financial Performance
Operational and Financial Performance Average Revenue-generating HP (000s) Adjusted EBITDA ($MM)2 3,600 +7% CAGR +17% CAGR 3,400 3,200 3,000 $590 - 2,800 3,528 $584 $610 3,329 $512 2,600 3,067 $426 2,400 2,200 2,000 2022 2023 2024 2022 2023 2024 2025E 3 Total Capex ($MM) DCF ($MM)2 +21% CAGR1 $275 $
Slide 6: Full Year 2025 Guidance
Full Year 2025 Guidance $ in thousands Low High 1, 2 Adjusted EBITDA $ 590,000 $ 610,000 Distributable Cash Flow1, 2 $ 350,000 $ 370,000 Capital Expenditures 3 Expansion capital expenditures $ 120,000 $ 140,000 Maintenance capital expenditures $ 38,000 $ 42,000 1 The Partnership is unable to reconci
Slide 7: History of Strong and Consistent Returns to Unitholders
History of Strong and Consistent Returns to Unitholders 206% USAC has outperformed the S&P Value Index and MLP peers over the past five years on a total shareholder return basis1 100% 74% USAC Alerian MLP ETF (AMLP) S&P 500 Value 8% 7% 7% USAC’s durable distribution provides 5% income-seeking invest
Slide 8: Appendix
Appendix 8
Slide 9: 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 10: Illustrative Example of Potential Preferred Unit Conversions
Illustrative Example of Potential Preferred Unit Conversions Three Months Ended December 31, 2024 3 As Reported Pro Forma 4 ($ in thousands) 64% Converted 100% Assumption The potential conversion of Distributable Cash Flow ("DCF") 1 $ 96,259 $ 96,259 100% has minimal impact on Pro Forma increase upo
Slide 11: Capital Structure
Capital Structure ● $320MM of $500MM Series A Preferred Units have been converted into common units ● Corporate debt rating received a positive outlook from S&P and Moody’s during 2024; Fitch upgraded to BB in late 2023 ● No maturities until December 2026 Maturity Profile (in millions)1 Ratings Summ
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA Distributable Cash Flow and Distributable Cash Flow Coverage 2024 2023 2024 2023 $ in thousands Q4 Q3 Q4 $ in thousands Q4 Q3 Q4 Net income $ 25,437 $ 19,327 $ 12,841 Net income $ 25,437 $ 19,327 $ 12,841 Interest expense, net 48,616 49,361 44,832 Non-cash in
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA Distributable Cash Flow and Distributable Cash Flow Coverage Years Ended December 31, Years Ended December 31, $ in thousands 2024 2023 2022 $ in thousands 2024 2023 2022 Net income $ 99,575 $ 68,268 $ 30,318 Net income $ 99,575 $ 68,268 $ 30,318 Interest exp
Slide 14: Non-GAAP Reconciliation for Illustrative Example
Non-GAAP Reconciliation for Illustrative Example Three Months Ended December 31, 2024 As Reported Pro Forma2 $ in thousands 64% Converted 100% Assumption3 Net income $ 25,437 $ 25,437 Non-cash interest expense 2,245 2,245 Depreciation and amortization 68,955 68,955 Non-cash income tax expense 147 14
Slide 15: 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, which may include Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage