Usa Compression Partners, Lp · NYSE:USAC

Usa Compression Partners, Lp — Goldman Sachs Energy, CleanTech & Utilities Conference 2025

37 slides from Usa Compression Partners, Lp's conference presentation, Jan 8, 2025

  1. Slide 1: USA Compression Partners, LP Investor Presentation

    USA Compression Partners, LP Investor Presentation January 2025

  2. Slide 2: Forward-Looking Statements; USAC 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 statements by words such as “believe,” “expect,” “in

  3. Slide 3: Agenda

    Agenda I. Company overview II. Financial overview III. Appendix 3 © 2025 USA COMPRESSION PARTNERS, LP | CONFIDENTIAL

  4. Slide 4: Company overview

    Company overview 4 © 2025 USA COMPRESSION PARTNERS, LP | CONFIDENTIAL

  5. Slide 5: USA Compression at a Glance

    USA Compression at a Glance Large-Horsepower Strategy Vital to Natural Gas Infrastructure, Production, and Delivery to Market Centers; Focused on Long-Term, Fixed-Fee, Take-or-Pay Contracts Business / Strategy Overview USAC Market Statistics4 Fleet HP Statistics2 ● Compression services provided acro

  6. Slide 6: Why USAC: From the Perspective of a Unitholder

    Why USAC: From the Perspective of a Unitholder 25+ Year Proven Track Record Founded in 1998/public since 2013 – long history of high and stable fleet utilization and History EBITDA across multiple cycles – long track record of stability and balanced growth – proven management team with midstream and

  7. Slide 7: Capital Structure

    Capital Structure ● USAC opportunistically completed its $1 billion issuance of 7.125% 5-year Unsecured Senior Notes on March 18, 2024 ● $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 202

  8. Slide 8: USAC History

    USAC History Milestones Throughout USAC History 2015: 2018: 2019: 2024: 2024: 1998: Dec 2010: 2013: Upsized ABL $1.7B CDM Issued Issued $1.0B $320MM of Founded with Riverstone $198MM IPO $1.1B acquisition; $750MM 7.125% 2029 $500MM private acquires proceeds issued 6.875% 2027 Sr Notes; Preferred fun

  9. Slide 9: Compression is Vital to Natural Gas Infrastructure

    Compression is Vital to Natural Gas Infrastructure USAC Focus on Midstream Applications: Provides Operational / Cash Flow Stability with Strong Counterparties Wellhead (Gas & Oil) Midstream Downstream Uses: Gas Lift Regional Gathering Interstate Pipelines Gas Reinjection Central Delivery Point Trunk

  10. Slide 10: Stable Cash Flows Throughout Commodity Cycles

    Stable Cash Flows Throughout Commodity Cycles USAC Adjusted EBITDA3 ($MM) Pre-CDM Acquisition Non-Predecessor10 Post-CDM Acquisition10,11 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

  11. Slide 11: USAC Customer Overview

    USAC Customer Overview Top 10 Customers: Diverse Counterparties and Long-Term Relationships % of Length of ✓ Low revenue concentration risk – top Customer Rev12 relationship Total HP13 10 customers are 44% of total revenue Major O&G 12% > 10 Years 298K Public Midstream 6% > 15 Years 222K ✓ 7 of top

  12. Slide 12: USAC's Asset Base Supports Reduced Leverage

    USAC’s Asset Base Supports Reduced Leverage USAC Historical Leverage8 Pre-CDM Acquisition Non-Predecessor10 Post-CDM Acquisition10,11 Cumulative 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 2.50 5.18 4.90 4.84 4.76 $750 4.00 4.63

  13. Slide 13: USAC Key Highlights

    USAC Key Highlights 1 Focused business model executing targeted strategy 2 Demonstrated margin and cash flow stability through cycle 3 Key component of critical natural gas infrastructure 4 Strong, reliable counterparties with long-term relationships 5 Long-lived economic assets with high utilizatio

  14. Slide 14: Financial overview

    Financial overview 14 © 2025 USA COMPRESSION PARTNERS, LP | CONFIDENTIAL

  15. Slide 15: Financial Strategy Outlook

    Financial Strategy Outlook Experienced Management Focused on Unitholder Value ● Large-horsepower infrastructure installations require compression over long lifecycles leading to recurring revenue streams and longer contract tenors Maintain Stability ● Shortage of large-horsepower equipment expected

  16. Slide 16: Third-Quarter Highlights

    Third-Quarter Highlights Operational and Financial Accomplishments ✓ 47 consecutive quarters of distributions (USAC has never cut its distribution)10 Record Record ✓ Returned ~$1.9 billion to unitholders since IPO10 Average revenue- $ per revenue- generating HP generating HP ✓ Ample distribution cov

  17. Slide 17: Operational and Financial Performance

    Operational and Financial Performance Average Revenue-generating HP (000s) Revenue ($MM) Pre-CDM Acquisition Non-Predecessor10 Post-CDM Acquisition10,11 Pre-CDM Acquisition Non-Predecessor10 Post-CDM Acquisition10,11 4,000 $1,000 3,561 3,434 3,473 3,515 $846 3,279 3,140 3,067 2,951 $800 3,000 2,760

  18. Slide 18: Best in Class Operator of Large-Horsepower Compression

    Best in Class Operator of Large-Horsepower Compression Adjusted EBITDA / Revenue-generating HP3,16 $170 $160 $164 $161 $159 $150 ✓ Consistent, best in class $140 operating margins $130 $120 $110 ✓ Lean and efficient operations, $100 while delivering high-quality USAC AROC KGS services to our custome

  19. Slide 19: 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-Predecessor10 Post-CDM Acquisition10,11 $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

  20. Slide 20: Partial Conversions of Preferred Units

    Preferred Unitholder Partial Conversions of Preferred Units • During 2024, EIG Veteran Equity Aggregator, L.P. and FS Specialty Lending Fund (collectively “EIG”) converted an aggregate of 320,000 Series A Perpetual Preferred Units (the “Preferred Units”) of the Partnership into Common Units represen

  21. Slide 21: Why USAC: Macro Facts and Financial Highlights

    Why USAC: Macro Facts Q3 2024 Actuals3 Revenue: $240 million | Adjusted EBITDA: $146 million | Net Income: $19 million Financial DCF: $87 million | DCF Coverage Ratio: 1.41x Leverage Ratio8: 4.20x Highlights 2024 Guidance3 Adjusted EBITDA: $565 - $585 million | DCF: $345 - $365 million USAC acquired

  22. Slide 22: Appendix

    Appendix USA rr COMPRESSION

  23. Slide 23: Large HP Compression is NOT an Oil Field Service

    Large HP Compression is NOT an Oil Field Service Large HP Strategy Has Proven Itself More Stable Over Cycles Large HP Small HP Nature of Gathering Systems, Central Delivery Well-head Service Application: Points, Processing Facilities Asset Churn: Large infrastructure applications Commodity sensitivi

  24. Slide 24: Large HP Gas Applications Drive Revenue Stability

    Large HP Gas Applications Drive Revenue Stability Compression Unit Size Matters USAC Focus: Gas Compression Industry: Key Characteristics by Size20 Small - Large X Large XX Large XXX Large Commentary Medium Compression More 400 – 1,000 – 1,500 – 2,300 – Unit 0 – 400 HP horsepower HP Range 1,000 HP 1

  25. Slide 25: Dual-Drive Natural Gas Compression

    Dual-Drive Natural Gas Compression Natural Gas Compression Powered by Natural Gas or Electricity in a Single Unit Dual-Drive Compression Delivers: ✓ Lower invested capital with attractive returns ✓ Lower operating expenses ✓ 99% average runtime ✓ Lower CO2 and methane emissions USAC currently only p

  26. Slide 26: Attractive USAC Contract Terms & Billing Practices

    Attractive USAC Contract Terms & Billing Practices USAC Standard Compression Services Contract Profile2 ● Contracts are 100% fixed fee (i.e. contract stipulates a fixed $/month), not tied to either volumetric throughput or direct commodity price exposure ● Include annual CPI-U escalator on the anniv

  27. Slide 27: Illustrative Examples of Potential Preferred Unit Conversions

    Illustrative Examples of Potential Preferred Unit Conversions Three Months Ended September 30, 2024 As Reported Pro Forma22 ($ in thousands) 64% Converted 100% Assumption23 Distributable Cash Flow ("DCF")3 $ 86,606 $ 86,606 Pro Forma increase upon Preferred Unit Conversion - 4,388 DCF $ 86,606 $ 90,

  28. Slide 28: Compression Throughout the Value Chain

    Compression Throughout the Value Chain Midstream Compression Offers Cash Flow & Customer Stability Lower (Sm. Volumes) Pressure Regime Higher (Lg. Volumes) Crude Oil Wells Midstream Applications Rate-Base Applications • Gas Lift • Regional Gathering • Interstate Pipeline • Gas Reinjection • Gas Proc

  29. Slide 29: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 2024 2023 Adjusted gross margin ($ in thousands) Q3 Q2 Q3 Total revenues $ 239,968 $ 235,313 $ 217,085 Cost of operations, exclusive of depreciation and amortization (81,814) (78,162) (74,928) Depreciation and amortization (67,237) (65,313) (64,101) Gross margin $ 90,917 $ 9

  30. Slide 30: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Post-CDM Acquisition10,11 Pre-CDM Acquisition Non-Predecessor 10 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

  31. Slide 31: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 2024 2023 2022 2021 Distributable Cash Flow ($ in thousands) YTD Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY FY Net income (loss) $ 74,138 $ 19,327 $ 31,238 $ 23,573 $ 68,268 $ 12,841 $ 20,902 $ 23,584 $ 10,941 $ 30,318 $ 10,279 Non-cash interest expense 6,503 2,251 2,257 1,995 7,279 1,819 1

  32. Slide 32: Non-GAAP Reconciliations for Illustrative Examples

    Non-GAAP Reconciliations for Illustrative Examples Three Months Ended September 30, 2024 As Reported Pro Forma22 23 $ in thousands 64% Converted 100% Assumption Net income $ 19,327 $ 19,327 Non-cash interest expense 2,251 2,251 Depreciation and amortization 67,237 67,237 Non-cash income tax expense

  33. Slide 33: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 2024 Guidance 2024 Guidance Net income $105.0 million to $125.0 million Plus: Interest expense, net 189.0 million to 186.0 million Plus: Depreciation and amortization 259.0 million to 262.0 million Plus: Income tax expense 2.0 million EBITDA $555.0 million to $575.0 million

  34. Slide 34: Notes to Presentation

    Notes to Presentation 1 As of December 31, 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 71.2 million common units, and the Partnership had 117.3 million common

  35. Slide 35: Notes to Presentation (continued)

    Notes to Presentation (continued) 18 $2.10 is an annualized distribution rate based on the first-, second-, and third-quarter 2024 distributions of $0.525 per common unit. Distributions are subject to many factors and USAC cannot make any assurances or guarantees with respect to future distributions

  36. Slide 36: 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

  37. Slide 37: Investor Relations Contact Information

    Investor Relations Contact Information IR@usacompression.com 37 © 2025 USA COMPRESSION PARTNERS, LP | CONFIDENTIAL

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