Usa Compression Partners, Lp · NYSE:USAC
Usa Compression Partners, Lp — RBC Midstream and Energy Infrastructure Conference 2022
21 slides from Usa Compression Partners, Lp's conference presentation, Nov 17, 2022
Slide 1: USA Compression Partners, LP
USA Compression Partners, LP RBC Midstream and Energy Infrastructure Conference November 17, 2022
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 USA Compression Partners, LP (the “Partnership”) that are based on management’s current expectations, estimates, and projections about its operations. You can identif
Slide 3: USAC Overview
USAC Overview Large-Horsepower Strategy Vital to Natural Gas Infrastructure, Production, and Delivery to Market Centers Business / Strategy Overview USAC Market Statistics ● Compression services provided across • IPO: 1/2013 (NYSE: USAC) geographically diversified operating areas • Current Unit Pric
Slide 4: Third-Quarter Highlights
Third-Quarter Highlights Operational and Financial Accomplishments ✓ 39 quarters of consecutive distributions (USAC has never cut its distribution) Horsepower Average $ Per HP Utilization Per Month ✓ Returned ~$1.5 billion in cash to unitholders since IPO 90.9% $17.53 ✓ Improving distribution covera
Slide 5: Well-Positioned for Growth and Durable Returns
Well-Positioned for Growth and Durable Returns Large-Horsepower Focus Mission-critical infrastructure-oriented assets that feature long-term contracts and accretive returns Operations Operational Excellence Increasing utilization with consistent and attractive operating margins Increasing Producer V
Slide 6: Large HP = Stable Cash Flows and Scalable Capital Spending
Large HP = Stable Cash Flows and Scalable Capital Spending • Large-HP focus provides highest returns on invested capital and durable cash flows throughout the production cycle • Large-HP focus drives opportunistic and accretive organic expansion during periods of production growth with the flexibili
Slide 7: Stable Cash Flows Throughout Commodity Cycles
Stable Cash Flows Throughout Commodity Cycles Adjusted EBITDA ($MM) Pre-CDM Acquisition Non-Predecessor1 Post-CDM Acquisition2 Horsepower Nominal pandemic- HH Nat Gas Utilization induced utilization $/MMBTU 100.0% decline and swift $10 recovery thereafter 90.0% $9 Horsepower Stability through 80.0%
Slide 8: USAC Capitalization
USAC Capitalization Capitalization as of September 30, 2022 Maturity Profile September 30, 2022 - Revolving Credit Facility due 2026 ($MM) % of cap 6.875% Senior Unsecured Notes due 2026 6.875% Senior Unsecured Notes due 2027 Cash and cash equivalents $- 9.75% Series A Preferred Equity $618 $1,600MM
Slide 9: Dual-Drive Natural Gas Compression
Dual-Drive Natural Gas Compression Natural Gas Compression Powered by Natural Gas or Electricity in a Single Unit Dual-Drive Compression Delivers: ✓ Lower invested capital with attractive returns ✓ Lower operating expenses ✓ 99% runtime ✓ Lower CO2 and methane emissions USAC currently only provider
Slide 10: Appendix
Appendix k—— COMPRESSION
Slide 11: Critical Assets with Supportive Fundamentals
Critical Assets with Supportive Fundamentals Natural Gas is a Long-Term Fuel; Compression Remains Critical ● Robust global demand for natural gas Supportive Macro: Gas Isn’t ● LNG exports, petchem feedstock and power gen driving continued natural gas usage Going Anywhere ● Natural gas demand/product
Slide 12: Focus on Midstream Compression
Focus on Midstream Compression Provides Operational / Cash Flow Stability with Strong Counterparties Wellhead (Gas & Oil) Midstream Downstream Uses: Gas Lift Regional Gathering Interstate Pipelines Gas Reinjection Central Delivery Point Trunkline Gathering Processing Plants Gas Storage Customer Base
Slide 13: USAC Customer Overview
USAC Customer Overview Top 20 Customers: Diverse Counterparties and Long-Term Relationships % of Length of % of Length of Customer Rev1 relationship Total HP Customer Rev1 relationship Total HP Independent Public E&P 9% > 10 Years 274K Independent Public E&P 2% > 10 Years 80K Major O&G 6% > 10 Years
Slide 14: Operational and Financial Performance
Operational and Financial Performance Avg. Revenue Generating HP (000s) Revenue ($MM) Pre-CDM Acquisition Non-Predecessor1 Post-CDM Acquisition1,2 Pre-CDM Acquisition Non-Predecessor1 Post-CDM Acquisition1,2 4,000 $800 $698 3,279 $668 3,140 3,091 $633 2,951 2,978 3,028 3,000 2,760 $584 $600 2,000 $4
Slide 15: Large-Horsepower Gas Applications Drive Revenue Stability
Large-Horsepower Gas Applications Drive Revenue Stability Compression Unit Size Matters USAC Focus: Gas Compression Industry: Key Characteristics by Size1 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 1,0
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2022 $ in thousands YTD Q3 Q2 Q1 Total revenues $ 514,486 $ 179,613 $ 171,461 $ 163,412 Cost of operations, exclusive of depreciation and amortization (168,343) (59,453) (55,158) (53,732) Depreciation and amortization (176,795) (58,772) (58,959) (59,064) Gross margin $ 169,3
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2022 $ in thousands YTD Q3 Q2 Q1 Net income $ 21,952 $ 9,612 $ 9,086 $ 3,254 Interest expense, net 100,059 35,142 33,079 31,838 Depreciation and amortization 176,795 58,772 58,959 59,064 Income tax expense 657 376 255 26 EBITDA $ 299,463 $ 103,902 $ 101,379 $ 94,182 Unit-bas
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Post-CDM Acquisition Pre-CDM Acquisition Non-Predecessor Years Ended December 31, $ in thousands 2021 2020 2019 2018 2017 2016 2015 2014 2013 Net income (loss) $ 10,279 $ (594,732) $ 39,132 $ (10,551) $ 11,440 $ 12,935 $ (154,273) $ 24,946 $ 11,071 Interest expense, net 129,
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2022 $ in thousands YTD Q3 Q2 Q1 Net income $ 21,952 $ 9,612 $ 9,086 $ 3,254 Non-cash interest expense 5,451 1,814 1,815 1,822 Depreciation and amortization 176,795 58,772 58,959 59,064 Non-cash income tax expense (benefit) (216) (33) 21 (204) Unit-based compensation expense
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2022 Guidance Guidance Net income $30.0 to $40.0 million Plus: Interest expense, net 137.0 million Plus: Depreciation and amortization 237.0 million Plus: Income tax expense 1.0 million EBITDA $405.0 million to $415.0 million Plus: Unit-based compensation expense and other 1
Slide 21: Basis of Presentation; Explanation of Non-GAAP Financial Measures
Basis of Presentation; Explanation of Non-GAAP Financial Measures This presentation includes the non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio. Adjusted gross margin, a non-GAAP measure, is defined as revenu
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