Slide 1: USA Compression Partners, LP Earnings Presentation Third-Quarter 2024
USA Compression Partners, LP Earnings Presentation Third-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: Third-Quarter Highlights
Third-Quarter Highlights Operational and Financial Accomplishments ✓ 47 consecutive quarters of distributions (USAC has never cut its distribution)3 Record Record ✓ Returned ~$1.9 billion to unitholders since IPO3 Average revenue- $ per revenue- generating HP generating HP ✓ Ample distribution cover
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 September 30, 2024 5 As Reported Pro Forma 6 ($ in thousands) 64% Converted 100% Assumption Distributable Cash Flow ("DCF") 2 $ 86,606 $ 86,606 Pro Forma increase upon Preferred Unit Conversion - 4,388 DCF $ 86,606 $ 90
Slide 6: Operational and Financial Performance
Operational and Financial Performance Average Revenue-generating HP (000s) and Utilization Revenue ($MM) 3,561 96% 3,600 3,515 $250 $235 $240 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 3,172 $162 $158 $158 $157 $159
Slide 7: USAC's Asset Base Supports Declining Leverage
USAC’s Asset Base Supports Declining Leverage USAC Historical Leverage 7 Cumulative Pre-CDM Acquisition Non-Predecessor3 Post-CDM Acquisition3, 8 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 $750 4.00 4.63
Slide 8: Stable Cash Flows Throughout Commodity Cycles
Stable Cash Flows Throughout Commodity Cycles USAC Adjusted EBITDA2 ($MM) Pre-CDM Acquisition Non-Predecessor3 Post-CDM Acquisition3, 8 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-Predecessor3 Post-CDM Acquisition3, 8 $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 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
Slide 11: 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 $500MM Series A Preferred Units have been converted into common units ● Corporate debt rating received a positive outlook from S&P and Moody’s during 202
Slide 12: Appendix
Appendix USA rr COMPRESSION
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2024 2023 2022 2021 2020 Adjusted gross margin ($ in thousands) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total revenues $ 239,968 $ 235,313 $ 229,276 $ 225,049 $ 217,085 $ 206,920 $ 197,124 $ 190,112 $ 179,613 $ 171,461 $ 163,412 $ 159,943 $ 158,627 $ 156,562
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Post-CDM Acquisition3, 8 Pre-CDM Acquisition Non-Predecessor 3 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 September 30, 2024 As Reported Pro Forma5 6 $ 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 16: Non-GAAP Reconciliations: 2024 Guidance
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
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 October 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 70.9 million common units, and the Partnership had 117.0 million common u
Slide 19: 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