Usa Compression Partners, Lp · NYSE:USAC
Usa Compression Partners, Lp — RBC Capital Markets Global Energy, Power & Infrastructure Conference 2025
21 slides from Usa Compression Partners, Lp's conference presentation, Jun 4, 2025
Slide 1: USA Compression Partners, LP Investor Presentation
USA Compression Partners, LP Investor Presentation RBC Capital Markets Global Energy, Power & Infrastructure Conference June 2025
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: USA Compression at a Glance: Financial
USA Compression at a Glance: Financial USAC Market Statistics1 2025 Financial Guidance2 • NYSE: USAC • Adjusted EBITDA: $590 - $610 million • Market Cap: $3.0 billion • Distributable Cash Flow: $350 - $370 million • Enterprise Value: $5.8 billion • Current Unit Price: $25.76 • Distribution Yield: 8.
Slide 4: USA Compression at a Glance: Operations
USA Compression at a Glance: Operations Large-Horsepower Strategy is Vital to Natural Gas Infrastructure and Delivered Strong Financial Performance in Q1 2025 3.9 million fleet HP; 94% utilization1 Compression services provided across geographically diversified operating areas • Major operating pres
Slide 5: USAC is Well Positioned to Benefit from Natural Gas Demand Growth
USAC is Well Positioned to Benefit from Natural Gas Demand Growth Projected U.S. Gas Demand (bcf/d) 9 127 15 A marked increase in U.S. natural gas demand is 103 projected primarily from increased LNG exports and the electrification of everything (“EoE”) Northeast Market Leader USAC’s leading market
Slide 6: Capital Structure
Capital Structure • $320MM of $500MM Series A Preferred Units have been converted into Common Units • Moody’s upgraded corporate and unsecured debt rating in February 2025 • No maturities until December 2026 Maturity Profile (in millions)1 Ratings Summary ABL Drawn ABL Undrawn Senior Unsecured Notes
Slide 7: Stable Cash Flows Throughout Commodity Cycles
Stable Cash Flows Throughout Commodity Cycles 93.4% 94.6% 86.8% 88.6% 82.7% $6.42 Durable cash flows during $590 - industry downcycles and are $3.91 $584 $610 $512 tied to production, rather than $426 $414 $398 swings in commodity prices $2.54 $2.04 $2.19 2, 3 2020 2021 2022 2023 2024 2025E HH Natur
Slide 8: USAC Customer Overview
USAC Customer Overview Diverse, Creditworthy Counterparties with Long-Term Relationships Top 20 Customer by Type1 ✓ Low revenue concentration risk – top 10 customers are 46%1 of total revenues ✓ Average relationship with top 10 customers over 16 years 30% ✓ Top 7 customers are investment grade 70% ✓
Slide 9: USAC's Asset Base Supports Reduced Credit and Equity Risk
USAC’s Asset Base Supports Reduced Credit and Equity Risk DCF Coverage Ratio1 Leverage Ratio 1.44x 5.09x 1.35x 5.03x 4.76x 1.09x 1.03x 1.08x 4.10x 4.02x 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 DCF Coverage Ratio and Leverage Ratio have both improved since 2021, reducing risk for credit and
Slide 10: History of Strong and Consistent Returns to Unitholders
History of Strong and Consistent Returns to Unitholders 105% USAC has outperformed the S&P Value Index and MLP peers over the past three 72% years on a total shareholder return basis1 30% USAC Alerian MLP ETF (AMLP) S&P 500 Value 8% 7% 8% USAC’s durable distribution provides 5% income-seeking invest
Slide 11: 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 12: Appendix
Appendix 12
Slide 13: First Quarter 2025 Highlights
First Quarter 2025 Highlights Operational and Financial Results Accomplishments Record • New compression unit orders of ~40K HP Average revenue- $ per revenue- • Continued strong business execution, generating HP generating HP near fully utilized at 94% 3.56 MM $21.06 • Strong adjusted gross margin
Slide 14: Operational and Financial Performance
Operational and Financial Performance Average Revenue-generating HP (000s) Adjusted EBITDA ($MM)2 +7% CAGR +17% CAGR $590 - 3,528 $584 $610 3,329 $512 3,067 $426 2022 2023 2024 2022 2023 2024 2025E 3 Total Capex ($MM) DCF ($MM)2 +21% CAGR1 $275 $243 $120 - $350 - $145 $140 $355 $370 $281 $221 $24 $2
Slide 15: 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 16: Ownership Structure and Energy Transfer Relationship
Ownership Structure and Energy Transfer Relationship USAC Ownership Structure1 Energy Transfer • Supportive parent that owns one of the LP largest and most diversified portfolios of energy assets in the United States • Energy Transfer has owned USAC’s general Public partner since April 2018 and has
Slide 17: Illustrative Example of Potential Preferred Unit Conversions
Illustrative Example of Potential Preferred Unit Conversions Three Months Ended March 31, 2025 3 As Reported Pro Forma 4 ($ in thousands) 64% Converted 100% Assumption The potential conversion of Distributable Cash Flow ("DCF") 1 $ 88,695 $ 88,695 Pro Forma increase upon Preferred Unit Conversion -
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted gross margin and Adjusted EBITDA Distributable Cash Flow and Distributable Cash Flow Coverage 2025 2024 2025 2024 $ in thousands Q1 Q4 Q1 $ in thousands Q1 Q4 Q1 Total revenues $ 245,234 $ 245,892 $ 229,276 Net income $ 20,512 $ 25,437 $ 23,573 Cost of operations, e
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted gross margin and Adjusted EBITDA Distributable Cash Flow and Distributable Cash Flow Coverage Years Ended December 31, Years Ended December 31, $ in thousands 2024 2023 2022 2021 2020 $ in thousands 2024 2023 2022 2021 2020 Total revenues $ 950,449 $ 846,178 $ 704,5
Slide 20: Non-GAAP Reconciliation for Illustrative Example
Non-GAAP Reconciliation for Illustrative Example Three Months Ended March 31, 2025 As Reported Pro Forma2 3 $ in thousands 64% Converted 100% Assumption Net income $ 20,512 $ 20,512 Non-cash interest expense 2,241 2,241 Depreciation and amortization 70,393 70,393 Non-cash income tax expense 85 85 Un
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-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