21 slides from Usa Compression Partners, Lp's earnings presentation, Feb 13, 2024
Slide 1: USA Compression Partners, LP Earnings Presentation Fourth-Quarter 2023
USA Compression Partners, LP Earnings Presentation Fourth-Quarter 2023
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” or “USAC”) that are based on management’s current expectations, estimates, and projections about its operations. You c
Slide 3: Fourth-Quarter Highlights
Fourth-Quarter Highlights Operational and Financial Accomplishments ✓ 44 consecutive quarters of distributions (USAC has never cut its distribution) Record Record ✓ Returned >$1.7 billion to unitholders since IPO Average revenue- Revenues ✓ Improving distribution coverage generating HP 3.41 MM $225.
Slide 4: Preferred Unitholder Partial Conversion of Preferred Units
Preferred Unitholder Partial Conversion of Preferred Units • On Friday, January 12, 2024, EIG Veteran Equity Aggregator, L.P. and FS Specialty Lending Fund (collectively “EIG”) elected to convert 40,000 Series A Perpetual Preferred Units (the “Preferred Units”) of the Partnership into Common Units r
Slide 5: Illustrative Examples of Potential Preferred Unit Conversions
Illustrative Examples of Potential Preferred Unit Conversions Three Months Ended December 31, 2023 8 As Reported Pro Forma 9 10 10 ($ in thousands) 8% Conversion 50% Assumption 100% Assumption 6 Distributable Cash Flow ("DCF") $ 79,888 $ 79,888 $ 79,888 Pro Forma increase upon Preferred Unit Convers
Slide 6: Operational and Financial Performance
Operational and Financial Performance Average Revenue-generating HP (000s) Revenue ($MM) Pre-CDM Acquisition Non-Predecessor4 Post-CDM Acquisition4,11 Pre-CDM Acquisition Non-Predecessor4 Post-CDM Acquisition4,11 4,000 $1,000 3,279 3,329 $846 3,140 3,067 2,951 3,000 2,760 $800 $705 $698 $668 $633 $5
Slide 7: USAC's Asset Base Supports Declining Leverage
USAC’s Asset Base Supports Declining Leverage USAC Historical Leverage 3 Cumulative Pre-CDM Acquisition Non-Predecessor4 Post-CDM Acquisition4, 11 Leverage Capex Ratio $2,250 5.50 $2,000 5.00 $1,750 4.50 $1,500 4.00 5.50 $1,250 3.50 5.00 $1,000 3.00 4.50 5.18 $750 4.90 4.84 4.76 2.50 4.00 4.63 4.51
Slide 8: Stable Cash Flows Throughout Commodity Cycles
Stable Cash Flows Throughout Commodity Cycles USAC Adjusted EBITDA ($MM) Pre-CDM Acquisition Non-Predecessor4 Post-CDM Acquisition4, 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 $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-Predecessor4 Post-CDM Acquisition4, 11 $2.20 $2.09 $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 $1.00 2
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 Rev14 relationship Total HP15 10 customers are 39% of total revenue Major O&G 11% > 10 Years 308K Independent Public E&P 7% > 20 Years 240K ✓ 6 o
Slide 11: Capitalization Overview
Capitalization Overview Capitalization as of December 31, 2023 Maturity Profile 18 $1.6B Revolving Credit Facility due 2026; drawn as of 12/31/23 6.875% Senior Unsecured Notes due 2026 ($MM) % of cap 6.875% Senior Unsecured Notes due 2027 20 9.75% Series A Preferred Equity (convertible) Cash and cas
Slide 12: Appendix
Appendix —— COMPRESSION
Slide 13: Notes to Presentation
Notes to Presentation 1 As of February 8, 2024, Energy Transfer LP held 46.1 million common units, including 8.0 million common units held by USA Compression GP, LLC (our general partner). 2 As of February 8, 2024, public unitholders held 56.9 million common units. 3 The Partnership’s Seventh Amende
Slide 14: Notes to Presentation (continued)
Notes to Presentation (continued) 17 Based on 101.0 million common units outstanding and a closing unit price of $22.83 as of December 29, 2023. 18 The Revolving Credit Facility matures on December 8, 2026, except that if any portion of the 6.875% Senior Unsecured Notes due 2026 are outstanding on D
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2023 Adjusted gross margin ($ in thousands) Full Year Q4 Q3 Q2 Q1 Total revenues $ 846,178 $ 225,049 $ 217,085 $ 206,920 $ 197,124 Cost of operations, exclusive of depreciation and amortization (284,708) (73,193) (74,928) (69,922) (66,665) Depreciation and amortization (246,
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Post-CDM Acquisition11 Pre-CDM Acquisition Non-Predecessor 4 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 $ 1
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2023 Distributable Cash Flow ($ in thousands) Full Year Q4 Q3 Q2 Q1 Net income $ 68,268 $ 12,841 $ 20,902 $ 23,584 $ 10,941 Non-cash interest expense 7,279 1,819 1,819 1,819 1,822 Depreciation and amortization 246,096 62,470 64,101 60,039 59,486 Non-cash income tax expense (
Slide 18: Non-GAAP Reconciliations for Illustrative Examples
Non-GAAP Reconciliations for Illustrative Examples Three Months Ended December 31, 2023 As Reported Pro Forma8 9 10 10 $ in thousands 8% Conversion 50% Assumption 100% Assumption Net income $ 12,841 $ 12,841 $ 12,841 Non-cash interest expense 1,819 1,819 1,819 Depreciation and amortization 62,470 62
Slide 19: Non-GAAP Reconciliations: 2024 Guidance
Non-GAAP Reconciliations 2024 Guidance Δ to 2024 Guidance 2024 Guidance 2023 Actual Midpoint Δ% Net income $95.0 to $115.0 million Plus: Interest expense, net 184.0 million Plus: Depreciation and amortization 260.0 million Plus: Income tax expense 1.0 million EBITDA $540.0 million to $560.0 million
Slide 20: Investor Relations Contact Information
Investor Relations Contact Information IR@usacompression.com 19 © 2024 USA COMPRESSION PARTNERS, LP | CONFIDENTIAL
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 of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio. Adjusted