Usa Compression Partners, Lp · NYSE:USAC
Usa Compression Partners, Lp — J.P. Morgan Global Leveraged Finance Conference 2025
23 slides from Usa Compression Partners, Lp's conference presentation, Feb 24, 2025
Slide 1: USA Compression Partners, LP Investor Presentation
USA Compression Partners, LP Investor Presentation J.P. Morgan Global Leveraged Finance Conference February 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: $3.3 billion • Distributable Cash Flow: $350 - $370 million • Enterprise Value: $6.0 billion • Current Unit Price: $28.39 • Distribution Yield: 7.
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 Record Financial Performance in Q4 2024 3.9 million fleet HP; 95% 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 9 127 15 Projected U.S. Gas Demand (bcf/d) 103 A marked increase in U.S. natural gas demand is projected primarily from increased LNG exports and the electrification of everything (“EoE”) 2024 LNG EoE 2030 exports USAC’s active fleet
Slide 6: Capital Structure
Capital Structure ● $320MM of $500MM Series A Preferred Units have been converted into Common Units ● Corporate debt rating received a positive outlook from Moody’s during 2024; Fitch upgraded to BB in late 2023 ● No maturities until December 2026 Maturity Profile (in millions)1 Ratings Summary ABL
Slide 7: USAC History
USAC History Capital Markets Milestones Throughout USAC History 1998: 2015: 2018: 2019: 2024: 2024: 2025: Dec 2010: 2013: Founded with Upsized ABL $1.7B CDM Issued Issued $1.0B $320MM of Enterprise Riverstone $198MM IPO private $1.1B acquisition; $750MM 7.125% 2029 $500MM Value of $6B, acquires proc
Slide 8: 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 2020 2021 2022 2023 2024 2025E HH Natural
Slide 9: 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 34% ✓ Top 7 customers are investment grade 66% ✓
Slide 10: 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 11: History of Strong and Consistent Returns to Unitholders
History of Strong and Consistent Returns to Unitholders 206% USAC has outperformed the S&P Value Index and MLP peers over the past five years on a total shareholder return basis1 100% 74% USAC Alerian MLP ETF (AMLP) S&P 500 Value 8% 7% 7% USAC’s durable distribution provides 5% income-seeking invest
Slide 12: 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 13: Why USAC: From the Perspective of a Note Holder
Why USAC: From the Perspective of a Note Holder Strong Track History of high and stable fleet utilization and EBITDA across multiple cycles Track record of through-cycle stability and double-digit revenue growth over past three years Record Supportive long-term JPMorgan-led ABL syndicate (since 2004
Slide 14: Appendix
Appendix 14
Slide 15: Fourth Quarter and Full Year 2024 Highlights
Fourth Quarter and Full Year 2024 Highlights Q4 2024 FY 2024 Record Record Record Record Average revenue- $ per revenue- Average revenue- $ per revenue- generating HP generating HP generating HP generating HP 3.56 MM $20.85 3.53 MM $20.43 0.1% Q-o-Q 1% Q-o-Q 6% Y-o-Y 8% Y-o-Y Record Record Record Re
Slide 16: Operational and Financial Performance
Operational and Financial Performance Average Revenue-generating HP (000s) Adjusted EBITDA ($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 17: 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 18: 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 19: Illustrative Example of Potential Preferred Unit Conversions
Illustrative Example of Potential Preferred Unit Conversions Three Months Ended December 31, 2024 3 As Reported Pro Forma 4 ($ in thousands) 64% Converted 100% Assumption The potential conversion of Distributable Cash Flow ("DCF") 1 $ 96,259 $ 96,259 100% has minimal impact on Pro Forma increase upo
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA and Adjusted Gross Margin Distributable Cash Flow and Distributable Cash Flow Coverage 2024 2023 2024 2023 $ in thousands Q4 Q3 Q4 $ in thousands Q4 Q3 Q4 Total revenues $ 245,892 $ 239,968 $ 225,049 Net income $ 25,437 $ 19,327 $ 12,841 Cost of operations, e
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA and Adjusted Gross Margin 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 22: Non-GAAP Reconciliation for Illustrative Example
Non-GAAP Reconciliation for Illustrative Example Three Months Ended December 31, 2024 As Reported Pro Forma2 $ in thousands 64% Converted 100% Assumption3 Net income $ 25,437 $ 25,437 Non-cash interest expense 2,245 2,245 Depreciation and amortization 68,955 68,955 Non-cash income tax expense 147 14
Slide 23: 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
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