Usa Compression Partners, Lp · NYSE:USAC
Usa Compression Partners, Lp — Merger or Acquisition (January 2018)
10 slides from Usa Compression Partners, Lp's merger presentation, Jan 16, 2018
Slide 1: Acquisition of CDM Resource Management LLC
USA Compression Partners, LP Acquisition of CDM Resource Management LLC January 16, 2018
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements relating to the operations of USA Compression Partners, LP (“USAC”), Energy Transfer Equity, L.P. (“ETE”), Energy Transfer Partners, L.P. (“ETP”), and their respective affiliates that are based on current expectations, estimates and pr
Slide 3: Executive Summary
Executive Summary USA Compression Partners, LP (“USAC”) and Energy Transfer have executed definitive agreements whereby USAC will acquire CDM Resource Management LLC (“CDM”) for ~$1.7 billion CDM owns and operates ~1.6 million horsepower – like USAC, focused on large horsepower Estimated 2018 CDM EB
Slide 4: Strategic Rationale
Strategic Rationale Combination of complementary compression services operators Significantly increases size and scale: pro forma ~3.4 million HP Focus on large HP infrastructure applications: over 70% of pro forma fleet > 1,000 HP One of the newest fleets in the industry Financially and operational
Slide 5: Transaction Overview: Asset Contribution Transaction Steps
Transaction Overview: Asset Contribution Transaction Steps (1) Energy Transfer Equity, L.P. (“ETE”) Energy Transfer Partners, L.P. (“ETP”) USA Compression Holdings USA Compression Partners (“USAC”) Cash GP Interest & LP Units Cash & LP Units Compression & Treating Assets Energy Transfer Equity, L.P.
Slide 6: Transaction Overview: Simplified Governance
Transaction Overview: Simplified Governance Pro Forma Ownership Structure Energy Transfer Equity (“ETE”) USA Compression Partners (“USAC”) Legacy USAC Compression Assets Legacy CDM Compression & Treating Assets 22% LP Interest; Non-economic GP Interest Public Unitholders 39% LP Interest Transaction
Slide 7: Overview of Acquired Assets
Overview of Acquired Assets CDM has ~20 year history of providing compression services Almost exclusively CAT / Ariel packages New vintage machines (~7 yr avg life) High guaranteed run-times Transaction includes treating services business and emission testing business Top 10 customers represent ~42%
Slide 8: Large Horsepower Compression Combination
Large Horsepower Compression Combination Both USAC and CDM have been built over ~20 years with similar guiding principles Consistent business strategy: Large HP focus Stability through commodity cycles: Fixed-fee contracts Long relationships with core customers & suppliers Similar Operating Philosop
Slide 9: Geographic Presence: Combined Asset Base
Geographic Presence: Combined Asset Base CDM USAC Complimentary Assets with Limited Geographic or Customer Overlap Presence by County
Slide 10: Active Fleet Overview – Horsepower Mix
Active Fleet Overview – Horsepower Mix Pro Forma, Large Horsepower Focus Remains Paramount USAC Standalone USAC Pro Forma Pro Forma, USAC will continue its large HP focus – over 70% of fleet with HP >1,000HP Horsepower % Total Less than 250 HP 392,770 13% 250 HP - 499 HP 146,901 5% 500 HP - 999 HP 2
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