USA Compression Partners (USAC) Investor Presentation summary

Business and strategy overview

• Focus on large-horsepower compression services critical to natural gas infrastructure, with 76% of fleet over 1,000 HP and 95% utilization.

• Operates under long-term, fixed-fee, take-or-pay contracts with creditworthy customers, ensuring stable cash flows.

• Geographically diversified across major U.S. basins, with the largest concentration in the Permian/Delaware (41%).

• Proven 25+ year track record of high utilization, stable EBITDA, and never having cut distributions.

• Strategic focus on methodical deleveraging and capital discipline, with a founder-led management team.

Financial performance and guidance

• Q2 2024 revenue reached $235 million, with record adjusted EBITDA of $144 million and net income of $31 million.

• 2024 guidance: adjusted EBITDA of $565–$585 million and distributable cash flow (DCF) of $345–$365 million.

• DCF coverage ratio stands at 1.40x, with leverage ratio at 4.23x, trending toward the long-term goal of 3.75x–4.25x.

• 46 consecutive quarters of distributions, returning over $1.8 billion to unitholders since IPO.

• Outperformed S&P 500 and peers on 1- and 5-year total shareholder return (TSR) basis.

Capital structure and liquidity

• Completed $1 billion issuance of 7.125% 5-year unsecured senior notes in March 2024, with no near-term maturities.

• Moody’s and S&P upgraded outlooks to positive; Fitch rates corporate at BB (stable outlook).

• $320 million of $500 million Series A Preferred Units converted to common units, increasing float and liquidity.

• Preferred to common conversion price set at $20.0115 per unit; minimal impact on financial metrics.

• History of managing leverage, with average leverage of 4.7x since 2013 and recent reductions to 4.1x–4.3x.