USA Compression Partners (USAC) Investor presentation summary

Financial performance and growth

• Achieved record average revenue-generating horsepower of 4.44 million in Q1 2026, up 25% year-over-year, and record revenues of $331.3 million, up 35% year-over-year.

• Adjusted EBITDA reached $188.6 million in Q1 2026, a 26% increase year-over-year, with 2026 guidance of $770–$800 million.

• Distribution yield stands at 7.7% with over 50 consecutive quarters of stable or increased distributions; total equity return of 194% over five years.

• Distributable cash flow coverage ratio at 1.72x in Q1 2026, reflecting strong cash generation.

• Leverage ratio improved to 3.74x in Q1 2026, with continued deleveraging following the J-W Power acquisition.

Operational strategy and market positioning

• Operates a diversified fleet across major U.S. basins, with 4.4 million active horsepower and broad regional density.

• Business model based on fixed-fee, take-or-pay contracts with most terms spanning two to five years, ensuring consistent cash flows.

• Utilization rates remain resilient, with total utilization at 92% and large horsepower units at 95% as of Q1 2026.

• J-W Power acquisition added approximately 850,000 active horsepower, enhancing scale and rate profile.

• Advanced order book and macro outlook support continued fleet and revenue growth through 2029.

Cost management and capital discipline

• Adjusted gross profit margin has remained strong, historically in the 66–68% range; Q1 2026 margin at 64.4% due to J-W assets, with synergy capture expected to improve margins.

• SG&A expenses declined in 2025, benefiting from transition to shared services and disciplined controls.

• Targeting $10–$20 million in cost synergies from the J-W acquisition through operational, SG&A, tax, and commercial efficiencies.

• Return on invested capital nearly doubled from 6.5% in 2022 to 11.8% in 2025, driven by disciplined capital deployment.

• 2026 capital guidance includes $230–$250 million in growth capex and $60–$70 million in maintenance capex, with focus on new units and technology upgrades.