USA Compression Partners, LP 2015 NAPTP MLP Investor Conference May 20 22
Who is USA Compression Pure-play Compression MLP Backed by Experienced Energy Investors Ownership Structure (1) Market Data Unit Price (as of 05/15/15) 22.67 Riverstone Units O/S (mm) (1) 46.8 Holdings & LP Equity Value 1,060.4…
Recent Developments: Q1 2015 Review USAC Continues to Excel Operationally; Achieves Record Revenue, EBITDA and DCF in Q1 2015 Q1 2015 fleet HP of 1.6 million and average revenue-generating HP of 1.4 million a 29% and 27% increase over…
Outlook For Compression
USAC Business Drivers Compression is Critical Infrastructure for Producing & Transporting Hydrocarbons Approximately 85% of USACs business (by HP) installed in natural gas-based applications Overall Gas Demand Expect to see continued…
Macro Thesis: The Shift to Shale Shale Gas Piece of the Growing Pie Continues to Increase Tcfe 40 35 Tcfe Overall natural gas production expected to increase from 66 Bcf/d in 2012 to 97 Bcf/d through 2040, an 35 increase of 47%…
Dry Gas is Starting to Play a Bigger Role Decline in Liquids/Associated Gas Production Presents Opportunity Dry gas volumes remained relatively constant from 2011 through 2014 For the past few years, associated gas (accompanying the…
Changing Natural Gas Market Marcellus / Utica to Transform Market in Near Term Rockies Marcellus / 13.0 Utica 16.4 Anadarko 7.5 Fayetteville Permian 2.9 Barnett 6.3 5.3 Haynesville Eagle 4.3 2015 7.1 Ford (Bcf/d) GOM…
Changing Natural Gas Market, Continued Northeast Continues Growth; West / South Texas Adding Rockies Marcellus / 11.6 Utica 24.2 Anadarko 6.5 Fayetteville 3.2 Permian Barnett 5.0 Haynesville 7.2 4.2 Eagle 2020 9.0 Ford…
Continued Northeast Infrastructure Build-Out Pipeline Takeaway Projects Out of SW PA, WV, OH 30 25 Producers with firm capacity will continue to 20 develop until the NE debottlenecks in mid-17 15 Bcf/d 10 5 0 Q1…
LNG and Pipeline Exports Drive Growing U.S. Gas Demand Approved LNG Projects and Incremental Natural Gas Export Capacity Total 27 Bcf/d; Supports the Need for Midstream Compression LNG Opportunity 23 Bcf/d of LNG export projects…
The Need for Compression Critical Infrastructure for US Natural Gas Compression is required to transport natural gas throughout the pipeline system Once installed, becomes part of midstream infrastructure, remaining in field for…
Growing Shale Compression Requirements Shale Production Drives Increasing Compression Requirements (1) (HP) Shale gas is typically produced at lower wellhead pressures (0-50 PSIG) in contrast to conventional 350,000 gas wells…
Strategic Focus on Infrastructure Applications Midstream and Crude-Oriented Gas Lift Compression Offer Cash Flow Stability Crude Oil Wells Midstream Applications Rate-Base Applications Regional Gathering Interstate Pipeline Gas Lift…
Stable, Long-Lived Tail Oil Production Supports Gas-Lift Operations Illustrative Shale Oil Well Production Profile 1,000 Bpd initial production can decline to 100 Bpd by year 3 Gas-lift compression utilized during this long tail of…
USAC: Story of Stability and Growth
USAC History 17-year History of Growth and Differentiated Business Model May 2014: USAC 1998: USAC 1998 2010: USAC Dec 2010: Jan 2013: Aug 2013: USAC completes 169mm founded by CEO grows through organic Riverstone USAC completes…
Business Model Underpinned by Stability Stability Through Multiple Commodity Price Cycles Fleet HH Nat Gas Commodity price levels do Utilization / MMBTU not directly affect USACs 100% 14.00 business prospects Rather, natural gas…
Business Fundamentals Result in Cash Flow Stability Infrastructure-Nature of USAC Assets Provide Cash Flow Stability Long asset life complements gathering systems and processing facilities served Long-lived Asset Compression units…
Geographical Presence Presence in Key Geographical Regions Key Customer Profile Oil and Gas Majors Independent E&Ps Large Midstreams & Processors Regional Gathering Systems Marcellus / Utica Shale Anadarko and Hugoton Basins…
Well-Capitalized Customer Base with Strong Credit Ratings Diverse Customer Base Includes O&G Majors, Independent E&Ps, Large Midstream Operators and Regional Gatherers Length of Credit Rank Top Customers Relationship Rating (1) 1…
2015 Capital Program Continued Build-Out of the High-Growth Shale Plays Drives Robust Capital Program Horsepower 400,000 348,000 Approximately 91K HP 350,000 Almost 2.5x 2013 added to fleet in Q1; Fleet Additions remainder of 2015…
Financial Overview and Investment Highlights
USAC Distributions and Leverage Since IPO Partnership Has Delivered Strong Distribution Growth, While Taking Steps to Methodically De-Lever the Balance Sheet Annualized Distributions per LP Unit USAC Historical Pro Forma Leverage(2) 2.10…
USAC Investment Highlights USACs Business Prospects Driven By Positive Macro Drivers in the Midstream Industry Continued focus on infrastructure-oriented compression applications; compression is critical to Critical transporting…
Appendix
2015 Guidance Guidance ( in millions) Net income 13.1 to 24.1 Plus: Interest expense 17.6 to 18.6 Plus: Depreciation and amortization 92.0 Plus: Income taxes 0.2 EBITDA 123.9 to 133.9 Plus: Interest income on capital lease 1.6…
Non-GAAP Reconciliations ( in thousands) Three Months Ended March 31, Years Ended December 31, 2015 2014 2014 2013 2012 2011 Net income 11,456 3,915 24,946 11,071 4,503 69 Interest expense 3,994 3,549 12,529 12,488 15,905 12,970…
Non-GAAP Reconciliations (contd) Three Months Ended March 31, Decem ber 31, March 31, 2015 2014 2014 Net income 11,456 8,501 3,915 Plus: Non-cash interest expense 455 307 582 Plus: Depreciation and amortization 20,731 19,631 16,220…
Loading...
