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Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp

USA Compression Partners Lp · Aug 21, 2013 · 25 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 1
    USA Compression Partners, LP Citi MLP / Midstream Infrastructure 2013 Investor Conference August 21-22, 2013
  2. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 2
    USA Compression Snapshot Leading Domestic Provider of Contract Compression Services Partnership Overview Horsepower Breakdown (as of 6/30/13) (1) One of the largest independent providers of % of Unit HP on Total HP Total compression…
  3. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 3
    Mission-Critical Infrastructure Service Provider Continued Focus on Infrastructure Applications: Addition of crude oil production-oriented infrastructure services through recently announced S&R acquisition Lower Pressure Applications…
  4. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 4
    Fueling the Shale Gas Revolution Unconventional Resource Plays Drive USACs Growth Unprecedented Growth from Shale Basins (1) Location is Critical Bcf/d USA Compression has geographic diversity 7.0 while focusing in areas of high…
  5. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 5
    Industry Fundamentals Shale Gas The Industry Gamechanger Hist. and Proj. Natural Gas Production (1) Increasing Compression Needs (2)(3) Tcf 33 Tcfe (HP) 35.0 USAC believes 350,000 compression needs for 30.0 unconventional basins are…
  6. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 6
    Compression through the Natural Gas Price Cycle High Utilization Drives Cash Flow Stability USAC Utilization vs. Natural Gas Price Adjusted EBITDA vs. Natural Gas Price Utilization % / MMBtu mm / MMBtu 100% 16.00 90 16.00 84 14.00 80…
  7. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 7
    Location, Location, Location Presence in Key Geographical Regions Primary Key Customer Profile Oil Majors Independent E&Ps Large Midstreams & Processors Regional Gathering Systems Marcellus / Utica Shale Anadarko and Hugoton…
  8. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 8
    S&R Compression Asset Acquisition
  9. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 9
    Transaction Overview USA Compression Partners has agreed to acquire 187 million(1) of compression assets used in crude oil production USA Compression Partners, LP has agreed to acquire compression assets from S&R Compression, LLC, an…
  10. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 10
    Transaction Highlights S&R Compression acquisition provides product and customer diversification while retaining USACs focus on infrastructure assets with stable cash flows Scale: 983 compression units representing 138,000 HP…
  11. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 11
    S&R Compression Fleet Overview Asset Details State-by-State Presence 983 compression units; 138,000 horsepower Strong presence in the Granite Wash, Woodford HP range up to 380HP Shale, Tonkawa and Mississippi Lime plays Fabricated…
  12. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 12
    Mid-Continent Crude Oil Production Crude Oil Production TX (mm bbls) (1) 80,000 2000 2013: 5.1% CAGR 60,000 2010 2013: 26.8% CAGR 40,000 20,000 Jan-2000 Jan-2003 Jan-2006 Jan-2009 Jan-2012 Crude Oil Production OK (mm bbls) (1)…
  13. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 13
    Growth Opportunities Minimal overlap in product offering presents attractive growth potential expanding fleet offerings and accessing a larger customer base S&Rs established Mid- Continent footprint Marcellus / complements USAC;…
  14. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 14
    Fleet Comparison S&R Compression rental fleet will complement USACs existing infrastructure-focused business and help create a larger, more diversified compression business USA S&R Compression Compression (1) Assets (1) Combined…
  15. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 15
    Pro Forma Ownership Structure Argonaut Private Equity, a Kaiser Affiliate, Will Become a Significant USAC Unitholder USA Compression Holdings, LLC (18.7 mm units) George B. Kaiser Public Affiliate 50% LP interest; Unitholders…
  16. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 16
    Pro Forma Financial Impact Transaction Immediately Strengthens USACs Balance Sheet ( in mm) Pro Forma (1) Q4 FY 2013E 2013E Adjusted EBITDA 27 95 DCF 20 68 Debt / EBITDA 4.1x (1) Pro forma amounts reflect estimated…
  17. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 17
    Financial Overview
  18. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 18
    Unit Price & Trading Volume Since IPO (1) 27.25 26.25 25.25 24.25 23.25 22.25 21.25 20.25 19.25 18.25 17.25 Price Increase Price Decrease High/Low Bar 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000…
  19. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 19
    Financial Strategy Maintain stable cash flow platform with long-term customer contracts and high utilization Maintain Stable Continue focus on large horsepower compression units to provide Cash Flows growth to current stable,…
  20. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 20
    Operational and Financial Performance Avg. Revenue Generating HP (000s) Revenue (MM) HP 29% 20% 15% mm 1,000 160 growth 153 growth 892 growth 816 2006 2012 800 2006 2012 745 709 16% CAGR 119 120 18% 17% CAGR 99 571 95 92…
  21. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 21
    USAC Key Investment Highlights Exposure to USAC will own and operate assets in prolific oil and gas shale basins benefitting from ongoing Strategic midstream build-out Producing S&R adds meaningful presence in gas-lift crude oil…
  22. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 22
    Q&A
  23. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 23
    Appendix
  24. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 24
    Non-GAAP Reconciliations Predecessor Successor Year Ended December 31, Year Ended December 31, Six Months Ended June 30, ( in thousands) 2006 2007 2008 2009 2010 2011 2012 2012 2013 Net income 9,829 7,122 20,911 21,228 10,479 69 4,503…
  25. Citi MLP and Midstream Infrastructure Conference – USA Compression Partners Lp – slide 25
    Non-GAAP Reconciliations (contd) Three Months Ended ( in thousands) June 30, 2013 Net income 2,401 Plus: Non-cash interest expense 471 Plus: Depreciation and amortization 12,173 Plus: Share-based compensation 489 Less:…

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