USA Compression Partners, LP Citi Midstream / Energy Infrastructure Conference August 12-13, 2020
USAC Overview
USAC Overview Large Horsepower Strategy Critical for Domestic Natural Gas Infrastructure Business Snapshot USAC Market Statistics USAC provides compression services across a Public since 1/2013 (NYSE: USAC) geographicallydiversified…
Q2 2020 Recap Resuming Stability After Events of March Q2 2020 fleet HP of 3.7 million / average revenue generating HP of 3.2 million Q2 2020 average horsepower utilization of 88% Operational Update Moderating pricing; demand for…
USAC Offers a Stable Infrastructure Opportunity Natural Gas Has Proven Itself as a Long-Term Fuel; Compression is Critical Bullish on natural gas production & demand, both in US and globally Supportive Macro: Gas Isnt LNG exports,…
Why Focus on Midstream Compression Operational / Cash Flow Stability with Strong Counterparties Wellhead (Gas & Oil) Midstream Downstream Uses Gas Lift Regional Gathering Interstate Pipelines Gas Reinjection Central Delivery Point…
USAC Customer Overview Top 20 Customers: Diverse Counterparties & Long-Term Relationships % of Length of % of Length of Customer Rev(1) relationship Total HP Customer Rev(1) relationship Total HP Independent Public E&P 8% 10 years…
Business Model Allows for Prudent Capital Spending.. Historical Balance Between Capital Spending and Cash Flow Stability Large HP focus ideally suited for growth and stability Assets provide growth based on marketplace demands Ability…
..Leading to Cash Flow and Asset Stability Through Cycles Post-CDM Pre-CDM Acquisition Non-Predecessor (1) Acquisition (2) Horsepower Utilization HH Nat Gas Utilization has remained at /MMBTU higher, fully-utilized levels 100.0%…
Diversification The Right Operating Regions Rockies = Northeast = 5% 23% Mid- Continent = 15% Permian/ Louisiana / Delaware Basin = East TX = 34% 8% Gulf Coast = 16% Note: Regional % breakdowns represent active…
Natural Gas: Not Going Away
Moderating Rig Count Should Cause Near-Term Production Decreases Slowing Rig Count / Production in Face of Strong Demand Should Bode Well for Nat Gas Overall domestic rig counts are down (75% off recent highs) (1) Gas-directed rigs…
Global Natural Gas Demand Natural Gas Is Not Going Away World energy usage expected to grow with growing GDP Total energy usage expected to grow by 50% by 2050 (1) Renewables growing quickly, but gas will still be critical Natural…
Domestic Natural Gas Demand Rising Baseload Natural Gas Demand Natural gas domestic consumption was up 3% in 2019 from 2018 Longer term: Up 15% (11Bcf/d) since 2014 to 85 Bcf/d in 2019 (1) Majority of increase over time (6.4 Bcf/d)…
Domestic Natural Gas Demand Growth Natural Demand Continues to Growwith Large Increases from Projected Natural Gas Demand (Bcf/d)(1) Exports to Mexico: 140 23% growth - Growing power needs to be met by US over 30 years 118 shale…
Appendix
Organizational Chart Energy Transfer Combined, the Energy Family Transfer family owns 48% of USAC Public Unitholders USA Compression GP, LLC (our general partner) 52.4% 39.3% LP LP Non-econ Preferred GP; Unitholders 8.3%…
Large Horsepower Gas Applications Drive Stability Compression Unit Size Matters USAC Focus: Gas Compression Industry: Key Characteristics by Size Small - Large X Large XX Large XXX Large Commentary Medium Compression 400 1,000…
Balancing Distribution Stability and Leverage Annualized Distributions per Common Unit Stability in Distribution through the cycle Post-CDM 2.50 Pre-CDM Acquisition Non-Predecessor (1)(2) Acquisition (2)(4) 2.10 2.10 2.10 2.10…
Macro Thesis: The Shift to Shale Shale Gas Expected to be the Primary Source in Future Shale Ramp: Production from shale has now pulled Shale gas is typically produced at lower wellhead even with all other sources pressures (0-50…
Compression Throughout the Value Chain Midstream Compression Offers Cash Flow & Customer Stability Lower (Sm. Volumes) Pressure Regime Higher (Lg. Volumes) Crude Oil Wells Rate-Base Applications Gas Lift Midstream Applications…
Non-GAAP Reconciliations 24 2020 USA COMPRESSION PARTNERS, LP CONFIDENTIAL
Non-GAAP Reconciliations, contd. Years Ended December 31, ( in 000's) 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Net income (loss) 39,132 (10,551) 11,440 12,935 (154,273) 24,946 11,071 4,503 69 10,479 21,228…
Non-GAAP Reconciliations, contd. 26 2020 USA COMPRESSION PARTNERS, LP CONFIDENTIAL
Non-GAAP Reconciliations, contd. 2020 Guidance Guidance Net loss (600.0 million) to (580.0 million) Plus: Interest expense, net 128.5 million Plus: Depreciation and amortization 231.0 million Plus: Income tax expense 0.5 million…
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