Skip to main content2022 JP Morgan Global High Yield & Leveraged Finance Conference – USA Compression Partners Lp Investor Presentation | Shale Experts
USA Compression Partners, LP 2022 J.P. Morgan Global High Yield & Leveraged Finance Conference February 28 - March 1, 2022
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…
Q4 2021 Recap Solid Conclusion to 2021; Tailwinds Coming Q4 2021 fleet HP of 3.7 million / average revenue generating HP of 3.0 million Q4 2021 average horsepower utilization of 83% Operational Update Customer sentiment improving;…
USAC Operates Critical Assets with Positive Fundamentals Natural Gas Has Proven Itself as a Long-Term Fuel; Compression is Critical Bullish on demand for natural gas, 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 9% 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 HH Nat Gas Utilization /MMBTU 100.0% 14 90.0% 12 80.0% Horsepower utilization average:…
Leverage Reduction / Stability Over Time & Throughout Cycles USACs Asset Base Supports Leverage Stability As a public partnership, USAC has decreased leverage since being privately held Continued prudent management of leverage to suit…
Diversification The Right Operating Regions Dry Gas Areas Have Seen Increased Activity Lately Rockies = Northeast = 5% 25% Mid- Continent = 13% Permian/ Louisiana / Delaware Basin = East TX = 35% 6% Gulf Coast =…
Key Credit Highlights 23-year history focused on large HP applications using standardized, flexible equipment Focused Compression services is substantially all we do; geographic diversity enhances business stability Business Model…
Natural Gas: Not Going Away
Resilient US Natural Gas Demand in 2021 2021 Nat Gas Demand Flat From 2020 Natural gas continues to play an important role in the US & global economy Critical fuel for the economy: power generation, industrial feedstock and…
Longer Term Natural Gas Demand Growing Driven by Industrial Use and LNG Exports Consumption growth between 2020 and 2050 concentrated in exports and industrial use: Net exports (primarily LNG) add 4.7 Tcf/year by 2050 January 2021…
Natural Gas Remains Critical to US Electricity Production Renewables Becoming More Important, But Nat Gas Remains Vital for Electricity More electricity in the US continues to be produced from natural gas than any other fuel Natural…
Natural Gas Production E&P Activity Uptick in 2021 & 2022 Expected to Bolster Compression Demand Increased E&P activity (new drilling and DUCs) helped sustain gas volumes during 2021 Q4 2021 gas production was up 6% over year-ago…
Appendix
Organizational Chart Combined, the Energy Energy Transfer Transfer family owns 47% Family of USAC (unchanged since 2018 CDM Acquisition) Public Unitholders USA Compression GP, LLC (our general partner) 52.7% 39.1% LP LP…
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 More 400…
Balancing Distribution Stability and Leverage Annualized Distributions per Common Unit Stability in Distribution through the cycle 2.50 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.00 1.50 Q1 2019 Q2 2019 Q3…
Macro Thesis: The Shift to Shale Shale Gas Expected to Continue to be the Primary Source of US Natural Gas Shale Dominance: Production from shale shadows Shale gas is typically produced at lower wellhead all other sources pressures…
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 27 2022 USA COMPRESSION PARTNERS, LP CONFIDENTIAL
Non-GAAP Reconciliations, contd 28 2022 USA COMPRESSION PARTNERS, LP CONFIDENTIAL
Non-GAAP Reconciliations, contd. Notes: (1) Following the Transactions, the USA Compression Predecessor has been determined to be the historical predecessor of the Partnership for financial reporting purposes. The information…
Non-GAAP Reconciliations, contd. Notes: Following the Transactions, the USA Compression Predecessor has been determined to be the historical predecessor of the Partnership for financial reporting purposes. The information presented…
Non-GAAP Reconciliations, contd. 31 2022 USA COMPRESSION PARTNERS, LP CONFIDENTIAL
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