USA Compression Partners, LP 2014 Citi One-on-One MLP/Midstream Infrastructure Conference August 20-21, 2014
USA Compression Partners Value Proposition Growth Vehicle: Positioned for Growth Established History & Beyond Current Visible Future Operations Attractive Direct Exposure to Current Distribution Areas of Strong Activity…
Overview of USA Compression USAC is a Pure-play Compression MLP Backed by Experienced Energy Investors Ownership Structure (1) Market Data (1) Unit Price (as of 08/15/14) 25.25 Riverstone Units O/S (mm) 44.8 Holdings & LP Equity Value…
USAC Financial Performance Since IPO USAC Units Have Earned a 56% Total Return Since IPO; Partnership Has Delivered Distribution Growth Above Expectations While Taking Steps to De-Lever the Balance Sheet USAC Unit Price Performance…
Distribution Discount Model: Hypothetical Unit Price Valuation** Hypothetical unit prices based on various growth and capital cost assumptions Actuals Terminal LP Distributions / Unit 2013 1H 2014 2H 2014 2015E 2016E 2017E 2018E 2019E…
USAC History 16-year History of Growth and Differentiated Business Model 1998: USAC 1998 2010: USAC Dec 2010: Jan 2013: Aug 2013: USAC May 2014: USAC founded by CEO grows through organic Riverstone USAC completes completes 169mm Eric…
2014 Capital Program and 2015 HP Orders Continued Build-Out of the High-Growth Shale Plays Drives Robust Capital Program Horsepower 60% higher than Initial 400,000 2.5x 2013 total additions 352,000 350,000 52% higher 74,000 300,000…
Key Business Driver: Stability Through the Cycle Natural Gas Price, Utilization and Adjusted EBITDA USAC: A Story of Stability & Growth Utilization / MMBTU 100% 14.00 90% 12.00 80% 107 70% 10.00 60% 81 8.00 50% 63 6.00…
USAC Fleet Overview Natural Crude (Gas-Lift) Combined Gas Assets Assets Fleet Total Units 1,390 1,400 2,790 Fleet Horsepower 1,143K 202K 1,345K Average Age of Fleet 5.1 years 1.7 years 4.2 years Employees 355 76 431 Operating Regions…
Geographical Presence 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 Basins…
The Need for Compression Critical Infrastructure for Producing & Transporting Hydrocarbons Compression is required to transport natural gas throughout the pipeline system Critical Part of Once installed, becomes part of midstream…
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…
Domestic Hydrocarbon Production Growing Production Requires Increased Infrastructure Build-Out Dry Natural Gas Production and Gas Rig Count Historical and Projected Unconventional Gas Production Bcf/d Tcf Gas Rig Count 40 80 1,800…
The Shale Gas Revolution Shale Gas Drives Dramatic Increase in Natural Gas Production 38 Tcfe 40 Overall natural gas production expected to increase from 66 Bcf/d in 2012 to 103 Bcf/d 35 through 2040, an increase of 56%…
Shale Compression Needs Shale Production Drives Increasing Compression Requirements (1)(2) (HP) Shale gas is typically produced at lower wellhead pressures (0-50 PSIG) in contrast to conventional 350,000 gas wells (100-300 PSIG)…
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…
Q&A
Appendix
2014E Guidance USAC expects to trend to the high end of the guidance range for full-year 2014 EBITDA and DCF 20
Non-GAAP Reconciliations Successor Predecessor Quarter Ended June 30, Year Ended December 31, Year Ended December 31, ( in thousands) 2014 2013 2013 2012 2011 2010 2009 Net income 7,518 2,401 11,071 4,503 69 10,479 21,228 Interest…
Non-GAAP Reconciliations (contd) Three Months Ended ( in thousands) June 30, 2014 Net income 7,518 Plus: Non-cash interest expense 292 Plus: Depreciation and amortization 17,044 Plus: Unit-based compensation 1,006 Plus: Impairment…
Loading...
