USA Compression Partners, LP 2014 NAPTP MLP Investor Conference May 20-22, 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 05/16/14) 24.83 Riverstone Units O/S (mm) 44.2 Holdings & LP Equity…
Distribution Growth and Unit Price Performance Since IPO USAC Units Have Earned a 51% Total Return Since IPO USAC Unit Price Performance Since IPO Annualized Distributions per LP Unit 29.25 Partnership has increased the distribution…
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 Continued Build-Out of the High-Growth Shale Plays Drives Robust Capital Program Horsepower 36% higher than Initial 350,000 2x 2013 total additions 52% higher 300,000 300,000 than 2013 50,000 250,000 220,000…
Key Business Driver: Stability Through the Cycle USAC: A Story of Stability & Growth Natural Gas Price, Utilization and Adjusted EBITDA Utilization / MMBTU 100% 14.00 90% 12.00 80% 70% 101 10.00 60% 81 8.00 50% 63 6.00…
USAC Business Overview Not All Compression is Created Equal Large HP Midstream Applications Crude Oil Well Applications Large HP units (Avg: 875 HP) installed in Smaller HP units (Avg: 143 HP) used in gas midstream applications…
USAC Fleet Overview USAC Assets are Infrastructure-Oriented Natural Crude (Gas-Lift) Combined Gas Assets Assets Fleet Total Units 1,312 1,302 2,614 Horsepower 1,084K 188K 1,272K Average Age of Fleet 5.2 years 1.7 years 4.3 years…
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 70…
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 350,000 pressures (0-50 PSIG) in contrast to conventional gas wells (100-300 PSIG)…
Crude Oil Gas Lift Overview of Crude Oil Gas Lift Gas Lift is an artificial method of raising crude oil to the surface when the well lacks sufficient reservoir pressure Producers utilize compression to inject natural gas into the…
Crude Oil Gas Lift Strategic Rationale Infrastructure Assets Leveraged to Crude Oil Economics Necessary part of the production process in unconventional plays using horizontal Infrastructure- drilling Oriented Assets Assets tend to…
Pro Forma Capitalization and Leverage Equity Offering Meaningfully De-Levers Balance Sheet As of March 31, 2014 Actual As Adjusted USAC completed a 6.6mm unit follow-on offering on Cash and cash equivalents 7 7 May 19, 2014 at a…
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 23
Non-GAAP Reconciliations Successor Predecessor Quarter Ended March 31, Year Ended December 31, Year Ended December 31, ( in thousands) 2014 2013 2013 2012 2011 2010 2009 Net income 3,915 2,521 11,071 4,503 69 10,479 21,228 Interest…
Non-GAAP Reconciliations (contd) Three Months Ended ( in thousands) March 31, 2014 Net income 3,915 Plus: Non-cash interest expense 582 Plus: Depreciation and amortization 16,220 Plus: Unit-based compensation 1,096 Plus:…
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