USA Compression Partners, LP 2014 Howard Weil Energy Conference March 23-27, 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 Market Data Unit Price (as of 03/21/14) 26.88 Riverstone Units O/S (mm) 38.1 Holdings & LP Equity Value…
Distribution Growth and Unit Price Performance Since IPO USAC Units Have Earned a 60% Total Return Since IPO USAC Unit Price Performance Since IPO Annualized Distributions per LP Unit Partnership has increased the distribution to…
USAC History 15-year History of Growth and Differentiated Business Model 1998: USAC 1998 2010: USAC Dec 2010: Jan 2013: Aug 2013: USAC founded by CEO grows through organic Riverstone USAC completes 182mm Eric Long with development…
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% 81 70% 10.00 63 60% 57 8.00 50% 53 52 51…
USAC Business Overview Not All Compression is Created Equal Large HP Midstream Applications Crude Oil Well Applications Large HP units (Avg: 865 HP) installed in Smaller HP units (Avg: 141 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 1,268 1,193 2,461 Horsepower 965K 237K 1,202K Average Age of Fleet 5.3 years 1.7 years 4.4 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 Natural Gas Production and Gas Rig Count Crude Oil Production Bcf/d Gas Rig Count Mbpd 80 1,800 8,000 70 1,600 7,500 60 1,400 7,000 50…
The Shale Gas Revolution Historical and Projected Natural Gas Production 33 Tcfe 35 Overall natural gas production expected to increase from 63 Bcf/d in 2011 to 91 Bcf/d 30 through 2040, an increase of 44% Substantially all of the…
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)…
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…
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 21
Non-GAAP Reconciliations Successor Predecessor Year Ended December 31, Year Ended December 31, ( in thousands) 2013 2012 2011 2010 2009 Net income 11,071 4,503 69 10,479 21,228 Interest expense 12,488 15,905 12,970 12,279 10,043…
Non-GAAP Reconciliations (contd) Three Months Ended ( in thousands) December 31, 2013 Net income 4,437 Plus: Non-cash interest expense 805 Plus: Depreciation and amortization 15,690 Plus: Unit-based compensation 438 Plus:…
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