US Market News
2月前
USA Compression Partners Reports First-Quarter 2026 Results; Confirms 2026 OutlookMay 5, 2026 6:55 AM
Business Wire USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for first-quarter 2026. Financial Highlights Total revenues of $331.3 million for first-quarter 2026, compared to $245.2 million for first-quarter 2025. Net income was $38.3 million for first-quarter 2026, compared to $20.5 million for first-quarter 2025. Net cash provided by operating activities was $86.1 million for first-quarter 2026, compared to $54.7 million for first-quarter 2025. Adjusted EBITDA was $188.6 million for first-quarter 2026, compared to $149.5 million for first-quarter 2025. Distributable Cash Flow was $130.8 million for first-quarter 2026, compared to $88.7 million for first-quarter 2025. Distributable Cash Flow Coverage Ratio was 1.72x for first-quarter 2026, compared to 1.44x for first-quarter 2025. Announced cash distribution of $0.525 per common unit for first-quarter 2026, consistent with first-quarter 2025. Strategic Highlights Acquired J-W Power Company and its parent company, J-W Energy Company (the “J-W Power Acquisition”), adding over 0.8 million active horsepower across key regions, including the Northeast, Mid-Continent, Rockies, Gulf Coast, and Permian Basin, creating a combined fleet of approximately 4.4 million active horsepower. Operational Highlights Average revenue per revenue-generating horsepower per month of $22.73 for first-quarter 2026, compared to $21.06 for first-quarter 2025. Average revenue-generating horsepower of 4.44 million for first-quarter 2026, compared to 3.56 million for first-quarter 2025. Average horsepower utilization of 91.9% for first-quarter 2026, compared to 94.4% for first-quarter 2025. “First-quarter results reflect steady demand and strong operational execution,” said Clint Green, President and CEO. “Since closing the highly accretive J-W Power Acquisition on January 12, our first quarter results reflect improvement in metrics for leverage, cash flow and distribution coverage. Looking ahead, we are encouraged by the J-W cultural alignment across the organization and have visibility into improved earnings of the combined assets. Additionally, as new engine procurement lead times have recently moved out beyond two years, the acquisition of a high-quality fleet and customer base is certainly well-timed. Looking ahead, we remain focused on executing consistently, generating reliable cash flows that support our distribution, and building on first quarter momentum throughout 2026.” Expansion capital expenditures were $26.4 million, maintenance capital expenditures were $9.2 million, and cash interest expense, net was $47.1 million for first-quarter 2026. The results of operations of J-W Power Company, and its parent company, J-W Energy Company, subsequent to their acquisition on January 12, 2026 are reflected in the Partnership’s financial results for first-quarter 2026. On April 16, 2026, the Partnership announced a first-quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution will be paid on May 8, 2026, to common unitholders of record as of the close of business on April 27, 2026. Operational and Financial Data Three Months Ended March 31,
2026 December 31,
2025 March 31,
2025 Operational data: Fleet horsepower (at period end) (1) 4,930,737 3,894,332 3,859,920 Revenue-generating horsepower (at period end) (2) 4,439,968 3,585,452 3,559,624 Average revenue-generating horsepower (3) 4,438,366 3,579,179 3,557,164 Revenue-generating compression units (at period end) 6,430 4,256 4,213 Horsepower utilization (at period end) (4) 92.0 % 94.7 % 94.4 % Average horsepower utilization (for the period) (4) 91.9 % 94.5 % 94.4 % Financial data ($ in thousands, except per horsepower data): Total revenues $ 331,275 $ 252,484 $ 245,234 Average revenue per revenue-generating horsepower per month (5) $ 22.73 $ 21.69 $ 21.06 Net income $ 38,342 $ 27,760 $ 20,512 Operating income $ 91,411 $ 76,569 $ 69,391 Net cash provided by operating activities $ 86,103 $ 139,488 $ 54,651 Gross margin $ 126,227 $ 96,388 $ 93,223 Adjusted gross margin (6) $ 213,373 $ 168,748 $ 163,616 Adjusted gross margin percentage (7) 64.4 % 66.8 % 66.7 % Adjusted EBITDA (6) $ 188,587 $ 154,499 $ 149,514 Adjusted EBITDA percentage (7) 56.9 % 61.2 % 61.0 % Distributable Cash Flow (6) $ 130,793 $ 103,211 $ 88,695 Distributable Cash Flow Coverage Ratio (6) 1.72x 1.36x 1.44x ____________________ (1) Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 14,985, 14,985, and 13,210 of non-marketable horsepower as of March 31, 2026, December 31, 2025, and March 31, 2025, respectively. As of March 31, 2026, we had 61,350 large horsepower on order for delivery, all of which is expected to be delivered within the next 12 months. (2) Revenue-generating horsepower is horsepower under contract for which the Partnership is billing a customer.? (3) Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period.? (4) Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is expected to be delivered, divided by (ii) total available horsepower less idle horsepower that is under repair. Horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.0%, 92.1%, and 92.2% at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.2%, 92.1%, and 91.9% for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. (5) Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period. (6) Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below. (7) Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue. Liquidity and Long-Term Debt As of March 31, 2026, the Partnership was in compliance with all covenants under its $1.75 billion revolving credit facility. As of March 31, 2026, the Partnership had outstanding borrowings under the revolving credit facility of $1.25 billion and, after accounting for outstanding letters of credit in the amount of $2.0 million, $497.8 million of remaining unused availability, all of which was available to be drawn, inclusive of restrictions related to compliance with applicable financial covenants. As of March 31, 2026, the outstanding aggregate principal amount of the Partnership’s 7.125% senior notes due 2029 and 6.250% senior notes due 2033 was $1.00 billion and $750.0 million, respectively. Full-Year 2026 Outlook USA Compression confirms its full-year 2026 guidance as follows (in thousands): Full-Year 2026 Outlook Low High Adjusted EBITDA (1) $ 770,000 $ 800,000 Distributable Cash Flow (1) $ 480,000 $ 510,000 Capital Expenditures: Expansion capital expenditures (2) $ 230,000 $ 250,000 Maintenance capital expenditures $ 60,000 $ 70,000 ____________________ (1) The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP, because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. (2) Expansion capital expenditures include $38 million of other capital that is non-compression related. Conference Call The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss first-quarter 2026 financial and operating results. The call will be broadcast live over the internet. Investors may participate by audio webcast, or if located in the U.S. or Canada, by phone. A replay will be available shortly after the call via the “Events & Presentations” page of USA Compression’s Investor Relations website. By Webcast: Connect to the webcast via the “Events & Presentations” page of USA Compression’s Investor Relations website at https://investors.usacompression.com. Please log in at least 10 minutes in advance to register and download any necessary software. By Phone: Dial (800) 715-9871 at least 10 minutes before the call and ask for the USA Compression Partners Earnings Call or conference ID 4287799. About USA Compression Partners, LP USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com. Non-GAAP Financial Measures This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio. Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes Adjusted gross margin is useful to investors as a supplemental measure of the Partnership’s operating profitability. Management uses adjusted gross margin to assess operating performance as compared to historical results, budget and forecast amounts, expected return on capital investment, and our competitors. Adjusted gross margin primarily is impacted by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume, and per-unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units, and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted gross margin, as presented, may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its cost structure. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability. Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year, and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense (benefit). The Partnership defines Adjusted EBITDA as EBITDA plus impairment of assets, impairment of goodwill, interest income on capital leases, unit-based compensation expense (benefit), severance charges and other employee costs, certain transaction expenses, loss (gain) on disposition of assets, loss on extinguishment of debt, loss (gain) on derivative instrument, amortization of capitalized SaaS implementation costs, and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess: the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure, or the historical cost basis of the Partnership’s assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure. Management believes Adjusted EBITDA provides useful information to investors because, when viewed in conjunction with the Partnership’s GAAP results and the accompanying reconciliations, it may provide a more complete assessment of the Partnership’s performance as compared to considering solely GAAP results. Management also believes that external users of the Partnership’s financial statements benefit from having access to the same financial measures that management uses to evaluate the results of the Partnership’s business. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies. Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of assets, impairment of goodwill, certain transaction expenses, severance charges and other employee costs, loss (gain) on disposition of assets, loss on extinguishment of debt, change in fair value of derivative instrument, proceeds from insurance recovery, amortization of capitalized SaaS implementation costs, and other, less distributions on Preferred Units and maintenance capital expenditures. Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Distributable Cash Flow, as presented, may not be comparable to similarly titled measures of other companies.? Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors, and others to compare the cash flows that the Partnership generates (after distributions on Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions that the Partnership expects to pay its common unitholders. Distributable Cash Flow Coverage Ratio is defined as the period’s Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it permits management, investors, and others to assess the Partnership’s ability to pay distributions to common unitholders out of the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio, as presented, may not be comparable to similarly titled measures of other companies. This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership for its 2026 fiscal year. The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP, because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio. Forward-Looking Statements Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2026 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include: changes in economic conditions of the crude oil and natural gas industries, including any impact from the ongoing military conflict involving Russia and Ukraine or the conflict in the Middle East; changes in general economic conditions, including inflation, supply chain disruptions, trade tensions or tariff impacts; changes in the long-term supply of and demand for crude oil and natural gas; our ability to realize the anticipated benefits of the J-W Power Acquisition and to integrate the acquired assets with our existing fleet and operations; competitive conditions in the Partnership’s industry, including competition for employees in a tight labor market; changes in the availability and cost of capital, including changes to interest rates; renegotiation of material terms of customer contracts; actions taken by the Partnership’s customers, competitors, and third-party operators; operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control; the deterioration of the financial condition of the Partnership’s customers, which may result in the initiation of bankruptcy proceedings with respect to certain customers; the restrictions on the Partnership’s business that are imposed under the Partnership’s long-term debt agreements; information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems; our ability to realize the anticipated benefits of the shared services integration with Energy Transfer; the effects of existing and future laws and governmental regulations; the effects of future litigation; factors described in Part I, Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2026, as well as our subsequent filings with the SEC; and other factors discussed in the Partnership’s filings with the SEC. All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements. USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per unit amounts – Unaudited) Three Months Ended March 31,
2026 December 31,
2025 March 31,
2025 Revenues: Contract operations $ 293,509 $ 231,713 $ 224,975 Parts and service 21,871 4,165 5,094 Related party 15,895 16,606 15,165 Total revenues 331,275 252,484 245,234 Costs and expenses: Cost of operations, exclusive of depreciation and amortization 117,902 83,736 81,618 Depreciation and amortization 87,146 72,360 70,393 Selling, general, and administrative 35,357 17,891 18,862 Loss (gain) on disposition of assets (545 ) 1,626 1,325 Impairment of assets 4 302 3,645 Total costs and expenses 239,864 175,915 175,843 Operating income 91,411 76,569 69,391 Other income (expense): Interest expense, net (48,966 ) (45,299 ) (47,369 ) Loss on extinguishment of debt (1 ) (3,006 ) — Other 20 32 25 Total other expense (48,947 ) (48,273 ) (47,344 ) Net income before income tax expense 42,464 28,296 22,047 Income tax expense 4,122 536 1,535 Net income 38,342 27,760 20,512 Less: distributions on Preferred Units — — (4,388 ) Net income attributable to common unitholders’ interests $ 38,342 $ 27,760 $ 16,124 Weighted average common units outstanding – basic 142,750 123,741 117,513 Weighted average common units outstanding – diluted 143,131 124,166 118,254 Basic and diluted net income per common unit $ 0.27 $ 0.22 $ 0.14 Distributions declared per common unit for respective periods $ 0.525 $ 0.525 $ 0.525 USA COMPRESSION PARTNERS, LP SELECTED BALANCE SHEET DATA (In thousands, except unit amounts – Unaudited) March 31,
2026 Selected Balance Sheet Data: Total assets $ 3,734,442 Long-term debt, net $ 2,980,327 Total partners’ capital $ 316,666 Common units outstanding 144,972,358 USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands — Unaudited) Three Months Ended March 31,
2026 December 31,
2025 March 31,
2025 Net cash provided by operating activities $ 86,103 $ 139,488 $ 54,651 Net cash used in investing activities (467,892 ) (51,181 ) (18,041 ) Net cash provided by (used in) financing activities 387,747 (79,743 ) (36,622 ) USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED GROSS MARGIN TO GROSS MARGIN (In thousands — Unaudited) The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented: Three Months Ended March 31,
2026 December 31,
2025 March 31,
2025 Total revenues $ 331,275 $ 252,484 $ 245,234 Cost of operations, exclusive of depreciation and amortization (117,902 ) (83,736 ) (81,618 ) Depreciation and amortization (87,146 ) (72,360 ) (70,393 ) Gross margin $ 126,227 $ 96,388 $ 93,223 Depreciation and amortization 87,146 72,360 70,393 Adjusted gross margin $ 213,373 $ 168,748 $ 163,616 USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (In thousands — Unaudited) The following table reconciles Adjusted EBITDA to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented: Three Months Ended March 31,
2026 December 31,
2025 March 31,
2025 Net income $ 38,342 $ 27,760 $ 20,512 Interest expense, net 48,966 45,299 47,369 Depreciation and amortization 87,146 72,360 70,393 Income tax expense 4,122 536 1,535 EBITDA $ 178,576 $ 145,955 $ 139,809 Unit-based compensation expense (1) 2,405 1,527 3,384 Transaction expenses (2) 3,777 1,914 — Severance charges and other employee costs (3) 4,085 169 1,351 Loss (gain) on disposition of assets (545 ) 1,626 1,325 Loss on extinguishment of debt (4) 1 3,006 — Amortization of capitalized SaaS implementation costs 284 — — Impairment of assets (5) 4 302 3,645 Adjusted EBITDA $ 188,587 $ 154,499 $ 149,514 Interest expense, net (48,966 ) (45,299 ) (47,369 ) Non-cash interest expense 1,829 1,949 2,241 Income tax expense (4,122 ) (536 ) (1,535 ) Non-cash income tax expense 2,711 — — Transaction expenses (3,777 ) (1,914 ) — Severance charges and other employee costs (4,085 ) (169 ) (1,351 ) Other 398 436 85 Changes in operating assets and liabilities (46,472 ) 30,522 (46,934 ) Net cash provided by operating activities $ 86,103 $ 139,488 $ 54,651 ____________________ (1) For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, unit-based compensation expense included $0.1 million, $0.4 million, and $0.7 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards and $0.0 million, $2.0 million, and $2.2 million, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods. (2) Represents certain expenses related to potential and completed transactions, including the J-W Power Acquisition, and other items. The Partnership believes it is useful to investors to exclude these expenses. (3) Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services or the J-W Power Acquisition integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended March 31, 2026, severance charges and other employee costs included $0.6 million and $0.2 million related to retention and relocation payments, respectively. For the three months ended December 31, 2025, severance charges and other employee costs included $0.1 million and $(0.1) million related to retention and relocation payments, respectively. For the three months ended March 31, 2025, severance charges and other employee costs included $0.4 million and $0.1 million related to retention and relocation payments, respectively. (4) For the three months ended December 31, 2025, the loss on extinguishment of debt of $3.0 million is a result of the redemption of our senior notes due 2027. (5) Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows. USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (Dollars in thousands — Unaudited) The following table reconciles Distributable Cash Flow to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented: Three Months Ended March 31,
2026 December 31,
2025 March 31,
2025 Net income $ 38,342 $ 27,760 $ 20,512 Non-cash interest expense 1,829 1,949 2,241 Depreciation and amortization 87,146 72,360 70,393 Non-cash income tax expense 2,711 436 85 Unit-based compensation expense (1) 2,405 1,527 3,384 Transaction expenses (2) 3,777 1,914 — Severance charges and other employee costs (3) 4,085 169 1,351 Other (4) — — 1,000 Loss (gain) on disposition of assets (545 ) 1,626 1,325 Loss on extinguishment of debt (5) 1 3,006 — Impairment of assets (6) 4 302 3,645 Distributions on Preferred Units — — (4,388 ) Amortization of capitalized SaaS implementation costs 284 — — Maintenance capital expenditures (7) (9,246 ) (7,838 ) (10,853 ) Distributable Cash Flow $ 130,793 $ 103,211 $ 88,695 Maintenance capital expenditures 9,246 7,838 10,853 Transaction expenses (3,777 ) (1,914 ) — Severance charges and other employee costs (4,085 ) (169 ) (1,351 ) Distributions on Preferred Units — — 4,388 Other 398 — (1,000 ) Changes in operating assets and liabilities (46,472 ) 30,522 (46,934 ) Net cash provided by operating activities $ 86,103 $ 139,488 $ 54,651 Distributable Cash Flow $ 130,793 $ 103,211 $ 88,695 Distributions for Distributable Cash Flow Coverage Ratio (8) $ 76,110 $ 76,109 $ 61,731 Distributable Cash Flow Coverage Ratio 1.72x 1.36x 1.44x ____________________ (1) For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, unit-based compensation expense included $0.1 million, $0.4 million, and $0.7 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards and $0 million, $2.0 million, and $2.2 million, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods. (2) Represents certain expenses related to potential and completed transactions, including the J-W Power Acquisition, and other items. The Partnership believes it is useful to investors to exclude these expenses. (3) Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services or the J-W Power Acquisition integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended March 31, 2026, severance charges and other employee costs included $0.6 million and $0.2 million related to retention and relocation payments, respectively. For the three months ended December 31, 2025, severance charges and other employee costs included $0.1 million and $(0.1) million related to retention and relocation payments, respectively. For the three months ended March 31, 2025, severance charges and other employee costs included $0.4 million and $0.1 million related to retention and relocation payments, respectively. (4) Represents incremental cash income tax expense accrued for the period presented as a result of the IRS examination of our tax returns for the federal tax years 2019 and 2020. (5) For the three months ended December 31, 2025, the loss on extinguishment of debt of $3.0 million is a result of the redemption of our senior notes due 2027. (6) Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows. (7) Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow. (8) Represents distributions to the holders of the Partnership’s common units as of the record date. View source version on businesswire.com: https://www.businesswire.com/news/home/20260505632782/en/ Investor Contact:
Mitchell Freer
Senior Director, Finance
ir@usacompression.com Original: USA Compression Partners Reports First-Quarter 2026 Results; Confirms 2026 Outlook
US Market News
4月前
USA Compression Partners Reports Fourth-Quarter 2025 Results and Provides 2026 Outlook; Achieves Record ResultsFebruary 17, 2026 6:55 AM
Business Wire
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for fourth-quarter 2025.
Financial Highlights
Record total revenues of $252.5 million for fourth-quarter 2025, compared to $245.9 million for fourth-quarter 2024.
Net income was $27.8 million for fourth-quarter 2025, compared to $25.4 million for fourth-quarter 2024.
Net cash provided by operating activities was $139.5 million for fourth-quarter 2025, compared to $130.2 million for fourth-quarter 2024.
Adjusted EBITDA of $154.5 million for fourth-quarter 2025, compared to $155.5 million for fourth-quarter 2024.
Distributable Cash Flow of $103.2 million for fourth-quarter 2025, compared to $96.3 million for fourth-quarter 2024.
Distributable Cash Flow Coverage was 1.36x for fourth-quarter 2025, compared to 1.56x for fourth-quarter 2024.
Paid cash distribution of $0.525 per common unit for fourth-quarter 2025, consistent with fourth-quarter 2024.
Operational Highlights
Average revenue-generating horsepower of 3.58 million for fourth-quarter 2025, compared to 3.56 million for fourth-quarter 2024.
Average revenue per revenue-generating horsepower per month of $21.69 for fourth-quarter 2025, compared to $20.85 for fourth-quarter 2024.
Average horsepower utilization was 94.5% for fourth-quarter 2025, consistent with for fourth-quarter 2024.
“I want to congratulate our entire team on an exceptional year of value creation in 2025,” said Clint Green, President and CEO. “Our operations and commercial teams continued to deliver for customers day in and day out, while our back-office teams successfully navigated the transition to a shared-services model. These efforts produced record adjusted EBITDA and distributable cash flow in 2025 and laid the foundation for strong momentum in 2026, further bolstered by the January closing of the J-W acquisition. As we look ahead, we are excited to integrate J-W operations into USA Compression and to continue creating value for our customers and unitholders.”
Expansion capital expenditures were $40.0 million, maintenance capital expenditures were $7.8 million, and cash interest expense, net was $43.4 million for fourth-quarter 2025.
On January 15, 2026, the Partnership announced a fourth-quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution was paid on February 6, 2026, to common unitholders of record as of the close of business on January 26, 2026.
Operational and Financial Data
Three Months Ended
Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Operational data:
Fleet horsepower (at period end) (1)
3,894,332
3,872,918
3,862,102
3,894,332
3,862,102
Revenue-generating horsepower (at period end) (2)
3,585,452
3,562,472
3,567,842
3,585,452
3,567,842
Average revenue-generating horsepower (3)
3,579,179
3,549,412
3,563,306
3,559,300
3,528,172
Revenue-generating compression units (at period end)
4,256
4,154
4,269
4,256
4,269
Horsepower utilization (at period end) (4)
94.7
%
94.0
%
94.6
%
94.7
%
94.6
%
Average horsepower utilization (for the period) (4)
94.5
%
94.0
%
94.5
%
94.3
%
94.6
%
Financial data ($ in thousands, except per horsepower data):
Total revenues
$
252,484
$
250,256
$
245,892
$
998,099
$
950,449
Average revenue per revenue-generating horsepower per month (5)
$
21.69
$
21.46
$
20.85
$
21.38
$
20.43
Net income
$
27,760
$
34,488
$
25,437
$
111,319
$
99,575
Operating income
$
76,569
$
83,937
$
74,529
$
306,505
$
294,449
Net cash provided by operating activities
$
139,488
$
75,879
$
130,195
$
394,262
$
341,334
Gross margin
$
96,388
$
102,083
$
99,259
$
384,479
$
372,967
Adjusted gross margin (6)
$
168,748
$
173,305
$
168,214
$
669,295
$
637,723
Adjusted gross margin percentage (7)
66.8
%
69.3
%
68.4
%
67.1
%
67.1
%
Adjusted EBITDA (6)
$
154,499
$
160,265
$
155,524
$
613,760
$
584,282
Adjusted EBITDA percentage (7)
61.2
%
64.0
%
63.2
%
61.5
%
61.5
%
Distributable Cash Flow (6)
$
103,211
$
103,845
$
96,259
$
385,677
$
355,317
Distributable Cash Flow Coverage Ratio (6)
1.36x
1.61x
1.56x
1.45x
1.44x
____________________________________
(1)
Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 14,985 and 20,310 of non-marketable horsepower as of December 31, 2025, and 2024, respectively. As of December 31, 2025, the Partnership had 63,250 horsepower on order. Additionally, as a result of the acquisition of J-W Energy Company and J-W Power Company (the “J-W Power Acquisition”) in January 2026 we added approximately 0.8 million in active horsepower and 1.0 million total horsepower.
(2)
Revenue-generating horsepower is horsepower under contract for which the Partnership is billing a customer.
(3)
Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period.
(4)
Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is expected to be delivered, divided by (ii) total available horsepower less idle horsepower that is under repair.
Horsepower utilization based on revenue-generating horsepower and fleet horsepower was 92.1%, 92.0%, and 92.4% at December 31, 2025, September 30, 2025, and December 31, 2024, respectively.
Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 92.1%, 91.8%, and 92.2% for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 92.0% and 91.7% for the years ended December 31, 2025 and 2024, respectively.
(5)
Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period.
(6)
Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below.
(7)
Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue.
Liquidity and Long-Term Debt
As of December 31, 2025, the Partnership was in compliance with all covenants under its $1.75 billion revolving credit facility. As of December 31, 2025, the Partnership had outstanding borrowings under the revolving credit facility of $795.0 million and, after accounting for outstanding letters of credit in the amount of $0.8 million, $954.2 million of remaining unused availability was available to be drawn, inclusive of restrictions related to compliance with applicable financial covenants. As of December 31, 2025, the outstanding aggregate principal amount of the Partnership’s 7.125% senior notes due 2029 and 6.250% senior notes due 2033 was $1.0 billion and $750 million, respectively.
Full-Year 2026 Outlook
USA Compression is providing its full-year 2026 guidance as follows (in thousands):
Full-Year 2026 Outlook
Low
High
Adjusted EBITDA (1)
$
770,000
$
800,000
Distributable Cash Flow (1)
$
480,000
$
510,000
Capital Expenditures:
Expansion capital expenditures (2)
$
230,000
$
250,000
Maintenance capital expenditures
$
60,000
$
70,000
____________________________________
(1)
The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations.
(2)
Expansion capital expenditures includes $38.0 million of other capital that is non-compression related.
Conference Call
The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss fourth-quarter 2025 performance. The call will be broadcast live over the internet. Investors may participate by audio webcast, or if located in the U.S. or Canada, by phone. A replay will be available shortly after the call via the “Events & Presentations” page of USA Compression’s Investor Relations website.
By Webcast:
Connect to the webcast via the “Events & Presentations” page of USA Compression’s Investor Relations website at https://investors.usacompression.com. Please log in at least 10 minutes in advance to register and download any necessary software.
By Phone:
Dial (800) 715-9871 at least 10 minutes before the call and ask for the USA Compression Partners Earnings Call or conference ID 8130870.
About USA Compression Partners, LP
USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com.
Non-GAAP Financial Measures
This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio.
Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes Adjusted gross margin is useful to investors as a supplemental measure of the Partnership’s operating profitability. Management uses adjusted gross margin to assess operating performance as compared to historical results, budget and forecast amounts, expected return on capital investment, and our competitors. Adjusted gross margin primarily is impacted by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume, and per-unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units, and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted gross margin, as presented, may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its cost structure. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability.
Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year, and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense (benefit). The Partnership defines Adjusted EBITDA as EBITDA plus impairment of assets, impairment of goodwill, interest income on capital leases, unit-based compensation expense (benefit), severance charges and other employee costs, certain transaction expenses, loss (gain) on disposition of assets, loss on extinguishment of debt, loss (gain) on derivative instrument, and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess:
the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure, or the historical cost basis of the Partnership’s assets;
the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;
the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and
the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure.
Management believes Adjusted EBITDA provides useful information to investors because, when viewed in conjunction with the Partnership’s GAAP results and the accompanying reconciliations, it may provide a more complete assessment of the Partnership’s performance as compared to considering solely GAAP results. Management also believes that external users of the Partnership’s financial statements benefit from having access to the same financial measures that management uses to evaluate the results of the Partnership’s business.
Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.
Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of assets, impairment of goodwill, certain transaction expenses, severance charges and other employee costs, loss (gain) on disposition of assets, loss on extinguishment of debt, change in fair value of derivative instrument, proceeds from insurance recovery, and other, less distributions on Preferred Units and maintenance capital expenditures.
Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Distributable Cash Flow, as presented, may not be comparable to similarly titled measures of other companies.?
Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors, and others to compare the cash flows that the Partnership generates (after distributions on Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions that the Partnership expects to pay its common unitholders.
Distributable Cash Flow Coverage Ratio is defined as the period’s Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it permits management, investors, and others to assess the Partnership’s ability to pay distributions to common unitholders out of the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio, as presented, may not be comparable to similarly titled measures of other companies.
This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership for its 2026 fiscal year. The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations.
See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.
Forward-Looking Statements
Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2026 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include:
changes in economic conditions of the crude oil and natural gas industries, including any impact from the ongoing military conflict involving Russia and Ukraine or the conflict in the Middle East;
changes in general economic conditions, including inflation, supply chain disruptions, trade tensions or tariff impacts;
changes in the long-term supply of and demand for crude oil and natural gas;
our ability to realize the anticipated benefits of the J-W Power Acquisition and to integrate the acquired assets with our existing fleet and operations;
competitive conditions in our industry, including competition for employees in a tight labor market;
changes in the availability and cost of capital, including changes to interest rates;
renegotiation of material terms of customer contracts;
actions taken by our customers, competitors, and third-party operators;
operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control;
the deterioration of the financial condition of the Partnership’s customers, which may result in the initiation of bankruptcy proceedings with respect to certain customers;
the restrictions on our business that are imposed under our long-term debt agreements;
information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems;
our ability to realize the anticipated benefits of the shared services integration with Energy Transfer;
the effects of existing and future laws and governmental regulations;
the effects of future litigation; and
other factors discussed in the Partnership’s filings with the SEC.
All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.
USA COMPRESSION PARTNERS, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per unit amounts – Unaudited)
Three Months Ended
Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Revenues:
Contract operations
$
231,713
$
227,990
$
222,985
$
911,955
$
885,250
Parts and service
4,165
5,370
6,854
21,136
23,897
Related party
16,606
16,896
16,053
65,008
41,302
Total revenues
252,484
250,256
245,892
998,099
950,449
Costs and expenses:
Cost of operations, exclusive of depreciation and amortization
83,736
76,951
77,678
328,804
312,726
Depreciation and amortization
72,360
71,222
68,955
284,816
264,756
Selling, general, and administrative
17,891
16,694
20,302
66,343
72,666
Loss on disposition of assets
1,626
830
3,826
3,820
4,939
Impairment of assets
302
622
602
7,811
913
Total costs and expenses
175,915
166,319
171,363
691,594
656,000
Operating income
76,569
83,937
74,529
306,505
294,449
Other income (expense):
Interest expense, net
(45,299
)
(47,066
)
(48,616
)
(187,408
)
(193,471
)
Loss on extinguishment of debt
(3,006
)
—
—
(3,006
)
(4,966
)
Gain on derivative instrument
—
—
—
—
5,684
Other
32
24
27
97
110
Total other expense
(48,273
)
(47,042
)
(48,589
)
(190,317
)
(192,643
)
Net income before income tax expense
28,296
36,895
25,940
116,188
101,806
Income tax expense
536
2,407
503
4,869
2,231
Net income
27,760
34,488
25,437
111,319
99,575
Less: distributions on Preferred Units
—
(1,950
)
(4,387
)
(8,288
)
(17,550
)
Net income attributable to common unitholders’ interests
$
27,760
$
32,538
$
21,050
$
103,031
$
82,025
Weighted average common units outstanding – basic
123,741
122,678
117,074
120,756
113,389
Weighted average common units outstanding – diluted
124,166
123,086
118,089
121,274
114,501
Basic net income per common unit
$
0.22
$
0.27
$
0.18
$
0.85
$
0.72
Diluted net income per common unit
$
0.22
$
0.26
$
0.18
$
0.85
$
0.72
Distributions declared per common unit for respective periods
$
0.525
$
0.525
$
0.525
$
2.10
$
2.10
USA COMPRESSION PARTNERS, LP
SELECTED BALANCE SHEET DATA
(In thousands, except unit amounts – Unaudited)
December 31,
2025
Selected Balance Sheet data:
Total assets
$
2,619,931
Long-term debt, net
$
2,523,970
Total partners’ deficit
$
(112,502
)
Common units outstanding
126,795,135
USA COMPRESSION PARTNERS, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands — Unaudited)
Three Months Ended
Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net cash provided by operating activities
$
139,488
$
75,879
$
130,195
$
394,262
$
341,334
Net cash used in investing activities
(51,181
)
(23,381
)
(26,920
)
(114,957
)
(202,014
)
Net cash used in financing activities
(79,743
)
(52,500
)
(103,340
)
(270,755
)
(139,317
)
USA COMPRESSION PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED GROSS MARGIN TO GROSS MARGIN
(In thousands — Unaudited)
The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented:
Three Months Ended
Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Total revenues
$
252,484
$
250,256
$
245,892
$
998,099
$
950,449
Cost of operations, exclusive of depreciation and amortization
(83,736
)
(76,951
)
(77,678
)
(328,804
)
(312,726
)
Depreciation and amortization
(72,360
)
(71,222
)
(68,955
)
(284,816
)
(264,756
)
Gross margin
$
96,388
$
102,083
$
99,259
$
384,479
$
372,967
Depreciation and amortization
72,360
71,222
68,955
284,816
264,756
Adjusted gross margin
$
168,748
$
173,305
$
168,214
$
669,295
$
637,723
USA COMPRESSION PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(In thousands — Unaudited)
The following table reconciles Adjusted EBITDA to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:
Three Months Ended
Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net income
$
27,760
$
34,488
$
25,437
$
111,319
$
99,575
Interest expense, net
45,299
47,066
48,616
187,408
193,471
Depreciation and amortization
72,360
71,222
68,955
284,816
264,756
Income tax expense
536
2,407
503
4,869
2,231
EBITDA
$
145,955
$
155,183
$
143,511
$
588,412
$
560,033
Unit-based compensation expense (1)
1,527
1,167
5,552
4,342
16,552
Transaction expenses (2)
1,914
—
(23
)
1,914
133
Severance charges and other employee costs (3)
169
2,463
2,056
4,455
2,430
Loss on disposition of assets
1,626
830
3,826
3,820
4,939
Loss on extinguishment of debt (4)
3,006
—
—
3,006
4,966
Gain on derivative instrument
—
—
—
—
(5,684
)
Impairment of assets (5)
302
622
602
7,811
913
Adjusted EBITDA
$
154,499
$
160,265
$
155,524
$
613,760
$
584,282
Interest expense, net
(45,299
)
(47,066
)
(48,616
)
(187,408
)
(193,471
)
Non-cash interest expense
1,949
2,133
2,245
8,554
8,748
Income tax expense
(536
)
(2,407
)
(503
)
(4,869
)
(2,231
)
Transaction expenses
(1,914
)
—
23
(1,914
)
(133
)
Severance charges and other employee costs
(169
)
(2,463
)
(2,056
)
(4,455
)
(2,430
)
Cash received on derivative instrument
—
—
—
—
6,888
Other
436
(16
)
777
466
1,204
Changes in operating assets and liabilities
30,522
(34,567
)
22,801
(29,872
)
(61,523
)
Net cash provided by operating activities
$
139,488
$
75,879
$
130,195
$
394,262
$
341,334
____________________________________
(1)
For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, unit-based compensation expense included $0.4 million, $0.4 million, and $0.9 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards. Additionally, for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, we paid $2.0 million, $2.6 million, and $5.4 million, respectively, for the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods.
For the years ended December 31, 2025 and 2024, unit-based compensation expense included $2.0 million and $3.9 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards. Additionally, for the years ended December 31, 2025 and 2024, we paid $7.7 million and $5.4 million, respectively, for the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods. The remainder of unit-based compensation expense for all periods was related to non-cash adjustments to the unit-based compensation liability.
(2)
Represents certain expenses related to potential and completed transactions and other items. The Partnership believes it is useful to investors to exclude these expenses.
(3)
Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended December 31, 2025 and September 30, 2025, severance charges and other employee costs included $0.1 million and $0.1 million related to retention payments, respectively, and ($0.1) million and $0.3 million related to relocation payments, respectively. For the year ended December 31, 2025, severance charges and other employee costs included $0.6 million related to each of retention payments and relocation payments.
(4)
For the three months and year ended December 31, 2025, the loss on extinguishment of debt of $3.0 million is a result of the redemption of our senior notes due 2027.
For the year ended December 31, 2024, the loss on extinguishment of debt is a result of the satisfaction and discharge of the senior notes due 2026. This amount represents the write-off of deferred financing costs of $4.3 million and the difference between (i) the purchase price of U.S. government securities of $748.8 million used to redeem the senior notes due 2026 and (ii) the aggregate outstanding principal balance and accrued interest of the senior notes due 2026 of $748.1 million at the time of purchase of the government securities.
(5)
Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows.
USA COMPRESSION PARTNERS, LP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(Dollars in thousands — Unaudited)
The following table reconciles Distributable Cash Flow to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:
Three Months Ended
Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net income
$
27,760
$
34,488
$
25,437
$
111,319
$
99,575
Non-cash interest expense
1,949
2,133
2,245
8,554
8,748
Depreciation and amortization
72,360
71,222
68,955
284,816
264,756
Non-cash income tax expense (benefit)
436
(16
)
147
466
574
Unit-based compensation expense (1)
1,527
1,167
5,552
4,342
16,552
Transaction expenses (2)
1,914
—
(23
)
1,914
133
Severance charges and other employee costs (3)
169
2,463
2,056
4,455
2,430
Other
—
1,876
—
2,876
—
Loss on disposition of assets
1,626
830
3,826
3,820
4,939
Loss on extinguishment of debt (4)
3,006
—
—
3,006
4,966
Change in fair value of derivative instrument
—
—
—
—
1,204
Impairment of assets (5)
302
622
602
7,811
913
Distributions on Preferred Units
—
(1,950
)
(4,387
)
(8,288
)
(17,550
)
Maintenance capital expenditures (6)
(7,838
)
(8,990
)
(8,151
)
(39,414
)
(31,923
)
Distributable Cash Flow
$
103,211
$
103,845
$
96,259
$
385,677
$
355,317
Maintenance capital expenditures
7,838
8,990
8,151
39,414
31,923
Transaction expenses
(1,914
)
—
23
(1,914
)
(133
)
Severance charges and other employee costs
(169
)
(2,463
)
(2,056
)
(4,455
)
(2,430
)
Distributions on Preferred Units
—
1,950
4,387
8,288
17,550
Other
—
(1,876
)
630
(2,876
)
630
Changes in operating assets and liabilities
30,522
(34,567
)
22,801
(29,872
)
(61,523
)
Net cash provided by operating activities
$
139,488
$
75,879
$
130,195
$
394,262
$
341,334
Distributable Cash Flow
$
103,211
$
103,845
$
96,259
$
385,677
$
355,317
Distributions for Distributable Cash Flow Coverage Ratio (7)
$
76,109
$
64,410
$
61,702
$
266,659
$
245,990
Distributable Cash Flow Coverage Ratio
1.36x
1.61x
1.56x
1.45x
1.44x
____________________________________
(1)
For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, unit-based compensation expense included $0.4 million, $0.4 million, and $0.9 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards. Additionally, for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, we paid $2.0 million, $2.6 million, and $5.4 million, respectively, for the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods.
For the years ended December 31, 2025, and 2024, unit-based compensation expense included $2.0 million and $3.9 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards. Additionally, for the years ended December 31, 2025 and 2024, we paid $7.7 million and $5.4 million, respectively, for the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods. The remainder of unit-based compensation expense for all periods was related to non-cash adjustments to the unit-based compensation liability.
(2)
Represents certain expenses related to potential and completed transactions and other items. The Partnership believes it is useful to investors to exclude these expenses.
(3)
Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended December 31, 2025 and September 30, 2025, severance charges and other employee costs included $0.1 million and $0.1 million related to retention payments, respectively, and ($0.1) million and $0.3 million related to relocation payments, respectively. For the year ended December 31, 2025, severance charges and other employee costs included $0.6 million related to each of retention payments and relocation payments.
(4)
For the three months and year ended December 31, 2025, the loss on extinguishment of debt of $3.0 million is a result of the redemption of our senior notes due 2027.
For the year ended December 31, 2024, the loss on extinguishment of debt is a result of the satisfaction and discharge of the senior notes due 2026. This amount represents the write-off of deferred financing costs of $4.3 million and the difference between (i) the purchase price of U.S. government securities of $748.8 million used to redeem the senior notes due 2026 and (ii) the aggregate outstanding principal balance and accrued interest of the senior notes due 2026 of $748.1 million at the time of purchase of the government securities.
(5)
Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows.
(6)
Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow.
(7)
Represents distributions to the holders of the Partnership’s common units as of the record date.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260217558380/en/
Investor Contact:
Mitchell Freer
Senior Director, Finance
ir@usacompression.com
Original: USA Compression Partners Reports Fourth-Quarter 2025 Results and Provides 2026 Outlook; Achieves Record Results
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