Exhibit 99.1

 

 

Picture 2

News Release

 

USA Compression Partners, LP

 

100 Congress Avenue, Suite 450

 

Austin, Texas 78701

 

usacompression.com

 

USA Compression Partners, LP Reports First Quarter 2018 Results; Updates 2018 Outlook

 

AUSTIN, Texas, May 9, 2018 

—USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for the first quarter 2018.    A net loss of $15.4 million was recognized for the first quarter of 2018, compared to net income of $4.5 million for the fourth quarter of 2017 and $1.6 million for the first quarter of 2017. In the first quarter of 2018, the net loss was primarily due to non-recurring transaction expenses related to the CDM Acquisition.   Net cash provided by operating activities was  $36.4 million for the first quarter of 2018,  compared to $39.3 million for the fourth quarter of 2017 and $18.3 million for the first quarter of 2017.  

 

Adjusted EBITDA was  $44.1 million for the first quarter of 2018, compared to $42.1 million for the fourth quarter of 2017 and $36.0 million for the first quarter of 2017.  Distributable Cash Flow was  $33.7 million for the first quarter of 2018, compared to $33.2 million for the fourth quarter of 2017 and $27.2 million for the first quarter of 2017. 

 

“The first quarter got off to a great start for USA Compression, with continued encouraging fundamentals in the compression services industry leading to an increase in service revenues of approximately 6%, and an increase in active horsepower of 61,000, or about 4% over the fourth quarter,” commented Eric D. Long, USA Compression’s President and Chief Executive Officer. “Our Distributable Cash Flow Coverage Ratio continues to improve and was 1.03x for the quarter. We continue to see high utilization of our deployed fleet of approximately 95%; furthermore, the lead times for large horsepower equipment, currently about 12 months, are expected to remain long for the foreseeable future. This tightness in the compression marketplace has put upward pressure on service rates across all of our categories of equipment, and we have also taken the opportunity to term-up some of the month-to-month contracts in selected regions.”

 

“Our customers are ramping up activity levels meaningfully, which is driving increasing demand for our largest horsepower assets. For the balance of 2018, we have commitments to take delivery of approximately 150,000 horsepower, including orders from CDM Resource Management.  We recently committed to an additional 50,000 horsepower for delivery in the first half of 2019. Consistent with our business model strategy these commitments consist of very large horsepower units. A significant portion of the 2018 deliveries are already under contract with our customers, and we expect our first tranche of 2019 units to go quickly,” he added.

 

“In the midst of this strong market for our compression services, in January, we announced a transformative transaction with the Energy Transfer family that resulted in USA Compression acquiring CDM Resource Management, Energy Transfer’s compression business, for consideration of approximately $1.7 billion, and Energy Transfer acquiring our general partner. At closing in early April, this transaction brought together two like-minded service providers with high quality assets, and provides USA Compression expansion into regions in which we were historically underrepresented. We expect the combined business, which will continue to focus on large horsepower serving infrastructure applications, to benefit from the positive trends in our industry. Integration of the two businesses is underway and is progressing better than expected.”

 

Average revenue generating horsepower was 1,662,896 for the first quarter of 2018, compared to 1,602,365 for the fourth quarter of 2017 and 1,406,206 for the first quarter of 2017.  Average revenue per revenue generating horsepower per month was  $15.60 for the first quarter of 2018, compared to $15.21 for the fourth quarter of 2017 and  $14.98 for the first quarter of 2017.  

 

Revenues were $77.7 million for the first quarter of 2018, compared to $75.4 million for the fourth quarter of 2017 and  $66.0 million for the first quarter of 2017.   Gross operating margin was  $52.2 million for the first quarter of 2018, compared to  $50.3 million for the fourth quarter of 2017 and $43.5 million for the first quarter of 2017. Gross operating margin as a percentage of total revenues was 67.1% for the first quarter of 2018, compared to 66.8% for the fourth quarter of 2017 and 65.9% for the first quarter of 2017.    We recognized an operating loss of $6.1 million for the first quarter of 2018,  compared to operating income of $11.5 million for the fourth quarter of 2017 and $7.4 million for the first quarter of 2017. In the first quarter of 2018, the operating loss was primarily due to non-recurring transaction expenses related to the CDM Acquisition.

 

Expansion capital expenditures were $50.4 million, maintenance capital expenditures were $2.0 million and cash interest expense, net was $8.5 million for the first quarter of 2018.  

1


The following information was filed by Usa Compression Partners, Lp (USAC) on Wednesday, May 9, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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