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 Second Quarter 2018 Results

 

AUSTIN, Texas, August 7, 2018 

—USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for the second quarter 2018.    

 

Second Quarter 2018 Highlights

 

·

Total revenues were  $166.9 million.

·

Net income was $3.2 million.

·

Net cash provided by operating activities was $75.5 million.

·

Adjusted EBITDA was $95.4 million.

·

Distributable Cash Flow was $51.4 million.

·

Announced cash distribution of $0.525 per common unit.

·

Distributable Cash Flow Coverage was 1.09x.

·

Cash Coverage was 1.09x.

 

On April 2, 2018, the Partnership completed the acquisition of the CDM compression business (the “USA Compression Predecessor”) from Energy Transfer Partners, L.P. for approximately $1.7 billion in consideration (the “CDM Acquisition”) and Energy Transfer Equity, L.P. completed the acquisition of the Partnership’s general partner, USA Compression GP, LLC (collectively, the “Transactions”). In connection with the Transactions, the general partner interest was converted into a noneconomic general partner interest and the Partnership’s incentive distribution rights were cancelled.

 

For accounting purposes, the USA Compression Predecessor is the acquirer in the business combination because its ultimate parent company, Energy Transfer Equity, L.P., obtained control of the Partnership through the acquisition of the Partnership’s general partner, USA Compression GP, LLC. Accordingly, any financial and operational results provided by the Partnership in future filings will reflect (i) the financial and operational results of the USA Compression Predecessor for all periods prior to the closing of the Transactions and (ii) the financial and operational results of the combined businesses, including the impact of the Transactions, for all periods subsequent to the closing of the Transactions. Therefore, the second quarter 2018 results are not comparable to prior periods.

 

“USA Compression had a strong second quarter, which reflected a full quarter of combined operations following the CDM Acquisition, which closed on April 2nd. The demand for our compression services continued the strength we’ve seen over the last few years, as our customers continue to build out critical infrastructure in our areas of operations. We’re already seeing benefits from the CDM Acquisition, and we expect that to continue as we fully integrate the two businesses, which we expect will be complete by the end of the year,” commented Eric D. Long, USA Compression’s President and Chief Executive Officer. “Strong EBITDA and Distributable Cash Flow resulted in reduced leverage of approximately 4.4x and an increased Distributable Cash Flow Coverage Ratio of 1.09x for the quarter. While our combined utilization was 91.5% due to the inclusion of the CDM fleet, we expect that metric to over time move back to where USA Compression has more recently operated.”

 

“For the quarter, we took delivery of 34,000 horsepower, all large horsepower units which were deployed to serve our customers. We expect to take delivery of approximately 95,000 horsepower in the second half of 2018,  almost all of which consist of very large horsepower units already committed to customers or under contract with customers, and continue to have commitments for an additional 67,000 horsepower for delivery in the first half of 2019. The lead times to source new equipment continued to lengthen and now approach around 14 months for the largest horsepower units. We will prudently monitor the market signals from our upstream and midstream customers and make additional future large horsepower equipment orders as needed,” he added.

 

“Overall, we are very pleased with the quarter and are looking forward to fully integrating the CDM business and taking advantage of the strong marketplace for compression services, which continues to benefit from upward pressure on rates and long lead-times for new equipment.”

 

1


The following information was filed by Usa Compression Partners, Lp (USAC) on Tuesday, August 7, 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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