DALLAS, August 06, 2025–(BUSINESS WIRE)–USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for second-quarter 2025.

Financial Highlights

Operational Highlights

“USA Compression’s second-quarter financial and operational results reflected another record-setting quarter for revenues and average revenue per-horsepower of $21.31, up 5% from a year ago. We continue to see strong demand for our services across both oil and gas producing basins which drove year-over-year increases in revenues, Adjusted EBITDA, and Distributable Cash Flow,” commented Clint Green, USA Compression’s President and Chief Executive Officer.

Expansion capital expenditures were $18.1 million, maintenance capital expenditures were $11.7 million, and cash interest expense, net was $45.4 million for second-quarter 2025.

On July 17, 2025, the Partnership announced a second-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 August 8, 2025, to common unitholders of record as of the close of business on July 28, 2025.

In June 2025, the holders of the Partnership’s Series A Preferred Units (“Preferred Units”) elected to convert an aggregate of 100,000 Preferred Units into 4,997,126 common units.

Operational and Financial Data

 

Three Months Ended

 

June 30,
2025

 

March 31,
2025

 

June 30,
2024

Operational data:

 

 

 

 

 

Fleet horsepower (at period end) (1)

 

3,858,508

 

 

 

3,859,920

 

 

 

3,851,970

 

Revenue-generating horsepower (at period end) (2)

 

3,538,668

 

 

 

3,559,624

 

 

 

3,538,683

 

Average revenue-generating horsepower (3)

 

3,551,446

 

 

 

3,557,164

 

 

 

3,515,483

 

Revenue-generating compression units (at period end)

 

4,190

 

 

 

4,213

 

 

 

4,251

 

Horsepower utilization (at period end) (4)

 

94.2

%

 

 

94.4

%

 

 

95.0

%

Average horsepower utilization (for the period) (4)

 

94.4

%

 

 

94.4

%

 

 

94.7

%

 

 

 

 

 

 

Financial data ($ in thousands, except per horsepower data):

 

 

 

 

 

Total revenues

$

250,125

 

 

$

245,234

 

 

$

235,313

 

Average revenue per revenue-generating horsepower per month (5)

$

21.31

 

 

$

21.06

 

 

$

20.29

 

Net income

$

28,559

 

 

$

20,512

 

 

$

31,238

 

Operating income

$

76,608

 

 

$

69,391

 

 

$

77,372

 

Net cash provided by operating activities

$

124,244

 

 

$

54,651

 

 

$

96,741

 

Gross margin

$

92,785

 

 

$

93,223

 

 

$

91,838

 

Adjusted gross margin (6)

$

163,626

 

 

$

163,616

 

 

$

157,151

 

Adjusted gross margin percentage (7)

 

65.4

%

 

 

66.7

%

 

 

66.8

%

Adjusted EBITDA (6)

$

149,482

 

 

$

149,514

 

 

$

143,673

 

Adjusted EBITDA percentage (7)

 

59.8

%

 

 

61.0

%

 

 

61.1

%

Distributable Cash Flow (6)

$

89,926

 

 

$

88,695

 

 

$

85,863

 

Distributable Cash Flow Coverage Ratio (6)

1.40x

 

1.44x

 

1.40x

(1)

 

Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 14,985, 13,210, and 19,915 of non-marketable horsepower as of June 30, 2025, March 31, 2025, and June 30, 2024, respectively. As of June 30, 2025, we had 39,800 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 91.7%, 92.2%, and 91.9% at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

 

 

Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 91.9%, 91.9%, and 91.2% for the three months ended June 30, 2025, March 31, 2025, and June 30, 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 June 30, 2025, the Partnership was in compliance with all covenants under its $1.6 billion revolving credit facility. As of June 30, 2025, the Partnership had outstanding borrowings under the revolving credit facility of $770.6 million and, after accounting for outstanding letters of credit in the amount of $0.8 million, $828.6 million of remaining unused availability, of which, due to restrictions related to compliance with the applicable financial covenants, $735.1 million was available to be drawn. As of June 30, 2025, the outstanding aggregate principal amount of the Partnership’s 6.875% senior notes due 2027 and 7.125% senior notes due 2029 was $750.0 million and $1.0 billion, respectively.

Full-Year 2025 Outlook

USA Compression is confirming its full-year 2025 guidance as follows (in thousands):

 

Full-Year 2025 Outlook

 

Low

 

High

Adjusted EBITDA (1)

$

590,000

 

$

610,000

Distributable Cash Flow (1)

$

350,000

 

$

370,000

 

 

 

 

Capital Expenditures:

 

 

 

Expansion capital expenditures (2)

$

120,000

 

$

140,000

Maintenance capital expenditures

$

38,000

 

$

42,000

(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 $21 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 second-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” page of USA Compression’s Investor Relations website.

By Webcast:

 

Connect to the webcast via the “Events” 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 (888) 440-5655 at least 10 minutes before the call and ask for the USA Compression Partners Earnings Call or conference ID 8970064.

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;

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 2025 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 2025 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 general economic conditions, including inflation, supply chain disruptions, or tariff impacts;

  • operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control;

  • information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems;

  • 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, 2024, which was filed with the Securities and Exchange Commission (the “SEC”) on February 11, 2025, Part II Item 1A (“Risk Factors”) of the Partnership’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which was filed with the SEC on May 6, 2025, and subsequently filed reports; and

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

 

June 30,
2025

 

March 31,
2025

 

June 30,
2024

Revenues:

 

 

 

 

 

Contract operations

$

227,277

 

 

$

224,975

 

 

$

223,643

 

Parts and service

 

6,507

 

 

 

5,094

 

 

 

5,827

 

Related party

 

16,341

 

 

 

15,165

 

 

 

5,843

 

Total revenues

 

250,125

 

 

 

245,234

 

 

 

235,313

 

Costs and expenses:

 

 

 

 

 

Cost of operations, exclusive of depreciation and amortization

 

86,499

 

 

 

81,618

 

 

 

78,162

 

Depreciation and amortization

 

70,841

 

 

 

70,393

 

 

 

65,313

 

Selling, general, and administrative

 

12,896

 

 

 

18,862

 

 

 

14,173

 

Loss (gain) on disposition of assets

 

39

 

 

 

1,325

 

 

 

(18

)

Impairment of assets

 

3,242

 

 

 

3,645

 

 

 

311

 

Total costs and expenses

 

173,517

 

 

 

175,843

 

 

 

157,941

 

Operating income

 

76,608

 

 

 

69,391

 

 

 

77,372

 

Other income (expense):

 

 

 

 

 

Interest expense, net

 

(47,674

)

 

 

(47,369

)

 

 

(48,828

)

Gain on derivative instrument

 

—

 

 

 

—

 

 

 

3,131

 

Other

 

16

 

 

 

25

 

 

 

26

 

Total other expense

 

(47,658

)

 

 

(47,344

)

 

 

(45,671

)

Net income before income tax expense

 

28,950

 

 

 

22,047

 

 

 

31,701

 

Income tax expense

 

391

 

 

 

1,535

 

 

 

463

 

Net income

 

28,559

 

 

 

20,512

 

 

 

31,238

 

Less: distributions on Preferred Units

 

(1,950

)

 

 

(4,388

)

 

 

(4,387

)

Net income attributable to common unitholders’ interests

$

26,609

 

 

$

16,124

 

 

$

26,851

 

 

 

 

 

 

 

Weighted average common units outstanding – basic

 

119,003

 

 

 

117,513

 

 

 

116,849

 

 

 

 

 

 

 

Weighted average common units outstanding – diluted

 

119,503

 

 

 

118,254

 

 

 

117,972

 

 

 

 

 

 

 

Basic and diluted net income per common unit

$

0.22

 

 

$

0.14

 

 

$

0.23

 

 

 

 

 

 

 

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)

 

 

June 30,
2025

Selected Balance Sheet data:

 

Total assets

$

2,671,317

 

Long-term debt, net

$

2,503,566

 

Total partners’ deficit

$

(121,415

)

 

 

Common units outstanding

 

122,581,952

 

USA COMPRESSION PARTNERS, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands — Unaudited)

 

 

Three Months Ended

 

June 30,
2025

 

March 31,
2025

 

June 30,
2024

Net cash provided by operating activities

$

124,244

 

 

$

54,651

 

 

$

96,741

 

Net cash used in investing activities

 

(22,354

)

 

 

(18,041

)

 

 

(48,142

)

Net cash used in financing activities

 

(101,890

)

 

 

(36,622

)

 

 

(48,598

)

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

 

June 30,
2025

 

March 31,
2025

 

June 30,
2024

Total revenues

$

250,125

 

 

$

245,234

 

 

$

235,313

 

Cost of operations, exclusive of depreciation and amortization

 

(86,499

)

 

 

(81,618

)

 

 

(78,162

)

Depreciation and amortization

 

(70,841

)

 

 

(70,393

)

 

 

(65,313

)

Gross margin

$

92,785

 

 

$

93,223

 

 

$

91,838

 

Depreciation and amortization

 

70,841

 

 

 

70,393

 

 

 

65,313

 

Adjusted gross margin

$

163,626

 

 

$

163,616

 

 

$

157,151

 

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

 

June 30,
2025

 

March 31,
2025

 

June 30,
2024

Net income

$

28,559

 

 

$

20,512

 

 

$

31,238

 

Interest expense, net

 

47,674

 

 

 

47,369

 

 

 

48,828

 

Depreciation and amortization

 

70,841

 

 

 

70,393

 

 

 

65,313

 

Income tax expense

 

391

 

 

 

1,535

 

 

 

463

 

EBITDA

$

147,465

 

 

$

139,809

 

 

$

145,842

 

Unit-based compensation expense (benefit) (1)

 

(1,736

)

 

 

3,384

 

 

 

562

 

Transaction expenses (2)

 

—

 

 

 

—

 

 

 

63

 

Severance charges and other employee costs (3)

 

472

 

 

 

1,351

 

 

 

44

 

Loss (gain) on disposition of assets

 

39

 

 

 

1,325

 

 

 

(18

)

Gain on derivative instrument

 

—

 

 

 

—

 

 

 

(3,131

)

Impairment of assets (4)

 

3,242

 

 

 

3,645

 

 

 

311

 

Adjusted EBITDA

$

149,482

 

 

$

149,514

 

 

$

143,673

 

Interest expense, net

 

(47,674

)

 

 

(47,369

)

 

 

(48,828

)

Non-cash interest expense

 

2,231

 

 

 

2,241

 

 

 

2,257

 

Income tax expense

 

(391

)

 

 

(1,535

)

 

 

(463

)

Transaction expenses

 

—

 

 

 

—

 

 

 

(63

)

Severance charges and other employee costs

 

(472

)

 

 

(1,351

)

 

 

(44

)

Cash received on derivative instrument

 

—

 

 

 

—

 

 

 

2,466

 

Other

 

(39

)

 

 

85

 

 

 

37

 

Changes in operating assets and liabilities

 

21,107

 

 

 

(46,934

)

 

 

(2,294

)

Net cash provided by operating activities

$

124,244

 

 

$

54,651

 

 

$

96,741

 

(1)

 

For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, unit-based compensation expense (benefit) included $0.5 million, $0.7 million, and $1.0 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding phantom and restricted unit awards and $1.0 million, $2.2 million, and $0, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting. The remainder of unit-based compensation expense (benefit) for all periods was related to non-cash adjustments to the unit-based compensation liability and other non-cash unit-based compensation expense. The three months ended June 30, 2025 also reflected a $2.1 million reversal of unit-based compensation expense resulting from the forfeiture of certain awards by certain former senior management.

(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 June 30, 2025, severance charges and other employee costs included $0.2 million related to relocation payments.  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 payments and relocation payments, respectively.

(4)

 

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

 

June 30,
2025

 

March 31,
2025

 

June 30,
2024

Net income

$

28,559

 

 

$

20,512

 

 

$

31,238

 

Non-cash interest expense

 

2,231

 

 

 

2,241

 

 

 

2,257

 

Depreciation and amortization

 

70,841

 

 

 

70,393

 

 

 

65,313

 

Non-cash income tax expense (benefit)

 

(39

)

 

 

85

 

 

 

37

 

Unit-based compensation expense (benefit) (1)

 

(1,736

)

 

 

3,384

 

 

 

562

 

Transaction expenses (2)

 

—

 

 

 

—

 

 

 

63

 

Severance charges and other employee costs (3)

 

472

 

 

 

1,351

 

 

 

44

 

Other (4)

 

—

 

 

 

1,000

 

 

 

—

 

Loss (gain) on disposition of assets

 

39

 

 

 

1,325

 

 

 

(18

)

Change in fair value of derivative instrument

 

—

 

 

 

—

 

 

 

(665

)

Impairment of assets (5)

 

3,242

 

 

 

3,645

 

 

 

311

 

Distributions on Preferred Units

 

(1,950

)

 

 

(4,388

)

 

 

(4,387

)

Maintenance capital expenditures (6)

 

(11,733

)

 

 

(10,853

)

 

 

(8,892

)

Distributable Cash Flow

$

89,926

 

 

$

88,695

 

 

$

85,863

 

Maintenance capital expenditures

 

11,733

 

 

 

10,853

 

 

 

8,892

 

Transaction expenses

 

—

 

 

 

—

 

 

 

(63

)

Severance charges and other employee costs

 

(472

)

 

 

(1,351

)

 

 

(44

)

Distributions on Preferred Units

 

1,950

 

 

 

4,388

 

 

 

4,387

 

Other

 

—

 

 

 

(1,000

)

 

 

—

 

Changes in operating assets and liabilities

 

21,107

 

 

 

(46,934

)

 

 

(2,294

)

Net cash provided by operating activities

$

124,244

 

 

$

54,651

 

 

$

96,741

 

 

 

 

 

 

 

Distributable Cash Flow

$

89,926

 

 

$

88,695

 

 

$

85,863

 

 

 

 

 

 

 

Distributions for Distributable Cash Flow Coverage Ratio (7)

$

64,409

 

 

$

61,731

 

 

$

61,429

 

 

 

 

 

 

 

Distributable Cash Flow Coverage Ratio

1.40x

 

1.44x

 

1.40x

(1)

 

For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, unit-based compensation expense (benefit) included $0.5 million, $0.7 million, and $1.0 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding phantom and restricted unit awards and $1.0 million, $2.2 million, and $0, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting. The remainder of unit-based compensation expense (benefit) for all periods was related to non-cash adjustments to the unit-based compensation liability and other non-cash unit-based compensation expense. The three months ended June 30, 2025 also reflected a $2.1 million reversal of unit-based compensation expense resulting from the forfeiture of certain awards by certain former senior management.

(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 June 30, 2025, severance charges and other employee costs included $0.2 million related to relocation payments.  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 payments and relocation payments, respectively.

(4)

 

Represents cash income tax expense accrued for the three months ended March 31, 2025, which we believe is a reasonable estimate of the potential loss from the aggregate final imputed underpayment for the federal tax years 2019 and 2020.

(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/20250806009950/en/

Contacts

Investor Contact:
USA Compression Partners, LP
Investor Relations
ir@usacompression.com