ROHSTOFF INTERNATIONAL

12:00 | 07.11.2017
USA Compression Partners, LP Reports Third Quarter 2017 Results and Updates 2017 Outlook

USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the
“Partnership”) announced today its financial and operating results for
the third quarter of 2017. Net income was $4.8 million for the third
quarter of 2017, compared to $0.6 million for the second quarter of 2017
and a net loss of $2.1 million for the third quarter of 2016. Net cash
provided by operating activities was $33.0 million for the third quarter
of 2017, compared to $34.0 million for the second quarter of 2017 and
$36.1 million for the third quarter of 2016.

Adjusted EBITDA was $40.8 million for the third quarter of 2017,
compared to $36.7 million for the second quarter of 2017 and $34.6
million for the third quarter of 2016. Distributable Cash Flow was $30.8
million for the third quarter of 2017, compared to $27.1 million for the
second quarter of 2017 and $27.2 million for the third quarter of 2016.

“During the third quarter, USA Compression experienced continued growth
and overall improved market conditions, with contract compression
service revenues up 8% over the second quarter and average revenue
generating horsepower increasing over 5%, or over 80,000 horsepower,”
said Eric D. Long, USA Compression’s President and Chief Executive
Officer. “Continued customer activity driven by new-build infrastructure
projects and a strategic focus on redeploying idle equipment led to
increased fleet utilization which is back to near record levels. When
coupled with increasing monthly service fees, we saw increased gross
operating margin, Adjusted EBITDA and Distributable Cash Flow
quarter-over-quarter. We expect to take delivery of approximately 45,000
horsepower of very large horsepower units during the last quarter of
2017 to fulfill contracted customer needs. Looking forward, we have made
commitments to take delivery of approximately 150,000 horsepower
throughout 2018, all of which consist of very large horsepower units
that are already committed to specific customers. As expected, the
improved market backdrop helped drive improved leverage and coverage
metrics for the quarter.”

Average revenue generating horsepower was 1,548,656 for the third
quarter of 2017, compared to 1,465,401 for the second quarter of 2017
and 1,356,423 for the third quarter of 2016. Average revenue per revenue
generating horsepower per month was $15.13 for the third quarter of
2017, compared to $14.95 for the second quarter of 2017 and $15.35 for
the third quarter of 2016.

Revenues were $72.8 million for the third quarter of 2017, compared to
$66.0 million for the second quarter of 2017 and $61.1 million for the
third quarter of 2016. Gross operating margin was $49.4 million for the
third quarter of 2017, compared to $44.4 million for the second quarter
of 2017 and $42.2 million for the third quarter of 2016. Gross operating
margin as a percentage of total revenues was 67.8% for the third quarter
of 2017, compared to 67.3% for the second quarter of 2017 and 69.1% for
the third quarter of 2016. Operating income was $11.5 million for the
third quarter of 2017, compared to $6.7 million for the second quarter
of 2017 and $3.2 million for the third quarter of 2016.

Expansion capital expenditures were $26.7 million, maintenance capital
expenditures were $3.5 million and cash interest expense, net was $6.0
million for the third quarter of 2017.

On October 19, 2017, the Partnership announced a cash distribution of
$0.525 per unit on its common units. This third quarter distribution
corresponds to an annualized distribution rate of $2.10 per unit. The
distribution will be paid on November 10, 2017 to unitholders of record
as of the close of business on October 30, 2017. USA Compression
Holdings, LLC, the owner of approximately 40.2% of the Partnership’s
outstanding limited partner interests, elected to reinvest 20% of this
distribution with respect to its units pursuant to the Partnership’s
Distribution Reinvestment Plan (the “DRIP”). For the third quarter of
2017, the Partnership’s Distributable Cash Flow Coverage Ratio was 0.92x
and Cash Coverage Ratio was 1.01x.
Operational and Financial Data

 

 

 

 

 

 

Three Months Ended

September 30,

June 30,

September 30,

2017

2017

2016Operational Data

Fleet Horsepower (at period end)

1,757,720

1,736,988

1,716,296

Revenue Generating Horsepower (at period end)

1,557,825

1,477,992

1,364,059

Average Revenue Generating Horsepower

1,548,656

1,465,401

1,356,423

Revenue Generating Compression Units (at period end)

2,793

2,694

2,502

Horsepower Utilization (at period end) (1)

94.2

%

92.6

%

88.3

%

Average Horsepower Utilization (for the period) (1)

94.1

%

91.2

%

87.3

%

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

Revenue

$

72,791

$

66,014

$

61,130

Average Revenue Per Revenue Generating Horsepower Per Month (2)

$

15.13

$

14.95

$

15.35

Net income (loss)

$

4,789

$

553

$

(2,146

)

Operating income

$

11,508

$

6,677

$

3,187

Net cash provided by operating activities

$

33,029

$

33,986

$

36,139

Gross Operating Margin (3)

$

49,350

$

44,431

$

42,245

Gross Operating Margin Percentage

67.8

%

67.3

%

69.1

%

Adjusted EBITDA (3)

$

40,849

$

36,740

$

34,634

Adjusted EBITDA Percentage

56.1

%

55.7

%

56.7

%

Distributable Cash Flow (3)

$

30,811

$

27,073

$

27,223

___________________

(1) 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, not yet
generating revenue and is subject to a purchase order, divided by
(ii) total available horsepower less idle horsepower that is under
repair. Horsepower utilization based on revenue generating horsepower
and fleet horsepower at each applicable period end was 88.6%, 85.1% and
79.5% for the quarters ended September 30, 2017, June 30, 2017 and
September 30, 2016, respectively. Average horsepower utilization based
on revenue generating horsepower and fleet horsepower was 88.4%, 84.3%
and 78.8% for the quarters ended September 30, 2017, June 30, 2017 and
September 30, 2016, respectively.

(2) Calculated as the average of the result of dividing the contractual
monthly rate 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.

(3) Gross operating margin, Adjusted EBITDA and Distributable Cash Flow
are all non-U.S. generally accepted accounting principles (“Non-GAAP”)
financial measures. For the definition of each measure, see “Non-GAAP
Financial Measures” below.
Liquidity and Credit Facility
As of September 30, 2017, the Partnership was in compliance with all
covenants under its $1.1 billion revolving credit facility. As of
September 30, 2017, the outstanding balance under the revolving credit
facility, which matures in 2020, was $752.0 million.
Full-Year 2017 Outlook
USA Compression is updating its full-year 2017 guidance as follows:

Net income range of $11.0 million to $16.0 million;

A forward-looking estimate of net cash provided by operating
activities is not provided because the items necessary to estimate net
cash provided by operating activities, in particular the change in
operating assets and liabilities, are not accessible or estimable at
this time. The Partnership does not anticipate the changes in
operating assets and liabilities to be material, but changes in
accounts receivable, accounts payable, accrued liabilities and
deferred revenue could be significant, such that the amount of net
cash provided by operating activities would vary substantially from
the amount of projected Adjusted EBITDA and Distributable Cash Flow;

Adjusted EBITDA range of $152.0 million to $157.0 million; and

Distributable Cash Flow range of $115.0 million to $120.0 million.
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 third
quarter 2017 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio webcast.

 

 

 

By Phone:

Dial 866-564-2842 inside the U.S. and Canada at least 10 minutes
before the call and ask for the USA Compression Partners Earnings
Call. Investors outside the U.S. and Canada should dial
323-794-2094. The conference ID for both is 8977299.

 

A replay of the call will be available through November 18, 2017.
Callers inside the U.S. and Canada may access the replay by dialing
888-203-1112. Investors outside the U.S. and Canada should dial
719-457-0820. The conference ID for both is 8977299.

 

By Webcast:

Connect to the webcast via the “Events” page of USA Compression’s
Investor Relations website at http://investors.usacompression.com.
Please log in at least 10 minutes in advance to register and
download any necessary software. A replay will be available
shortly after the call.

 
About USA Compression Partners, LP
USA Compression Partners, LP is a growth-oriented Delaware limited
partnership that is one of the nation’s largest independent providers of
compression services in terms of total compression fleet horsepower. The
Partnership partners with a broad customer base composed of producers,
processors, gatherers and transporters of natural gas and crude oil. The
Partnership focuses on providing 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
EBITDA, Gross operating margin, Distributable Cash Flow, Distributable
Cash Flow Coverage Ratio and Cash Coverage Ratio.

Management views Adjusted EBITDA as one of its primary management tools,
and the Partnership tracks this item on a monthly basis both 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. The Partnership
defines Adjusted EBITDA as EBITDA plus impairment of compression
equipment, impairment of goodwill, interest income on capital lease,
unit-based compensation expense, severance charges, certain transaction
fees, loss (gain) on disposition of assets and other. Adjusted EBITDA is
used as a supplemental financial measure by management and external
users of its 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 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 to make 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 that Adjusted EBITDA provides useful information to
investors because, when viewed with U.S. generally accepted accounting
principles (“GAAP”) results and the accompanying reconciliations, it
provides a more complete understanding of the Partnership’s performance
than GAAP results alone. Management also believes that external users of
its financial statements benefit from having access to the same
financial measures that management uses in evaluating 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, cash flows from
operating activities or any other measure of financial performance or
liquidity presented in accordance with GAAP as measures of operating
performance and liquidity. Moreover, Adjusted EBITDA as presented may
not be comparable to similarly titled measures of other companies.

Gross operating margin is defined as revenue less cost of operations,
exclusive of depreciation and amortization expense. Management believes
that gross operating margin is useful as a supplemental measure of the
Partnership’s operating profitability. Gross operating margin is
impacted primarily 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. Gross operating margin should not be considered an
alternative to, or more meaningful than, operating income, its most
directly comparable GAAP financial measure, or any other measure of
financial performance presented in accordance with GAAP. Moreover, gross
operating 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
costs. To compensate for the limitations of gross operating margin as a
measure of the Partnership’s performance, management believes that it is
important to consider operating income determined under GAAP, as well as
gross operating margin, to evaluate the Partnership’s operating
profitability. A reconciliation of gross operating margin to operating
income is provided in this news release.

Distributable Cash Flow is defined as net income (loss) plus non-cash
interest expense, non-cash income tax expense, depreciation and
amortization expense, unit-based compensation expense, impairment of
compression equipment, impairment of goodwill, certain transaction fees,
severance charges, loss (gain) on disposition of assets, proceeds from
insurance recovery and other, less maintenance capital expenditures.

Distributable Cash Flow should not be considered as an alternative to,
or more meaningful than, net income (loss), operating income, cash flows
from operating activities or any other measure of financial performance
presented in accordance with GAAP as measures of operating performance
and liquidity. Moreover, our 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 such measure allows management, investors
and others to compare basic cash flows the Partnership generates (prior
to any retained cash reserves established by the Partnership’s general
partner and the effect of the DRIP) to the cash distributions the
Partnership expects to pay its unitholders.

Distributable Cash Flow Coverage Ratio, a non-GAAP measure, is defined
as Distributable Cash Flow less cash distributions to be paid to the
Partnership’s general partner and incentive distribution rights (“IDRs”)
in respect of such period, divided by distributions declared to limited
partner unitholders in respect of such period. Cash Coverage Ratio is
defined as Distributable Cash Flow less cash distributions to be paid to
the Partnership’s general partner and IDRs in respect of such period,
divided by cash distributions expected to be paid to limited partner
unitholders in respect of such period, after taking into account the
non-cash impact of the DRIP. Management believes Distributable Cash Flow
Coverage Ratio and Cash Coverage Ratio are important measures of
operating performance because they allow management, investors and
others to gauge the Partnership’s ability to pay cash distributions to
limited partner unitholders using the cash flows the Partnership
generates. The Partnership’s Distributable Cash Flow Coverage Ratio and
Cash 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 in its 2017 fiscal year. A forward-looking estimate of net
cash provided by operating activities and reconciliations of the
forward-looking estimates of Adjusted EBITDA and Distributable Cash Flow
to net cash provided by operating activities are not provided because
the items necessary to estimate net cash provided by operating
activities, in particular the change in operating assets and
liabilities, are not accessible or estimable at this time. The
Partnership does not anticipate the changes in operating assets and
liabilities to be material, but changes in accounts receivable, accounts
payable, accrued liabilities and deferred revenue could be significant,
such that the amount of net cash provided by operating activities would
vary substantially from the amount of projected Adjusted EBITDA and
Distributable Cash Flow.

See “Reconciliation of Non-GAAP Financial Measures” for Adjusted EBITDA
reconciled to net income (loss) and net cash provided by operating
activities, and net income (loss) and net cash provided by operating
activities reconciled to Distributable Cash Flow, Distributable Cash
Flow Coverage Ratio and Cash 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,” or other similar words,
and include the Partnership’s expectation of future performance
contained herein, including as described under “Full-Year 2017 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 are 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, 2016, which was filed with the
Securities and Exchange Commission on February 13, 2017, and include:

changes in general economic conditions and changes in economic
conditions of the crude oil and natural gas industry specifically;

competitive conditions in the industry;

changes in the long-term supply of and demand for crude oil and
natural gas;

our ability to realize the anticipated benefits of acquisitions and to
integrate acquired assets with our existing fleet;

actions taken by the Partnership’s customers, competitors and
third-party operators;

the deterioration of the financial condition of our customers;

changes in the availability and cost of capital;

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

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
Securities and Exchange Commission.

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, LPCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per unit amounts — Unaudited)

 

Three Months Ended

September 30,

June 30,

September 30,

2017

2017

2016
Revenues:

Contract operations

$

68,407

$

63,325

$

60,282

Parts and service

 

4,384

 

 

2,689

 

 

848

 

Total revenues

72,791

66,014

61,130

Cost of operations, exclusive of depreciation and amortization

 

23,441

 

 

21,583

 

 

18,885

 

Gross operating margin

49,350

44,431

42,245

Other operating and administrative costs and expenses:

Selling, general and administrative

11,888

10,632

12,577

Depreciation and amortization

24,808

24,534

23,195

Loss (gain) on disposition of assets

50

(13

)

(155

)

Impairment of compression equipment

 

1,096

 

 

2,601

 

 

3,441

 

Total other operating and administrative costs and expenses

 

37,842

 

 

37,754

 

 

39,058

 

Operating income

11,508

6,677

3,187

Other income (expense):

Interest expense, net

(6,557

)

(6,002

)

(5,275

)

Other

 

3

 

 

12

 

 

16

 

Total other expense

 

(6,554

)

 

(5,990

)

 

(5,259

)

Net income (loss) before income tax expense

4,954

687

(2,072

)

Income tax expense

 

165

 

 

134

 

 

74

 

Net income (loss)

$

4,789

 

$

553

 

$

(2,146

)

 

Net income (loss) allocated to:

General partner’s interest in net income

$

399

$

344

$

272

Common units’ interest in net income (loss)

$

4,390

$

209

$

(2,418

)

 

Weighted average common units outstanding:

Basic

 

61,815

 

 

61,396

 

 

55,087

 

Diluted

 

62,084

 

 

61,559

 

 

55,302

 

 

Basic and diluted net income (loss) per common unit

$

0.07

 

$

0.003

 

$

(0.04

)

 

Distributions declared per limited partner unit in respective periods

$

0.525

 

$

0.525

 

$

0.525

 

 

 

 

 

 

 

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

 

Three Months Ended

September 30,

June 30,

September 30,

2017

2017

2016
Net cash provided by operating activities

$

33,029

$

33,986

$

36,139

Net cash used in investing activities

$

(32,484

)

$

(17,010

)

$

(21,223

)

Net cash provided by (used in) financing activities

$

59

$

(16,664

)

$

(14,916

)

 

 
USA COMPRESSION PARTNERS, LPRECONCILIATION OF NON-GAAP FINANCIAL MEASURESADJUSTED EBITDA TO NET INCOME (LOSS) AND NET CASH PROVIDED BY
OPERATING ACTIVITIES(In thousands — Unaudited)
 

The following table reconciles Adjusted EBITDA to net income (loss) and
net cash provided by operating activities, its most directly comparable
GAAP financial measures, for each of the periods presented:

 

 

 

 

 

 

 

Three Months Ended

September 30,

June 30,

September 30,

2017

2017

2016
Net income (loss)

$

4,789

$

553

$

(2,146

)

Interest expense, net

6,557

6,002

5,275

Depreciation and amortization

24,808

24,534

23,195

Income tax expense

 

165

 

 

134

 

 

74

 
EBITDA

$36,319

$31,223

$26,398

Impairment of compression equipment

1,096

2,601

3,441

Interest income on capital lease

399

408

348

Unit-based compensation expense (1)

2,813

2,402

3,647

Transaction expenses for acquisitions (2)

950

Severance charges

172

58

5

Other

61

Loss (gain) on disposition of assets

 

50

 

 

(13

)

 

(155

)
Adjusted EBITDA

$40,849

$36,740

$34,634

Interest expense, net

(6,557

)

(6,002

)

(5,275

)

Income tax expense

(165

)

(134

)

(74

)

Interest income on capital lease

(399

)

(408

)

(348

)

Non-cash interest expense

547

547

546

Transaction expenses for acquisitions

(950

)

Severance charges

(172

)

(58

)

(5

)

Other

(61

)

Changes in operating assets and liabilities

 

(1,074

)

 

3,362

 

 

7,611

 
Net cash provided by operating activities

$33,029
 

$33,986
 

$36,139
 

___________________

(1) For the quarters ended September 30, 2017, June 30, 2017 and
September 30, 2016, unit-based compensation expense included $0.6
million, $0.6 million, and $0.7 million, respectively, of cash payments
related to quarterly payments of distribution equivalent rights on
outstanding phantom unit awards. The remainder of the unit-based
compensation expense for each period presented in 2017 and 2016 was
related to non-cash adjustments to the unit-based compensation liability.

(2) Represents certain transaction expenses related to potential
acquisitions. The Partnership believes it is useful to investors to
exclude these fees.

 

 
USA COMPRESSION PARTNERS, LPRECONCILIATION OF NON-GAAP FINANCIAL MEASURESDISTRIBUTABLE CASH FLOW TO NET INCOME (LOSS) AND NET CASH
PROVIDED BY OPERATING ACTIVITIES(Dollars in thousands — Unaudited)
 

The following table reconciles Distributable Cash Flow to net income
(loss) and net cash provided by operating activities, its most directly
comparable GAAP financial measures, for each of the periods presented:

 

 

 

 

 

 

Three Months Ended

September 30,

June 30,

September 30,

2017

2017

2016
Net income (loss)

$

4,789

$

553

$

(2,146

)

Plus: Non-cash interest expense

547

547

546

Plus: Non-cash income tax expense

59

20

74

Plus: Depreciation and amortization

24,808

24,534

23,195

Plus: Unit-based compensation expense (1)

2,813

2,402

3,647

Plus: Impairment of compression equipment

1,096

2,601

3,441

Plus: Transaction expenses for acquisitions (2)

950

Plus: Severance charges

172

58

5

Plus: Other

61

Less: Loss (gain) on disposition of assets

50

(13

)

(82

)

Less: Maintenance capital expenditures (3)

 

(3,523

)

 

(3,690

)

 

(2,407

)
Distributable Cash Flow

$30,811

$27,073

$27,223

Plus: Maintenance capital expenditures

3,523

3,690

2,407

Plus: Changes in operating assets and liabilities

(1,074

)

3,362

7,611

Less: Other

 

(231

)

 

(139

)

 

(1,102

)
Net cash provided by operating activities

$33,029
 

$33,986
 

$36,139
 

 

Distributable Cash Flow

$

30,811

$

27,073

$

27,223

Less: Cash distributions to general partner and IDRs

 

753

 

 

751

 

 

717

 

Distributable Cash Flow attributable to limited partner interest

$

30,058

 

$

26,322

 

$

26,506

 

 

Distributions for Distributable Cash Flow Coverage Ratio (4)

$

32,559

 

$

32,327

 

$

29,025

 

 

Distributions reinvested in the DRIP (5)

$

2,920

 

$

6,733

 

$

4,108

 

 

Distributions for Cash Coverage Ratio (6)

$

29,639

 

$

25,594

 

$

24,917

 

 

Distributable Cash Flow Coverage Ratio

 

0.92

 

 

0.81

 

 

0.91

 

 

Cash Coverage Ratio

 

1.01

 

 

1.03

 

 

1.06

 

___________________

(1) For the quarters ended September 30, 2017, June 30, 2017 and
September 30, 2016, unit-based compensation expense included $0.6
million, $0.6 million, and $0.7 million, respectively, of cash payments
related to quarterly payments of distribution equivalent rights on
outstanding phantom unit awards. The remainder of the unit-based
compensation expense for each period presented in 2017 and 2016 was
related to non-cash adjustments to the unit-based compensation liability.

(2) Represents certain transaction expenses related to potential
acquisitions. The Partnership believes it is useful to investors to
exclude these fees.

(3) Reflects actual maintenance capital expenditures for the period
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 operating income.

(4) Represents distributions to the holders of the Partnership’s common
units as of the record date for each period.

(5) Represents distributions to holders enrolled in the DRIP as of the
record date for each period. The amount for the quarter ended September
30, 2017 is based on an estimate as of the record date.

(6) Represents cash distributions declared for common units not
participating in the DRIP for each period.

 

 

 
USA COMPRESSION PARTNERS, LPFULL-YEAR 2017 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW
GUIDANCE RANGERECONCILIATION TO NET INCOME(Unaudited)

 

Guidance
Net income

$11.0 million to $16.0 million

Plus: Interest expense, net

$24.5 million

Plus: Depreciation and amortization

$98.0 million

Plus: Income tax expense

$0.5 million

EBITDA

$134.0 million to $139.0 million

Plus: Interest income on capital lease

$1.6 million

Plus: Unit-based compensation expense (1)

$11.0 million

Plus: Impairment of compression equipment

$4.8 million

Plus: Other

$0.6 million

Adjusted EBITDA

$152.0 million to $157.0 million

Less: Cash interest expense

$23.2 million

Less: Current income tax expense

$0.3 million

Less: Maintenance capital expenditures

$13.5 million

Distributable Cash Flow

$115.0 million to $120.0 million

___________________

(1) Based on the Partnership’s unit closing price as of
September 30, 2017.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171107005519/en/


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