USA Compression Partners, LP Q4 FY2025 earnings call

• Completed the JW Power acquisition, enhancing reach in major oil and gas basins across the US. - Achieved a TRIR of 0.39, half the industry average, on safety front. - Delivered record adjusted EBITDA and DCF in 2025. - Maintained high average utilization over 94% throughout 2025. - Refinanced ABL and senior notes, reducing borrowing cost. - In 2026, planning to optimize route management, inventory, contracts and operational structures for synergies. - Going live with new ERP system in 2026 for legacy assets and integrating JW assets. - Anticipating $10,000,000 to $20,000,000 annual run - rate synergies by 2027. - Focusing on customer retention and extending average contract duration. - Acquired approximately 200,000 idle horsepower from JW, with analysis on deployability and potential monetization. - Acquired a manufacturing business providing optionality.

In 2025, the company delivered full-year adjusted EBITDA of $613,800,000 and DCF of $385,700,000, both records. In Q4 2025, pricing averaged $21.69 per horsepower, a 1% sequential and 4% year - over - year increase. Average active horsepower was approximately 3,579,000. Fourth quarter adjusted gross margins were 66.8%. Net income was $27,800,000, operating income was $76,600,000, net cash provided by operating activities was $139,500,000, and cash interest expense, net, was $43,400,000. Leverage ratio at end of Q4 was 4.0x. Total fleet at end of Q4 was approximately 3,900,000 horsepower. Fourth quarter expansion capital expenditures were $40,000,000 and maintenance capital expenditures were $7,800,000. For 2026, forecasted adjusted EBITDA is $770,000,000 to $800,000,000, distributable cash flow is $480,000,000 to $510,000,000. Maintenance capital range is $60,000,000 to $70,000,000, expansion capital range is $230,000,000 to $250,000,000 including over 100,000 new horsepower.

• Forecasted adjusted EBITDA for 2026 is $770,000,000 to $800,000,000. - Distributable cash flow for 2026 is $480,000,000 to $510,000,000. - Maintenance capital expenditure range for 2026 is $60,000,000 to $70,000,000. - Expansion capital expenditure range for 2026 is $230,000,000 to $250,000,000, including over 100,000 new horsepower with half under contract. - Anticipated $10,000,000 to $20,000,000 annual run - rate synergies by 2027. - Near - term target debt to EBITDA at 3.75x, with aim to improve further.

• New equipment lead times have increased to over two years, presenting opportunities and challenges. - Manufacturing business related risks. - Energy macro environment changes affecting demand. - Interest rate changes impacting borrowing costs. - Intense competition in the compression industry.

Q: Could you dissect how much of the $250,000,000 growth budget is tied to organic base growth versus JW Power backlog?

A: About $205,000,000 of growth capital tied to typical compression business, $150,000,000 of that to new units, and just under $40,000,000 in other capital.

Q: Any thoughts on the distributed power space?

A: Evaluated several options, but ones looked at haven't met requirements yet.

Q: How do new unit timelines impact longer - term horsepower growth and contract compression pricing?

A: Not affecting 2026 growth, but challenging in 2027, with JW's manufacturing business providing optionality.

Q: Detail on telemetry being added to units for customers?

A: Panel upgrades and unit upgrades to allow dashboards for monitoring without on - site employees 24/7, acting as eyes and ears without ground - level staff.