USA Compression Partners, LP 2020 Wells Fargo Virtual Midstream and Utility Symposium December 9, 2020 USA ＣＯＭＰＲＥＳＳＩＯＮ Disclaimer This presentation contains forward-looking statements relating to the operations of USA Compression Partners, LP (the "Partnership") that are based on management's current expectations, estimates and projections about its operations. You can identify many of these forward-looking statements by words such as "believe," "expect," "intend," "project," "anticipate," "estimate," "cont ...

USA Compression Partners, LP RBC Capital Markets Midstream and Energy Infrastructure Virtual Conference November 18-19, 2020 USA ＣＯＭＰＲＥＳＳＩＯＮ Disclaimer This presentation contains forward-looking statements relating to the operations of USA Compression Partners, LP (the "Partnership") that are based on management's current expectations, estimates and projections about its operations. You can identify many of these forward-looking statements by words such as "believe," "expect," "intend," "project," "anticipa ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, emphasizing a significant Q1 2020 goodwill impairment and net loss [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Data | Account | Sep 30, 2020 (in thousands) | Dec 31, 2019 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $214,087 | $230,923 | | Property and equipment, net | $2,419,437 | $2,482,943 | | Goodwill | $— | $619,411 | | **Total assets** | **$3,011,332** | **$3,730,407** | | **Total current liabilities** | $145,814 | $189,375 | | Long-term debt, net | $1,949,176 | $1,852,360 | | **Total liabilities** | **$2,132,354** | **$2,072,500** | | Total partners' capital | $401,669 | $1,180,598 | - Total assets decreased significantly from **$3.73 billion** at year-end 2019 to **$3.01 billion** as of September 30, 2020, primarily due to the complete impairment of goodwill[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations | Metric | Q3 2020 (in thousands) | Q3 2019 (in thousands) | 9 Months 2020 (in thousands) | 9 Months 2019 (in thousands) | | :--- | :--- | :--- | :--- | | Total revenues | $161,666 | $175,756 | $509,316 | $520,177 | | Operating income (loss) | $38,771 | $46,164 | $(496,045) | $124,583 | | Impairment of goodwill | $— | $— | $619,411 | $— | | Net income (loss) | $6,519 | $13,315 | $(593,258) | $29,851 | | Basic net income (loss) per common unit | $(0.06) | $0.02 | $(6.51) | $0.01 | - For the nine months ended September 30, 2020, the company reported a net loss of **$593.3 million**, primarily driven by a **$619.4 million** goodwill impairment charge, compared to a net income of **$29.9 million** in the same period of 2019[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | 9 Months Ended Sep 30, 2020 (in thousands) | 9 Months Ended Sep 30, 2019 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $195,651 | $208,880 | | Net cash used in investing activities | $(94,190) | $(108,227) | | Net cash used in financing activities | $(101,469) | $(100,750) | | **Decrease in cash and cash equivalents** | **$(8)** | **$(97)** | - Net cash from operating activities decreased slightly to **$195.7 million** for the first nine months of 2020 from **$208.9 million** in the prior-year period. Net cash used in investing activities decreased due to lower capital expenditures[23](index=23&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - The company provides compression services under fixed-term contracts to the natural gas and crude oil industries, primarily in U.S. shale plays[26](index=26&type=chunk) - In Q1 2020, the company identified impairment indicators including declines in its common unit price, global commodity prices, and the COVID-19 pandemic. A quantitative test resulted in a goodwill impairment charge of **$619.4 million**[64](index=64&type=chunk)[66](index=66&type=chunk) - For the nine months ended September 30, 2020, the company recorded impairments of compression equipment totaling **$5.6 million**, related to 27 retired compressor units[59](index=59&type=chunk) - On August 3, 2020, the company amended its Credit Agreement to provide temporary covenant relief, including an increase to the maximum funded debt to EBITDA ratio, through December 31, 2021[82](index=82&type=chunk)[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial impact of market volatility and the COVID-19 pandemic, detailing operational adjustments and a major goodwill impairment [Trends and Outlook](index=33&type=section&id=Trends%20and%20Outlook) - The significant drop in crude oil prices in March 2020 and the impact of the COVID-19 pandemic have created uncertainty and are expected to negatively affect demand for new compression services in the near term, particularly in regions with associated gas production[129](index=129&type=chunk) - Management believes the longer-term outlook for natural gas fundamentals remains positive, supported by resilient baseload demand and the potential for a more balanced market, which could support business activities and utilization[131](index=131&type=chunk)[132](index=132&type=chunk) [Operating Highlights](index=35&type=section&id=Operating%20Highlights) Key Operating Metrics | Metric | Q3 2020 | Q3 2019 | % Change | | :--- | :--- | :--- | :--- | | Revenue generating horsepower (at period end) | 3,009,773 | 3,278,947 | (8.2)% | | Average revenue generating horsepower | 3,042,786 | 3,258,125 | (6.6)% | | Average horsepower utilization (for the period) | 83.9% | 93.9% | (10.6)% | - The decrease in revenue generating horsepower and utilization was primarily due to returns of compression units from customers, driven by a decline in U.S. crude oil and natural gas activity[138](index=138&type=chunk)[141](index=141&type=chunk) [Financial Results of Operations](index=37&type=section&id=Financial%20Results%20of%20Operations) Q3 2020 vs Q3 2019 Results | Metric | Q3 2020 (in thousands) | Q3 2019 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $161,666 | $175,756 | (8.0)% | | Cost of operations | $46,715 | $57,423 | (18.6)% | | Operating income | $38,771 | $46,164 | (16.0)% | | Net income | $6,519 | $13,315 | (51.0)% | Nine Months 2020 vs 2019 Results | Metric | 9 Months 2020 (in thousands) | 9 Months 2019 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $509,316 | $520,177 | (2.1)% | | Operating income (loss) | $(496,045) | $124,583 | N/A | | Impairment of goodwill | $619,411 | $— | N/A | | Net income (loss) | $(593,258) | $29,851 | N/A | - The **$619.4 million** goodwill impairment in Q1 2020 was the primary driver of the significant operating loss and net loss for the nine-month period[169](index=169&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) Key Non-GAAP Financial Metrics | Metric | Q3 2020 (in thousands) | Q3 2019 (in thousands) | 9 Months 2020 (in thousands) | 9 Months 2019 (in thousands) | | :--- | :--- | :--- | :--- | | Adjusted gross margin | $114,951 | $118,333 | $353,468 | $349,484 | | Adjusted EBITDA | $103,940 | $104,327 | $315,605 | $310,412 | | Distributable Cash Flow (DCF) | $56,911 | $54,933 | $170,299 | $163,847 | | DCF Coverage Ratio | 1.12x | 1.08x | 1.12x | 1.13x | - **Adjusted EBITDA** remained relatively stable year-over-year for both the third quarter and nine-month periods, reflecting effective cost management despite revenue declines[177](index=177&type=chunk)[178](index=178&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources are cash from operations and borrowings under the Credit Agreement. In response to market conditions, the company has reduced capital spending and operating expenses for 2020[183](index=183&type=chunk)[184](index=184&type=chunk) - The company amended its Credit Agreement on August 3, 2020, to increase the maximum leverage ratio and provide other covenant relief through the end of 2021[185](index=185&type=chunk)[194](index=194&type=chunk) - Budgeted expansion capital expenditures for 2020 are between **$90.0 million** and **$100.0 million**, a reduction from prior levels. Maintenance capital expenditures are planned at approximately **$25.0 million**[187](index=187&type=chunk)[188](index=188&type=chunk) - As of September 30, 2020, the company had **$411.8 million** of available borrowing capacity under its revolving credit facility[193](index=193&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including indirect commodity price exposure, interest rate risk on variable-rate debt, and heightened customer credit risk - The company has no direct exposure to commodity prices but is indirectly affected as low prices can reduce demand for its services. A **1%** decrease in average revenue generating horsepower would result in an annual revenue decrease of approximately **$6.6 million**[225](index=225&type=chunk) - As of September 30, 2020, the company had **$496.9 million** in variable-rate debt. A **1%** change in the effective interest rate would impact annual interest expense by approximately **$5.0 million**[226](index=226&type=chunk) - Credit risk is a concern, as financial difficulties among significant customers, exacerbated by the COVID-19 pandemic and market volatility, could materially impact the business[228](index=228&type=chunk) [Controls and Procedures](index=53&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2020, with no material changes in internal control - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2020[230](index=230&type=chunk) - No changes occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[231](index=231&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=54&type=section&id=ITEM%201.%20Legal%20Proceedings) The company reports that it is not involved in any legal proceedings expected to have a material adverse effect on its financial position or operations - In management's opinion, the resolution of any current legal matters arising in the ordinary course of business is not expected to have a material adverse effect on the company's financials[234](index=234&type=chunk) [Risk Factors](index=54&type=section&id=ITEM%201A.%20Risk%20Factors) This section directs investors to the risk factors previously disclosed in the company's 2019 Annual Report on Form 10-K and Q1 2020 Form 10-Q - The company refers readers to its 2019 Form 10-K and Q1 2020 Form 10-Q for a detailed discussion of risk factors[235](index=235&type=chunk) [Exhibits](index=54&type=section&id=ITEM%206.%20Exhibits) This section lists the documents filed as exhibits with the Form 10-Q, including CEO/CFO certifications and Inline XBRL financial data - The report includes CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and provides financial statements in Inline XBRL format[236](index=236&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for Q3 2020 were $162 million, approximately 4% below Q2 2020 [13] - Adjusted EBITDA for Q3 was approximately $104 million, representing less than a 2% decrease from Q2 [13] - Average utilization for the quarter was 83.9%, down from 88% in Q2 [14] - Average monthly revenue per horsepower was $16.62, slightly down from $16.79 in Q2 [19][54] - The distribution remained consistent at $0.052 per unit, resulting in a distributable cash flow coverage ratio of 1.12 times [20] Business Line Data and Key Metrics Changes - The total fleet horsepower remained consistent at approximately 3.7 million horsepower, while active horsepower increased slightly to about 3 million horsepower, reflecting a 4% decrease [16][53] - Adjusted gross margin was 71.1% for Q3, aided by nonrecurring benefits [55] Market Data and Key Metrics Changes - Crude oil traded at an average price of about $40 per barrel during Q3, while natural gas spot prices averaged about $2 per MMBTU [25] - The EIA estimates total U.S. consumption of natural gas in 2020 will be down only about 1.8% from 2019 levels [26] Company Strategy and Development Direction - The company focuses on large horsepower compression used in large regional infrastructure-oriented facilities, which has proven resilient through various cycles [9][10] - The management emphasizes maintaining capital discipline and focusing on large horsepower multiunit centralized compressor stations to support stable natural gas demand [40][51] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in the natural gas market and the stability of the business model despite ongoing uncertainties [8][12] - The company anticipates a tight supply-demand balance for natural gas as production declines and capital spending remains moderated [39][41] Other Important Information - The company expects full-year adjusted EBITDA to be between $405 million and $415 million, and DCF between $210 million and $220 million [56] - The company has reduced its month-to-month exposure significantly, currently below 30% [49] Q&A Session Summary Question: Capital allocation and distribution outlook - Management indicated that the Board will make distribution decisions quarterly and emphasized a desire to lower leverage over time, but the timing may be extended due to recent events [60][61] Question: ESG opportunities - Management acknowledged the importance of ESG and mentioned that the company is exploring opportunities related to emissions efficiency [67] Question: Utilization and geographic opportunities - Management noted increased demand in dry gas areas like Haynesville and Appalachia, while the Permian and Delaware basins are showing signs of activity recovery [72][73] Question: Long-term leverage view - Management reiterated a long-term goal to trend down leverage towards the low 4s, but the timeline has been pushed out [81] Question: Pricing outlook - Management expects pricing to remain stable for large horsepower units, with a cautious approach to new contracts [88][92]

USA ＣＯＭＰＲＥＳＳＩＯＮ USA Compression Partners, LP Citi Midstream / Energy Infrastructure Conference August 12-13, 2020 Disclaimer This presentation contains forward-looking statements relating to the operations of USA Compression Partners, LP (the "Partnership") that are based on management's current expectations, estimates and projections about its operations. You can identify many of these forward-looking statements by words such as "believe," "expect," "intend," "project," "anticipate," "estimate," "continue, ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2020 were $169 million, approximately 6% below Q1 2020 [8][41] - Adjusted EBITDA for Q2 was approximately $105 million, representing a decrease of less than 1% from Q1 [8][41] - Adjusted gross margin was 70.4% and adjusted EBITDA margin was 62.5% [8][43] - Average monthly revenue per horsepower was $16.79, down slightly from $16.89 in Q1 [10][42] - Net income for the quarter was $2.7 million, and operating income was $34.9 million [43] Business Line Data and Key Metrics Changes - Average utilization for the quarter was 88.0%, down from 92.5% in Q1 [9][42] - Revenue-generating horsepower decreased approximately 6% to over 3.1 million horsepower [41][42] - Growth capital expenditures were $22.8 million, while maintenance capital expenditures were $4.4 million [11][12] Market Data and Key Metrics Changes - Crude oil prices rallied to around $40 per barrel from approximately $20 [16][18] - Global petroleum and liquid fuels consumption in June increased by 10 million barrels per day compared to May [18] - Natural gas consumption is projected to decline by about 3% in 2020, with underlying demand remaining strong [25] Company Strategy and Development Direction - The company focuses on larger horsepower compression used in regional infrastructure-oriented facilities, which provides stability during downturns [33][34] - The strategy includes maintaining a diverse asset base to mitigate risks from specific regional declines [37][38] - The company plans to seek meaningful reductions in growth capital expenditures for the remainder of the year [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for natural gas, viewing it as a clean fuel of choice [16][32] - The company believes it is well-positioned to weather market softness and benefit from eventual recovery [39][92] - Management noted that the current downturn is expected to be followed by a gradual recovery, with signs of stabilization in customer activity [60][91] Other Important Information - The Board decided to maintain the distribution at $0.525 per unit, resulting in a distributable cash flow coverage ratio of 1.1 times [13][41] - The company expects full-year adjusted EBITDA of between $395 million and $415 million [44] Q&A Session Summary Question: Can you provide more details on cost controls and expectations for future quarters? - Management indicated that they cut about 10% of labor costs and other SG&A expenses, leading to improved margins in Q2 [46][48] Question: What are the current activity trends in key basins? - Management reported a significant increase in quote activity and new set activity, with a slowdown in unit returns [55][60] Question: Regarding the GP contribution agreement, are there any time milestones? - The agreement allows Energy Transfer to unilaterally put the GP interest back to the partnership within one year of closing [87] Question: How does the company view the trend of operators reducing variable costs by taking compression in-house? - Management believes the trend toward outsourcing will continue, as operators will focus on their core competencies [77][78] Question: What was the rationale behind seeking a waiver on the covenant? - The company sought a waiver to provide a cushion for operating the business amid increased uncertainty in the market [79][82]

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) Unaudited condensed financial statements for H1 2020 show a significant net loss, primarily due to a **$619.4 million** goodwill impairment, despite stable operating cash flow Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total current assets | $216,983 | $230,923 | | Property and equipment, net | $2,455,586 | $2,482,943 | | Goodwill | $— | $619,411 | | Total assets | $3,057,689 | $3,730,407 | | Total current liabilities | $187,436 | $189,375 | | Long-term debt, net | $1,899,070 | $1,852,360 | | Total liabilities | $2,122,742 | $2,072,500 | | Total partners' capital | $457,638 | $1,180,598 | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $168,651 | $173,675 | $347,650 | $344,421 | | Operating income (loss) | $34,894 | $42,891 | $(534,816) | $78,419 | | Impairment of goodwill | $— | $— | $619,411 | $— | | Net income (loss) | $2,684 | $9,949 | $(599,777) | $16,536 | | Net loss attributable to common unitholders | $(9,504) | $(2,239) | $(624,152) | $(7,839) | | Basic and diluted net loss per common unit | $(0.10) | $0.01 | $(6.45) | $(0.01) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $147,432 | $147,586 | | Net cash used in investing activities | $(63,796) | $(75,949) | | Net cash used in financing activities | $(83,644) | $(71,734) | - In the first quarter of 2020, the company recognized a goodwill impairment charge of **$619.4 million** due to declining common unit market price, falling global commodity prices, and the COVID-19 pandemic[62](index=62&type=chunk)[64](index=64&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses market volatility's impact, including a **$619.4 million** goodwill impairment, decreased horsepower utilization, and strategic responses like reduced spending and credit agreement amendments [Trends and Outlook](index=29&type=section&id=Trends%20and%20Outlook) Mixed outlook due to volatile commodity prices and COVID-19 impacts demand, but natural gas fundamentals offer long-term support, prompting cuts in capital spending and operating expenses - The significant drop in crude oil prices in March 2020, coupled with demand impact from the COVID-19 pandemic, created uncertainty for compression services demand, especially in associated gas production regions[125](index=125&type=chunk) - The company expects the long-term outlook for natural gas to remain positive, with a more balanced market anticipated toward the end of 2020 and into 2021, which should support business activities[128](index=128&type=chunk)[129](index=129&type=chunk) - In response to market events, the company cut its 2020 growth capital spending budget by **25%** and reduced operating expenses by **10%** in the first quarter[131](index=131&type=chunk) [Operating Highlights](index=31&type=section&id=Operating%20Highlights) Operating performance shows increased fleet horsepower but decreased revenue-generating horsepower and utilization, while average revenue per horsepower increased due to new contracts and price adjustments Key Operating Metrics Comparison | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | % Change | | :--- | :--- | :--- | :--- | | Fleet horsepower (at period end) | 3,718,092 | 3,657,362 | 1.7% | | Revenue generating horsepower (at period end) | 3,125,909 | 3,259,795 | (4.1)% | | Average revenue per revenue generating HP/month | $16.79 | $16.60 | 1.1% | | Horsepower utilization (average for the period) | 88.0% | 94.6% | (7.0)% | - The decrease in average horsepower utilization for Q2 2020 was primarily due to a **6.2%** increase in the average idle fleet from returned compression units and a **3.9%** decrease in horsepower that is on-contract but not yet active[139](index=139&type=chunk) [Financial Results of Operations](index=33&type=section&id=Financial%20Results%20of%20Operations) Q2 2020 saw decreased revenues and net income, while H1 2020 revenues slightly increased but resulted in a **$599.8 million** net loss driven by a **$619.4 million** goodwill impairment Q2 2020 vs Q2 2019 Results (in thousands) | Metric | Q2 2020 | Q2 2019 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $168,651 | $173,675 | (2.9)% | | Cost of operations (excl. D&A) | $49,968 | $56,245 | (11.2)% | | Operating income | $34,894 | $42,891 | (18.6)% | | Net income | $2,684 | $9,949 | (73.0)% | Six Months 2020 vs 2019 Results (in thousands) | Metric | H1 2020 | H1 2019 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $347,650 | $344,421 | 0.9% | | Impairment of goodwill | $619,411 | $— | N/A | | Operating income (loss) | $(534,816) | $78,419 | N/A | | Net income (loss) | $(599,777) | $16,536 | N/A | - A goodwill impairment of **$619.4 million** was recognized in the first quarter of 2020 due to declines in the company's common unit price, global commodity prices, and the impact of the COVID-19 pandemic[167](index=167&type=chunk) [Other Financial Data (Non-GAAP)](index=39&type=section&id=Other%20Financial%20Data) Non-GAAP financial measures, including Adjusted EBITDA and Distributable Cash Flow, demonstrated resilience with increases for both Q2 and H1 2020 despite market challenges Non-GAAP Financial Measures (in thousands) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Adjusted gross margin | $118,683 | $117,430 | $238,517 | $231,151 | | Adjusted EBITDA | $105,481 | $104,708 | $211,665 | $206,085 | | DCF | $58,686 | $54,062 | $113,388 | $108,914 | | DCF Coverage Ratio | 1.15x | 1.14x | 1.12x | 1.15x | - The increase in Adjusted EBITDA for Q2 2020 was primarily driven by a **$1.3 million** increase in Adjusted Gross Margin, demonstrating effective cost management[177](index=177&type=chunk) - The increase in DCF for Q2 2020 was primarily due to a **$3.5 million** decrease in maintenance capital expenditures and the increase in Adjusted Gross Margin[179](index=179&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operations and credit facility, with reduced capital expenditures and a recent credit agreement amendment increasing the maximum leverage ratio for greater financial flexibility - On August 3, 2020, the company amended its Credit Agreement to increase the maximum funded debt to EBITDA ratio, raising it to **5.75x** for the second half of 2020, and providing tiered relief through 2021[187](index=187&type=chunk)[196](index=196&type=chunk) - The company has budgeted **$80.0 million** to **$90.0 million** for expansion capital expenditures and approximately **$30.0 million** for maintenance capital expenditures for the full year 2020[189](index=189&type=chunk)[190](index=190&type=chunk) - As of June 30, 2020, the company had available borrowing capacity of **$151.1 million** under its Credit Agreement[195](index=195&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Key market risks include indirect commodity price exposure, interest rate fluctuations on variable-rate debt, and increased credit risk due to economic impacts on customers - The company has no direct exposure to commodity prices, but a **1%** decrease in average revenue-generating horsepower would result in an annual revenue decrease of approximately **$6.6 million**[227](index=227&type=chunk) - As of June 30, 2020, the company had **$447.8 million** in variable-rate debt, where a **1%** change in the interest rate would result in an annual change in interest expense of approximately **$4.5 million**[228](index=228&type=chunk) - Credit risk exposure has increased due to the financial strain on customers from the COVID-19 pandemic and crude oil market volatility[230](index=230&type=chunk) [Controls and Procedures](index=51&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2020[232](index=232&type=chunk) - There were no material changes to the company's internal control over financial reporting during the second quarter of 2020[233](index=233&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=ITEM%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to materially impact the company's financial position, results of operations, or cash flows - Management does not expect any ongoing legal proceedings to have a material adverse effect on the company's consolidated financial position, results of operations, or cash flows[236](index=236&type=chunk) [Risk Factors](index=52&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers readers to comprehensive risk factors detailed in the 2019 Form 10-K and Q1 2020 Form 10-Q - The report refers readers to the risk factors detailed in the 2019 Form 10-K and the Q1 2020 Form 10-Q[237](index=237&type=chunk) [Exhibits](index=52&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including CEO/CFO certifications and the Credit Agreement Amendment - A key exhibit filed with this report is Amendment No. 1 to the Credit Agreement, dated August 3, 2020[238](index=238&type=chunk)

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) Q1 2020 revenues were $179.0 million, but a $619.4 million goodwill impairment led to a $602.5 million net loss, reducing total assets to $3.10 billion Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Total Revenues** | $178,999 | $170,746 | | Operating Income (Loss) | $(569,710) | $35,528 | | **Impairment of Goodwill** | $619,411 | $0 | | **Net Income (Loss)** | $(602,461) | $6,587 | | Net Loss per Common Unit | $(6.36) | $(0.02) | Condensed Consolidated Balance Sheets Highlights (in thousands) | Metric | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Current Assets | $223,700 | $230,923 | | Goodwill | $0 | $619,411 | | **Total Assets** | $3,103,087 | $3,730,407 | | Total Current Liabilities | $162,322 | $189,375 | | Long-term Debt, net | $1,909,578 | $1,852,360 | | **Total Liabilities** | $2,109,162 | $2,072,500 | | **Total Partners' Capital** | $516,616 | $1,180,598 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $50,077 | $47,769 | | Net Cash Used in Investing Activities | $(42,070) | $(34,653) | | Net Cash Used in Financing Activities | $(8,015) | $(12,988) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including Topic 326 adoption, a **$619.4 million goodwill impairment** in Q1 2020, and details on long-term debt and new unit commitments - The company adopted Topic 326 for credit losses on January 1, 2020, which requires immediate recognition of estimated credit losses over the life of financial assets[30](index=30&type=chunk) - A goodwill impairment of **$619.4 million** was recognized for the three months ended March 31, 2020, triggered by declines in common unit market price, global commodity prices, and the COVID-19 pandemic[60](index=60&type=chunk)[62](index=62&type=chunk) - As of March 31, 2020, the company had total long-term debt of **$1.91 billion**, consisting of a revolving credit facility and two series of senior notes, and was in compliance with all debt covenants[73](index=73&type=chunk)[74](index=74&type=chunk) - The company had binding commitments of **$33.5 million** for new compression units and parts as of March 31, 2020, expected to be settled during the remainder of 2020[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses COVID-19 and oil price impacts, resulting in a **$602.5 million net loss** despite revenue growth, leading to **25% capital spending cuts** and **10% operating expense reductions** - The company's business is negatively impacted by the COVID-19 pandemic and the significant surplus in oil supply, leading to reduced demand for compression services and cuts in customer capital spending[113](index=113&type=chunk)[118](index=118&type=chunk) - In response to market uncertainty, the company has cut its 2020 growth capital spending budget by **25%** and reduced operating expenses by **10%**[124](index=124&type=chunk) Key Operating Metrics | Metric | Q1 2020 | Q1 2019 | % Change | | :--- | :--- | :--- | :--- | | Fleet Horsepower (at period end) | 3,705,550 | 3,619,898 | 2.4% | | Average Horsepower Utilization | 92.5% | 94.2% | (1.8)% | | Avg. Revenue per Revenue Generating HP/Month | $16.89 | $16.45 | 2.7% | Non-GAAP Financial Measures (in thousands) | Metric | Q1 2020 | Q1 2019 | % Change | | :--- | :--- | :--- | :--- | | Gross Operating Margin | $119,834 | $113,721 | 5.4% | | Adjusted EBITDA | $106,184 | $101,377 | 4.7% | | Distributable Cash Flow (DCF) | $54,702 | $54,852 | (0.3)% | | DCF Coverage Ratio | 1.08x | 1.16x | (6.9)% | [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces indirect commodity price, interest rate, and credit risks, with **$459.3 million** in variable-rate debt and heightened credit risk from COVID-19 and oil market volatility - The company has no direct exposure to commodity prices, but a sustained decline in oil and gas prices could reduce demand for its services, with a **1% decrease** in average revenue generating horsepower resulting in an annual revenue decrease of approximately **$6.7 million**[194](index=194&type=chunk) - As of March 31, 2020, the company had **$459.3 million** of variable-rate debt, where a **1% change** in the effective interest rate would result in an annual interest expense change of approximately **$4.6 million**[195](index=195&type=chunk) - Credit risk is elevated due to the COVID-19 pandemic and oil market volatility, which could affect customers' ability to pay for services[197](index=197&type=chunk) [Controls and Procedures](index=43&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2020, with no material changes in internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2020[199](index=199&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[200](index=200&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=ITEM%201.%20Legal%20Proceedings) The company does not expect ordinary course legal proceedings to have a material adverse effect on its financial position, results of operations, or cash flows - In management's opinion, the resolution of ordinary course legal proceedings is not expected to have a material adverse effect on the company's consolidated financial position, results of operations, or cash flows[203](index=203&type=chunk) [Risk Factors](index=44&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces significant risks from COVID-19 and oil market turmoil, potentially impacting demand, customer financial health, revenues, and distributions, alongside heightened counterparty credit risk - The COVID-19 pandemic and recent oil market developments are identified as major risk factors that could adversely affect the company's business and results of operations[205](index=205&type=chunk) - Potential consequences include deterioration of customer financial conditions, renegotiation of service contracts at lower rates, and a negative impact on the company's ability to pay distributions and service debt[207](index=207&type=chunk) - A long-term reduction in demand for natural gas or crude oil could adversely affect demand for the company's compression services and the prices it can charge[210](index=210&type=chunk) - The company is exposed to heightened counterparty credit risk, as weak economic conditions could make it difficult for customers, suppliers, or vendors to meet their obligations[213](index=213&type=chunk) [Exhibits](index=46&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including partnership agreements, CEO/CFO certifications, and financial statements in Inline XBRL format - The report includes standard exhibits such as the Certificate of Limited Partnership, the Second Amended and Restated Agreement of Limited Partnership, and CEO/CFO certifications pursuant to Sarbanes-Oxley[215](index=215&type=chunk)

USA Compression Partners LP (NYSE:USAC) Q1 2020 Earnings Conference Call May 5, 2020 10:00 AM ET Company Participants Christopher Porter - VP, General Counsel & Secretary Eric Long - President, CEO & Director Matthew Liuzzi - VP, CFO & Treasurer Conference Call Participants Torrey Schultz - RBC Capital Markets Praveen Narra - Raymond James & Associates Operator Good day, everyone, and thank you for standing by. Welcome to the USA Compression Partners LP's First Quarter 2020 Earnings Conference Call. [Operat ...

USA ＣＯＭＰＲＥＳＳＩＯＮ USA Compression Partners, LP Credit Suisse Energy Summit March 2‐3, 2020 Disclaimer This presentation contains forward‐looking statements relating to the operations of USA Compression Partners, LP (the "Partnership") that are based on management's current expectations, estimates and projections about its operations. You can identify many of these forward‐looking statements by words such as "believe," "expect," "intend," "project," "anticipate," "estimate," "continue," "if," "outlook," "will, ...