Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-35779 USA Compression Partners, LP (Exact name of registrant as specified in its charter) Delaware (State or other ...

USA Compression Partners LP (NYSE:USAC) Q1 2021 Earnings Conference Call May 4, 2021 11:00 AM ET Company Participants Christopher Porter - VP, General Counsel & Secretary Eric Long - President, CEO & Director Matthew Liuzzi - VP, CFO & Treasurer Conference Call Participants Brian Reynolds - UBS Operator Good morning. Welcome to the U.S.A. Compression Partners, LP's First Quarter 2021 Earnings Conference Call. [Operator Instructions]. This conference is being recorded today, May 4, 2021. I would now like to ...

USA Compression Partners, LP 2021 J.P. Morgan Global High Yield & Leveraged Finance Conference March 2-3, 2021 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 ...

USA = USA Compression Partners, LP 2021 Credit Suisse 26th Annual Energy Summit March 1, 2021 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," " ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35779 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2020 were $158 million, approximately 2% below Q3 2020 levels [10][23] - Adjusted EBITDA for Q4 2020 was approximately $98 million, with adjusted gross margin percentage at 68.4% and adjusted EBITDA margin at 62.1%, consistent with historical performance [10][25] - Average utilization for the quarter was 83%, down slightly from 83.9% in Q3 2020 [10][24] - Average monthly revenue per horsepower was $16.55, a slight decrease from $16.62 in Q3 2020 [11][25] - The net loss for the quarter was $1.5 million, with operating income at $31.2 million [25] Business Line Data and Key Metrics Changes - The active horsepower in the field fell by less than 1% from the previous quarter, ending Q4 with approximately 3 million active horsepower [10][12] - The total fleet remained consistent at about 3.7 million horsepower [12][23] - Parts and service revenue for Q4 was $3 million, with core contract operations revenues accounting for approximately $155 million [25] Market Data and Key Metrics Changes - The price of crude oil averaged about $40 for the entire year 2020, with fluctuations between highs of $63 and lows of negative $37 [13] - Natural gas prices at the end of 2020 were around $2.40 per MMBTU, with recent increases pushing prices to approximately $3 per MMBTU [14] - The EIA reported that total US production of natural gas in 2020 was down less than 2% from 2019 levels [14] Company Strategy and Development Direction - The company remains focused on large horsepower natural gas compression services, which have proven resilient during market volatility [4][5] - Management emphasized the importance of natural gas in the economy and its critical role in power generation and industrial manufacturing [8] - The company plans to leverage its existing assets to maintain production levels without significant capital expenditures [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery of the natural gas market, citing positive customer sentiment and signs of activity [5][22] - The company believes that the worst of the downturn is behind them, with expectations for improved utilization and revenue as market conditions stabilize [22][36] - Management highlighted the importance of maintaining a stable production profile and the potential for increased demand for compression services as natural gas volumes stabilize [17][19] Other Important Information - The board decided to maintain the distribution at $0.525 per unit, resulting in a distributable cash flow coverage ratio of 0.99 times [12][25] - The company expects 2021 adjusted EBITDA to be between $385 million and $405 million, with DCF between $193 million and $213 million [25] Q&A Session Summary Question: Can you break down utilization trends for large and small horsepower units? - Management noted that large horsepower units have maintained higher utilization rates compared to small horsepower units, particularly in processing plants and central delivery points [28] Question: What is the M&A appetite for compression assets? - Management stated they are highly selective regarding M&A opportunities, focusing on large horsepower applications that are accretive to cash flows and leverage neutral [32] Question: Is the fourth quarter likely the cycle bottom? - Management indicated that the fourth quarter results may represent the cycle bottom, with expectations for improved activity and pricing in the coming months [36] Question: How does the company view electric compression in relation to ESG goals? - Management acknowledged the potential for electric compression but emphasized the need for clarity on regulatory and legislative fronts before making significant investments [44][46]

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]