Financial Data and Key Metrics Changes - The company reported a record full-year Adjusted EBITDA of $613.8 million and Distributable Cash Flow (DCF) of $385.7 million, both representing significant achievements for the company [3][11] - In Q4 2025, net income was $27.8 million, operating income was $76.6 million, and net cash provided by operating activities was $139.5 million [10] - The average pricing per horsepower reached an all-time high of $21.69, marking a 1% increase sequentially and a 4% increase year-over-year [10] Business Line Data and Key Metrics Changes - The total fleet horsepower at the end of Q4 was approximately 3.9 million, with an average utilization rate of 94.5% [10][11] - Expansion capital expenditures for Q4 were $40 million, while maintenance capital expenditures were $7.8 million [11] - The company plans to budget approximately 105,000 new horsepower for 2026, representing a 2% increase in active horsepower [6] Market Data and Key Metrics Changes - Natural gas production increased approximately 9% year-over-year, while oil production flattened in the latter half of the year due to lower oil prices [4][5] - The average natural gas price was $3.52 per MMBTU, a 56% increase from the prior year [5] - Lead times for new equipment have increased to over two years, presenting both opportunities and challenges for the company [5] Company Strategy and Development Direction - The acquisition of J-W Power is expected to enhance the company's presence across major oil and gas basins in the U.S. and improve service quality [3][4] - The company aims to achieve annual run-rate synergies of approximately $10 million to $20 million by the end of 2027 through operational optimizations [7][8] - The focus will be on increasing customer retention and extending average contract durations while integrating the J-W assets [8] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the long-term prospects of the Permian Basin despite a slowdown in development pace due to lower oil prices [4] - The company is optimistic about the fundamentals of the compression industry, which continues to maintain strong margins and a disciplined approach to new capital [5] - Management highlighted the importance of managing debt levels and improving distribution coverage, with a target leverage ratio of 3.75x [14][25] Other Important Information - The company has refinanced its ABL and senior notes, significantly reducing borrowing costs and improving strategic flexibility [3][14] - The integration of a new ERP system is planned for Q1 2026, which will facilitate the integration of J-W assets [7] Q&A Session Summary Question: Growth CapEx guidance breakdown - The growth capital budget of $250 million includes approximately $205 million tied to the typical compression business, with $150 million for new units [19][21] Question: Balance sheet improvement and distribution coverage - The company aims for a normalized distribution coverage of 1.55x, with expectations to grow beyond 1.6x in the coming year [25] Question: Timing of new capacity delivery - Most of the new horsepower is expected to come online in the back half of the year, primarily from July onward [28] Question: Impact of lead times on pricing - Lead times for new packages are currently over 120 weeks, which complicates planning but will not affect 2026 growth [37] Question: Evaluation of distributed power space - The company is continuously evaluating opportunities in the distributed power space but has not yet found suitable candidates [33]

Market Overview - The U.S. stock market is expected to remain volatile due to a criminal investigation into Federal Reserve Chair Jerome Powell, leading traders to favor safe-haven assets [1] - Increased market uncertainty is prompting a shift towards low-beta stocks [1] Low-Beta Stocks - Futu Holdings Limited (FUTU) is experiencing rapid growth as clients invest more through its fully digitalized financial services platform, indicating heightened trust from investors, including those outside Hong Kong [6] - J & J Snack Foods Corp. (JJSF) has a strong balance sheet with negligible debt and is focused on returning capital to shareholders, planning to accelerate stock repurchases [7][8] - Natural Gas Services Group, Inc. (NGS) benefits from rising exports of Liquefied Natural Gas (LNG), as increased demand for compression equipment is driven by the need to transport gas through pipelines [9] - The Vita Coco Company, Inc. (COCO) is thriving in the healthy drink sector, particularly with its leading coconut water brand, as demand for coconut water is booming across various regions [10]