1 See Addendum I-A for information on gross margin, EBITDA, as adjusted, EBITDA, as adjusted (without the benefit of the cost caps), distributable cash flow and distributable cash flow (without the benefit of the cost caps). 2 Consists of a cash reimbursement from Archrock of non-cash merger-related expenses incurred by Archrock Partners. 3 Defined as distributable cash flow divided by distributions declared to all unit holders for the period, including incentive distributions rights. 4Provisions in the Omnibus Agreement that provided caps on Archrock Partners obligation to reimburse us for operating and SG&A expenses terminated on January 1, 2015. Excluding the benefit of the cost caps from Archrock Partners previously defined non-GAAP measures of EBITDA, as adjusted, and distributable cash flow provides external users of Archrock Partners consolidated financial statements comparable measures to assess operating performance in the current year period with operating performance in the prior year periods. © 2018 Archrock, Inc. All rights reserved. Non-GAAP Financial Measures Archrock Partners, L.P. Addendum I-I ($ in thousands) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net income (loss) 19,401 $ 29,847 $ 14,784 $ (23,333) $ 6,053 $ 10,509 $ 64,023 $ 61,719 $ (84,025) $ (10,757) $ (421) $ Depreciation and amortization 16,570 27,053 36,452 52,518 67,930 88,298 103,711 128,196 155,786 153,741 143,848 Long-lived asset impairment - - 3,151 24,976 1,060 29,560 5,350 12,810 38,987 46,258 19,106 Restructuring charges - - - - - - - 702 - 7,309 - Goodwill impairment - - - - - - - - 127,757 - - Debt extinguishment costs - - - - - - - - - - 291 Selling, general and administrative 13,730 16,085 24,226 34,830 39,380 49,889 61,971 80,521 85,586 79,717 82,035 Interest expense 11,658 18,039 20,303 24,037 30,400 25,167 37,068 57,811 74,581 77,863 84,291 Other income, net (22) (1,430) (1,208) (314) (392) (35) (9,481) (74) (1,391) (2,594) (4,384) Provision for income taxes 272 555 541 680 918 945 1,506 1,313 1,035 1,412 3,382 Gross margin 1 61,609 90,149 98,249 113,394 145,349 204,333 264,148 342,998 398,316 352,949 328,148 Cap on operating costs provided by AROC 8,618 12,480 7,246 21,404 26,492 16,562 12,382 2,536 - - - Cap on selling, general and administrative costs provided by AROC 283 120 552 3,316 5,905 8,196 12,798 11,314 - - - Non-cash selling, general and administrative costs 3,184 (2,090) 811 1,209 532 797 1,174 1,376 1,059 1,203 1,062 Expensed acquisition costs (in Other (income) expense, net) - - 803 356 514 695 821 2,471 302 523 - Plus: Non-recurring cash selling, general and administrative reimbursement 2 (848) - - - - - - - - - - Less: Selling, general and administrative (13,730) (16,085) (24,226) (34,830) (39,380) (49,889) (61,971) (80,521) (85,586) (79,717) (82,035) Less: Other income, net 22 1,430 1,208 314 392 35 9,481 74 1,391 2,594 4,384 EBITDA, as adjusted 1 59,138 86,004 84,643 105,163 139,804 180,729 238,833 280,248 315,482 277,552 251,559 Less: Provision for income taxes (272) (555) (541) (680) (918) (945) (1,506) (1,313) (1,035) (1,412) (3,382) Less: Gain on sale of property, plant and equipment (in Other income, net) - (1,435) (2,011) (667) (919) (689) (10,140) (2,466) (1,747) (3,585) (4,262) Less: loss on non-cash consideration in March 2016 acquisition 635 - Less: Cash interest expense (11,258) (17,567) (19,697) (21,087) (18,822) (22,761) (32,810) (53,525) (70,181) (73,594) (76,505) Less: Maintenance capital expenditures (7,079) (9,451) (12,585) (15,898) (28,861) (38,368) (41,401) (45,316) (51,829) (23,900) (30,271) Distributable cash flow 1 40,529 $ 56,996 $ 49,809 $ 66,831 $ 90,284 $ 117,966 $ 152,976 $ 177,628 $ 190,690 $ 175,696 $ 137,139 $ Distributions declared to all unitholders for the period, including incentive distribution rights 24,575 $ 34,164 $ 39,404 $ 54,913 $ 74,214 $ 91,617 $ 112,705 $ 136,829 $ 154,349 $ 71,646 $ 80,497 $ Distributable cash flow coverage 3 1.65x 1.67x 1.26x 1.22x 1.22x 1.29x 1.36x 1.30x 1.24x 2.45x 1.70x Distributable cash flow coverage (without the benefit of the cost caps) 3,4 1.29x 1.30x 1.07x 0.77x 0.78x 1.02x 1.13x 1.20x 1.24x 2.45x 1.70x EBITDA, as adjusted 1 59,138 $ 86,004 $ 84,643 $ 105,163 $ 139,804 $ 180,729 $ 238,833 $ 280,248 $ 315,482 $ 277,552 $ 251,559 $ Less: Cap on operating and selling, general and administrative costs provided by AROC (8,901) (12,600) (7,798) (24,720) (32,397) (24,758) (25,180) (13,850) - - - EBITDA, as adjusted (without the benefit of the cost caps) 1,4 50,237 $ 73,404 $ 76,845 $ 80,443 $ 107,407 $ 155,971 $ 213,653 $ 266,398 $ 315,482 $ 277,552 $ 251,559 $ Distributable cash flow 1 40,529 $ 56,996 $ 49,809 $ 66,831 $ 90,284 $ 117,966 $ 152,976 $ 177,628 $ 190,690 $ 175,696 $ 137,139 $ Less: Cap on operating and selling, general and administrative costs provided by AROC (8,901) (12,600) (7,798) (24,720) (32,397) (24,758) (25,180) (13,850) - - - Distributable cash flow (without the benefit of the cost caps) 1,4 31,628 $ 44,396 $ 42,011 $ 42,111 $ 57,887 $ 93,208 $ 127,796 $ 163,778 $ 190,690 $ 175,696 $ 137,139 $