USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or
the “Partnership”) announced today its financial and operating
results for the fourth quarter 2019.
Fourth Quarter 2019 Highlights
- Total revenues were $178.2 million for the fourth quarter 2019,
compared to $172.0 million for the fourth quarter 2018.
- Net income was $9.3 million for the fourth quarter 2019,
compared to $10.2 million for the fourth quarter 2018.
- Net cash provided by operating activities was $91.7 million for
the fourth quarter 2019, compared to $93.1 million for the fourth
quarter 2018.
- Adjusted EBITDA was $109.2 million for the fourth quarter 2019,
compared to $103.3 million for the fourth quarter 2018.
- Distributable Cash Flow was $58.0 million for the fourth
quarter 2019, compared to $56.4 million for the fourth quarter
2018.
- Announced cash distribution of $0.525 per common unit for the
fourth quarter 2019, consistent with the fourth quarter 2018.
- Distributable Cash Flow Coverage was 1.14x for the fourth
quarter 2019, compared to 1.19x for the fourth quarter 2018.
“The fourth quarter wrapped up a solid year of operating and
financial performance for USA Compression, highlighting the
stability in our contract compression services business, as we
maintained strong utilization across the fleet while increasing
pricing and continuing to achieve very attractive operating
margins,” commented Eric D. Long, USA Compression’s President and
Chief Executive Officer. “As we executed on a reduced capital
spending program throughout the year, we continued to focus our
efforts on selective new projects with established,
well-capitalized customers under long term fee-based contracts. We
also managed our leverage profile and Distributable Cash Flow
coverage, positioning USA Compression for a great start to
2020.”
He continued, “As we look ahead to 2020, we anticipate some
moderation in overall industry activity levels, and accordingly,
have reduced our expected capital spending program. We currently
have 56,500 large horsepower on order for delivery in 2020, which
is down more than 50 percent from the full year 2019 level. While
we believe the macro factors driving global natural gas demand
continue to be favorable for infrastructure investment in the
United States, we are taking a cautious approach with respect to
spending, including the avoidance of issuing additional equity. We
expect this restraint will provide us the ability to pursue
high-quality projects and customers, continue our focus on lowering
leverage and building Distributable Cash Flow coverage, all while
continuing to drive strong and stable financial performance for our
unitholders.”
Expansion capital expenditures were $33.4 million, maintenance
capital expenditures were $7.8 million and cash interest expense,
net was $31.0 million for the fourth quarter 2019.
On January 16, 2020, the Partnership announced a fourth quarter
cash distribution of $0.525 per common unit, which corresponds to
an annualized distribution rate of $2.10 per common unit. The
distribution was paid on February 7, 2020 to common unitholders of
record as of the close of business on January 27, 2020. For the
fourth quarter 2019, the Partnership’s Distributable Cash Flow
Coverage was 1.14x.
Operational and Financial
Data
Three Months Ended
Year Ended
December 31, 2019
September 30, 2019
December 31, 2018
December 31, 2019
Operational data:
Fleet horsepower (at period end)
3,682,968
3,678,804
3,597,097
3,682,968
Revenue generating horsepower (at period
end)
3,310,024
3,278,947
3,262,470
3,310,024
Average revenue generating horsepower
3,308,392
3,258,125
3,274,201
3,279,374
Revenue generating compression units (at
period end)
4,559
4,546
4,629
4,559
Horsepower utilization (at period end)
(1)
93.7
%
93.7
%
94.0
%
93.7
%
Average horsepower utilization (for the
period) (1)
93.9
%
93.9
%
93.8
%
94.1
%
Financial data ($ in thousands, except
per horsepower data):
Revenue
$
178,188
$
175,756
$
171,977
$
698,365
Average revenue per revenue generating
horsepower per month (2)
$
16.82
$
16.73
$
16.42
$
16.65
Net income
$
9,281
$
13,315
$
10,185
$
39,132
Operating income
$
43,801
$
46,164
$
36,567
$
168,384
Net cash provided by operating
activities
$
91,700
$
61,294
$
93,140
$
300,580
Gross operating margin (3)
$
121,578
$
118,333
$
116,430
$
471,062
Gross operating margin percentage
68.2
%
67.3
%
67.7
%
67.5
%
Adjusted EBITDA (3)
$
109,228
$
104,327
$
103,256
$
419,640
Adjusted EBITDA percentage
61.3
%
59.4
%
60.0
%
60.1
%
Distributable Cash Flow (3)
$
58,021
$
54,933
$
56,421
$
221,868
________________________________
(1)
Horsepower utilization is calculated as
(i) the sum of (a) revenue generating horsepower; (b) horsepower in
the Partnership’s fleet that is under contract but is not yet
generating revenue; and (c) horsepower not yet in the Partnership’s
fleet that is under contract, not yet generating revenue and that
is subject to a purchase order, divided by (ii) total available
horsepower less idle horsepower that is under repair.
Horsepower utilization based on revenue
generating horsepower and fleet horsepower was 89.9%, 89.1% and
90.7% at December 31, 2019, September 30, 2019 and December 31,
2018, respectively.
Average horsepower utilization based on
revenue generating horsepower and fleet horsepower was 89.8%, 88.9%
and 91.0% for the three months ended December 31, 2019, September
30, 2019 and December 31, 2018, respectively. Average horsepower
utilization based on revenue generating horsepower and fleet
horsepower was 89.8% for the year ended December 31, 2019.
(2)
Calculated as the average of the result of
dividing the contractual monthly rate for all units at the end of
each month in the period by the sum of the revenue generating
horsepower at the end of each month in the period.
(3)
Gross operating margin, Adjusted EBITDA
and Distributable Cash Flow are all non-U.S. generally accepted
accounting principles (“Non-GAAP”) financial measures. For the
definition of each measure, as well as reconciliations of each
measure to its most directly comparable financial measures
calculated and presented in accordance with GAAP, see “Non-GAAP
Financial Measures” below.
Liquidity and Long-Term
Debt
As of December 31, 2019, the Partnership was in compliance with
all covenants under its $1.6 billion revolving credit facility. As
of December 31, 2019, the Partnership had outstanding borrowings
under the revolving credit facility of $402.7 million, $1.2 billion
of borrowing base availability and, subject to compliance with the
applicable financial covenants, available borrowing capacity of
$484.4 million. As of December 31, 2019, the outstanding aggregate
principal amount of the Partnership’s 6.875% senior notes due 2026
and 6.875% senior notes due 2027 was $725.0 million and $750.0
million, respectively.
Full-Year 2020 Outlook
USA Compression is providing its full-year 2020 guidance as
follows:
- Net income range of $40.0 million to $60.0 million;
- A forward-looking estimate of net cash provided by operating
activities is not provided because the items necessary to estimate
net cash provided by operating activities, in particular the change
in operating assets and liabilities, are not accessible or
estimable at this time. The Partnership does not anticipate the
changes in operating assets and liabilities to be material, but
changes in accounts receivable, accounts payable, accrued
liabilities and deferred revenue could be significant, such that
the amount of net cash provided by operating activities would vary
substantially from the amount of projected Adjusted EBITDA and
Distributable Cash Flow;
- Adjusted EBITDA range of $415.0 million to $435.0 million;
and
- Distributable Cash Flow range of $210.0 million to $230.0
million.
Conference Call
The Partnership will host a conference call today beginning at
11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss fourth
quarter 2019 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio
webcast.
By Phone:
Dial 800-367-2403 inside the U.S. and
Canada at least 10 minutes before the call and ask for the USA
Compression Partners Earnings Call. Investors outside the U.S. and
Canada should dial 334-777-6978. The conference ID for both is
3058537.
A replay of the call will be available
through February 28, 2020. Callers inside the U.S. and Canada may
access the replay by dialing 888-203-1112. Investors outside the
U.S. and Canada should dial 719-457-0820. The conference ID for
both is 3058537.
By Webcast:
Connect to the webcast via the “Events”
page of USA Compression’s Investor Relations website at
http://investors.usacompression.com. Please log in at least 10
minutes in advance to register and download any necessary software.
A replay will be available shortly after the call.
About USA Compression Partners,
LP
USA Compression Partners, LP is a growth-oriented Delaware
limited partnership that is one of the nation’s largest independent
providers of natural gas compression services in terms of total
compression fleet horsepower. USA Compression partners with a broad
customer base composed of producers, processors, gatherers and
transporters of natural gas and crude oil. USA Compression focuses
on providing natural gas compression services to infrastructure
applications primarily in high-volume gathering systems, processing
facilities and transportation applications. More information is
available at usacompression.com.
Non-GAAP Financial
Measures
This news release includes the Non-GAAP financial measures of
gross operating margin, Adjusted EBITDA, Distributable Cash Flow
and Distributable Cash Flow Coverage Ratio.
Management views Adjusted EBITDA as one of its primary tools for
evaluating the Partnership’s results of operations, and the
Partnership tracks this item on a monthly basis both as an absolute
amount and as a percentage of revenue compared to the prior month,
year-to-date, prior year and budget. The Partnership defines EBITDA
as net income before net interest expense, depreciation and
amortization expense, and income tax expense (benefit). The
Partnership defines Adjusted EBITDA as EBITDA plus impairment of
compression equipment, impairment of goodwill, interest income on
capital lease, unit-based compensation expense, severance charges,
certain transaction fees, loss (gain) on disposition of assets and
other. Adjusted EBITDA is used as a supplemental financial measure
by management and external users of its financial statements, such
as investors and commercial banks, to assess:
- the financial performance of the Partnership’s assets without
regard to the impact of financing methods, capital structure or
historical cost basis of the Partnership’s assets;
- the viability of capital expenditure projects and the overall
rates of return on alternative investment opportunities;
- the ability of the Partnership’s assets to generate cash
sufficient to make debt payments and pay distributions; and
- the Partnership’s operating performance as compared to those of
other companies in its industry without regard to the impact of
financing methods and capital structure.
Management believes that Adjusted EBITDA provides useful
information to investors because, when viewed with GAAP results and
the accompanying reconciliations, it provides a more complete
understanding of the Partnership’s performance than GAAP results
alone. Management also believes that external users of its
financial statements benefit from having access to the same
financial measures that management uses in evaluating the results
of the Partnership’s business.
Adjusted EBITDA should not be considered an alternative to, or
more meaningful than, net income, operating income, cash flows from
operating activities or any other measure of financial performance
or liquidity presented in accordance with GAAP as measures of
operating performance and liquidity. Moreover, Adjusted EBITDA as
presented may not be comparable to similarly titled measures of
other companies.
Gross operating margin is defined as revenue less cost of
operations, exclusive of depreciation and amortization expense.
Management believes that gross operating margin is useful as a
supplemental measure of the Partnership’s operating profitability.
Gross operating margin is impacted primarily by the pricing trends
for service operations and cost of operations, including labor
rates for service technicians, volume and per unit costs for
lubricant oils, quantity and pricing of routine preventative
maintenance on compression units and property tax rates on
compression units. Gross operating margin should not be considered
an alternative to, or more meaningful than, operating income, its
most directly comparable GAAP financial measure, or any other
measure of financial performance presented in accordance with GAAP.
Moreover, gross operating margin as presented may not be comparable
to similarly titled measures of other companies. Because the
Partnership capitalizes assets, depreciation and amortization of
equipment is a necessary element of its costs. To compensate for
the limitations of gross operating margin as a measure of the
Partnership’s performance, management believes that it is important
to consider operating income determined under GAAP, as well as
gross operating margin, to evaluate the Partnership’s operating
profitability. A reconciliation of gross operating margin to
operating income is provided in this news release.
Distributable Cash Flow is defined as net income plus non-cash
interest expense, non-cash income tax expense (benefit),
depreciation and amortization expense, unit-based compensation
expense, impairment of compression equipment, impairment of
goodwill, certain transaction fees, severance charges, loss (gain)
on disposition of assets, proceeds from insurance recovery and
other, less distributions on the Partnership’s Series A Preferred
Units (“Preferred Units”) and maintenance capital expenditures.
Distributable Cash Flow should not be considered as an
alternative to, or more meaningful than, net income, operating
income, cash flows from operating activities or any other measure
of financial performance presented in accordance with GAAP as
measures of operating performance and liquidity. Moreover, the
Partnership’s Distributable Cash Flow as presented may not be
comparable to similarly titled measures of other companies.
Management believes Distributable Cash Flow is an important
measure of operating performance because it allows management,
investors and others to compare basic cash flows the Partnership
generates (after distributions on the Partnership’s Preferred Units
but prior to any retained cash reserves established by the
Partnership’s general partner and the effect of the Distribution
Reinvestment Plan) to the cash distributions the Partnership
expects to pay its common unitholders.
Distributable Cash Flow Coverage Ratio is defined as
Distributable Cash Flow divided by distributions declared to common
unitholders in respect of such period. Management believes
Distributable Cash Flow Coverage Ratio is an important measure of
operating performance because it allows management, investors and
others to gauge the Partnership’s ability to pay distributions to
common unitholders using the cash flows the Partnership generates.
The Partnership’s Distributable Cash Flow Coverage Ratio as
presented may not be comparable to similarly titled measures of
other companies.
This news release also contains a forward-looking estimate of
Adjusted EBITDA and Distributable Cash Flow projected to be
generated by the Partnership in its 2020 fiscal year. A
forward-looking estimate of net cash provided by operating
activities and reconciliations of the forward-looking estimates of
Adjusted EBITDA and Distributable Cash Flow to net cash provided by
operating activities are not provided because the items necessary
to estimate net cash provided by operating activities, in
particular the change in operating assets and liabilities, are not
accessible or estimable at this time. The Partnership does not
anticipate the changes in operating assets and liabilities to be
material, but changes in accounts receivable, accounts payable,
accrued liabilities and deferred revenue could be significant, such
that the amount of net cash provided by operating activities would
vary substantially from the amount of projected Adjusted EBITDA and
Distributable Cash Flow.
See “Reconciliation of Non-GAAP Financial Measures” for Adjusted
EBITDA reconciled to net income and net cash provided by operating
activities, and net income and net cash provided by operating
activities reconciled to Distributable Cash Flow and Distributable
Cash Flow Coverage Ratio.
Forward-Looking
Statements
Some of the information in this news release may contain
forward-looking statements. These statements can be identified by
the use of forward-looking terminology including “may,” “believe,”
“expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,”
“project,” “outlook,” “will,” “could,” “should,” or other similar
words or the negatives thereof, and include the Partnership’s
expectation of future performance contained herein, including as
described under “Full-Year 2020 Outlook.” These statements discuss
future expectations, contain projections of results of operations
or of financial condition, or state other “forward‑looking”
information. You are cautioned not to place undue reliance on any
forward-looking statements, which can be affected by assumptions
used or by known risks or uncertainties. Consequently, no
forward-looking statements can be guaranteed. When considering
these forward-looking statements, you should keep in mind the risk
factors noted below and other cautionary statements in this news
release. The risk factors and other factors noted throughout this
news release could cause actual results to differ materially from
those contained in any forward-looking statement. Known material
factors that could cause the Partnership’s actual results to differ
materially from the results contemplated by such forward-looking
statements are described in Part I, Item 1A (“Risk Factors”) of the
Partnership’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, which the Partnership expects to file with the
Securities and Exchange Commission on or before the applicable
filing deadline, and include:
- changes in general economic conditions and changes in economic
conditions of the crude oil and natural gas industries
specifically;
- competitive conditions in the industry;
- changes in the long-term supply of and demand for crude oil and
natural gas;
- actions taken by the Partnership’s customers, competitors and
third-party operators;
- the deterioration of the financial condition of the
Partnership’s customers;
- changes in the availability and cost of capital;
- the Partnership’s ability to realize the anticipated benefits
of acquisitions;
- operating hazards, natural disasters, weather-related delays,
casualty losses, equipment defects and other matters beyond the
Partnership’s control;
- the restrictions on the Partnership’s business that are imposed
under the Partnership’s long-term debt agreements;
- information technology risks including the risk from
cyberattack;
- the effects of existing and future laws and governmental
regulations;
- the effects of future litigation; and
- other factors discussed in the Partnership’s filings with the
Securities and Exchange Commission.
All forward-looking statements speak only as of the date of this
news release and are expressly qualified in their entirety by the
foregoing cautionary statements. Unless legally required, the
Partnership undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. Unpredictable or unknown factors not
discussed herein also could have material adverse effects on
forward-looking statements.
USA COMPRESSION PARTNERS,
LP
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except for per
unit amounts – Unaudited)
Three Months Ended
Year Ended
December 31, 2019
September 30, 2019
December 31, 2018
December 31, 2019
Revenues:
Contract operations
$
171,052
$
166,197
$
163,164
$
664,162
Parts and service
2,692
4,460
4,566
14,236
Related party
4,444
5,099
4,247
19,967
Total revenues
178,188
175,756
171,977
698,365
Cost of operations, exclusive of
depreciation and amortization
56,610
57,423
55,547
227,303
Gross operating margin
121,578
118,333
116,430
471,062
Other operating and administrative costs
and expenses:
Selling, general and administrative
15,561
16,631
16,104
64,397
Depreciation and amortization
58,227
57,513
56,749
231,447
Loss (gain) on disposition of assets
1,329
(1,975
)
636
940
Impairment of compression equipment
2,660
—
6,374
5,894
Total other operating and administrative
costs and expenses
77,777
72,169
79,863
302,678
Operating income
43,801
46,164
36,567
168,384
Other income (expense):
Interest expense, net
(32,984
)
(32,626
)
(27,252
)
(127,146
)
Other
27
21
20
80
Total other expense
(32,957
)
(32,605
)
(27,232
)
(127,066
)
Net income before income tax expense
(benefit)
10,844
13,559
9,335
41,318
Income tax expense (benefit)
1,563
244
(850
)
2,186
Net income
9,281
13,315
10,185
39,132
Less: distributions on Preferred Units
(12,187
)
(12,188
)
(12,188
)
(48,750
)
Net income (loss) attributable to common
and Class B unitholders’ interests
$
(2,906
)
$
1,127
$
(2,003
)
$
(9,618
)
Net income (loss) attributable to:
Common units
$
(2,817
)
$
2,084
$
1,267
$
(1,774
)
Class B Units
$
(89
)
$
(957
)
$
(3,270
)
$
(7,844
)
Weighted average common units outstanding
– basic
96,658
94,625
89,993
92,911
Weighted average common units outstanding
– diluted
96,658
94,846
89,993
92,911
Weighted average Class B Units outstanding
– basic and diluted
—
2,017
6,398
3,681
Basic and diluted net income (loss) per
common unit
$
(0.03
)
$
0.02
$
0.01
$
(0.02
)
Basic and diluted net loss per Class B
Unit
$
—
$
(0.47
)
$
(0.51
)
$
(2.13
)
Distributions declared per common unit
$
0.525
$
0.525
$
0.525
$
2.10
USA COMPRESSION PARTNERS,
LP
SELECTED BALANCE SHEET
DATA
(In thousands, except unit
amounts – Unaudited)
December 31, 2019
Selected Balance Sheet data:
Total assets
$
3,730,407
Long-term debt, net
$
1,852,360
Total partners’ capital
$
1,180,598
Common units outstanding
96,631,976
USA COMPRESSION PARTNERS,
LP
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands —
Unaudited)
Three Months Ended
Year Ended
December 31, 2019
September 30, 2019
December 31, 2018
December 31, 2019
Net cash provided by operating
activities
$
91,700
$
61,294
$
93,140
$
300,580
Net cash used in investing activities
(36,263
)
(32,278
)
(63,814
)
(144,490
)
Net cash used in financing activities
(55,429
)
(29,016
)
(32,057
)
(156,179
)
USA COMPRESSION PARTNERS,
LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
ADJUSTED EBITDA TO NET INCOME
AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(In thousands —
Unaudited)
The following table reconciles Adjusted
EBITDA to net income and net cash provided by operating activities,
its most directly comparable GAAP financial measures, for each of
the periods presented:
Three Months Ended
Year Ended
December 31, 2019
September 30, 2019
December 31, 2018
December 31, 2019
Net income
$
9,281
$
13,315
$
10,185
$
39,132
Interest expense, net
32,984
32,626
27,252
127,146
Depreciation and amortization
58,227
57,513
56,749
231,447
Income tax expense (benefit)
1,563
244
(850
)
2,186
EBITDA
$
102,055
$
103,698
$
93,336
$
399,911
Interest income on capital lease
142
159
211
672
Unit-based compensation expense (1)
2,884
2,090
849
10,814
Transaction expenses (2)
23
4
61
578
Severance charges
135
351
1,789
831
Loss (gain) on disposition of assets
1,329
(1,975
)
636
940
Impairment of compression equipment
(3)
2,660
—
6,374
5,894
Adjusted EBITDA
$
109,228
$
104,327
$
103,256
$
419,640
Interest expense, net
(32,984
)
(32,626
)
(27,252
)
(127,146
)
Non-cash interest expense
1,987
1,965
1,525
7,607
Income tax (expense) benefit
(1,563
)
(244
)
850
(2,186
)
Interest income on capital lease
(142
)
(159
)
(211
)
(672
)
Transaction expenses
(23
)
(4
)
(61
)
(578
)
Severance charges
(135
)
(351
)
(1,789
)
(831
)
Other
1,774
152
(800
)
2,426
Changes in operating assets and
liabilities
13,558
(11,766
)
17,622
2,320
Net cash provided by operating
activities
$
91,700
$
61,294
$
93,140
$
300,580
_________________________________
(1)
For the three months ended December 31,
2019, September 30, 2019 and December 31, 2018, unit-based
compensation expense included $0.6 million, $0.6 million and $0.5
million, respectively, of cash payments related to quarterly
payments of distribution equivalent rights on outstanding phantom
unit awards and $0, $0.1 million and $0, respectively, related to
the cash portion of any settlement of phantom unit awards upon
vesting. For the year ended December 31, 2019, unit-based
compensation expense included $2.5 million of cash payments related
to quarterly payments of distribution equivalent rights on
outstanding phantom unit awards and $0.6 million related to the
cash portion of any settlement of phantom unit awards upon vesting.
The remainder of the unit-based compensation expense for all
periods was related to non-cash adjustments to the unit-based
compensation liability.
(2)
Represents certain expenses related to
potential and completed transactions and other items. The
Partnership believes it is useful to investors to exclude these
fees.
(3)
Represents non-cash charges incurred to
write down long-lived assets with recorded values that are not
expected to be recovered through future cash flows
USA COMPRESSION PARTNERS,
LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
DISTRIBUTABLE CASH FLOW TO NET
INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(Dollars in thousands —
Unaudited)
The following table reconciles
Distributable Cash Flow to net income and net cash provided by
operating activities, its most directly comparable GAAP financial
measures, for each of the periods presented:
Three Months Ended
Year Ended
December 31, 2019
September 30, 2019
December 31, 2018
December 31, 2019
Net income
$
9,281
$
13,315
$
10,185
$
39,132
Non-cash interest expense
1,987
1,965
1,525
7,607
Depreciation and amortization
58,227
57,513
56,749
231,447
Non-cash income tax expense (benefit)
1,024
151
(800
)
1,376
Unit-based compensation expense (1)
2,884
2,090
849
10,814
Transaction expenses (2)
23
4
61
578
Severance charges
135
351
1,789
831
Loss (gain) on disposition of assets
1,329
(1,975
)
636
940
Impairment of compression equipment
(3)
2,660
—
6,374
5,894
Distributions on Preferred Units
(12,187
)
(12,188
)
(12,188
)
(48,750
)
Proceeds from insurance recovery
427
737
156
1,591
Maintenance capital expenditures (4)
(7,769
)
(7,030
)
(8,915
)
(29,592
)
Distributable Cash Flow
$
58,021
$
54,933
$
56,421
$
221,868
Maintenance capital expenditures
7,769
7,030
8,915
29,592
Transaction expenses
(23
)
(4
)
(61
)
(578
)
Severance charges
(135
)
(351
)
(1,789
)
(831
)
Distributions on Preferred Units
12,187
12,188
12,188
48,750
Other
323
(736
)
(156
)
(541
)
Changes in operating assets and
liabilities
13,558
(11,766
)
17,622
2,320
Net cash provided by operating
activities
$
91,700
$
61,294
$
93,140
$
300,580
Distributable Cash Flow
$
58,021
$
54,933
$
56,421
$
221,868
Distributions for Distributable Cash Flow
Coverage Ratio (5)
$
50,732
$
50,723
$
47,241
$
196,144
Distributable Cash Flow Coverage Ratio
1.14x
1.08x
1.19x
1.13x
________________________________
(1)
For the three months ended December 31,
2019, September 30, 2019 and December 31, 2018, unit-based
compensation expense included $0.6 million, $0.6 million and $0.5
million, respectively, of cash payments related to quarterly
payments of distribution equivalent rights on outstanding phantom
unit awards and $0, $0.1 million and $0, respectively, related to
the cash portion of any settlement of phantom unit awards upon
vesting. For the year ended December 31, 2019, unit-based
compensation expense included $2.5 million of cash payments related
to quarterly payments of distribution equivalent rights on
outstanding phantom unit awards and $0.6 million related to the
cash portion of any settlement of phantom unit awards upon vesting.
The remainder of the unit-based compensation expense for all
periods was related to non-cash adjustments to the unit-based
compensation liability.
(2)
Represents certain expenses related to
potential and completed transactions and other items. The
Partnership believes it is useful to investors to exclude these
fees.
(3)
Represents non-cash charges incurred to
write down long-lived assets with recorded values that are not
expected to be recovered through future cash flows.
(4)
Reflects actual maintenance capital
expenditures for the periods presented. Maintenance capital
expenditures are capital expenditures made to maintain the
operating capacity of the Partnership’s assets and extend their
useful lives, replace partially or fully depreciated assets, or
other capital expenditures that are incurred in maintaining the
Partnership’s existing business and related cash flow.
(5)
Represents distributions to the holders of
the Partnership’s common units as of the record date.
USA COMPRESSION PARTNERS,
LP
FULL-YEAR 2020 ADJUSTED EBITDA
AND DISTRIBUTABLE CASH FLOW GUIDANCE RANGE
RECONCILIATION TO NET
INCOME
(Unaudited)
Guidance
Net income
$40.0 million to $60.0
million
Plus: Interest expense, net
131.5 million
Plus: Depreciation and amortization
231.0 million
Plus: Income tax expense
0.5 million
EBITDA
$403.0 million to $423.0
million
Plus: Interest income on capital lease
0.5 million
Plus: Unit-based compensation expense
11.5 million
Adjusted EBITDA
$415.0 million to $435.0
million
Less: Cash interest expense
123.5 million
Less: Current income tax expense
0.5 million
Less: Maintenance capital expenditures
32.0 million
Less: Distributions on Preferred Units
49.0 million
Distributable Cash Flow
$210.0 million to $230.0
million
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200218005302/en/
USA Compression Partners, LP Matthew C. Liuzzi Chief
Financial Officer 512-369-1624 ir@usacompression.com
USA Compression Partners (NYSE:USAC)
Historical Stock Chart
From Aug 2024 to Sep 2024
USA Compression Partners (NYSE:USAC)
Historical Stock Chart
From Sep 2023 to Sep 2024