Page 1

EX - 99.1 2 usacq22021 ex991.htm EX - 99.1 USA COMPRESSION Exhibit 99.1 News Release USA Compression Partners , LP 111 Congress Avenue , Suite 2400 Austin , Texas 78701 usacompression.com USA Compression Partners , LP Reports Second Quarter 2021 Results ; Confirms 2021 Outlook _ AUSTIN , Texas , August 3 , 2021 USA Compression Partners , LP ( NYSE : USAC ) ( “ USA Compression " or the " Partnership " ) announced today its financial and operating results for the second quarter 2021 . Second Quarter 2021 Highlights • Total revenues were $ 156.6 million for the second quarter 2021 , compared to $ 168.7 million for the second quarter 2020 . • Net income was $ 2.7 million for the second quarter 2021 , consistent with the second quarter 2020 . • • Net cash provided by operating activities was $ 99.5 million for the second quarter 2021 , compared to $ 97.4 million for the second quarter 2020 . Adjusted EBITDA was $ 100.0 million for the second quarter 2021 , compared to $ 105.5 million for the second quarter 2020 . Distributable Cash Flow was $ 52.5 million for the second quarter 2021 , compared to $ 58.7 million for the second quarter 2020 . Announced cash distribution of $ 0.525 per common unit for the second quarter 2021 , consistent with the second quarter 2020 . Distributable Cash Flow Coverage was 1.03x for the second quarter 2021 , compared to 1.15x for the second quarter 2020 . " The second quarter of 2021 continued the pattern of stability in USA Compression's business that we began to experience as we came into the year , ” commented Eric D. Long , USA Compression's President and Chief Executive Officer . " As the continued strength in commodity prices throughout the quarter helped further improve prospects for many across the broader energy industry , we have seen our customers maintain capital discipline and continue with their scaled - down budgets for 2021. While storage of crude oil and natural gas worldwide continues to be reduced , there is some potential short - term pressure on demand due to the COVID - 19 Delta variant . As global economies open back up and continue to strengthen , we believe the stage is being set for improved E & P activity . We are seeing improving fundamentals for compression services increased levels of quotes , contract execution and pricing – which should translate into an improved outlook for compression services in the latter half of 2021 and on into 2022. The post - election uncertainty of prospective regulatory and legislative actions regarding energy transition , has also tempered activity this year and may have further impact into the future . " " More broadly , we believe the prospects for natural gas continue to be positive . While we've seen modestly increasing rig counts since the lows last summer , when combined with a meaningful acceleration in the rate of completing previously drilled but uncompleted wells , domestic natural gas production has increased more than 5 % above this time last year . Exports of LNG have continued at or near historic highs . And with the continued strength in natural gas prices , we expect these trends to continue . " " As we have throughout the recent cycle , we continue to focus on managing our capital spending and controlling expenses throughout the company . Our operating margins remain attractive and consistent with historical performance . These efforts helped in part to achieve coverage and leverage metrics better than our expectations for the quarter . " Expansion capital expenditures were $ 8.2 million , maintenance capital expenditures were $ 5.0 million and cash interest expense , net was $ 30.1 million for the second quarter 2021 . On July 15 , 2021 , the Partnership announced a second quarter cash distribution of $ 0.525 per common unit , which corresponds to an annualized distribution rate of $ 2.10 per common unit . The distribution will be paid on August 6 , 2021 to common unitholders of record as of the close of business on July 26 , 2021 . 1