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EX - 99.1 2 usacq32021ex991.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 Third Quarter 2021 Results ; Updates 2021 Outlook AUSTIN , Texas , November 2 , 2021 — USA Compression Partners , LP ( NYSE : USAC ) ( " USA Compression ” or the “ Partnership ” ) announced today its financial and operating results for the third quarter 2021 . Third Quarter 2021 Highlights • Total revenues were $ 158.6 million for the third quarter 2021 , compared to $ 161.7 million for the third quarter 2020 . • Net income was $ 4.1 million for the third quarter 2021 , compared to $ 6.5 million for the third quarter 2020 . • • Net cash provided by operating activities was $ 45.3 million for the third quarter 2021 , compared to $ 48.2 million for the third quarter 2020 . Adjusted EBITDA was $ 99.6 million for the third quarter 2021 , compared to $ 103.9 million for the third quarter 2020 . Distributable Cash Flow was $ 52.0 million for the third quarter 2021 , compared to $ 56.9 million for the third quarter 2020 . Announced cash distribution of $ 0.525 per common unit for the third quarter 2021 , consistent with the third quarter 2020 . Distributable Cash Flow Coverage was 1.02x for the third quarter 2021 , compared to 1.12x for the third quarter 2020 . " USA Compression continued the positive momentum of stable financial and operational results in the third quarter . We've seen our customers ' activity levels continue to improve , supported in part by strong commodity prices , which resulted in an increase in horsepower utilization at the end of the third quarter , ” commented Eric D. Long , USA Compression's President and Chief Executive Officer . " We also saw pricing improvements during the quarter , as we were able to selectively push through rate increases , as well as take advantage of market scarcity of the extra - large horsepower for which USA Compression is known . The strong industry fundamentals underpinning our compression services business model continue to improve : strong commodity prices , tight supply / demand balances and the return of growth capital spending , all of which are expected to benefit USA Compression as we finish the year and enter 2022. " " The most recent quarter has highlighted the importance of natural gas , not just here in the United States , but across the globe . As the worldwide economic activity continues to grow , we are seeing that the demand for all sources of energy - including natural gas – remains strong , even in the face of growing use of renewable energy . Demand for energy worldwide continues to outpace supplies , as evidenced by the recent energy crises in California , Europe , and China . Worldwide oil and gas supply remains constrained due to recent historically low levels of capital investment . Recent press reports point out that global upstream capital expenditures averaged between $ 320 billion and $ 350 billion in 2020 and 2021. This is reported to be half the level of 2011-2014 and 25 % short of what is needed to hold oil production steady at 100 million barrels per day , the level global demand has now surpassed as mobility restrictions ease . " " Natural gas serves as a reliable , abundant , cost - efficient fuel for power generation and industrial manufacturing . As we head into the winter heating season , with tight supply / demand and storage balances , domestic and worldwide natural gas prices are at high levels and expected to continue well into 2022. We believe the importance of natural gas cannot be understated , and USA Compression's compression services are crucial to moving that natural gas to where it needs to go . " " We continue to aggressively manage our key supply chain relationships , working to mitigate to a large degree any material impact on our operating margins . Further , we prudently limited overall capital spending in the business during the quarter . By doing so , we achieved coverage and leverage metrics consistent with the previous quarter . We will continue to focus our efforts on redeploying existing idle assets during 2022 and expect the constructive backdrop for natural gas infrastructure will positively impact our business as we move forward towards 2022 and beyond . " Expansion capital expenditures were $ 13.5 million , maintenance capital expenditures were $ 5.3 million and cash interest expense , net was $ 29.9 million for the third quarter 2021 . On October 14 , 2021 , the Partnership announced a third 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 November 5 , 2021 to common unitholders of record as of the close of business on October 25 , 2021 . 1