USA Compression Partners LP Q3 2024 10-Q Filing

TL;DR

**USAC Q3 2024 10-Q: Revenue from contract operations and parts/service detailed. Check financials.**

AI Summary

USA Compression Partners, LP filed its 10-Q for the period ending September 30, 2024. The filing details financial performance for the third quarter and the first nine months of the year, reporting on revenue from contract operations and parts and service, excluding related party transactions. Specific financial figures for these revenue streams and comparative periods are provided within the document.

Why It Matters

This filing provides investors with the latest financial performance data for USA Compression Partners, LP, crucial for understanding the company's operational health and revenue trends in the natural gas transmission sector.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the natural gas transmission sector can be subject to regulatory and market volatility.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-11-05 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• USA Compression Partners, LP (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period
• 2024-11-05 (date) — Date the filing was made
• 111 Congress Avenue, Suite 2400, Austin, TX 78701 (address) — Company's business and mailing address

FAQ

Key Financial Figures

• $725.0 million — Exchange Commission Senior Notes 2026 $725.0 million aggregate principal amount of senior no
• $750.0 million — due on April 1, 2026 Senior Notes 2027 $750.0 million aggregate principal amount of senior no
• $1.0 billion — on September 1, 2027 Senior Notes 2029 $1.0 billion aggregate principal amount of senior no

Filing Documents

• usac-20240930.htm (10-Q) — 1130KB
• usacq32024ex311.htm (EX-31.1) — 10KB
• usacq32024ex312.htm (EX-31.2) — 10KB
• usacq32024ex321.htm (EX-32.1) — 5KB
• usacq32024ex322.htm (EX-32.2) — 5KB
• usac-20240930_g1.jpg (GRAPHIC) — 39KB
• 0001522727-24-000047.txt ( ) — 6100KB
• usac-20240930.xsd (EX-101.SCH) — 48KB
• usac-20240930_cal.xml (EX-101.CAL) — 51KB
• usac-20240930_def.xml (EX-101.DEF) — 272KB
• usac-20240930_lab.xml (EX-101.LAB) — 568KB
• usac-20240930_pre.xml (EX-101.PRE) — 420KB
• usac-20240930_htm.xml (XML) — 714KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

ITEM 1. Financial Statements 1 Unaudited Condensed Consolidated Balance Sheets 1 Unaudited Condensed Consolidated Statements of Operations 2 Unaudited Condensed Consolidated Statements of Changes in Partners' Capital (Deficit) 3 Unaudited Condensed Consolidated Statements of Cash Flows 4 Notes to Unaudited Condensed Consolidated Financial Statements 6 Note 1 – Organization and Description of Business 6 Note 2 – Basis of Presentation and Summary of Significant Accounting Policies 6 Note 3 – Trade Accounts Receivable 9 Note 4 – Inventories 9 Note 5 – Property and Equipment and Identifiable Intangible Assets 9 Note 6 – Other Current Liabilities 10 Note 7 – Derivative Instrument 10 Note 8 – Debt Obligations 11 Note 9 – Preferred Units 13 Note 10 – Partners' Deficit 15 Note 11 – Revenue Recognition 16 Note 12 – Transactions with Related Parties 17 Note 13 – Commitments and Contingencies 17 Note 14 – Recent Accounting Pronouncements 18

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Operating Highlights 20 Financial Results of Operations 21 Liquidity and Capital Resources 26 Non-GAAP Financial Measures 28

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

ITEM 4. Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION 36

Legal Proceedings

ITEM 1. Legal Proceedings 36

Risk Factors

ITEM 1A. Risk Factors 36

Other Information

ITEM 5. Other Information 36

Exhibits

ITEM 6. Exhibits 37

SIGNATURES

SIGNATURES 38 i Table of Contents GLOSSARY The abbreviations, acronyms and industry terminology used in this Quarterly Report on Form 10-Q are defined as follows: Credit Agreement Seventh Amended and Restated Credit Agreement, dated as of December 8, 2021, by and among USA Compression Partners, LP, as borrower, the guarantors party thereto from time to time, the lenders party thereto from time to time, as may be amended from time to time, and any predecessor thereto if the context so dictates CPI Consumer Price Index for all Urban Consumers DERs distribution equivalent rights DRIP distribution reinvestment plan Energy Transfer Energy Transfer LP Exchange Act Securities Exchange Act of 1934, as amended GAAP generally accepted accounting principles of the United States of America Preferred Units Series A Preferred Units representing limited partner interests in USA Compression Partners, LP SEC United States Securities and Exchange Commission Senior Notes 2026 $725.0 million aggregate principal amount of senior notes due on April 1, 2026 Senior Notes 2027 $750.0 million aggregate principal amount of senior notes due on September 1, 2027 Senior Notes 2029 $1.0 billion aggregate principal amount of senior notes due on March 15, 2029 SOFR Secured Overnight Financing Rate U.S. United States of America ii Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements USA COMPRESSION PARTNERS, LP Unaudited Condensed Consolidated Balance Sheets (in thousands, except unit amounts) September 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 79 $ 11 Accounts receivable, net of allowances for credit losses of $ 2,260 and $ 2,260 , respectively 99,095 95,421 Related-party receivables 7,163 — Inventories 146,755 114,728 Derivative instrument — 5,670 Prepaid expenses and other assets 9,261 10,617 Total current assets 262,353 226,447 Property and equipment, net 2,291,976 2,237,625 Lease right-of-use assets 15,374 17,290 Identifiable intangible assets, net 223,618 245,652 Other assets 10,306 9,746 Total assets $ 2,803,627 $ 2,736,760 Liabilities, Preferred Units, and Partners' Deficit Current liabilities: Accounts payable $ 31,632 $ 39,781 Accrued liabilities 83,603 85,132 Deferred revenue 67,896 62,589 Total current liabilities 183,131 187,502 Long-term debt, net 2,532,398 2,336,088 Operating lease liabilities 12,601 14,731 Derivative instrument, long term — 4,466 Other liabilities 13,942 10,924 Total liabilities 2,742,072 2,553,711 Commitments and contingencies Preferred Units 168,809 476,334 Partners' deficit: Common units, 117,022,833 and 100,986,011 units issued and outstanding, respectively ( 107,254 ) ( 293,285 ) Total liabilities, Preferred Units, and partners' deficit $ 2,803,627 $ 2,736,760 See accompanying notes to unaudited condensed consolidated financial statements. 1 Table of Contents USA COMPRESSION PARTNERS, LP Unaudited Condensed Consolidated Statements of Operations (in thousands, except per unit amounts) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues: Contract operations $ 220,518 $ 204,716 $ 662,265 $ 590,237 Parts and service 5,756 7,153 17,043 15,133 Related party 13,694 5,216 25,249 15,759 Total revenues 239,968 217,085 704,557 621,129 Costs and expenses

View Full Filing

View this 10-Q filing on SEC EDGAR