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USA Compression Partners (USAC) investor relations material

USA Compression Partners M&A Announcement summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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M&A Announcement summary1 Dec, 2025

Deal rationale and strategic fit

  • Acquisition expands scale to a combined fleet of 4.4 million active horsepower, enhancing service capacity and market leadership in key U.S. basins including Bakken, Uinta, Arkoma, Rockies, Mid-Con, Gulf Coast, and Northeast.

  • Diversifies business lines with larger aftermarket services, parts distribution, and specialized manufacturing.

  • Broadens and strengthens customer base with over 300 customers, long-term relationships, and limited overlap among top clients.

  • Combines two companies with complementary business models and a shared focus on people, culture, equipment, and service.

  • Positions for organic growth, with active horsepower expected to grow 2% by year-end 2026.

Financial terms and conditions

  • Total consideration is approximately $860 million, split evenly between $430 million in cash and 18.3 million new common units valued at $23.50 each, at ~5.8x 2026E Adjusted EBITDA.

  • Cash portion funded via existing credit facility; deal is debt-free, cash-free with legacy ABL retired at close.

  • Transaction is deleveraging and expected to accelerate path to sub-4.0x leverage.

  • Expected to be accretive to Distributable Cash Flow in the near term and reduce leverage below 4x on a pro forma basis.

Synergies and expected cost savings

  • No synergies assumed at announcement, but meaningful improvements expected over time through operational streamlining and integration of best practices.

  • Anticipated cost savings from filling open positions with acquired employees and integrating HR, IT, and benefits platforms.

  • Potential for tax synergies as contracts are moved to MLP qualified income.

  • Additional optionality from expanded aftermarket and manufacturing services.

  • Near-term accretion anticipated on a Distributable Cash Flow basis.

Key synergy drivers for margin improvement
Explain recontracting strategy for J-W assets
How do new basins drive long-term gas growth?
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Q4 202510 Feb, 2026
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Frequently asked questions

USA Compression Partners LP provides natural gas compression services to customers across the oil and gas industry. The company owns and operates a fleet of compressor packages used in gathering, processing, and transportation infrastructure. It operates primarily under fixed-fee contracts. The company is headquartered in Austin, Texas, and its shares are listed on the NYSE.

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