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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.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.
Next USA Compression Partners earnings date
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