USA Compression Partners LP

Good morning. Welcome to USA Compression Partners' fourth quarter 2025 earnings conference call. During today's call, all parties will be in a listen-only mode. At the conclusion of management's prepared remarks, the call will be opened for Q&A. At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. This conference is being recorded today, February 17, 2026. I now would like to turn the call over to Clint Green, President and Chief Executive Officer.

Good morning, everyone, and thank you for joining us. With me today is Chris Paulson, Senior Vice President and Chief Financial Officer, Chris Watson, Senior Vice President and Chief Operating Officer, and other members of our leadership team. This morning we released our operational and financial results for the year and quarter ending December 31st, 2025. Today's call will contain forward-looking statements based on our current beliefs and certain non-GAAP measures. Please refer to our earnings release and SEC filings for reconciliations, definitions of non-GAAP measures, and related risk factors. Please note that the historical information presented excludes the results of JW Power acquisition, which closed on January 12th. With that, I would like to congratulate the team for closing the JW transaction. With this transaction, we are leaning into the USA Compression name with broader reach all across this great country. The transaction makes us a clear choice for operators who want a provider with a reputation of high quality, reliable service in every major oil and gas basin in the U.S. and across all horsepower classes. I want to highlight the tremendous year we had across our operations, commercial and finance organizations. On the safety front, we recorded a TRIR of 0.39, which is approximately half of the industry average. We delivered full year adjusted EBITDA of $613.8 million, and DCF of $385.7 million. Both are records for the company. We maintained high average utilization in excess of 94% throughout the year and end of the year at 94.5%. Finally, we refinanced our ABO in one of our senior notes, significantly reducing our weighted average borrowing costs and improving strategic flexibility. These accomplishments occurred as the company embraced a new leadership team a change in headquarters, a new shared services model, and new ERP platform. The resilience and grit showcased across our organization in 2025 gave us confidence to pursue and now integrate the JW acquisition in 2026. Last year, the energy macro environment stabilized following early tariff discussions, but the development pace slowed in the Permian as rigs continued to reduce throughout the year in response to lower oil prices. Of note, while oil production flattened in the last half of the year, natural gas continued to move upward, ending approximately 9% higher year over year. We continue to be bullish on the Permian longer term. With the acquisition of JW, we maintain a large presence and have increased our active horsepower in the Permian to around 1.7 million. We have also increased our horsepower in oil and liquids-rich basins, as well as major gas basins like the Marcellus, Utica, and Hainesville. which returned to growth in 2025. This growth was tied to increased local demand, additional infrastructure debottlenecking, and a higher average natural gas price of $3.52 per MMBTU. This is a 56% increase from the prior year. We are encouraged by these fundamentals and believe the acquisition of JW strengthens our leadership within these natural gas basins. The broader compression industry continues to forge ahead with strong margins and a disciplined approach to new compression capital, and USA Compression is no different. Of note, lead times for new equipment have increased to over two years, which presents a new set of opportunities and challenges that our team continues to work through. In 2026, we have budgeted approximately 105,000 new horsepower, representing a 2% increase in active horsepower, with half of that new horsepower under contract. We also have new units contracted for the first half of 2027 and are in active discussions to procure additional horsepower in 2027. With that, I will turn the call over to Chris Wasson, our chief operating officer.

Thanks, Clint. Since the close of the transaction on January 12th, we have begun planning to optimize route management, inventory, contracts, and operational structures to begin to realize synergies as early as this year. As we have previously noted, we moved forward with the go-live of a new ERP system in Q1 of 2026 for the legacy USA compression assets, and now plan to integrate the JW assets during 2026. We will have modest one-time costs associated with the transaction in 2026. but expect to lay the groundwork for substantial synergy capture by 2027. Our assessment is still ongoing, but at this time we anticipate approximately 10 to 20 million in annual run rate synergies that will be achieved by the end of 2027. We expect these synergies to create improvements in both operating margins and G&A, with the additional potential for commercial synergies as we better serve our combined customer base. As we discussed in our announcement, we are excited about increasing the extent and depth of our asset offering and customer base. Customer retention and review of existing contracts are top of mind, and we have already begun moving contracts under USA Compression MSAs and will work to extend average contract duration throughout this year. We hope our customers will realize the best of both organizations. I am personally excited to see the strength of our organization grow, especially across the Mid-Continent, the Rockies, and Northeast with the addition of the JW assets. We will focus on continuing to be the operator of choice across these basins and others, providing customers commercial and operational consistency across the U.S. No other contract compression company in the market can support its customers' diverse horsepower and geographic needs like USA Compression can today. Finally, with the acquisition of JW, we acquired approximately 200,000 idle horsepower that will undergo significant review over the course of the next year. As we indicated in December's JW acquisition call, we believe approximately 50,000 horsepower is readily deployable with limited capital spend. As it relates to the remainder, we will analyze best paths, including potential monetization of a portion of the horsepower. We also acquired a manufacturing business that provides strong optionality for third-party sales and internal reconfigurations. I will now turn it over to Chris Paulson to discuss our 2025 financial results in detail and our 2026 guidance.