USA Compression Partners LP

Good morning. Welcome to USA Compression Partners' first quarter 2026 earnings conference call. During today's call, all parties will be in the listen-only mode. At the conclusion of management's prepared remarks, the call will be open for question and answer session. And if you would like to ask a question during this time, please press the star 1 on your telephone keypad. To withdraw your question, please press the star 1 again. Thank you. And this conference is being recorded today, May 5, 2026. I would now like to turn the call over to Clint Green, President and CEO, who may begin.

Good morning, everyone, and thank you for joining us. With me today is Chris Paulson, Senior Vice President and CFO, Chris Watson, Senior Vice President and COO, and other members of our leadership team. This morning, we released our operational and financial results for quarter ending March 31st, 2026. 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 and definitions of non-GAAP measures and related risk factors. As we discuss performance, please note that JW Acquisition closed on January 12th. And therefore, Q1 earnings excludes the impact of revenues and expenses for JW Power for the first 11 days of the quarter. Before we get into the quarter, I want to take a moment to recognize our team on safety. Our people go to work in the field every day, working around complex equipment, driving millions of miles a month. And the way they return to their family matters more than any financial metric we report. In 2025, our combined TRIR finished at a 0.39, a 50% reduction from 2024, and well below the BLS industry average of 0.70, a benchmark we have now beaten for 12 consecutive years. We are proud of these results, and we remain committed to continuous improvement. Moving to the quarter, which included two integrations that established upward momentum for the company. First, we kicked off the integration of JW Power at the time when horsepower lead times continued to extend. Customer discussions commenced immediately upon closing, starting the process of onboarding new customers to the USAID compression platform. As of early March, we have integrated the combined operations organization and established a new reporting structure. Second, on February 1st, our integration of legacy USA compression data into a new ERP system was completed. Our respective integration teams worked long hours to enable a smooth transition of both, and I can't be more appreciative of their efforts. Throughout it all, we have maintained our operational momentum while delivering DCF and leverage metrics that show meaningful year-over-year improvement to our unit holders. The company is now broadly diversified across every major basin, horsepower class, and customer type. In the last few months, we have contracted over 90% of our 2026 horsepower, which will more than double the new horsepower deployed in 2025. Additionally, we have continued the momentum in our small horsepower class with utilization up nearly 10% year over year. The introduction of JW Power's manufacturing capabilities is enabling us to manage a dynamic compression market differently than the past. Certain new engine lead times have recently tripled from 50 weeks to approximately 150 weeks. And while historically we might hesitate to commit to the full horsepower cost that far in advance, we are now able to directly acquire highly marketable engines with optionality to package for our own internal contract compression needs or future resale to third parties. Engine costs represent approximately 25 to 40% of the total SCID cost, with just a fraction of that cost provided as a deposit. In the event of an unexpected contract compression market shift over the next several years, we believe we could also divest those engines for other use cases, further reducing any unlikely downside exposure. Additionally, the diversity of our manufactured compression products, including midsize, Large horsepower, electric, and high-pressure gas lifts supports more competitive pricing for our customers, while enabling us to adapt to the ever-changing marketplace. So far, the oil-directed rig count remains flat this year, but producers are showing more optimism looking out over a 12-month horizon than we have seen for some time, reflecting a much-improved commodity backdrop. The 12-month oil strip has significantly lagged physical spot prices and arguably is underpriced for an immediate and permanent ceasefire, much less a long-term conflict. We believe spot natural gas prices do not reflect the LNG risk associated with the Strait of Hormuz. Finally, Waha pricing is anticipated to materially improve with export capacities increasing in Q4 of 2026. I will now turn the call over to Chris Wasson, our Chief Operating Officer, who will provide additional insights to our current operations and our out-year growth plan.

Thanks, Clint. As of today, the operations and commercial organizations have been integrated with both JW employees and Legacy USA employees under new reporting structures consistent with a best-in-class approach. The longer-term result will be streamlined route optimization, customer contracts, vendors, inventory, safety protocols, and systems data. As discussed in the prior quarter, we expect approximately $10 to $20 million of annual run rate synergies by year-end 2027, and we are still tracking towards those estimates. The current new compression lead times have presented a new challenge for near-term business continuity, and long-term planning for both contract compression and manufacturing. As a result, we have already placed orders for engines and package components for 2027 and engines for 2028 and a portion of 2029. Package component lead times remain well inside of engine lead times, but we'll continue to monitor and place these orders when needed. These advanced planning efforts should enable new contract compression growth to stay largely consistent with 2026, in excess of 100,000 horsepower each year. As far as our manufacturing book is concerned, we have some specialty horsepower slated for resale, but the vast majority is expected to go into our fleet. Our 2028 orders are nearly entirely weighted to large 3600 series engines. which are the most desired by our compression customers while also having substantial optionality for sale should the market shift. We continue to have robust conversations across our diverse customer portfolio, and as Clint mentioned, we have contracted more than 90% of nearly 110,000 new horsepower expected to be added to the fleet in 2026. and are presently in the middle of multi-year strategic planning discussions with some of our strongest customers to shore up our 2027 book. Notably, we experience lower churn rates than expected in Q1, which is a reflection of the tightness in the current market. This backdrop, coupled with the idle units acquired from JW, positions us for outsized horsepower growth in the back half of the year and into early 2027. Finally, while oil prices have moved up significantly in the last month, we are focused on minimizing cost increases tied to lubricants. If oil prices were to remain at current levels, we would expect much of that increase to show up in the second half of the year as our lubricant contracts renew. I will now turn the call over to Chris Paulson to discuss our financial results in detail. Thanks, Chris.