USA Compression Partners LP

Good morning. Welcome to USA Compression Partners' second quarter 2026 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 open for Q&A. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, press star one again, thank you. This conference is being recorded today, August 4th, 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 Paulsen, Senior Vice President and CFO, Chris Wauson, Senior Vice President and COO, and other members of our leadership team. This morning we released our operational financial results for quarter-ending June 30, 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. I am excited about the progress we continue to make as a leading contract compression provider across the U.S. In the second quarter, we strengthened our foundation as a larger combined company and hit several key milestones that position us to take advantage of the expected demand growth over the next several years. This outlook supports the deliberate investments we accelerated in Q2 in horsepower, in the combined organization, and the technology that will redefine how we operate. Most notable are the horsepower investments. Building on what we announced during the Q1 call, we have continued to engage in long-term business planning and in addition to the approximately 850,000 active horsepower we acquired from JDOE. We currently expect approximately 2.5% average annual new horsepower growth through 2029. This plan to add over 500,000 horsepower by 2030 highlights our internal confidence in natural gas demand growth and in our ability to maintain market share. It's also a key pillar of our capital allocation framework and long-term DCF growth formula. Importantly, this investment changes the nature of the conversations we're having with customers. When you show up with specific multi-year deployment plan, customers can grow with you. In an environment where certain new engine lead times continue to be as high as 200 weeks or nearly four years, customers want to know that their compression provider is both committed and capitalized to deliver. Chris Wauson will share more on these commercial results. Second, we're investing in the combined USA compression growth platform. We went live with SAP in February and are in the middle innings of the JW integration. And it's obvious to me that we're building a fundamentally stronger company. The sophistication of our new ERP system and the enhanced data reporting we have access to is allowing us to better manage our activity, both in the field and at home office. With JW, the activity is happening across multiple levels. Operationally, we are capturing labor and cost synergies as we standardize how we run the combined fleet. Commercially, we're integrating best practices across both organizations, how we price, how we contract, and how we serve a customer base that is now significantly broader than it was a year ago. And through the manufacturing business, JW's specialized facilities gives us the ability to package our own compression and optionality that is particularly valuable in an extended lead time environment and one that differentiates us from peers. As a reminder, to the extent the compression market changes, we can be nimble and reduce our capital exposure in the out years. Finally, we are investing in enhanced telemetry and real-time data capabilities across our fleet, including AI. Our goal is to get the right information to the right people faster so we can make better decisions on maintenance, Deployment and Efficiency. We expect to reach a critical mass of connected assets with telemetry in 2027, at which point we can begin to meaningfully change how we operate. Better predictive maintenance, more efficient field service routing, and fewer unplanned downtime events. The investments are happening now, and it's positioning us for a more efficient future. I will now turn the call over to Chris Wauson to walk through our operational and commercial results in more detail.

Good morning, everyone. To start, I am proud of the resilience of our safety culture during a period of rapid organizational growth. Our total incident rate has remained low despite a large influx of new personnel demonstrating both the strength of our safety management processes and the buy-in from our operations team. In addition to our safety programs, we have recently launched new leadership training programs from multiple levels over our operations field leadership. Our goal is to accelerate development, help enhance business processes, and empower our team to better serve our customers. These continued investments in safety, training, and development will ensure we continue to attract and retain the talent needed to execute our future growth plans. As Clint mentioned, our growth plans now include low single digit new horsepower growth through 2029. This has unlocked a different kind of customer conversation. One that is not only about what we can deliver this year, but also about how we can support in the future years. We have made excellent progress in new customer discussions and already contracted approximately 50% of new units scheduled for delivery in 2027 and mid-teens percentage of new units planned for 2028. To put that in broader context, contracting capacity two years out is not typical and has rarely been seen in my career. It reflects the level of customer conviction and long-term production growth that we share and it reflects their confidence in USA Compression as their partner of choice. New large horsepower lead times remain extended and that reality is driving customers to make compression decisions further out than they historically have. While we did see elevated stops in Q2, RFP activity remains healthy. and our pipeline of customer contracts heading into the back half of the year gives us confidence in continued forward progress. While we remain focused on the long-term earnings potential of our business, we also want to highlight short-term cost movements and recontracting efforts. In that way, we expect incremental loophole costs of approximately $1 million per month in the second half of the year as our contracts are updated to reflect higher oil prices. Additionally, JW contract migration is underway and progressing with a focus on standardized terms, tenure, and pricing, all while assessing unit optimization. I will now turn it over to Chris Paulsen to discuss our financial results in detail.