USA Compression Partners LP
For the period ended Mar 31, 2024. Filed May 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 7, 2024
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Operating Highlights
The following table summarizes certain horsepower and horsepower-utilization percentages for the periods presented and excludes certain gas-treating assets for which horsepower is not a relevant metric.
| Three Months Ended March 31, · Increase | |||
|---|---|---|---|
| 2024 | 2023 | (Decrease) | |
| Fleet horsepower (at period end) (1) | 3,833,715 | 3,725,111 | 2.9% |
| Total available horsepower (at period end) (2) | 3,858,500 | 3,872,611 | (0.4)% |
| Revenue-generating horsepower (at period end) (3) | 3,497,457 | 3,260,535 | 7.3% |
| Average revenue-generating horsepower (4) | 3,473,007 | 3,241,296 | 7.1% |
| Average revenue per revenue-generating horsepower per month (5) | $19.96 | $18.19 | 9.7% |
| Revenue-generating compression units (at period end) | 4,249 | 4,170 | 1.9% |
| Average horsepower per revenue-generating compression unit (6) | 819 | 780 | 5.0% |
| Horsepower utilization (7): | |||
| At period end | 94.8% | 92.7% | 2.1% |
| Average for the period (8) | 94.8% | 92.6% | 2.2% |
(1)Fleet horsepower is horsepower for compression units that have been delivered to us (and excludes units on order). As of March 31, 2024, we had 5,000 large horsepower on order for delivery, all of which was delivered in April 2024.
(2)Total available horsepower is revenue-generating horsepower under contract for which we are billing a customer, horsepower in our fleet that is under contract but is not yet generating revenue, horsepower not yet in our fleet that is under contract but not yet generating revenue and that is subject to a purchase order, and idle horsepower. Total available horsepower excludes new horsepower on order for which we do not have an executed compression services contract.
(3)Revenue-generating horsepower is horsepower under contract for which we are billing a customer.
(4)Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period.
(5)Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period.
(6)Calculated as the average of the month-end revenue-generating horsepower per revenue-generating compression unit for each of the months in the period.
(7)Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower, (b) horsepower in our fleet that is under contract but is not yet generating revenue, and (c) horsepower not yet in our fleet that is under contract but not yet generating revenue and that is subject to a purchase order, divided by (ii) total available horsepower less idle horsepower that is under repair. Horsepower utilization based on revenue-generating horsepower and fleet horsepower as of March 31, 2024 and 2023, was 91.2% and 87.5%, respectively.
(8)Calculated as the average utilization for the months in the period based on utilization at the end of each month in the period. Average horsepower utilization based on revenue-generating horsepower and fleet horsepower for the three months ended March 31, 2024 and 2023, was 91.0% and 87.2%, respectively.
The 2.9% increase in fleet horsepower as of March 31, 2024, compared to March 31, 2023, primarily was driven by new compression units added to our fleet to meet incremental demand from customers for our compression services.
The increases in revenue-generating horsepower, revenue-generating compression units, average horsepower per revenue-generating compression unit, horsepower utilization, and horsepower utilization based on revenue-generating horsepower and fleet horsepower as of or for the three months ended March 31, 2024, compared to March 31, 2023, primarily were driven by the addition and deployment of new, and redeployment of existing, large-horsepower compression units due to increased demand for our services commensurate with an overall increase in U.S. oil and gas production levels.
The 9.7% increase in average revenue per revenue-generating horsepower per month for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily was due to higher market-based rates on newly deployed and redeployed compression units, and CPI-based and other market-based price increases on existing customer contracts that occur as market conditions permit.
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