USA Compression Partners, LP

Three months ended June 30, 2026, compared to the three months ended June 30, 2025

The following table summarizes our results of operations for the periods presented (dollars in thousands):

*Not meaningful

Contract operations revenue. The $77.6 million increase in contract operations revenue for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was due to a $69.5 million increase due to the J-W Power Acquisition with the remaining increase attributable to our operations outside of the J-W Power Acquisition, including (i) a 2.4% increase in average revenue per revenue-generating horsepower per month, which resulted from 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 and (ii) a 1.1% increase in average revenue-generating horsepower as a result of increased demand for our services, consistent with an overall increase in natural gas produced within the U.S.

Average revenue per revenue-generating horsepower per month associated with our compression services provided on a month-to-month basis did not differ significantly from the average revenue per revenue-generating horsepower per month associated with our compression services provided under contracts in their primary term during the period.

Parts and service revenue. The $15.6 million increase in parts and service revenue for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due to the additional revenue generated by the J-W Power Acquisition, including $11.1 million attributable to parts and service revenue earned on maintenance work performed on customer-owned equipment and $6.9 million attributable to manufacturing sales, offset by a decrease of $3.2 million in maintenance work generated by our operations outside of the J-W Power Acquisition, which is performed on units outside the scope of our core maintenance activities and in directly reimbursable freight and crane charges that are the financial responsibility of the customers. Demand for retail parts and services fluctuates from period to period based on varying customer needs.

Related-party revenue. Related-party revenue was earned through related-party transactions that occur in the ordinary course of business with various affiliated entities of Energy Transfer. Related-party revenue for the three months ended June 30, 2026 was generally consistent with the three months ended June 30, 2025.

Cost of operations, exclusive of depreciation and amortization. The $38.3 million increase in cost of operations, exclusive of depreciation and amortization, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was due to (i) a $39.5 million increase attributable to the J-W Power Acquisition and (ii) a $4.0 million increase in direct labor costs due to increased operating headcount associated with increased average revenue-generating horsepower and higher employee costs, partially offset by (iii) a $2.5 million decrease in fluids expense, (iv) a $1.6 million decrease in part consumption, and (v) a $1.6 million decrease in retail parts and service expense that corresponds to a decrease in retail parts and service revenue attributable to our operations outside of the J-W Power Acquisition.

Depreciation and amortization expense. The $18.2 million increase in depreciation and amortization expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was due to (i) a $16.0 million increase resulting from the J-W Power Acquisition, and (ii) overhauls and major improvements to compression units.

Selling, general, and administrative expense. The $16.0 million increase in selling, general, and administrative expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was due to (i) a $8.5 million increase related to the J-W Power Acquisition, (ii) a $3.7 million increase in unit-based compensation, (iii) a $1.9 million increase in outside services and professional fees, (iv) a $0.8 million increase in administrative salaries and benefits, (v) a $0.8 million increase in transaction expenses related to the J-W Power Acquisition, and (vi) a $0.4 million increase in other indirect costs.

Impairment of assets. There was no impairment of assets for the three months ended June 30, 2026.

The $3.2 million impairment of assets for the three months ended June 30, 2025 primarily resulted from our evaluation of the future deployment of our idle fleet under current market conditions. The primary circumstances supporting this impairment were: (i) unmarketability of certain compression units into the foreseeable future, (ii) excessive maintenance costs associated with certain fleet assets, and (iii) prohibitive retrofitting costs that likely would prevent certain compression units from securing customer acceptance. These compression units were written down to their estimated salvage values, if any.

As a result of our evaluation during the three months ended June 30, 2025 we retired four compression units with approximately 5,900 of aggregate horsepower that were previously used to provide compression services in our business.

Interest expense, net. The $1.6 million increase in interest expense, net for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was due to higher aggregate borrowings, partially offset by lower weighted-average interest rates under the Credit Agreement and our senior notes.

Income tax expense. The $5.1 million increase in income tax expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was related to additional taxes attributable to the J-W Power Acquisition. For additional information on income tax expense, see Note 7 to our unaudited condensed consolidated financial statements in Part I, Item 1 “Financial Statements” of this report for additional information.

Six months ended June 30, 2026, compared to the six months ended June 30, 2025

The following table summarizes our results of operations for the periods presented (dollars in thousands):

*Not meaningful

Contract operations revenue. The $146.1 million increase in contract operations revenue for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to a $129.9 million increase due to the J-W Power Acquisition with the remaining increase attributable our operations outside of the J-W Power Acquisition, including (i) a 2.8% increase in average revenue per revenue-generating horsepower per month as a result of 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 and (ii) a 1.1% increase in average revenue-generating horsepower as a result of increased demand for our services, consistent with an overall increase in natural gas produced within the U.S.

Average revenue per revenue-generating horsepower per month associated with our compression services provided on a month-to-month basis did not differ significantly from the average revenue per revenue-generating horsepower per month associated with our compression services provided under contracts in their primary term during the period.

Parts and service revenue. The $32.4 million increase in parts and service revenue for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to the additional revenue generated by the J-W Power Acquisition, including $22.7 million attributable to parts and service revenue earned on maintenance work performed on customer-owned equipment and $15.0 million attributable to manufacturing sales, partially offset by a decrease of $6.7 million in maintenance work attributable to our operations outside of the J-W Power Acquisition, which is performed on units outside the scope of our core maintenance activities and in directly reimbursable freight and crane charges that are the financial responsibility of the customers. Demand for retail parts and services fluctuates from period to period based on varying customer needs.

Related-party revenue. Related-party revenue was earned through related-party transactions that occur in the ordinary course of business with various affiliated entities of Energy Transfer. Related-party revenue for the six months ended June 30, 2026 was consistent with the six months ended June 30, 2025.

Cost of operations, exclusive of depreciation and amortization. The $74.6 million increase in cost of operations, exclusive of depreciation and amortization, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to (i) an $80.5 million increase attributable to the J-W Power Acquisition and (ii) a $8.3 million increase in direct labor costs due to increased operating headcount associated with increased average revenue-generating horsepower and higher employee costs, partially offset by (iii) a $4.2 million decrease in fluids expense, (iv) a $4.0 million decrease in part consumption, (v) a $4.0 million decrease in retail parts and service expense that corresponds to a decrease in retail parts and service revenue attributable to our operations outside of the J-W Power Acquisition, and (vi) a $1.3 million decrease in outside maintenance expense for third party services.

Depreciation and amortization expense. The $35.0 million increase in depreciation and amortization expense for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to (i) a $29.8 million increase resulting from the J-W Power Acquisition, and (ii) overhauls and major improvements to compression units.

Selling, general, and administrative expense. The $32.5 million increase in selling, general, and administrative expense for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to (i) a $19.5 million increase related to the J-W Power Acquisition, (ii) a $4.5 million increase in transaction expenses related to the J-W Power Acquisition, (iii) a $3.9 million increase in outside services and professional fees, (iv) a $3.0 million increase in unit-based compensation, (v) a $1.0 million increase in administrative salaries and related benefits, and (vi) a $0.6 million increase in other indirect costs.

Impairment of assets. The $4.0 thousand and $6.9 million impairments of assets for the six months ended June 30, 2026 and 2025, respectively, primarily resulted from our evaluation of the future deployment of idle fleet under current market conditions. The primary circumstances supporting these impairments were: (i) unmarketability of certain compression units into the foreseeable future, (ii) excessive maintenance costs associated with certain fleet assets, and (iii) prohibitive retrofitting costs that likely would prevent certain compression units from securing customer acceptance. These compression units were written down to their estimated salvage values, if any.

As a result of our evaluations during the six months ended June 30, 2026 and 2025, we retired 1 and 21 compression units, respectively, with approximately 335 and 16,100 aggregate horsepower, respectively, that previously were used to provide compression services in our business.

Interest expense, net. The $3.2 million increase in interest expense, net for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to higher aggregate borrowings, partially offset by lower weighted-average interest rates under the Credit Agreement and our senior notes.

Income tax expense. The $7.7 million increase in income tax expense for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was related to additional taxes attributable to the J-W Power Acquisition. For additional information on income tax expense, see Note 7 to our unaudited condensed consolidated financial statements in Part I, Item 1 “Financial Statements” of this report for additional information.

Other Financial Data

The following table summarizes other financial data for the periods presented (dollars in thousands):

(1)Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow (“DCF”), and DCF Coverage Ratio are all non-GAAP financial measures. Definitions of each measure, as well as reconciliations of each measure to its most directly comparable financial measure(s) calculated and presented in accordance with GAAP, can be found below under the caption “Non-GAAP Financial Measures”.

(2)Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue.

Gross margin. The $35.5 million increase in gross margin for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due to (i) a $92.0 million increase in revenues, partially offset by (ii) a $38.3 million increase in cost of operations, exclusive of depreciation and amortization, and (iii) an $18.2 million increase in depreciation and amortization.

The $68.5 million increase in gross margin for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due to (i) a $178.1 million increase in revenues, partially offset by (ii) a $74.6 million increase in cost of operations, exclusive of depreciation and amortization, and (iii) a $35.0 million increase in depreciation and amortization.

Adjusted gross margin. The $53.7 million increase in Adjusted gross margin for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due to a $92.0 million increase in revenues offset by a $38.3 million increase in cost of operations, exclusive of depreciation and amortization.

The $103.5 million increase in Adjusted gross margin for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due to a $178.1 million increase in revenues, partially offset by a $74.6 million increase in cost of operations, exclusive of depreciation and amortization.

Adjusted EBITDA. The $43.8 million increase in Adjusted EBITDA for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was due to a $53.7 million increase in Adjusted gross margin, partially offset by a $10.8 million increase in selling, general, and administrative expenses, excluding unit-based compensation expense, transaction expenses, amortization of capitalized SaaS implementation costs, and severance charges and other employee costs.

The $82.8 million increase in Adjusted EBITDA for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to a $103.5 million increase in Adjusted gross margin, partially offset by a $23.4 million increase in selling, general, and administrative expenses, excluding unit-based compensation expense, transaction expenses, amortization of capitalized SaaS implementation costs, and severance charges and other employee costs.

DCF. The $35.4 million increase in DCF for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily was due to (i) a $43.8 million increase in Adjusted EBITDA and (ii) a $2.0 million decrease in distributions on Preferred Units due to the conversion of the remaining Preferred Units into common units, partially offset by (iii) a $5.2 million increase in maintenance capital expenditures, (iv) a $3.1 million increase in cash income tax expense, and (v) a $2.0 million increase in cash interest expense, net.

The $77.5 million increase in DCF for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily was due to (i) an $82.8 million increase in Adjusted EBITDA and (ii) a $6.3 million decrease in distributions on Preferred Units due to the conversion of the remaining Preferred Units into common units, partially offset by (iii) a $3.6 million increase in maintenance capital expenditures, (iv) a $3.1 million increase in cash income tax expense, and (v) a $4.0 million increase in cash interest expense, net.

DCF Coverage Ratio. The increase in DCF Coverage Ratio for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, was due to the increase in DCF for the period offset by increased common unitholder distributions primarily due to (i) the conversion of the remaining Preferred Units into common units and (ii) the issuance of common units pursuant to the J-W Power Acquisition.