USA Compression Partners, LP — Call Transcript 2025

Good morning and welcome to USA Compression Partners' December 2025 Investor 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. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. To withdraw your question, press star one again. This conference is being recorded today, December 1st, 2025. I would now like to turn the call over to Clint Green, President and CEO. Please go ahead. Thank you, Operator, and thank you all for joining us today. During this call, we will reference certain non-GAAP measures, forward-looking statements. Please review the related legends included in our presentation discussing this transaction found on our website. As you all have seen, we are excited to discuss our acquisition of J-W Power Company, a largely privately-held provider of compression services with a storied history dating back to the 1960s. This represents an exciting opportunity to increase our geographic footprint across the U.S. and expand our existing customer relationships while acquiring new ones. We especially want to thank the Westerman family for entrusting us with the assets and for their commitment to the combined company going forward as owners of common units. Together, our two companies bring decades of experience in contract compression and a shared focus on exceptional people, a strong culture, reliable equipment, and superior service, consistent with our four pillars. With that, I will turn the call over to Chris Paulsen to discuss the merits of the transaction in further detail. Thanks, Clint. I'll start on page two of the presentation. The transaction will be funded with $430 million in cash, initially via the existing credit facility, and approximately 18.3 million USAC common units issued to the seller. This represents an attractive valuation of approximately 5.8x 2026 estimated Adjusted EBITDA. Notably, while we anticipate meaningful synergies associated with the combined business in the fullness of time, we have assumed no synergies upon announcement. The majority of J-W's Adjusted EBITDA is tied to its 800,000-plus active contract compression horsepower, which is primarily mid to large, and will increase our active fleet to roughly 4.4 million horsepower on a pro forma basis. Non-contract compression Adjusted EBITDA is approximately 10% of the total and is attributable to the AMS and manufacturing businesses. The transaction is expected to close in the first quarter of 2026 and will be subject to customary closing conditions, including regulatory approval. Turning to page three. J-W allows us to increase the scale and product offering, expand long-term customer relationships, and improve geographic presence, all while priced at an attractive valuation. J-W's assets are complementary to our own, with over 300 customers across the U.S. In the near term, we expect this asset will deliver meaningful accretion in 2026 on a DCF basis and will move us below 4x leverage on a pro forma basis. J-W also provides a strong pipeline for continued organic growth. We expect active horsepower to grow roughly 2% by year-end 2026, driven by newly contracted horsepower and dependent upon our post-close finalized capital budget. Turning to slide four. In slide four, you can see that J-W provides 70% of the contract compression fleet that is mid to large horsepower, with 46% of the HP greater than 1,000 horsepower. The fleet historically serviced both gas lift and gathering, with a slightly higher proportion tied to the wellhead. The fleet is relatively evenly spread across our existing operations in the U.S. and provides us new access to the Bakken. Total acquired horsepower is approximately 1.05 million, of which we anticipate over 900,000 horsepower is readily deployable, with limited additional capital to make ready idle units. Approximately 90% of the expected Adjusted EBITDA in 2026 is tied to the contract compression business, with expected gross margins nearing 60% for contract compression and AMS. While this is lower than our baseline average, we are confident that through combined best practices, we can streamline operations and incrementally improve our operating margins over time. Finally, page five shows our pro forma active fleet mix by basin and unit size. The hatched areas represent basins where we currently have an operating presence, whereas the blue areas are new, including portions of the Bakken, Uinta, and Arkoma basins. In each hatched area, we expect to meaningfully enhance operational efficiency through improved materials and fluids cost and route management. We could not be more excited about the addition of J-W Power to the USAC portfolio. Its field operations are well respected throughout the industry, and its horsepower offerings complement our own. As mentioned, we anticipate closing the transaction early Q1 and will look to provide pro forma Adjusted EBITDA and capital numbers at that time. I will now open up to Q&A. We will now begin the question and answer session. To ask a question, press star then the number one on your telephone keypad. We kindly ask that you please limit your questions to one and one follow-up. Our first question will come from the line of Jim Rollyson with Raymond James. Please go ahead. Hey, good morning, guys. Congrats on the deal. Chris, maybe starting with you, can you give us a little bit of kind of trailing 12-month context on revenues, EBITDA, and I think the 10% mix was related to EBITDA, but just maybe a little bit of history is kind of where we're coming from to then project where we're going. Yeah, good question, Jim. As we look forward into 2026, we mentioned that we're looking to grow new horsepower approximately 2%. That horsepower number in terms of what's currently contemplated within the J-W legacy assets is about 40,000 new horsepower, of which over 60% of that's contract, 60% of that's contracted at the moment. Looking back historically and relatively, the last 12 months, the number has been just south of $140 million on an Adjusted EBITDA basis. Again, most of that increase on a relative basis for 2026 is tied to that new horsepower. Got it. That's helpful. Clint, yeah, obviously, J-W has been around for a long time. Would love to just hear your thoughts on kind of how you got this transaction and as you think about it. You mentioned geographic diversity, but love to hear beyond just kind of geographic footprint and what your thoughts does this bring to the table. Does it bring a lot of new customers of the 300? I imagine there's a lot of overlap there. Is it more tied to new growth opportunities? Is there any technologies or the manufacturing and AMS business that you kind of wanted to grow into and this helps you, or is this more of a kind of gets you more scale, gives you some growth opportunity and helps deleveraging with a bunch of synergies? Just kind of curious your approach there. Yeah. Thank you, Jim. That is really all of that, right? At investor conferences and over the last year, we've talked about if we were going to do a deal, it would need to be deleveraging. It would need to be accretive. It would need to be DCF, improved DCF. We feel like this does all of that. We also like being the footprint and the basins that it gives us opportunities to work in. The AMS business, we've been pushing to grow that business here over the last year, and this helps us with that. It gives us opportunity there as well. I think the best way to sum it up is we like the whole enchilada. Got it. Appreciate that. I'll turn it back for someone else. Thank you. Our next question comes from the line of Eli Josen with J.P.Morgan. Please go ahead. Hey, thanks, everyone. Just wanted to start on the kind of age and utilization of the horsepower versus your existing fleet. Can you just kind of provide some high-level color on how these assets from a utilization and uptime perspective compare to what you already have? Thanks. Sure, Eli. Yeah, in terms of utilization, I think in the context of historical utilization, we have to decide what is that appropriate count of total horsepower. As we indicated in the slide deck, we're about the total horsepower being delivered associated with the transaction is about 1.05 million. We also distinguish between that and indicate that in excess of 900,000, we believe, is readily deployable with some limited capital tied to it. If you tag that in and look at kind of where that number is, if you just simply look at 850 into 900, that would kind of be the relative utilization on what we would say is a comparable basis. Ultimately, we'll get in with the assets and determine whether or not that number is 900 or 950 or whatever the case may be. In terms of service offerings and the comparable service offerings, their uptime requirements are no different than our own, no different than many of our peers at the same time. The assets themselves are on average kind of similar age as our existing. The contract terms, I would draw a distinction there. They have tended towards shorter contract terms on average, whereas our average contract term nears 30 months, theirs is probably half that. That is something that we are going to look towards as we go about recontracting in the next 12 months. With that, we will also be moving towards MLP qualified income with the recontracting. There are some synergies that we would hope to achieve as it relates to that. Obviously, some additional tax synergies in time as we move to MLP qualified income. Hopefully that addresses your questions. If you have anything that I did not address, please let me know. No, that's super helpful color. Maybe just one more. I think there's some helpful splits and pie charts in the deck, but if we think about the upstream versus midstream exposure for the acquired assets, if you can provide a little bit of color on that and also just how that tied into the acquisition decision as well. Thanks. Yeah, I'll just say this. We think that the gas gathering versus the what I would call gas lift or upstream component is somewhat similar with our own with a little bit heavier weight towards the gas lift side. I mean, when we looked at this acquisition, what was exciting to us, frankly, was its geographic presence across the U.S. While it incremented our Permian presence and continued to increase our Permian presence, in fact, on a pro forma basis, moved that just below 40%. These other areas are areas that are really going to be necessary to see the gas growth into the second half of this decade. As we look forward to 2028, 2029, 2030, various third-party reports really show the growth and wells drilled in some of these other basins within the Greater Rockies, within the Greater Mid-Continent, within the Greater Northeast. That in and of itself is exciting. Certainly, having a little bit smaller proportion of what we would call small horsepower relative to our own fleet creates some more horsepower nearer to the wellhead. Great. I'll leave it there. Thanks very much. Our next question will come from the line of Nate Pendleton with Texas Capital. Please go ahead. Good morning, and congrats on a great acquisition. Following this acquisition and the improving distributable cash flow, can you talk about how you're looking at balancing further growth, accelerated deleveraging, and the distribution? I know it's early, but any thoughts that would be helpful? Yeah. One of the things that we need to do is combine both assets once the deal closes and the expectations, hopefully, well before February timeframe. In February, come out with our combined capital budget in the same way and timing that we normally do. If we do that, our capital priorities remain the same. I mean, we want to draw leverage below 4x sustainably. I mean, we want to look at opportunistic growth with that. We had a horsepower number in mind, separate and distinct from this asset. As I mentioned, this asset has 40,000 horsepower that will be deployed and could be deployed to these particular, to the contract compression space tied to the manufacturing business. We anticipate utilizing all that. We need to decide what the pro forma numbers will be for USAC sum total. We're looking at keeping leverage at or below 4x and then finding ways to continue to grow that relative coverage. At a point in time, decide what the priorities are beyond that. Nate just adds that we're going to maintain our capital discipline we've been talking about. Got it. I really appreciate the detail there. Maybe just a quick follow-up, just drilling down a bit on the fleet. Can you talk about the composition, specifically electric motor drive, and are the others mostly CAT Ariel or any color there? The vast majority is CAT Ariel. We will improve our relative electric components. Part of the manufacturing business has been retrofitting electric on smaller units, 690 horsepower units and below in some cases, so mid to small horsepower. We will improve that. I would expect for that to continue. We'll kind of provide some more fulsome numbers on electric. Again, within our capital budget for 2026, and we haven't arrived at the final proportion for that, but I would tell you that electric would be extremely limited. As needed and as required by our customers, we're delivering electric. Overall, for 2026, the electric appetite was not immense. That's helpful. Thanks for taking my questions. Our next question will come from the line of Gabe Moreen with Mizuho. Please go ahead. Hey, good morning. Just had a couple of quick follow-ups. One is any divestitures, whether basins or HP types contemplated after this acquisition? I'm just curious. No, not at this time, Gabe. We'll continue to evaluate that as we move through it, but not at this time. Thanks, Clint. I am just curious, you mentioned a lot of new customers here, but as far as your existing basins where there is overlap with J-W Power, any shared customers here where you think one-on-one could equal three here in terms of more market share with some of those producer customers given this acquisition? What was interesting about it, one is the contract tenor, the customers. When we look at the top 10, it is real similar to our own in terms of the timeframe. What was interesting was, as it relates to top 10, the relative limited overlap. Three hundred customers, amongst top 10, limited overlap, really limited overlap in many of the top 20 customers. To your point, I think the calculus is actually a very positive one and not one where we necessarily have a great customer intensity rate for any one customer. Got it. Thanks, guys. Our next question comes from the line of Elvira Scotto with RBC Capital Markets. Please go ahead. Hey, good morning, everyone. Can you talk about—I know you gave the acquisition multiple kind of without synergies—but can you talk about some of the potential synergies or cost savings that you expect over time from this acquisition? Sure. Yeah, Elvira, I'll take that one. The synergies, we're pretty reasonably excited about the potential for synergies. I think we'll be more apt to be able to speak to those upon close. I'll tell you, we'll look across the landscape and find out where we can improve in terms of the gross margin side. I think some of that improvement is going to come from simple things like we had a lot of contract labor throughout a good portion of this year, had some open positions through a portion of this year. We had budgeted for some open positions next year. I think through this process, we'll be able to fill those with J-W employees. We're excited about that. In turn, I think margins will improve. There are things that, again, in the fullness of time, as we move MLP qualified contracts over, I think there will be some ability to minimize some of the cash taxes associated with the assets that were historically tied to them. When I say minimize and defer some of those cash taxes, that probably is better said. Between the two companies, we really made some meaningful impact in terms of our shared services offering with ET. I think we'll have some immediate impacts with some things like HR, IT platforms, and so forth. Keep in mind, as we mentioned on that last call, our healthcare costs have come in and improved quite substantially. Our 401(k) and benefits package, I think, is a really strong offering. I think once we integrate some of the J-W platform into the shared services offering, I think we'll have some improvements to talk about. I think we'll be, again, better positioned to discuss that upon the transaction close and maybe be able to put forward some synergy numbers over the next six months or so. Great. Thank you very much. Again, for any questions, press star one. Our next question will come from the line of Selman Akyol with Stifel. Please go ahead. Thank you. Good morning. Just a couple of quick ones. Just to confirm, there was no debt acquired with this transaction? Yeah. This is kind of what we would call a cash, a debt-free, cash-free transaction. The legacy J-W asset did have an ABL tied to it. That ABL will go away with the transaction. Again, we'll fund a portion of this initially through our ABL and then decision whether or not we want to approach anything different with more of a fixed proportion going forward. Understood. Thank you for that. I know this is small, but I'm just curious more than anything else. They had some enhanced oil recovery compression. I'm just wondering, is there any difference in terms of margins, growth outlook, pricing, anything different in there that we should be aware of? No. I think CMG, EOR are part of the specialized manufacturing business. I think they're different and exciting packages for J-W relative to some other manufacturers. Ultimately, EOR is the better way to probably say that is really big, big units. That is a lot of horsepower on location and on site. They take some reasonable time to build. The long and short of that is they're just big, big units. Understood. Thank you so much. That concludes the question and answer session. With that, I would like to turn the call back to Clint Green for closing comments. Thank you all for dialing in. As you can see, we're extremely excited about this opportunity. Just to close it out, we'd really like to thank the Westerman family for entrusting us with this. We're excited about carrying on the legacy and the history. We'll be back with more updates later on. Thank you all very much. This does conclude our call today. Thank you all for joining. You may now disconnect.

Speaker 8: Good morning and welcome to USA Compression Partners' December 2025 Investor 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. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. To withdraw your question, press star one again. This conference is being recorded today, December 1st, 2025. I would now like to turn the call over to Clint Green, President and CEO. Please go ahead. Good morning and welcome to USA Compression Partners' December 2025 Investor Conference Call. good morning and welcome to usa compression partners' december 2025 investor conference call During today's call, all parties will be in a listen-only mode. 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 the conclusion of management's prepared remarks the call will be opened for q&a If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. if you would like to ask a question during that time simply press star then the number one on your telephone keypad To withdraw your question, press star one again. to withdraw your question press star one again This conference is being recorded today, December 1st, 2025. this conference is being recorded today december 1st 2025 I would now like to turn the call over to Clint Green, President and CEO. i would now like to turn the call over to clint green president and ceo Please go ahead. please go ahead

Speaker 9: Thank you, Operator, and thank you all for joining us today. During this call, we will reference certain non-GAAP measures, forward-looking statements. Please review the related legends included in our presentation discussing this transaction found on our website. As you all have seen, we are excited to discuss our acquisition of J-W Power Company, a largely privately-held provider of compression services with a storied history dating back to the 1960s. This represents an exciting opportunity to increase our geographic footprint across the U.S. and expand our existing customer relationships while acquiring new ones. We especially want to thank the Westerman family for entrusting us with the assets and for their commitment to the combined company going forward as owners of common units. Thank you, Operator, and thank you all for joining us today. thank you operator and thank you all for joining us today During this call, we will reference certain non-GAAP measures, forward-looking statements. during this call we will reference certain non-gaap measures forward-looking statements Please review the related legends included in our presentation discussing this transaction found on our website. please review the related legends included in our presentation discussing this transaction found on our website As you all have seen, we are excited to discuss our acquisition of J-W Power Company, a largely privately-held provider of compression services with a storied history dating back to the 1960s. as you all have seen we are excited to discuss our acquisition of j-w power company a largely privately-held provider of compression services with a storied history dating back to the 1960s This represents an exciting opportunity to increase our geographic footprint across the U.S. and expand our existing customer relationships while acquiring new ones. this represents an exciting opportunity to increase our geographic footprint across the u.s and expand our existing customer relationships while acquiring new ones We especially want to thank the Westerman family for entrusting us with the assets and for their commitment to the combined company going forward as owners of common units. we especially want to thank the westerman family for entrusting us with the assets and for their commitment to the combined company going forward as owners of common units Together, our two companies bring decades of experience in contract compression and a shared focus on exceptional people, a strong culture, reliable equipment, and superior service, consistent with our four pillars. With that, I will turn the call over to Chris Paulsen to discuss the merits of the transaction in further detail. Together, our two companies bring decades of experience in contract compression and a shared focus on exceptional people, a strong culture, reliable equipment, and superior service, consistent with our four pillars. together our two companies bring decades of experience in contract compression and a shared focus on exceptional people a strong culture reliable equipment and superior service consistent with our four pillars With that, I will turn the call over to Chris Paulsen to discuss the merits of the transaction in further detail. with that i will turn the call over to chris paulsen to discuss the merits of the transaction in further detail

Speaker 6: Thanks, Clint. I'll start on page two of the presentation. The transaction will be funded with $430 million in cash, initially via the existing credit facility, and approximately 18.3 million USAC common units issued to the seller. This represents an attractive valuation of approximately 5.8x 2026 estimated Adjusted EBITDA. Notably, while we anticipate meaningful synergies associated with the combined business in the fullness of time, we have assumed no synergies upon announcement. The majority of J-W's Adjusted EBITDA is tied to its 800,000-plus active contract compression horsepower, which is primarily mid to large, and will increase our active fleet to roughly 4.4 million horsepower on a pro forma basis. Non-contract compression Adjusted EBITDA is approximately 10% of the total and is attributable to the AMS and manufacturing businesses. Thanks, Clint. thanks clint I'll start on page two of the presentation. i'll start on page two of the presentation The transaction will be funded with $430 million in cash, initially via the existing credit facility, and approximately 18.3 million USAC common units issued to the seller. the transaction will be funded with $430 million in cash initially via the existing credit facility and approximately 18.3 million usac common units issued to the seller This represents an attractive valuation of approximately 5.8 x 2026 estimated Adjusted EBITDA. this represents an attractive valuation of approximately 5.8 x 2026 estimated adjusted ebitda Notably, while we anticipate meaningful synergies associated with the combined business in the fullness of time, we have assumed no synergies upon announcement. notably while we anticipate meaningful synergies associated with the combined business in the fullness of time we have assumed no synergies upon announcement The majority of J-W's Adjusted EBITDA is tied to its 800,000-plus active contract compression horsepower, which is primarily mid to large, and will increase our active fleet to roughly 4.4 million horsepower on a pro forma basis. the majority of j-w's adjusted ebitda is tied to its 800,000-plus active contract compression horsepower which is primarily mid to large and will increase our active fleet to roughly 4.4 million horsepower on a pro forma basis Non-contract compression Adjusted EBITDA is approximately 10% of the total and is attributable to the AMS and manufacturing businesses. non-contract compression adjusted ebitda is approximately 10% of the total and is attributable to the ams and manufacturing businesses The transaction is expected to close in the first quarter of 2026 and will be subject to customary closing conditions, including regulatory approval. Turning to page three. J-W allows us to increase the scale and product offering, expand long-term customer relationships, and improve geographic presence, all while priced at an attractive valuation. J-W's assets are complementary to our own, with over 300 customers across the U.S. In the near term, we expect this asset will deliver meaningful accretion in 2026 on a DCF basis and will move us below 4x leverage on a pro forma basis. J-W also provides a strong pipeline for continued organic growth. We expect active horsepower to grow roughly 2% by year-end 2026, driven by newly contracted horsepower and dependent upon our post-close finalized capital budget. Turning to slide four. The transaction is expected to close in the first quarter of 2026 and will be subject to customary closing conditions, including regulatory approval. the transaction is expected to close in the first quarter of 2026 and will be subject to customary closing conditions including regulatory approval Turning to page three. turning to page three J-W allows us to increase the scale and product offering, expand long-term customer relationships, and improve geographic presence, all while priced at an attractive valuation. j-w allows us to increase the scale and product offering expand long-term customer relationships and improve geographic presence all while priced at an attractive valuation J-W's assets are complementary to our own, with over 300 customers across the U.S. j-w's assets are complementary to our own with over 300 customers across the u.s In the near term, we expect this asset will deliver meaningful accretion in 2026 on a DCF basis and will move us below 4x leverage on a pro forma basis. in the near term we expect this asset will deliver meaningful accretion in 2026 on a dcf basis and will move us below 4x leverage on a pro forma basis J-W also provides a strong pipeline for continued organic growth. j-w also provides a strong pipeline for continued organic growth We expect active horsepower to grow roughly 2% by year-end 2026, driven by newly contracted horsepower and dependent upon our post-close finalized capital budget. we expect active horsepower to grow roughly 2% by year-end 2026 driven by newly contracted horsepower and dependent upon our post-close finalized capital budget Turning to slide four. turning to slide four In slide four, you can see that J-W provides 70% of the contract compression fleet that is mid to large horsepower, with 46% of the HP greater than 1,000 horsepower. The fleet historically serviced both gas lift and gathering, with a slightly higher proportion tied to the wellhead. The fleet is relatively evenly spread across our existing operations in the U.S. and provides us new access to the Bakken. Total acquired horsepower is approximately 1.05 million, of which we anticipate over 900,000 horsepower is readily deployable, with limited additional capital to make ready idle units. Approximately 90% of the expected Adjusted EBITDA in 2026 is tied to the contract compression business, with expected gross margins nearing 60% for contract compression and AMS. While this is lower than our baseline average, we are confident that through combined best practices, we can streamline operations and incrementally improve our operating margins over time. In slide four, you can see that J-W provides 70% of the contract compression fleet that is mid to large horsepower, with 46% of the HP greater than 1,000 horsepower. in slide four you can see that j-w provides 70% of the contract compression fleet that is mid to large horsepower with 46% of the hp greater than 1,000 horsepower The fleet historically serviced both gas lift and gathering, with a slightly higher proportion tied to the wellhead. the fleet historically serviced both gas lift and gathering with a slightly higher proportion tied to the wellhead The fleet is relatively evenly spread across our existing operations in the U.S. and provides us new access to the Bakken. the fleet is relatively evenly spread across our existing operations in the u.s and provides us new access to the bakken Total acquired horsepower is approximately 1.05 million, of which we anticipate over 900,000 horsepower is readily deployable, with limited additional capital to make ready idle units. total acquired horsepower is approximately 1.05 million of which we anticipate over 900,000 horsepower is readily deployable with limited additional capital to make ready idle units Approximately 90% of the expected Adjusted EBITDA in 2026 is tied to the contract compression business, with expected gross margins nearing 60% for contract compression and AMS. approximately 90% of the expected adjusted ebitda in 2026 is tied to the contract compression business with expected gross margins nearing 60% for contract compression and ams While this is lower than our baseline average, we are confident that through combined best practices, we can streamline operations and incrementally improve our operating margins over time. while this is lower than our baseline average we are confident that through combined best practices we can streamline operations and incrementally improve our operating margins over time Finally, page five shows our pro forma active fleet mix by basin and unit size. The hatched areas represent basins where we currently have an operating presence, whereas the blue areas are new, including portions of the Bakken, Uinta, and Arkoma basins. In each hatched area, we expect to meaningfully enhance operational efficiency through improved materials and fluids cost and route management. We could not be more excited about the addition of J-W Power to the USAC portfolio. Its field operations are well respected throughout the industry, and its horsepower offerings complement our own. As mentioned, we anticipate closing the transaction early Q1 and will look to provide pro forma Adjusted EBITDA and capital numbers at that time. I will now open up to Q&A. Finally, page five shows our pro forma active fleet mix by basin and unit size. finally page five shows our pro forma active fleet mix by basin and unit size The hatched areas represent basins where we currently have an operating presence, whereas the blue areas are new, including portions of the Bakken, Uinta, and Arkoma basins. the hatched areas represent basins where we currently have an operating presence whereas the blue areas are new including portions of the bakken uinta and arkoma basins In each hatched area, we expect to meaningfully enhance operational efficiency through improved materials and fluids cost and route management. in each hatched area we expect to meaningfully enhance operational efficiency through improved materials and fluids cost and route management We could not be more excited about the addition of J-W Power to the USAC portfolio. we could not be more excited about the addition of j-w power to the usac portfolio Its field operations are well respected throughout the industry, and its horsepower offerings complement our own. its field operations are well respected throughout the industry and its horsepower offerings complement our own As mentioned, we anticipate closing the transaction early Q1 and will look to provide pro forma Adjusted EBITDA and capital numbers at that time. as mentioned we anticipate closing the transaction early q1 and will look to provide pro forma adjusted ebitda and capital numbers at that time I will now open up to Q&A. i will now open up to q&a

Speaker 8: We will now begin the question and answer session. To ask a question, press star then the number one on your telephone keypad. We kindly ask that you please limit your questions to one and one follow-up. Our first question will come from the line of Jim Rollyson with Raymond James. Please go ahead. We will now begin the question and answer session. we will now begin the question and answer session To ask a question, press star then the number one on your telephone keypad. to ask a question press star then the number one on your telephone keypad We kindly ask that you please limit your questions to one and one follow-up. we kindly ask that you please limit your questions to one and one follow-up Our first question will come from the line of Jim Rollyson with Raymond James. our first question will come from the line of jim rollyson with raymond james Please go ahead. please go ahead

Speaker 3: Hey, good morning, guys. Congrats on the deal. Chris, maybe starting with you, can you give us a little bit of kind of trailing 12-month context on revenues, EBITDA, and I think the 10% mix was related to EBITDA, but just maybe a little bit of history is kind of where we're coming from to then project where we're going. Hey, good morning, guys. hey good morning guys Congrats on the deal. congrats on the deal Chris, maybe starting with you, can you give us a little bit of kind of trailing 12-month context on revenues, EBITDA, and I think the 10% mix was related to EBITDA, but just maybe a little bit of history is kind of where we're coming from to then project where we're going. chris maybe starting with you can you give us a little bit of kind of trailing 12-month context on revenues ebitda and i think the 10% mix was related to ebitda but just maybe a little bit of history is kind of where we're coming from to then project where we're going

Speaker 6: Yeah, good question, Jim. As we look forward into 2026, we mentioned that we're looking to grow new horsepower approximately 2%. That horsepower number in terms of what's currently contemplated within the J-W legacy assets is about 40,000 new horsepower, of which over 60% of that's contract, 60% of that's contracted at the moment. Looking back historically and relatively, the last 12 months, the number has been just south of $140 million on an Adjusted EBITDA basis. Again, most of that increase on a relative basis for 2026 is tied to that new horsepower. Yeah, good question, Jim. yeah good question jim As we look forward into 2026, we mentioned that we're looking to grow new horsepower approximately 2%. as we look forward into 2026 we mentioned that we're looking to grow new horsepower approximately 2% That horsepower number in terms of what's currently contemplated within the J-W legacy assets is about 40,000 new horsepower, of which over 60% of that's contract, 60% of that's contracted at the moment. that horsepower number in terms of what's currently contemplated within the j-w legacy assets is about 40,000 new horsepower of which over 60% of that's contract 60% of that's contracted at the moment Looking back historically and relatively, the last 12 months, the number has been just south of $140 million on an Adjusted EBITDA basis. looking back historically and relatively the last 12 months the number has been just south of $140 million on an adjusted ebitda basis Again, most of that increase on a relative basis for 2026 is tied to that new horsepower. again most of that increase on a relative basis for 2026 is tied to that new horsepower

Speaker 3: Got it. That's helpful. Clint, yeah, obviously, J-W has been around for a long time. Would love to just hear your thoughts on kind of how you got this transaction and as you think about it. You mentioned geographic diversity, but love to hear beyond just kind of geographic footprint and what your thoughts does this bring to the table. Does it bring a lot of new customers of the 300? I imagine there's a lot of overlap there. Is it more tied to new growth opportunities? Is there any technologies or the manufacturing and AMS business that you kind of wanted to grow into and this helps you, or is this more of a kind of gets you more scale, gives you some growth opportunity and helps deleveraging with a bunch of synergies? Just kind of curious your approach there. Got it. got it That's helpful. that's helpful Clint, yeah, obviously, J-W has been around for a long time. clint yeah obviously j-w has been around for a long time Would love to just hear your thoughts on kind of how you got this transaction and as you think about it. would love to just hear your thoughts on kind of how you got this transaction and as you think about it You mentioned geographic diversity, but love to hear beyond just kind of geographic footprint and what your thoughts does this bring to the table. you mentioned geographic diversity but love to hear beyond just kind of geographic footprint and what your thoughts does this bring to the table Does it bring a lot of new customers of the 300? does it bring a lot of new customers of the 300 I imagine there's a lot of overlap there. i imagine there's a lot of overlap there Is it more tied to new growth opportunities? is it more tied to new growth opportunities Is there any technologies or the manufacturing and AMS business that you kind of wanted to grow into and this helps you, or is this more of a kind of gets you more scale, gives you some growth opportunity and helps deleveraging with a bunch of synergies? is there any technologies or the manufacturing and ams business that you kind of wanted to grow into and this helps you or is this more of a kind of gets you more scale gives you some growth opportunity and helps deleveraging with a bunch of synergies Just kind of curious your approach there. just kind of curious your approach there

Speaker 9: Yeah. Thank you, Jim. That is really all of that, right? At investor conferences and over the last year, we've talked about if we were going to do a deal, it would need to be deleveraging. It would need to be accretive. It would need to be DCF, improved DCF. We feel like this does all of that. We also like being the footprint and the basins that it gives us opportunities to work in. The AMS business, we've been pushing to grow that business here over the last year, and this helps us with that. It gives us opportunity there as well. I think the best way to sum it up is we like the whole enchilada. Yeah. yeah Thank you, Jim. thank you jim That is really all of that, right? that is really all of that right At investor conferences and over the last year, we've talked about if we were going to do a deal, it would need to be deleveraging. at investor conferences and over the last year we've talked about if we were going to do a deal it would need to be deleveraging It would need to be accretive. it would need to be accretive It would need to be DCF, improved DCF. it would need to be dcf improved dcf We feel like this does all of that. we feel like this does all of that We also like being the footprint and the basins that it gives us opportunities to work in. we also like being the footprint and the basins that it gives us opportunities to work in The AMS business, we've been pushing to grow that business here over the last year, and this helps us with that. the ams business we've been pushing to grow that business here over the last year and this helps us with that It gives us opportunity there as well. it gives us opportunity there as well I think the best way to sum it up is we like the whole enchilada. i think the best way to sum it up is we like the whole enchilada

Speaker 3: Got it. Appreciate that. I'll turn it back for someone else. Thank you. Got it. got it Appreciate that. appreciate that I'll turn it back for someone else. i'll turn it back for someone else Thank you. thank you

Speaker 8: Our next question comes from the line of Eli Josen with J.P.Morgan. Please go ahead. Our next question comes from the line of Eli Josen with J.P. our next question comes from the line of eli josen with j.p Morgan. morgan Please go ahead. please go ahead

Speaker 2: Hey, thanks, everyone. Just wanted to start on the kind of age and utilization of the horsepower versus your existing fleet. Can you just kind of provide some high-level color on how these assets from a utilization and uptime perspective compare to what you already have? Thanks. Hey, thanks, everyone. hey thanks everyone Just wanted to start on the kind of age and utilization of the horsepower versus your existing fleet. just wanted to start on the kind of age and utilization of the horsepower versus your existing fleet Can you just kind of provide some high-level color on how these assets from a utilization and uptime perspective compare to what you already have? can you just kind of provide some high-level color on how these assets from a utilization and uptime perspective compare to what you already have Thanks. thanks

Speaker 6: Sure, Eli. Yeah, in terms of utilization, I think in the context of historical utilization, we have to decide what is that appropriate count of total horsepower. As we indicated in the slide deck, we're about the total horsepower being delivered associated with the transaction is about 1.05 million. We also distinguish between that and indicate that in excess of 900,000, we believe, is readily deployable with some limited capital tied to it. If you tag that in and look at kind of where that number is, if you just simply look at 850 into 900, that would kind of be the relative utilization on what we would say is a comparable basis. Ultimately, we'll get in with the assets and determine whether or not that number is 900 or 950 or whatever the case may be. Sure, Eli. sure eli Yeah, in terms of utilization, I think in the context of historical utilization, we have to decide what is that appropriate count of total horsepower. yeah in terms of utilization i think in the context of historical utilization we have to decide what is that appropriate count of total horsepower As we indicated in the slide deck, we're about the total horsepower being delivered associated with the transaction is about 1.05 million. as we indicated in the slide deck we're about the total horsepower being delivered associated with the transaction is about 1.05 million We also distinguish between that and indicate that in excess of 900,000, we believe, is readily deployable with some limited capital tied to it. we also distinguish between that and indicate that in excess of 900,000 we believe is readily deployable with some limited capital tied to it If you tag that in and look at kind of where that number is, if you just simply look at 850 into 900, that would kind of be the relative utilization on what we would say is a comparable basis. if you tag that in and look at kind of where that number is if you just simply look at 850 into 900 that would kind of be the relative utilization on what we would say is a comparable basis Ultimately, we'll get in with the assets and determine whether or not that number is 900 or 950 or whatever the case may be. ultimately we'll get in with the assets and determine whether or not that number is 900 or 950 or whatever the case may be In terms of service offerings and the comparable service offerings, their uptime requirements are no different than our own, no different than many of our peers at the same time. The assets themselves are on average kind of similar age as our existing. The contract terms, I would draw a distinction there. They have tended towards shorter contract terms on average, whereas our average contract term nears 30 months, theirs is probably half that. That is something that we are going to look towards as we go about recontracting in the next 12 months. With that, we will also be moving towards MLP qualified income with the recontracting. There are some synergies that we would hope to achieve as it relates to that. Obviously, some additional tax synergies in time as we move to MLP qualified income. Hopefully that addresses your questions. In terms of service offerings and the comparable service offerings, their uptime requirements are no different than our own, no different than many of our peers at the same time. in terms of service offerings and the comparable service offerings their uptime requirements are no different than our own no different than many of our peers at the same time The assets themselves are on average kind of similar age as our existing. the assets themselves are on average kind of similar age as our existing The contract terms, I would draw a distinction there. the contract terms i would draw a distinction there They have tended towards shorter contract terms on average, whereas our average contract term nears 30 months, theirs is probably half that. they have tended towards shorter contract terms on average whereas our average contract term nears 30 months theirs is probably half that That is something that we are going to look towards as we go about recontracting in the next 12 months. that is something that we are going to look towards as we go about recontracting in the next 12 months With that, we will also be moving towards MLP qualified income with the recontracting. with that we will also be moving towards mlp qualified income with the recontracting There are some synergies that we would hope to achieve as it relates to that. there are some synergies that we would hope to achieve as it relates to that Obviously, some additional tax synergies in time as we move to MLP qualified income. obviously some additional tax synergies in time as we move to mlp qualified income Hopefully that addresses your questions. hopefully that addresses your questions If you have anything that I did not address, please let me know. If you have anything that I did not address, please let me know. if you have anything that i did not address please let me know

Speaker 2: No, that's super helpful color. Maybe just one more. I think there's some helpful splits and pie charts in the deck, but if we think about the upstream versus midstream exposure for the acquired assets, if you can provide a little bit of color on that and also just how that tied into the acquisition decision as well. Thanks. No, that's super helpful color. no that's super helpful color Maybe just one more. maybe just one more I think there's some helpful splits and pie charts in the deck, but if we think about the upstream versus midstream exposure for the acquired assets, if you can provide a little bit of color on that and also just how that tied into the acquisition decision as well. i think there's some helpful splits and pie charts in the deck but if we think about the upstream versus midstream exposure for the acquired assets if you can provide a little bit of color on that and also just how that tied into the acquisition decision as well Thanks. thanks

Speaker 6: Yeah, I'll just say this. We think that the gas gathering versus the what I would call gas lift or upstream component is somewhat similar with our own with a little bit heavier weight towards the gas lift side. I mean, when we looked at this acquisition, what was exciting to us, frankly, was its geographic presence across the U.S. While it incremented our Permian presence and continued to increase our Permian presence, in fact, on a pro forma basis, moved that just below 40%. These other areas are areas that are really going to be necessary to see the gas growth into the second half of this decade. As we look forward to 2028, 2029, 2030, various third-party reports really show the growth and wells drilled in some of these other basins within the Greater Rockies, within the Greater Mid-Continent, within the Greater Northeast. Yeah, I'll just say this. yeah i'll just say this We think that the gas gathering versus the what I would call gas lift or upstream component is somewhat similar with our own with a little bit heavier weight towards the gas lift side. we think that the gas gathering versus the what i would call gas lift or upstream component is somewhat similar with our own with a little bit heavier weight towards the gas lift side I mean, when we looked at this acquisition, what was exciting to us, frankly, was its geographic presence across the U.S. i mean when we looked at this acquisition what was exciting to us frankly was its geographic presence across the u.s While it incremented our Permian presence and continued to increase our Permian presence, in fact, on a pro forma basis, moved that just below 40%. while it incremented our permian presence and continued to increase our permian presence in fact on a pro forma basis moved that just below 40% These other areas are areas that are really going to be necessary to see the gas growth into the second half of this decade. these other areas are areas that are really going to be necessary to see the gas growth into the second half of this decade As we look forward to 2028, 2029, 2030, various third-party reports really show the growth and wells drilled in some of these other basins within the Greater Rockies, within the Greater Mid-Continent, within the Greater Northeast. as we look forward to 2028 2029 2030 various third-party reports really show the growth and wells drilled in some of these other basins within the greater rockies within the greater mid-continent within the greater northeast That in and of itself is exciting. Certainly, having a little bit smaller proportion of what we would call small horsepower relative to our own fleet creates some more horsepower nearer to the wellhead. That in and of itself is exciting. that in and of itself is exciting Certainly, having a little bit smaller proportion of what we would call small horsepower relative to our own fleet creates some more horsepower nearer to the wellhead. certainly having a little bit smaller proportion of what we would call small horsepower relative to our own fleet creates some more horsepower nearer to the wellhead

Speaker 2: Great. I'll leave it there. Thanks very much. Great. great I'll leave it there. i'll leave it there Thanks very much. thanks very much

Speaker 8: Our next question will come from the line of Nate Pendleton with Texas Capital. Please go ahead. Our next question will come from the line of Nate Pendleton with Texas Capital. our next question will come from the line of nate pendleton with texas capital Please go ahead. please go ahead

Speaker 1: Good morning, and congrats on a great acquisition. Following this acquisition and the improving distributable cash flow, can you talk about how you're looking at balancing further growth, accelerated deleveraging, and the distribution? I know it's early, but any thoughts that would be helpful? Good morning, and congrats on a great acquisition. good morning and congrats on a great acquisition Following this acquisition and the improving distributable cash flow, can you talk about how you're looking at balancing further growth, accelerated deleveraging, and the distribution? following this acquisition and the improving distributable cash flow can you talk about how you're looking at balancing further growth accelerated deleveraging and the distribution I know it's early, but any thoughts that would be helpful? i know it's early but any thoughts that would be helpful

Speaker 6: Yeah. One of the things that we need to do is combine both assets once the deal closes and the expectations, hopefully, well before February timeframe. In February, come out with our combined capital budget in the same way and timing that we normally do. If we do that, our capital priorities remain the same. I mean, we want to draw leverage below 4x sustainably. I mean, we want to look at opportunistic growth with that. We had a horsepower number in mind, separate and distinct from this asset. As I mentioned, this asset has 40,000 horsepower that will be deployed and could be deployed to these particular, to the contract compression space tied to the manufacturing business. We anticipate utilizing all that. We need to decide what the pro forma numbers will be for USAC sum total. Yeah. yeah One of the things that we need to do is combine both assets once the deal closes and the expectations, hopefully, well before February timeframe. one of the things that we need to do is combine both assets once the deal closes and the expectations hopefully well before february timeframe In February, come out with our combined capital budget in the same way and timing that we normally do. in february come out with our combined capital budget in the same way and timing that we normally do If we do that, our capital priorities remain the same. if we do that our capital priorities remain the same I mean, we want to draw leverage below 4x sustainably. i mean we want to draw leverage below 4x sustainably I mean, we want to look at opportunistic growth with that. i mean we want to look at opportunistic growth with that We had a horsepower number in mind, separate and distinct from this asset. we had a horsepower number in mind separate and distinct from this asset As I mentioned, this asset has 40,000 horsepower that will be deployed and could be deployed to these particular, to the contract compression space tied to the manufacturing business. as i mentioned this asset has 40,000 horsepower that will be deployed and could be deployed to these particular to the contract compression space tied to the manufacturing business We anticipate utilizing all that. we anticipate utilizing all that We need to decide what the pro forma numbers will be for USAC sum total. we need to decide what the pro forma numbers will be for usac sum total We're looking at keeping leverage at or below 4x and then finding ways to continue to grow that relative coverage. At a point in time, decide what the priorities are beyond that. We're looking at keeping leverage at or below 4x and then finding ways to continue to grow that relative coverage. we're looking at keeping leverage at or below 4x and then finding ways to continue to grow that relative coverage At a point in time, decide what the priorities are beyond that. at a point in time decide what the priorities are beyond that

Speaker 9: Nate just adds that we're going to maintain our capital discipline we've been talking about. Nate just adds that we're going to maintain our capital discipline we've been talking about. nate just adds that we're going to maintain our capital discipline we've been talking about

Speaker 1: Got it. I really appreciate the detail there. Maybe just a quick follow-up, just drilling down a bit on the fleet. Can you talk about the composition, specifically electric motor drive, and are the others mostly CAT Ariel or any color there? Got it. got it I really appreciate the detail there. i really appreciate the detail there Maybe just a quick follow-up, just drilling down a bit on the fleet. maybe just a quick follow-up just drilling down a bit on the fleet Can you talk about the composition, specifically electric motor drive, and are the others mostly CAT Ariel or any color there? can you talk about the composition specifically electric motor drive and are the others mostly cat ariel or any color there

Speaker 6: The vast majority is CAT Ariel. We will improve our relative electric components. Part of the manufacturing business has been retrofitting electric on smaller units, 690 horsepower units and below in some cases, so mid to small horsepower. We will improve that. I would expect for that to continue. We'll kind of provide some more fulsome numbers on electric. Again, within our capital budget for 2026, and we haven't arrived at the final proportion for that, but I would tell you that electric would be extremely limited. As needed and as required by our customers, we're delivering electric. Overall, for 2026, the electric appetite was not immense. The vast majority is CAT Ariel. the vast majority is cat ariel We will improve our relative electric components. we will improve our relative electric components Part of the manufacturing business has been retrofitting electric on smaller units, 690 horsepower units and below in some cases, so mid to small horsepower. part of the manufacturing business has been retrofitting electric on smaller units 690 horsepower units and below in some cases so mid to small horsepower We will improve that. we will improve that I would expect for that to continue. i would expect for that to continue We'll kind of provide some more fulsome numbers on electric. we'll kind of provide some more fulsome numbers on electric Again, within our capital budget for 2026, and we haven't arrived at the final proportion for that, but I would tell you that electric would be extremely limited. again within our capital budget for 2026 and we haven't arrived at the final proportion for that but i would tell you that electric would be extremely limited As needed and as required by our customers, we're delivering electric. as needed and as required by our customers we're delivering electric Overall, for 2026, the electric appetite was not immense. overall for 2026 the electric appetite was not immense

Speaker 1: That's helpful. Thanks for taking my questions. That's helpful. that's helpful Thanks for taking my questions. thanks for taking my questions

Speaker 8: Our next question will come from the line of Gabe Moreen with Mizuho. Please go ahead. Our next question will come from the line of Gabe Moreen with Mizuho. our next question will come from the line of gabe moreen with mizuho Please go ahead. please go ahead

Speaker 7: Hey, good morning. Just had a couple of quick follow-ups. One is any divestitures, whether basins or HP types contemplated after this acquisition? I'm just curious. Hey, good morning. hey good morning Just had a couple of quick follow-ups. just had a couple of quick follow-ups One is any divestitures, whether basins or HP types contemplated after this acquisition? one is any divestitures whether basins or hp types contemplated after this acquisition I'm just curious. i'm just curious

Speaker 9: No, not at this time, Gabe. We'll continue to evaluate that as we move through it, but not at this time. No, not at this time, Gabe. no not at this time gabe We'll continue to evaluate that as we move through it, but not at this time. we'll continue to evaluate that as we move through it but not at this time

Speaker 7: Thanks, Clint. I am just curious, you mentioned a lot of new customers here, but as far as your existing basins where there is overlap with J-W Power, any shared customers here where you think one-on-one could equal three here in terms of more market share with some of those producer customers given this acquisition? Thanks, Clint. thanks clint I am just curious, you mentioned a lot of new customers here, but as far as your existing basins where there is overlap with J-W Power, any shared customers here where you think one-on-one could equal three here in terms of more market share with some of those producer customers given this acquisition? i am just curious you mentioned a lot of new customers here but as far as your existing basins where there is overlap with j-w power any shared customers here where you think one-on-one could equal three here in terms of more market share with some of those producer customers given this acquisition

Speaker 6: What was interesting about it, one is the contract tenor, the customers. When we look at the top 10, it is real similar to our own in terms of the timeframe. What was interesting was, as it relates to top 10, the relative limited overlap. Three hundred customers, amongst top 10, limited overlap, really limited overlap in many of the top 20 customers. To your point, I think the calculus is actually a very positive one and not one where we necessarily have a great customer intensity rate for any one customer. What was interesting about it, one is the contract tenor, the customers. what was interesting about it one is the contract tenor the customers When we look at the top 10, it is real similar to our own in terms of the timeframe. when we look at the top 10, it is real similar to our own in terms of the timeframe What was interesting was, as it relates to top 10, the relative limited overlap. what was interesting was as it relates to top 10 the relative limited overlap Three hundred customers, amongst top 10, limited overlap, really limited overlap in many of the top 20 customers. three hundred customers amongst top 10 limited overlap really limited overlap in many of the top 20 customers To your point, I think the calculus is actually a very positive one and not one where we necessarily have a great customer intensity rate for any one customer. to your point i think the calculus is actually a very positive one and not one where we necessarily have a great customer intensity rate for any one customer

Speaker 7: Got it. Thanks, guys. Got it. got it Thanks, guys. thanks guys

Speaker 8: Our next question comes from the line of Elvira Scotto with RBC Capital Markets. Please go ahead. Our next question comes from the line of Elvira Scotto with RBC Capital Markets. our next question comes from the line of elvira scotto with rbc capital markets Please go ahead. please go ahead

Speaker 4: Hey, good morning, everyone. Can you talk about—I know you gave the acquisition multiple kind of without synergies—but can you talk about some of the potential synergies or cost savings that you expect over time from this acquisition? Hey, good morning, everyone. hey good morning everyone Can you talk about—I know you gave the acquisition multiple kind of without synergies—but can you talk about some of the potential synergies or cost savings that you expect over time from this acquisition? can you talk about—i know you gave the acquisition multiple kind of without synergies—but can you talk about some of the potential synergies or cost savings that you expect over time from this acquisition

Speaker 6: Sure. Yeah, Elvira, I'll take that one. The synergies, we're pretty reasonably excited about the potential for synergies. I think we'll be more apt to be able to speak to those upon close. I'll tell you, we'll look across the landscape and find out where we can improve in terms of the gross margin side. I think some of that improvement is going to come from simple things like we had a lot of contract labor throughout a good portion of this year, had some open positions through a portion of this year. We had budgeted for some open positions next year. I think through this process, we'll be able to fill those with J-W employees. We're excited about that. In turn, I think margins will improve. Sure. sure Yeah, Elvira, I'll take that one. yeah elvira i'll take that one The synergies, we're pretty reasonably excited about the potential for synergies. the synergies we're pretty reasonably excited about the potential for synergies I think we'll be more apt to be able to speak to those upon close. i think we'll be more apt to be able to speak to those upon close I'll tell you, we'll look across the landscape and find out where we can improve in terms of the gross margin side. i'll tell you we'll look across the landscape and find out where we can improve in terms of the gross margin side I think some of that improvement is going to come from simple things like we had a lot of contract labor throughout a good portion of this year, had some open positions through a portion of this year. i think some of that improvement is going to come from simple things like we had a lot of contract labor throughout a good portion of this year had some open positions through a portion of this year We had budgeted for some open positions next year. we had budgeted for some open positions next year I think through this process, we'll be able to fill those with J-W employees. i think through this process we'll be able to fill those with j-w employees We're excited about that. we're excited about that In turn, I think margins will improve. in turn i think margins will improve There are things that, again, in the fullness of time, as we move MLP qualified contracts over, I think there will be some ability to minimize some of the cash taxes associated with the assets that were historically tied to them. When I say minimize and defer some of those cash taxes, that probably is better said. Between the two companies, we really made some meaningful impact in terms of our shared services offering with ET. I think we'll have some immediate impacts with some things like HR, IT platforms, and so forth. Keep in mind, as we mentioned on that last call, our healthcare costs have come in and improved quite substantially. Our 401(k) and benefits package, I think, is a really strong offering. There are things that, again, in the fullness of time, as we move MLP qualified contracts over, I think there will be some ability to minimize some of the cash taxes associated with the assets that were historically tied to them. there are things that again in the fullness of time as we move mlp qualified contracts over i think there will be some ability to minimize some of the cash taxes associated with the assets that were historically tied to them When I say minimize and defer some of those cash taxes, that probably is better said. when i say minimize and defer some of those cash taxes that probably is better said Between the two companies, we really made some meaningful impact in terms of our shared services offering with ET. between the two companies we really made some meaningful impact in terms of our shared services offering with et I think we'll have some immediate impacts with some things like HR, IT platforms, and so forth. i think we'll have some immediate impacts with some things like hr it platforms and so forth Keep in mind, as we mentioned on that last call, our healthcare costs have come in and improved quite substantially. keep in mind as we mentioned on that last call our healthcare costs have come in and improved quite substantially Our 401(k) and benefits package, I think, is a really strong offering. our 401(k) and benefits package i think is a really strong offering I think once we integrate some of the J-W platform into the shared services offering, I think we'll have some improvements to talk about. I think we'll be, again, better positioned to discuss that upon the transaction close and maybe be able to put forward some synergy numbers over the next six months or so. I think once we integrate some of the J-W platform into the shared services offering, I think we'll have some improvements to talk about. i think once we integrate some of the j-w platform into the shared services offering i think we'll have some improvements to talk about i I think we'll be, again, better positioned to discuss that upon the transaction close and maybe be able to put forward some synergy numbers over the next six months or so. i think we'll be again better positioned to discuss that upon the transaction close and maybe be able to put forward some synergy numbers over the next six months or so

Speaker 4: Great. Thank you very much. Great. great Thank you very much. thank you very much

Speaker 8: Again, for any questions, press star one. Our next question will come from the line of Selman Akyol with Stifel. Please go ahead. Again, for any questions, press star one. again for any questions press star one Our next question will come from the line of Selman Akyol with Stifel. our next question will come from the line of selman akyol with stifel Please go ahead. please go ahead

Speaker 5: Thank you. Good morning. Just a couple of quick ones. Just to confirm, there was no debt acquired with this transaction? Thank you. thank you Good morning. good morning Just a couple of quick ones. just a couple of quick ones Just to confirm, there was no debt acquired with this transaction? just to confirm there was no debt acquired with this transaction

Speaker 6: Yeah. This is kind of what we would call a cash, a debt-free, cash-free transaction. The legacy J-W asset did have an ABL tied to it. That ABL will go away with the transaction. Again, we'll fund a portion of this initially through our ABL and then decision whether or not we want to approach anything different with more of a fixed proportion going forward. Yeah. yeah This is kind of what we would call a cash, a debt-free, cash-free transaction. this is kind of what we would call a cash a debt-free cash-free transaction The legacy J-W asset did have an ABL tied to it. the legacy j-w asset did have an abl tied to it That ABL will go away with the transaction. that abl will go away with the transaction Again, we'll fund a portion of this initially through our ABL and then decision whether or not we want to approach anything different with more of a fixed proportion going forward. again we'll fund a portion of this initially through our abl and then decision whether or not we want to approach anything different with more of a fixed proportion going forward

Speaker 5: Understood. Thank you for that. I know this is small, but I'm just curious more than anything else. They had some enhanced oil recovery compression. I'm just wondering, is there any difference in terms of margins, growth outlook, pricing, anything different in there that we should be aware of? Understood. understood Thank you for that. thank you for that I know this is small, but I'm just curious more than anything else. i know this is small but i'm just curious more than anything else They had some enhanced oil recovery compression. they had some enhanced oil recovery compression I'm just wondering, is there any difference in terms of margins, growth outlook, pricing, anything different in there that we should be aware of? i'm just wondering is there any difference in terms of margins growth outlook pricing anything different in there that we should be aware of

Speaker 6: No. I think CMG, EOR are part of the specialized manufacturing business. I think they're different and exciting packages for J-W relative to some other manufacturers. Ultimately, EOR is the better way to probably say that is really big, big units. That is a lot of horsepower on location and on site. They take some reasonable time to build. The long and short of that is they're just big, big units. No. no I think CMG, EOR are part of the specialized manufacturing business. i think cmg eor are part of the specialized manufacturing business I think they're different and exciting packages for J-W relative to some other manufacturers. i think they're different and exciting packages for j-w relative to some other manufacturers Ultimately, EOR is the better way to probably say that is really big, big units. ultimately eor is the better way to probably say that is really big big units That is a lot of horsepower on location and on site. that is a lot of horsepower on location and on site They take some reasonable time to build. they take some reasonable time to build The long and short of that is they're just big, big units. the long and short of that is they're just big big units

Speaker 5: Understood. Thank you so much. Understood. understood Thank you so much. thank you so much

Speaker 8: That concludes the question and answer session. With that, I would like to turn the call back to Clint Green for closing comments. That concludes the question and answer session. that concludes the question and answer session With that, I would like to turn the call back to Clint Green for closing comments. with that i would like to turn the call back to clint green for closing comments

Speaker 9: Thank you all for dialing in. As you can see, we're extremely excited about this opportunity. Just to close it out, we'd really like to thank the Westerman family for entrusting us with this. We're excited about carrying on the legacy and the history. We'll be back with more updates later on. Thank you all very much. Thank you all for dialing in. thank you all for dialing in As you can see, we're extremely excited about this opportunity. as you can see we're extremely excited about this opportunity Just to close it out, we'd really like to thank the Westerman family for entrusting us with this. just to close it out we'd really like to thank the westerman family for entrusting us with this We're excited about carrying on the legacy and the history. we're excited about carrying on the legacy and the history We'll be back with more updates later on. we'll be back with more updates later on Thank you all very much. thank you all very much

Speaker 8: This does conclude our call today. Thank you all for joining. You may now disconnect. This does conclude our call today. this does conclude our call today Thank you all for joining. thank you all for joining You may now disconnect. you may now disconnect