USA Compression Partners, LP — Call Transcript 2025

Good morning. Welcome to the USA Compression Partners' third quarter 2025 earnings conference call. During today's call, all parties will be in a listen-only mode. At the conclusion of management's prepared remarks, the call will be open for Q&A. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. This conference is being recorded today, November 5th, 2025. I now would like to turn the call over to Chris Porter, Vice President, General Counsel, and Secretary. Mr. Porter, you may begin. Good morning, everyone, and thank you for joining us. With me today is Clint Green, President and CEO, Chris Paulsen, Vice President and CFO, and Chris Watson, Vice President and COO. This morning, we released our operational and financial results for the quarter ending September 30, 2025. You can find a copy of our earnings release as well as a recording of this call in the investor relations section of our website at usacompression.com. During this call, our management will reference certain non-GAAP measures. You will find definitions and reconciliations of these non-GAAP measures to the most comparable U.S. GAAP measures in our earnings release. As a reminder, our conference call will include forward-looking statements. These statements are based on management's current beliefs and include projections and expectations regarding our future performance and other forward-looking matters. Actual results may differ materially from these statements. Please review the risk factors included in this morning's earnings release and in our other public filings. Please note that information provided in this call speaks only to management's views as of today, November 5th, 2025, and may no longer be accurate at the time of the replay. I will now turn the call over to Clint Green, President and CEO of USA Compression Partners. Thanks, Chris, and good morning. Thank you all for joining our call. We are pleased to deliver another solid quarter with revenues of over $250 million, adjusted EBITDA over $160 million, and DCF approaching $104 million, with strong margins and consistent utilization resulting in improved leverage ratio of 3.9 times and DCF coverage ratio of 1.6 times. Based on year-to-date performance, we have increased our 2025 ranges for EBITDA and DCF guidance. This increase in guidance is a result of management's commitment to effective cost management and operational discipline. This includes certain one-time impacts that Chris Paulsen will discuss later in the call. Additionally, we will deploy most of our 2025 new unit horsepower in Q4, setting the foundation for continued momentum in 2026. We are in the process of finalizing our 2026 capital budget, which we anticipate releasing in February. We expect that new horsepower will exceed 2025 levels given continued natural gas demand and new projects both expanding takeaway capacity and increased localized demand in the Permian and Northeast. We have already committed to several deliveries in Q2 and Q3 of 2026. Notably, we have recently seen lead times increase to more than 60 weeks for larger orders. Although US producers are still evaluating macro market conditions to arrive at their appropriate capital budgets for 2026, we continue to see growth opportunities in the markets we operate. We expect our active horsepower in the Northeast and Central regions to grow by more than 40,000 horsepower before the end of 2025 relative to Q2. This is partially due to contracting 300 small horsepower units that will draw from idle capacity and increase small horsepower utilization to nearly 80% over the coming months. These contracts include a 36-month initial term. This deployment, coupled with Q4 new unit deliveries to the Permian, will bring our projected year-end active fleet to roughly 3.6 million horsepower. Turning to SG&A, we now expect to realize the majority of the $5 million of shared services annualized savings in 2025 ahead of the 2026 timeline shared on our last call. These savings have and will continue to come from cost improvements seen through centralized IT efforts and other savings due to economies of scale. For example, Q3 benefited from a one-time healthcare cost true-up, reflecting a lower monthly per-employee healthcare cost than previously estimated. We expect 2026 G&A to grow modestly off of our new baseline, reflecting typical wage inflation and modest investments in new commercial and financial capabilities. Finally, we are pleased that both our bank syndicate and long-term investors continue to recognize the quality of the compression market. In Q3, we refinanced our ABL and our 2027 senior notes, significantly reducing our weighted average borrowing cost and improved strategic flexibility. With that, I will turn the call over to Chris Paulsen, our Chief Financial Officer, for a detailed financial update. Thanks, Clint. In Q3, our sales team continued to build upon pricing improvements up to an all-time high averaging $21.46 per horsepower for the third quarter, a 1% increase in sequential quarters, and a 4% increase compared to a year ago. Average active horsepower remained flattish compared to Q2 at 3.55 million. Our third-quarter adjusted gross margins were higher at 69.3%, in large part due to the realization of both one-time and ongoing cost savings tied to our centralized procurement processes, employee healthcare savings, and one-time sales tax refund recognized at the completion of a prior year's sales tax audit. While Q3 gross margins were partially elevated due to one-time true-up and cost savings, going forward, we expect margins to stay consistent with our trailing 12-month rate. Regarding the consolidated financial results, our third-quarter 2025 net income was $34.5 million, operating income was $83.9 million, net cash provided by operating activities was $75.9 million, and cash interest expense net was $44.9 million. Our leverage ratio at the end of the third quarter was 3.9 times. As you may recall, our leverage ratio is determined in accordance with our ABL definition, which remained consistent with our latest refinancing and is calculated as funded debt divided by the latest quarter annualized adjusted EBITDA. Turning to operational results, our total fleet horsepower at the end of the quarter was approximately 3.9 million horsepower, essentially flat versus the prior quarter. Our average utilization for the third quarter was 94%, consistent with the prior quarter. Third quarter 2025 expansion capital expenditures were $37.3 million, and our maintenance capital expenditures were $9 million. Expansion capital spending in Q3 primarily consisted of new units, and we expect that to be the same in Q4. Turning to 2025 guidance, we have increased and tightened our Adjusted EBITDA range to $610 million-$620 million, increasing the midpoint of the range by approximately $15 million. We have also increased our DCF range to $370 million-$380 million, reduced our expansion capital range to $115 million-$125 million, and maintained our maintenance capital between $38 million and $42 million. Approximately $11 million of expansion capital tied to late December deliveries is now expected to be realized in 2025 instead of January 2026, as stated in our Q2 call, and therefore is factored into our 2025 capital range. As previously discussed, we continue to maintain our leverage ratio and expect it to marginally increase at the end of the year as we fund new growth projects that are backend loaded. Our target remains at or below four times debt to EBITDA. Finally, as Clint mentioned earlier, Q3 was characterized by two major refinancings. First, we extended and expanded our ABL from $1.6 billion to $1.75 billion, reducing our drawn cost by approximately 25 basis points. Second, we called our $750 million 2027 notes at par in favor of the 2033 notes of the same quantum, reducing our interest rate 62.5 basis points. All in all, we are on track to realize over $10 million annualized interest savings given these efforts and based on forecasted rate cuts, all while increasing overall liquidity and extending tenure, and with that, I will turn the call back to Clint for concluding remarks. Thanks, Chris. I want to thank our employees that have worked diligently towards our ERP implementation in early 2026. The collaboration across organizations has been significant and has brought regions and departments closer together. At the same time, we are realizing cost synergies from our new shared services model. The combination of both is improving our control, sophistication, data integrity, and profitability. Therefore, I am excited about the path forward. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Nate Pendleton with Texas Capital. Good morning and congrats on the record quarter. In a sustained slowdown in oil-directed activity, can you speak to your willingness to lean further into compression and dry gas plays in this environment based on the success you just highlighted in your prepared remarks? And then also, would there be any investment in in-basin and facilities required to support any significant increase in gas-directed compression? Yeah. So Nate, thank you for that question. You know, we're already established in the dry gas market. While we have the majority of our operations in the Permian, we're still very large in the Northeast, up in Oklahoma, down on the Gulf Coast. And you know, we see with these demands coming online and these pipelines being built out of West Texas or out of the Permian, we see those plays as a place to, you know, as a growth where we expect to see drilling for gas instead of drilling for gas and, you know, associated gas and oil. And I missed the second part of your question there, Nate. What was that? Just, would there be any incremental investment needed in the infrastructure and facilities to support any increase in assets deployed there? Well, I mean, you know, we have active horsepower running in those basins, in the other dry gas basins. And so, you know, we can move equipment from anywhere that may slow down to those basins, or we can buy new equipment and install there for operating. I hope that answers your question. Yeah, it does. Thank you. I was just trying to get at your geographic diversification. It does sound like you're already established there, so it would just be a matter of moving the horsepower in. So definitely, definitely positive. That's exactly right. Thank you. And then, Clint, if I may, one more. With the strong pricing trends that you guys noted during the quarter, can you speak to recent pricing dynamics and how spot prices are comparing to your fleet average here? Yeah, Nate, it's Chris Wauson. I'll take that one. You know, our market has definitely picked up since Q2, so our pricing trends from a dollar per horsepower basis, you know, is going to be consistent into the back half of 2025 into 2026. We feel like our dollar per horsepower revenue is going to be consistent. So we'll just see how everything works out, but that's our feeling right now. Great. Thanks a lot for taking my questions, and I'll turn it back. Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. There are no further questions at this time. I'll now turn the conference back over to Clint Green for closing remarks. Yeah, thank you all for joining our call. We appreciate the interest in our company, and y'all have a good day. This concludes today's conference call. You may now disconnect.

Speaker 2: Good morning. Welcome to the USA Compression Partners' third quarter 2025 earnings conference call. During today's call, all parties will be in a listen-only mode. At the conclusion of management's prepared remarks, the call will be open for Q&A. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. This conference is being recorded today, November 5th, 2025. I now would like to turn the call over to Chris Porter, Vice President, General Counsel, and Secretary. Mr. Porter, you may begin. Good morning. good morning Welcome to the USA Compression Partners' third quarter 2025 earnings conference call. welcome to the usa compression partners' third quarter 2025 earnings 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 open for Q&A. at the conclusion of management's prepared remarks the call will be open for q&a If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. if you would like to ask a question during that time simply press star followed by the number one on your telephone keypad If you would like to withdraw your question, press star one again. if you would like to withdraw your question press star one again This conference is being recorded today, November 5th, 2025. this conference is being recorded today november 5th 2025 I now would like to turn the call over to Chris Porter, Vice President, General Counsel, and Secretary. i now would like to turn the call over to chris porter vice president general counsel and secretary Mr. Porter, you may begin. mr porter you may begin

Speaker 4: Good morning, everyone, and thank you for joining us. With me today is Clint Green, President and CEO, Chris Paulsen, Vice President and CFO, and Chris Watson, Vice President and COO. This morning, we released our operational and financial results for the quarter ending September 30, 2025. You can find a copy of our earnings release as well as a recording of this call in the investor relations section of our website at usacompression.com. During this call, our management will reference certain non-GAAP measures. You will find definitions and reconciliations of these non-GAAP measures to the most comparable U.S. GAAP measures in our earnings release. As a reminder, our conference call will include forward-looking statements. These statements are based on management's current beliefs and include projections and expectations regarding our future performance and other forward-looking matters. Actual results may differ materially from these statements. Good morning, everyone, and thank you for joining us. good morning everyone and thank you for joining us With me today is Clint Green, President and CEO, Chris Paulsen, Vice President and CFO, and Chris Watson, Vice President and COO. with me today is clint green president and ceo chris paulsen vice president and cfo and chris watson vice president and coo This morning, we released our operational and financial results for the quarter ending September 30, 2025. this morning we released our operational and financial results for the quarter ending september 30 2025 You can find a copy of our earnings release as well as a recording of this call in the investor relations section of our website at usacompression.com. you can find a copy of our earnings release as well as a recording of this call in the investor relations section of our website at usacompression.com During this call, our management will reference certain non-GAAP measures. during this call our management will reference certain non-gaap measures You will find definitions and reconciliations of these non-GAAP measures to the most comparable U.S. you will find definitions and reconciliations of these non-gaap measures to the most comparable u.s GAAP measures in our earnings release. gaap measures in our earnings release As a reminder, our conference call will include forward-looking statements. as a reminder our conference call will include forward-looking statements These statements are based on management's current beliefs and include projections and expectations regarding our future performance and other forward-looking matters. these statements are based on management's current beliefs and include projections and expectations regarding our future performance and other forward-looking matters Actual results may differ materially from these statements. actual results may differ materially from these statements Please review the risk factors included in this morning's earnings release and in our other public filings. Please note that information provided in this call speaks only to management's views as of today, November 5th, 2025, and may no longer be accurate at the time of the replay. I will now turn the call over to Clint Green, President and CEO of USA Compression Partners. Please review the risk factors included in this morning's earnings release and in our other public filings. please review the risk factors included in this morning's earnings release and in our other public filings Please note that information provided in this call speaks only to management's views as of today, November 5th, 2025, and may no longer be accurate at the time of the replay. please note that information provided in this call speaks only to management's views as of today november 5th 2025 and may no longer be accurate at the time of the replay I will now turn the call over to Clint Green, President and CEO of USA Compression Partners. i will now turn the call over to clint green president and ceo of usa compression partners

Speaker 5: Thanks, Chris, and good morning. Thank you all for joining our call. We are pleased to deliver another solid quarter with revenues of over $250 million, adjusted EBITDA over $160 million, and DCF approaching $104 million, with strong margins and consistent utilization resulting in improved leverage ratio of 3.9 times and DCF coverage ratio of 1.6 times. Based on year-to-date performance, we have increased our 2025 ranges for EBITDA and DCF guidance. This increase in guidance is a result of management's commitment to effective cost management and operational discipline. This includes certain one-time impacts that Chris Paulsen will discuss later in the call. Additionally, we will deploy most of our 2025 new unit horsepower in Q4, setting the foundation for continued momentum in 2026. We are in the process of finalizing our 2026 capital budget, which we anticipate releasing in February. Thanks, Chris, and good morning. thanks chris and good morning Thank you all for joining our call. thank you all for joining our call We are pleased to deliver another solid quarter with revenues of over $250 million, adjusted EBITDA over $160 million, and DCF approaching $104 million, with strong margins and consistent utilization resulting in improved leverage ratio of 3.9 times and DCF coverage ratio of 1.6 times. we are pleased to deliver another solid quarter with revenues of over $250 million adjusted ebitda over $160 million and dcf approaching $104 million with strong margins and consistent utilization resulting in improved leverage ratio of 3.9 times and dcf coverage ratio of 1.6 times Based on year-to-date performance, we have increased our 2025 ranges for EBITDA and DCF guidance. based on year-to-date performance we have increased our 2025 ranges for ebitda and dcf guidance This increase in guidance is a result of management's commitment to effective cost management and operational discipline. this increase in guidance is a result of management's commitment to effective cost management and operational discipline This includes certain one-time impacts that Chris Paulsen will discuss later in the call. this includes certain one-time impacts that chris paulsen will discuss later in the call Additionally, we will deploy most of our 2025 new unit horsepower in Q4, setting the foundation for continued momentum in 2026. additionally we will deploy most of our 2025 new unit horsepower in q4 setting the foundation for continued momentum in 2026 We are in the process of finalizing our 2026 capital budget, which we anticipate releasing in February. we are in the process of finalizing our 2026 capital budget which we anticipate releasing in february We expect that new horsepower will exceed 2025 levels given continued natural gas demand and new projects both expanding takeaway capacity and increased localized demand in the Permian and Northeast. We have already committed to several deliveries in Q2 and Q3 of 2026. Notably, we have recently seen lead times increase to more than 60 weeks for larger orders. Although US producers are still evaluating macro market conditions to arrive at their appropriate capital budgets for 2026, we continue to see growth opportunities in the markets we operate. We expect our active horsepower in the Northeast and Central regions to grow by more than 40,000 horsepower before the end of 2025 relative to Q2. This is partially due to contracting 300 small horsepower units that will draw from idle capacity and increase small horsepower utilization to nearly 80% over the coming months. These contracts include a 36-month initial term. We expect that new horsepower will exceed 2025 levels given continued natural gas demand and new projects both expanding takeaway capacity and increased localized demand in the Permian and Northeast. we expect that new horsepower will exceed 2025 levels given continued natural gas demand and new projects both expanding takeaway capacity and increased localized demand in the permian and northeast We have already committed to several deliveries in Q2 and Q3 of 2026. we have already committed to several deliveries in q2 and q3 of 2026 Notably, we have recently seen lead times increase to more than 60 weeks for larger orders. notably we have recently seen lead times increase to more than 60 weeks for larger orders Although US producers are still evaluating macro market conditions to arrive at their appropriate capital budgets for 2026, we continue to see growth opportunities in the markets we operate. although us producers are still evaluating macro market conditions to arrive at their appropriate capital budgets for 2026 we continue to see growth opportunities in the markets we operate We expect our active horsepower in the Northeast and Central regions to grow by more than 40,000 horsepower before the end of 2025 relative to Q2. we expect our active horsepower in the northeast and central regions to grow by more than 40,000 horsepower before the end of 2025 relative to q2 This is partially due to contracting 300 small horsepower units that will draw from idle capacity and increase small horsepower utilization to nearly 80% over the coming months. this is partially due to contracting 300 small horsepower units that will draw from idle capacity and increase small horsepower utilization to nearly 80% over the coming months These contracts include a 36-month initial term. these contracts include a 36-month initial term This deployment, coupled with Q4 new unit deliveries to the Permian, will bring our projected year-end active fleet to roughly 3.6 million horsepower. Turning to SG&A, we now expect to realize the majority of the $5 million of shared services annualized savings in 2025 ahead of the 2026 timeline shared on our last call. These savings have and will continue to come from cost improvements seen through centralized IT efforts and other savings due to economies of scale. For example, Q3 benefited from a one-time healthcare cost true-up, reflecting a lower monthly per-employee healthcare cost than previously estimated. We expect 2026 G&A to grow modestly off of our new baseline, reflecting typical wage inflation and modest investments in new commercial and financial capabilities. Finally, we are pleased that both our bank syndicate and long-term investors continue to recognize the quality of the compression market. This deployment, coupled with Q4 new unit deliveries to the Permian, will bring our projected year-end active fleet to roughly 3.6 million horsepower. this deployment coupled with q4 new unit deliveries to the permian will bring our projected year-end active fleet to roughly 3.6 million horsepower Turning to SG&A, we now expect to realize the majority of the $5 million of shared services annualized savings in 2025 ahead of the 2026 timeline shared on our last call. turning to sg&a we now expect to realize the majority of the $5 million of shared services annualized savings in 2025 ahead of the 2026 timeline shared on our last call These savings have and will continue to come from cost improvements seen through centralized IT efforts and other savings due to economies of scale. these savings have and will continue to come from cost improvements seen through centralized it efforts and other savings due to economies of scale For example, Q3 benefited from a one-time healthcare cost true-up, reflecting a lower monthly per-employee healthcare cost than previously estimated. for example q3 benefited from a one-time healthcare cost true-up reflecting a lower monthly per-employee healthcare cost than previously estimated We expect 2026 G&A to grow modestly off of our new baseline, reflecting typical wage inflation and modest investments in new commercial and financial capabilities. we expect 2026 g&a to grow modestly off of our new baseline reflecting typical wage inflation and modest investments in new commercial and financial capabilities Finally, we are pleased that both our bank syndicate and long-term investors continue to recognize the quality of the compression market. finally we are pleased that both our bank syndicate and long-term investors continue to recognize the quality of the compression market In Q3, we refinanced our ABL and our 2027 senior notes, significantly reducing our weighted average borrowing cost and improved strategic flexibility. With that, I will turn the call over to Chris Paulsen, our Chief Financial Officer, for a detailed financial update. In Q3, we refinanced our ABL and our 2027 senior notes, significantly reducing our weighted average borrowing cost and improved strategic flexibility. in q3 we refinanced our abl and our 2027 senior notes significantly reducing our weighted average borrowing cost and improved strategic flexibility With that, I will turn the call over to Chris Paulsen, our Chief Financial Officer, for a detailed financial update. with that i will turn the call over to chris paulsen our chief financial officer for a detailed financial update

Speaker 3: Thanks, Clint. In Q3, our sales team continued to build upon pricing improvements up to an all-time high averaging $21.46 per horsepower for the third quarter, a 1% increase in sequential quarters, and a 4% increase compared to a year ago. Average active horsepower remained flattish compared to Q2 at 3.55 million. Our third-quarter adjusted gross margins were higher at 69.3%, in large part due to the realization of both one-time and ongoing cost savings tied to our centralized procurement processes, employee healthcare savings, and one-time sales tax refund recognized at the completion of a prior year's sales tax audit. While Q3 gross margins were partially elevated due to one-time true-up and cost savings, going forward, we expect margins to stay consistent with our trailing 12-month rate. Thanks, Clint. thanks clint In Q3, our sales team continued to build upon pricing improvements up to an all-time high averaging $21.46 per horsepower for the third quarter, a 1% increase in sequential quarters, and a 4% increase compared to a year ago. in q3 our sales team continued to build upon pricing improvements up to an all-time high averaging $21.46 per horsepower for the third quarter a 1% increase in sequential quarters and a 4% increase compared to a year ago Average active horsepower remained flattish compared to Q2 at 3.55 million. average active horsepower remained flattish compared to q2 at 3.55 million Our third-quarter adjusted gross margins were higher at 69.3%, in large part due to the realization of both one-time and ongoing cost savings tied to our centralized procurement processes, employee healthcare savings, and one-time sales tax refund recognized at the completion of a prior year's sales tax audit. our third-quarter adjusted gross margins were higher at 69.3% in large part due to the realization of both one-time and ongoing cost savings tied to our centralized procurement processes employee healthcare savings and one-time sales tax refund recognized at the completion of a prior year's sales tax audit While Q3 gross margins were partially elevated due to one-time true-up and cost savings, going forward, we expect margins to stay consistent with our trailing 12-month rate. while q3 gross margins were partially elevated due to one-time true-up and cost savings going forward we expect margins to stay consistent with our trailing 12-month rate Regarding the consolidated financial results, our third-quarter 2025 net income was $34.5 million, operating income was $83.9 million, net cash provided by operating activities was $75.9 million, and cash interest expense net was $44.9 million. Our leverage ratio at the end of the third quarter was 3.9 times. As you may recall, our leverage ratio is determined in accordance with our ABL definition, which remained consistent with our latest refinancing and is calculated as funded debt divided by the latest quarter annualized adjusted EBITDA. Turning to operational results, our total fleet horsepower at the end of the quarter was approximately 3.9 million horsepower, essentially flat versus the prior quarter. Our average utilization for the third quarter was 94%, consistent with the prior quarter. Third quarter 2025 expansion capital expenditures were $37.3 million, and our maintenance capital expenditures were $9 million. Regarding the consolidated financial results, our third-quarter 2025 net income was $34.5 million, operating income was $83.9 million, net cash provided by operating activities was $75.9 million, and cash interest expense net was $44.9 million. regarding the consolidated financial results our third-quarter 2025 net income was $34.5 million operating income was $83.9 million net cash provided by operating activities was $75.9 million and cash interest expense net was $44.9 million Our leverage ratio at the end of the third quarter was 3.9 times. our leverage ratio at the end of the third quarter was 3.9 times As you may recall, our leverage ratio is determined in accordance with our ABL definition, which remained consistent with our latest refinancing and is calculated as funded debt divided by the latest quarter annualized adjusted EBITDA. as you may recall our leverage ratio is determined in accordance with our abl definition which remained consistent with our latest refinancing and is calculated as funded debt divided by the latest quarter annualized adjusted ebitda Turning to operational results, our total fleet horsepower at the end of the quarter was approximately 3.9 million horsepower, essentially flat versus the prior quarter. turning to operational results our total fleet horsepower at the end of the quarter was approximately 3.9 million horsepower essentially flat versus the prior quarter Our average utilization for the third quarter was 94%, consistent with the prior quarter. our average utilization for the third quarter was 94% consistent with the prior quarter Third quarter 2025 expansion capital expenditures were $37.3 million, and our maintenance capital expenditures were $9 million. third quarter 2025 expansion capital expenditures were $37.3 million and our maintenance capital expenditures were $9 million Expansion capital spending in Q3 primarily consisted of new units, and we expect that to be the same in Q4. Turning to 2025 guidance, we have increased and tightened our Adjusted EBITDA range to $610 million-$620 million, increasing the midpoint of the range by approximately $15 million. We have also increased our DCF range to $370 million-$380 million, reduced our expansion capital range to $115 million-$125 million, and maintained our maintenance capital between $38 million and $42 million. Approximately $11 million of expansion capital tied to late December deliveries is now expected to be realized in 2025 instead of January 2026, as stated in our Q2 call, and therefore is factored into our 2025 capital range. Expansion capital spending in Q3 primarily consisted of new units, and we expect that to be the same in Q4. expansion capital spending in q3 primarily consisted of new units and we expect that to be the same in q4 Turning to 2025 guidance, we have increased and tightened our Adjusted EBITDA range to $610 million-$620 million, increasing the midpoint of the range by approximately $15 million. turning to 2025 guidance we have increased and tightened our adjusted ebitda range to $610 million-$620 million increasing the midpoint of the range by approximately $15 million We have also increased our DCF range to $370 million-$380 million, reduced our expansion capital range to $115 million-$125 million, and maintained our maintenance capital between $38 million and $42 million. we have also increased our dcf range to $370 million-$380 million reduced our expansion capital range to $115 million-$125 million and maintained our maintenance capital between $38 million and $42 million Approximately $11 million of expansion capital tied to late December deliveries is now expected to be realized in 2025 instead of January 2026, as stated in our Q2 call, and therefore is factored into our 2025 capital range. approximately $11 million of expansion capital tied to late december deliveries is now expected to be realized in 2025 instead of january 2026 as stated in our q2 call and therefore is factored into our 2025 capital range As previously discussed, we continue to maintain our leverage ratio and expect it to marginally increase at the end of the year as we fund new growth projects that are backend loaded. Our target remains at or below four times debt to EBITDA. Finally, as Clint mentioned earlier, Q3 was characterized by two major refinancings. First, we extended and expanded our ABL from $1.6 billion to $1.75 billion, reducing our drawn cost by approximately 25 basis points. Second, we called our $750 million 2027 notes at par in favor of the 2033 notes of the same quantum, reducing our interest rate 62.5 basis points. All in all, we are on track to realize over $10 million annualized interest savings given these efforts and based on forecasted rate cuts, all while increasing overall liquidity and extending tenure, and with that, I will turn the call back to Clint for concluding remarks. As previously discussed, we continue to maintain our leverage ratio and expect it to marginally increase at the end of the year as we fund new growth projects that are backend loaded. as previously discussed we continue to maintain our leverage ratio and expect it to marginally increase at the end of the year as we fund new growth projects that are backend loaded Our target remains at or below four times debt to EBITDA. our target remains at or below four times debt to ebitda Finally, as Clint mentioned earlier, Q3 was characterized by two major refinancings. finally as clint mentioned earlier q3 was characterized by two major refinancings First, we extended and expanded our ABL from $1.6 billion to $1.75 billion, reducing our drawn cost by approximately 25 basis points. first we extended and expanded our abl from $1.6 billion to $1.75 billion reducing our drawn cost by approximately 25 basis points Second, we called our $750 million 2027 notes at par in favor of the 2033 notes of the same quantum, reducing our interest rate 62.5 basis points. second we called our $750 million 2027 notes at par in favor of the 2033 notes of the same quantum reducing our interest rate 62.5 basis points All in all, we are on track to realize over $10 million annualized interest savings given these efforts and based on forecasted rate cuts, all while increasing overall liquidity and extending tenure, and with that, I will turn the call back to Clint for concluding remarks. all in all we are on track to realize over $10 million annualized interest savings given these efforts and based on forecasted rate cuts all while increasing overall liquidity and extending tenure and with that i will turn the call back to clint for concluding remarks

Speaker 5: Thanks, Chris. I want to thank our employees that have worked diligently towards our ERP implementation in early 2026. The collaboration across organizations has been significant and has brought regions and departments closer together. At the same time, we are realizing cost synergies from our new shared services model. The combination of both is improving our control, sophistication, data integrity, and profitability. Therefore, I am excited about the path forward. Thanks, Chris. thanks chris I want to thank our employees that have worked diligently towards our ERP implementation in early 2026. i want to thank our employees that have worked diligently towards our erp implementation in early 2026 The collaboration across organizations has been significant and has brought regions and departments closer together. the collaboration across organizations has been significant and has brought regions and departments closer together At the same time, we are realizing cost synergies from our new shared services model. at the same time we are realizing cost synergies from our new shared services model The combination of both is improving our control, sophistication, data integrity, and profitability. the combination of both is improving our control sophistication data integrity and profitability Therefore, I am excited about the path forward. therefore i am excited about the path forward

Speaker 2: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Nate Pendleton with Texas Capital. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. at this time i would like to remind everyone in order to ask a question press star then the number one on your telephone keypad We'll pause for just a moment to compile the Q&A roster. we'll pause for just a moment to compile the q&a roster Your first question comes from Nate Pendleton with Texas Capital. your first question comes from nate pendleton with texas capital

Speaker 1: Good morning and congrats on the record quarter. In a sustained slowdown in oil-directed activity, can you speak to your willingness to lean further into compression and dry gas plays in this environment based on the success you just highlighted in your prepared remarks? And then also, would there be any investment in in-basin and facilities required to support any significant increase in gas-directed compression? Good morning and congrats on the record quarter. good morning and congrats on the record quarter In a sustained slowdown in oil-directed activity, can you speak to your willingness to lean further into compression and dry gas plays in this environment based on the success you just highlighted in your prepared remarks? in a sustained slowdown in oil-directed activity can you speak to your willingness to lean further into compression and dry gas plays in this environment based on the success you just highlighted in your prepared remarks And then also, would there be any investment in in-basin and facilities required to support any significant increase in gas-directed compression? and then also would there be any investment in in-basin and facilities required to support any significant increase in gas-directed compression

Speaker 5: Yeah. So Nate, thank you for that question. You know, we're already established in the dry gas market. While we have the majority of our operations in the Permian, we're still very large in the Northeast, up in Oklahoma, down on the Gulf Coast. And you know, we see with these demands coming online and these pipelines being built out of West Texas or out of the Permian, we see those plays as a place to, you know, as a growth where we expect to see drilling for gas instead of drilling for gas and, you know, associated gas and oil. And I missed the second part of your question there, Nate. What was that? Yeah. yeah So Nate, thank you for that question. so nate thank you for that question You know, we're already established in the dry gas market. you know we're already established in the dry gas market While we have the majority of our operations in the Permian, we're still very large in the Northeast, up in Oklahoma, down on the Gulf Coast. while we have the majority of our operations in the permian we're still very large in the northeast up in oklahoma down on the gulf coast And you know, we see with these demands coming online and these pipelines being built out of West Texas or out of the Permian, we see those plays as a place to, you know, as a growth where we expect to see drilling for gas instead of drilling for gas and, you know, associated gas and oil. and you know we see with these demands coming online and these pipelines being built out of west texas or out of the permian we see those plays as a place to you know as a growth where we expect to see drilling for gas instead of drilling for gas and you know associated gas and oil And I missed the second part of your question there, Nate. and i missed the second part of your question there nate What was that? what was that

Speaker 1: Just, would there be any incremental investment needed in the infrastructure and facilities to support any increase in assets deployed there? Just, would there be any incremental investment needed in the infrastructure and facilities to support any increase in assets deployed there? just would there be any incremental investment needed in the infrastructure and facilities to support any increase in assets deployed there

Speaker 5: Well, I mean, you know, we have active horsepower running in those basins, in the other dry gas basins. And so, you know, we can move equipment from anywhere that may slow down to those basins, or we can buy new equipment and install there for operating. I hope that answers your question. Well, I mean, you know, we have active horsepower running in those basins, in the other dry gas basins. well i mean you know we have active horsepower running in those basins in the other dry gas basins And so, you know, we can move equipment from anywhere that may slow down to those basins, or we can buy new equipment and install there for operating. and so you know we can move equipment from anywhere that may slow down to those basins or we can buy new equipment and install there for operating I hope that answers your question. i hope that answers your question

Speaker 1: Yeah, it does. Thank you. I was just trying to get at your geographic diversification. It does sound like you're already established there, so it would just be a matter of moving the horsepower in. So definitely, definitely positive. Yeah, it does. yeah it does Thank you. thank you I was just trying to get at your geographic diversification. i was just trying to get at your geographic diversification It does sound like you're already established there, so it would just be a matter of moving the horsepower in. it does sound like you're already established there so it would just be a matter of moving the horsepower in So definitely, definitely positive. so definitely definitely positive

Speaker 5: That's exactly right. Thank you. That's exactly right. that's exactly right Thank you. thank you

Speaker 1: And then, Clint, if I may, one more. With the strong pricing trends that you guys noted during the quarter, can you speak to recent pricing dynamics and how spot prices are comparing to your fleet average here? And then, Clint, if I may, one more. and then clint if i may one more With the strong pricing trends that you guys noted during the quarter, can you speak to recent pricing dynamics and how spot prices are comparing to your fleet average here? with the strong pricing trends that you guys noted during the quarter can you speak to recent pricing dynamics and how spot prices are comparing to your fleet average here

Speaker 6: Yeah, Nate, it's Chris Wauson. I'll take that one. You know, our market has definitely picked up since Q2, so our pricing trends from a dollar per horsepower basis, you know, is going to be consistent into the back half of 2025 into 2026. We feel like our dollar per horsepower revenue is going to be consistent. So we'll just see how everything works out, but that's our feeling right now. Yeah, Nate, it's Chris Wauson. yeah nate it's chris wauson I'll take that one. i'll take that one You know, our market has definitely picked up since Q2, so our pricing trends from a dollar per horsepower basis, you know, is going to be consistent into the back half of 2025 into 2026. you know our market has definitely picked up since q2 so our pricing trends from a dollar per horsepower basis you know is going to be consistent into the back half of 2025 into 2026 We feel like our dollar per horsepower revenue is going to be consistent. we feel like our dollar per horsepower revenue is going to be consistent So we'll just see how everything works out, but that's our feeling right now. so we'll just see how everything works out but that's our feeling right now

Speaker 1: Great. Thanks a lot for taking my questions, and I'll turn it back. Great. great Thanks a lot for taking my questions, and I'll turn it back. thanks a lot for taking my questions and i'll turn it back

Speaker 2: Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. There are no further questions at this time. I'll now turn the conference back over to Clint Green for closing remarks. Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. again if you would like to ask a question press star followed by the number one on your telephone keypad There are no further questions at this time. there are no further questions at this time I'll now turn the conference back over to Clint Green for closing remarks. i'll now turn the conference back over to clint green for closing remarks

Speaker 5: Yeah, thank you all for joining our call. We appreciate the interest in our company, and y'all have a good day. Yeah, thank you all for joining our call. yeah thank you all for joining our call We appreciate the interest in our company, and y'all have a good day. we appreciate the interest in our company and y'all have a good day

Speaker 2: This concludes today's conference call. You may now disconnect. This concludes today's conference call. this concludes today's conference call You may now disconnect. you may now disconnect