everyone today. This is for the Thank thanks joining XXXX. Good Chris. second we quarter released call morning Liuzzi, morning Matt operational our financial of our results you, and me for and our with Also CFO.
The well second standpoint. our solid quarter Compression for as financial operational an represented both from USA another as quarter
revenues, our well accretive to results strength Our stability margins, model growth. as organic utilization, of the both with in continued point modest, highly fleet as business yet
was the for X% some over to XXXX. was quarter second million ago. $XXX.X up compared highlights year the substantially of million First, EBITDA quarter. Net $X.X income from up of Adjusted a of
focused predominantly, margin added units on horsepower class historical Compression We USA gross horsepower XX,XXX X,XXX In with above. horsepower QX, fleet, standalone our our was XX.X%, the operating line in and overall to levels. large
horsepower and the was at horsepower million utilization XX.X%. quarter revenue end was period our horsepower approximately Our for X.X second generating average
XXXX level paid January X.XXx, in since consistent IPO LP quarter. In July, since and or of increased distribution previous XX returned resulted distribution distribution in This USA at we quarter our value $X.XXX cash which a distribution our being unit our over unitholders in million per to coverage line been distribution common we is Friday, in now with previous a Compression's the the with at from consistent public. common going have everyone to the has Including QX. unitholders $XXX announced
Finally, to our bank covenant prices. than from dependency and commodity demand-driven leverage our down compression The X.XXx services the business in our quarter demonstrates nature in stability model improve was cyclical QX. business continues contract for X.XXx of of the on rather
business prices, to the by of in infrastructure inherently gas have compression contract the services is other natural our absolute While industry model benefit may designed of continued production commodity buildout, sectors exposure country. from the driven more to this domestic ongoing
of volumes the recovering pipeline by domestic pressures. onetime Simplistically, nature past, through we and our natural not compression. large The by into demand unique gas contract corresponding and highlighted In which are services pipeline compression natural used move of the their to gas the fleet our grid. is driven is events and for position horsepower regional
impact of general oil last to over capacity production I rig of how the takeaway business. And and which up view core in headlines that USA you basins as economic well give have which led deployed count gas growth have Compression my factors are across meaningfully on both to those commodity volumes overall lot in a operates as several Gas there horsepower and want has limited been the the Compression's around we uncertainty, since USA have years.
more event the pressures of but in producing of for our onetime coming service decline key out reservoir compression Generally, years. compression expect an is throughout be that customers important is continue rather not required as to that we region. a capacity Takeaway a which need the age. flows we life de-bottlenecking topic over Remember and continues a of gas we'll and the the oil regions regions operate will as
projects announced important built certain in projects and for better we activity, expect realizations upon come development of stimulate online, a commissioned. the turn to these infrastructure. our be waiting We night, slowed and to midstream producers regions, pipeline have over see as ultimately volumes In producers but flow pricing through pipeline can't which production build
General to done have for our or the prompted many industry down and economic uncertainty near different. we in has future no slow pause,
and we we be XXXX XXXX. budget is XXXX what to in spent significantly growth our CapEx discussed, below currently As have below we expect XXXX
So gas as overbuilding. pedal just avoid years have to we've taken the off foot passed our we done in
how the we luxury have of see before how spend we spending. committing to develop waiting of things Because capital, additional to
is customers work Our may our feel what creditworthy a get XXXX, for the half strong incremental back much we as and through growth into better large for view levels have XXXX XXXX. be that budgets our we'll spending for their of
on the levels, and the USA the Compression of Compression it is of We capital do story. have off our we and part that conditions manage long grow This as of been make spending has past so. that market optimize grow. in stability when story Compression. spending back We the USA to Regardless to suggest they continue sense existing efforts USA fleet when the
for quarter. Now the touch on operating and to some second metrics achievements overall
level, the a the Our large first and with utilization of demonstrating stability fleet market. horsepower remained installed consistent strength quarter
we were levels that first ensure continuing from appropriately services. increased reflecting to quarter getting paid are our our efforts Pricing for
mentioned, operated over compression operating time. we have were consistent our services where I with business As core margins
be the business and model. of continue We distribution remain coverage for fund quarter levels at and focused prudently both And we'll during stable a equity program sheet self the XXXX spent which continue to our acceptable CapEx growth balance we no with on anticipated. capital to issuance
per which to we our quarterly declared to yield a of distribution $X.XXX of current unit month, XX%. Last equates XX% around
we norm for self Given where is the additional plan to is continue program. the realities our market, equity a not for of equity funding the and future required CapEx
accretive, capabilities. believe balance results this on modest focused financial high attractive CapEx USAC in XXXX unitholders. return source demand returns our program customer Our balance growth assets, We sheet reflect for to continues and to
business production plants. the systems and Our and of the processing by driven natural movement is pipeline gas through
abundance, continues We to due as gas system, attractive for see its and the demand the relative users worldwide gas natural friendly services. we've moving end And through don't soon. for more said, the Demand anytime for this more characteristics. changing environmentally compression pricing our
is production ultimately This our The XXXX, process levels. that U.S. deliver It XX% EIA see continue customers in increase in day continues throughout being almost to to over production, estimates gas. in to infrastructure transported in U.S. far increasing a BCF invest requiring shores the and the and XX XXXX is our per move, beyond increase which to reflecting
stability the in our and utilization in the pricing. mentioned fleet I increase
to field. We too selective continue to idle we the much continue large horsepower fleet out to But we increases equipment sold our classes higher. effectively be to with rate out in so expect optimize pricing the available utilization and don't work of across creep in
Halfway which to through growth Even flexibility and the we we price and XXXX, E&P and the continues uncertainty associated impact much commodity companies believe expected. equipment infrastructure through our there midstream services market find relating on as the for in to have we manage some by ourselves. environment whatever right there out is we marketplace,
should us and spending customers half year. our approach to the solid second our a prudent for fleet capital focus of the position Our and existing on
horsepower differentiates on We infrastructure-oriented USA applications peers. continue from large our to believe our Compression focus stable,
remain with the In results. services quarter second average XX.X%, some strong of for compression utilization utilization quarter with during second quarter, now, market very the the of XX.X%. average consistent So QX the
fully strong. considered current to As pretty mid-XX% meaningfully remain increase I utilized. But horsepower expect largest continue the from this don't is levels classes mentioned, we generally number demand for to has
remainder fleet be end have perspective, approximately up horsepower for For at period earmarked of delivered. was million units slightly approximately XX,XXX the total at XXXX, customers. new horsepower are set we Those X.X horsepower. our already the operating From to
This horsepower category. active decreased one is the active While customers, our on-contract was yet redeployment but from earmarked small on which of increase primarily offset perpended due an not equipment, to horsepower units for in equipment by customer. slightly
horsepower almost relatively the on field. the which X% much equipment We deployed amount selective delivery idle new service of the and quarter, saw over benefit usual, of working equipment average rate already previous consists of and small the primarily across the As increased fleet units in the pricing smaller reflects units. increases
$XX.XX back returns half the per the for a first horsepower This up year, be QX, move $XX.XX the continue from we was in will from sure revenue through to optimal as of assets. quarter. we're financial monthly focus the Average making for us generating our
related was $XXX As new continue QX those that growth regards, million in spend $XXX expect growth we not unit was new amount year. for about including number, all XX,XXX total year. delivery Of and has of unit million deliveries. capital This million, CapEx expansion $XX approximately approximately growth the to in capital XX% changed between total horsepower. to spending, to
horsepower were X,XXX class units, predominantly As on focused new the I large mentioned, above. deliveries the horsepower the and
supply equipment with levels, new classes. and lead in In large for levels terms closer demand, line of times reduced equipment XX largest been engine more to horsepower for have historical much to the weeks equipment, the
we overbuild allocation provide a USA collectively cushion don't our to that we on The time capital customers to continue Compression prudent that sure We lead see industry. the within and equipment. make little shortened time additional
our orders a With taking been plan, in approach that, unit just XXXX as XXXX. to with capital new prudent we've are cautious we
the during needs. be XX,XXX quarter, in concentrated majority customer total place predominantly QX predicated next of This the we with approximately did the half year. During to orders order existing XXXX, first specific worth on horsepower, was of scheduled of delivered
in customers market needs will should Given can time, the continue we lead we our dictate. contact and on additional with to their enter orders into conditions close stay
little So overview. a financial
to small field, Adjusted team the margin we EBITDA in active our horsepower The of XX.X% continued by an reported as of removal EBITDA of commitment improved the metrics as horsepower have solid second $XXX.X expenses. primarily operating the million certain the reflected pricing, and we quarter adjusted deployed to and -- and controlling performance smaller reflected due units units. financial fewer performance quarter stable solid even
some QX, In the operating later items on did touch in our those benefited with Matt overall nonrecurring during line our We levels. results was call. have minor and on will that gross XX.X%, the historical quarter margin
in was our was the QX Our cash bank with flow distributable down X.XXx X.XXx in leverage from quarter, ratio QX. and covenant essentially for X.XXx flat X.XXx coverage
price Mcf. like color movements demand At commodity Hub per I So, the was barrel with we some to at per our moves and marketplace impact mention like and on the the because, When of the on end $X.XX market broader to trading in the a WTI dynamics, I was Henry XXXX, look contrast at part always $XX drivers. business. little gas
level. Mcf had early $XX over up May, a and gas the $X.XX to $X.XX around mid-February, to up had and down crude Mcf while its crude barrel, moved per $X.XX per stabilized to climb moved continued per had In $XX by barrel had gas
crude a of $XX declined range. is $X.XX to to down As has to per while today, around around $X.XX gas Mcf barrel,
So economic I in events, abundance steady see its a geopolitical overall due of gas has a crude, to price uncertainty, while lot the part continued of continued due of to decline, supply. impart volatility in and
demand however with business. natural production Our business Driving that a for, core, is that and demand corresponding is demand-driven it's gas. of
knows, range-bound incredible reserves amount of and see and As prices of the half everyone and the kept gas in increase natural to we country, expected end stimulate side lower price demand, natural on historical is we relatively gas our tend The things, low where in levels. the that at continued production the of operate.
has gas global to generators, that LNG domestic the scales power chemical new whether with become cost all needed exporters, The that manufacturer, world world. the chemical power generation raw the result massive investing for end material competitive so et facilities, they and user plants, liquefy or are over natural infrastructure burning clean in facilities peers export cetera the is
and lot of economics how We've This us, Delaware can gas, in on of investment production down had regions crude our or to have West from the impact has will consumed have that been basin. naturally guys discussed oil gas the driving the associated areas Texas effects to gas be where and of associated exported. move a before like help that triple producing particularly who it growth
have capital rig decrease we spending relevant, in still discipline as are broadly the seen economics further a indicated by on those While count.
more That on would the focused perceived growth impact array the and likely U.S., potential ought and the to are Producers from that reversing to production allocation to future of associated moderate the and to on in a service us providers. is the which markets you oversupply strengthening. near oil crude capital gas seeing indicate price are broad field lead oil balanced
dynamics, action. Again, we believe the of our pared plans growth in have back CapEx light prudent which market we course is of
have crude increase, ability growth the the we and As capital to the market meet will core maybe for needs. gas our demand once and customers' as again to rebalances allocate additional appropriate
the our And changed. market hasn't view of so overall,
increase coming gas the years, and produced of around continue other We increase requires compression. expect moving more over to demand parts domestically gas now gas infrastructure, country to demand world natural for more for and thereby the the the
and Delaware at The larger growth. even years continue is positioning the activity levels investment. of themselves Permian where producers The of basins to somewhat be for are majors slower or
bigger see their producer investments and still ahead development plans. to the continue with We moving
natural horsepower basin. there is Our of so large overall the growth while to production that rate production way increasing units production, for needs a gas existing may out around, levels the gas the serve of near-term trend find move out
that active staying the activity with merge Ford Marcellus regions from Shale, operating Eagle well Louisiana rates plays, the SCOOP/STACK different Other Colorado South shales, of varies Utica all Texas, as as customer-to-customer. the albeit are and
past, discussed this sure interested environment we we in the are but are projects just in rather As that in making take growing worthwhile. not grow, we had on the to
of strongest our value with long core the USA grade customers, and investment With appreciate relationship services our who Compression. the
is strategy of expense and controls, We prudent we believe capital horsepower true infrastructure-based are business our most this and while focused all large operational appropriate staying applications. strong to on performance, spending strategy
to I will call Matt the of walk now financial over turn highlights some Matt? quarter. through of the the to
