USAC - Earnings call transcript Q4 2020 | USA Compression Partners, LP

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Operator

Good day, and welcome to the USA Compression Partners Fourth Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the presentation over to Mr. Chris Porter. Please go ahead, sir.

Chris Porter

thank joining and everyone, morning, you us. for Good financial the quarter morning, we December for our released This ended results XX, XXXX.

our in section XXXX. You of will be at find earnings February well recording as can XX, through as usacompression.com. this The call our the of Relations available Investor Web site release recording

our call, certain this will During non-GAAP measures. discuss management

release. You GAAP measures comparable to the will find most definitions and the reconciliations earnings of these non-GAAP measures in

and expectations As may our projections These call statements our include represent will differ review the results statements. our a statements included forward-looking of current and release of SEC reminder, of today XXth no conference in that at morning's Please time President be over Actual filings. may and performance risk include beliefs. information the Compression. this February our in accurate on of longer Long, Eric note call a and turn speaks the provided CEO now as USA replay. only to I'll of call and Please views this to management's materially.

Eric Long

Thank This which you me marked of like. our quarter for and XXXX thanks would knew by the fourth Liuzzi, for year a XX is up our none Matt Good the Also CFO. and our the months call. its joining what we volatility world on and the considerable operational ago, with released of the financial of results morning, year wrapped look was the unprecedented us morning, energy Chris. broader in everyone overnight, markets head when throughout rest uncertainty economy. Almost seemingly turned

days the next few alone Let weeks. or

our I'm to business our and we the summer the in some us, fall, in Presidential on year. of and Election, pleased showed fared role we COVID worked uncertainty work With And us development horsepower the plays ahead. US year macro model started large back gas gets XXXX, is of natural of focused sentiment to the we XXXX that gas of to the in stability The more end world Compression behind and all hope our behind as vaccine times the gas as natural compression start the normal from report for well the XXXX started As we from more the what USA natural including marketplace. of country see are the toward services throughout the optimistic the worst gas attractive in in demand the back our through demonstrated continued environment and This the exports as rebounded positive. resilience relative cautiously economy. customers the the into the natural that is has half US and critical into

to activity While overall demand there's we gas to still the it was our this in by pandemic, business and where do encouraged gradually natural get work signs to of back and of resilience country are pre abroad.

While been unlike the previous macro it commodity current other mindset prices, as before, affecting have with a similar seen with in cycles. any and approached we factors industry never which cycle volatility multiple is our

our primary changed on used oriented of infrastructure large plus focus in never regional year course existence, horsepower the Over large XX we've our compression facilities.

our stability demand has driven suffered much this because that decrease our of providers in from past operators. business even have utilization, believe the seen Our of others again oilfield service been applications providers, of our a over cycle, modest while we assets on shoots is midstream other we And have year. whether the pain large we fortunately model the see demand, We segment, business green on relied through focus and our compression, the And have start horsepower or the we service some spared differentiated customers serve. previous cycles. to powered the have natural as critical of which gas

those country to hope has recognize closer our and employees, it COVID energy to our ensure to the is well energy get dedicated and worked public prosper. like that as needs going who get nonstop all I'd hardworking the what we back as to of the health As across end pandemic, the industry we have

to challenges While businesses Budget the manufacturing, the XXXX, fuel I COVID it and serve make happen, has world. throughout expected than a greater Management mid In Office by to by fuel job parts presented as many growth and at as in of entire industrial generate some of to to natural critical power, economy country, dedication pre-pandemic. efficiently. that proud Recently, order do levels the required as their will to be the well indicated to of that statement unique of of am released grow most levels the record gas our feedstock and at be team source and the safely

Our is often we out. gas will and many, by years importance believe come view and misunderstood that of prove that natural the is understated to the

utilization. a horsepower average quarter-over-quarter both in experienced modest Turning revenue to We the decline fourth quarter. and

As for fell we some through quarter, third field levels. mere from out the horsepower work in returns our quarter the active X% unit a

QX. performance. absolute margin an margin both levels, the levels for on both and at EBITDA While EBITDA adjusted this were EBITDA X% dollar consistent EBITDA quarters’ million, environment $XX be Total quarter overlooked. reflected adjusted approximately adjusted is adjusted adjusted our adjusted million. a we margin keeping $XXX gross historical gross the cost, revenues percentage gross in third remained fourth same on not from with close of and our percentage achieved percentages at and And below approximately Keeping basis, a decrease historical levels adjusted to eye

XX%, living line And attractive delivered of adjusted XX.X% was from optimistic QX slightly As flat sign. the is of margin stay positive utilization for the the part cautiously worst utilization seeing essentially margin quarter of middle with After Compression was EBITDA XX.X%. level a in adjusted through and just us. we're Average margins that the behind XXXX, USA respectively. the down throughout XX.X%, quarter I we and gross mentioned, with averages, operating historical

total customers certain quarter which fourth they where the with continued as previous overall sit fleet at appreciate During downturn which magnitude larger X.X in from season than and XXXX, compression of quarter consistent our evaluate less the is and compare today approximately to XXXX. timeframe X the their We XX to you especially the out. ahead end, primary needs, through played active XX condensed the downturn, remained was To we X% to only ago, million in months utilization XXXX’s have horsepower, versus looked quarter points, the with ended slightly budget some while horsepower. about million work off the continue about remember uncertainty, percentage down than XXXX

some our peers strategy opted have than We margin who degradation. utilization while to maintain have different of chosen suffering a

the to the was operating monthly quarter's amount quarter flow third Based service The of large a by time working the three end for the of temporary were revenue in quarter. ratio gross the cash service from very which which for environment, quarter. fourth returns of of per year off that was Compression still and view, decreased gave per horsepower distributable for have Texas delivery down the XX% CapEx reduced above quarter limited times. of capital upon appreciate, growth million be slightly in West distribution to But is $XX.X about will And rate million, We spending few constrained at primarily past of our capital the those CapEx quarter, is the deploy expenditures. allow you leverage new throughout commodity improved to X% modest fleet rate Our our fleet which running. contracts in limit levels small adjustments. temporary began keep horsepower third all slower idle the unit, a downturns, on of and Average consistent year half only when supply during will and economics. is pricing results, which prices keeping under the completion. Average important the decided a unit in up, ratable from and USA our $X.X be approximately consisted X.XX during one assets $XX.XX as adjustments. $XX.XX coverage can and the equipment is consistent units, with The improve customer slightly tends board resulted a $X.XXX of decreased impact to quarter, capital to with service picks of we what the in activity contracted fourth in third across usually maintenance maintenance for

quarterly times of distribution distribution as Our our appropriate. the deems bank covenant quarter. the or on a and ratio board the quarterly for basis, Consistent was suspend leverage maintain, can reduce quarters, X.XX a Directors prior most with determines often it Board

markets. Turning the now broader energy to

of but energy only I potential the think energy the XXXX daily volatility not also our lives. for importance markets, of demonstrated the

CapEx best an never some and wound we oil and marked There's And the year expected, between, of in in in for slowed gas than away. supply half with experienced how timing of our natural $XX as low the stopped. of the demand, the year was reopening $XX hit which In for of business many XXXX demand before prices prices. excess potentially industry to what seen recovery by disruption, cases, quickly Drilling about crude by the what exactly soon is and in curtailed duration. barrel shows that of track tremendous going gas. a production industry but is. some and course see the more industry to demand about we energy baseload domestic in heard came reduce old prices, the quick of averaged And demand, oil stabilization was regards budgets well back over went took pretty for action natural for throughout was With the between, inventories of While year, $XX negative last much crude supply quarters. The and both we a predictions to particularly global barrel. and also and we driven few highs back dire commodity in price lows the we entire never industry the environment global saw demand happen. or economies low weak saying the back existing as witnessed to and models waited The low uncertain tightly

around off was that up slowdown As to XXXX, $XX throughout of gas business manufacturing, XXXX its the entire down crude and the nearing Since reached was other total the and the for production in natural to not recent generation natural has middle EIA a across gas our in America a latest utilization vortex gas time, demand $X.XX At X% the and climb gas natural see demand has barrel, industrial per starting in and USA for We impact impact than power of mention resiliency crude the the the higher. of of demand MMBTU. end uncertainty to With this MMBTU. natural experienced commodity areas XXXX East right different. impact. The of from $X prices for activity polar a Compression’s clearly in levels. began back. the of we is demand US our show, NYMEX numbers globe, drilling The from $XX for no barrel existence on commodity Coast, you'll volatility and and less temperatures around country was modest was saw and business, the estimate of that gas proven of per XXXX is exports natural frigid XXXX

bode the a will operate, well are we areas which eye seeing our on activity positive business. we we the keep in close levels for signs, we which in various expect As

December to which take levels. example, before like. natural was and a production up that laid of the back Last out region volumes would low up in reported impact lot what tick XXXX Well, the in was rigs May that volumes off there versus on down look spring XXXX, Permian the uncertainty between gas EIA volumes December actually E&P over X.X%. For point, of as region XX% gas gas Basin. the the were December represented XXXX pre-pandemic associated

were of to longer allowed the part Remember, resilient was a just close on pre-COVID and decent as supply a it dependent be work last glut crude dynamics. help the and seeing storage gas getting back sell for was and drive call, takeaway producers economics, levels. statistics entirely natural crude prove spoke the volumes prices. these about global into you basins oil that in Delaware XXXX in is through capacity inventories processing oil and led inventories has I quarter's important perceived oil the tightening ever US and market. You Permian point are has begun. The supply region functioning to changing to My are lack many and oil an that oil negative of to storage. demand crude in the No demand which and that crude operators On XXXX ample position

of approaching to continue We levels. crude see normalized oil are storage storage and draws more from

oil perspective, fundamentals we build by declined consecutive in a that global appear January, a sixth barrels, storages the add positive coming on the With storage into about scenario should gas put up this showing environment associated million row oil, and To have in in Supply which decline in fallen. coming to month restraint a For million have actually setting usually demand production nearly of to up back improved crude much natural and for this XX XX January well positive shale markets. and and see storage equilibrium should demand be declining, inventory barrels. on, effects future. the all OPEC+

to basins across to additional which spurned we growth noted. impact the steady prices we I production in in has capital While activity, commodity some operate, continue move the budgets all as expect upward

watch we of decline Another important the move curves through the will market dynamic wells. to as be these XXXX shale evolution in

As in need environment state steady for the This is as years, compression moving. now. occurs volumes we've previously, those of lends wells keep production to flush move where more discussed in stability into these equipment situations a to the required initial our the flat gas after

where recent flat, of the them has proportion slowed. in maintaining seemingly meaningfully, production focused see higher curve part producers from the than overall With to a would on expect meaningfully count levels of and decline down state highs we rig that significantly production steady rather growing more

USA For stable strategy steady very infrastructure operations right focused applications a this that because are on support the natural wells the state into Compression, business volumes our we exhibit profile. these plays as age, gas

the than that seeing installing to cost or driver also and to compression by are rather additional our additional is wells and opting them and to offset [usage]. reduce maintain production to leverage a capital or way of customers compression compressor to is The production that drill We complete several maintain profile comes flat are expenditures low main drilling additional overall from a decline. for

horsepower. exponential well the and stable horsepower volume As more declining is business in relationship expected increase to a as of compression characteristics, critical the compression an between to and the nature is dynamic same in of much reservoir our pressures age production requires another move exhibit decline as pressure, gas

i.e. will that maintain order you So take the horsepower gas. can likely move in to to see we production, more work,

applications, decline. So may though increase even in types of volumes gas the be may declining, all compression actually required as also pressures

by As projects large to a think the industry but we less easily spending, our going the ahead are we or marked industry. changes models multiyear don't to capital in the capital strong to easily on look customers margins. business be operating We that require used adaptable growth one of periods phase in volumes in instead, the maintaining managing equipment fleet our of have all we will and balance our gas already help We stability, to keep moving. can our sheet from their while periods commitments shift

activity. turning to customer So

we in indicator are As regards past, a it activity lagging the as levels. I've discussed

the end from the count about off currently, XX% will of overall XX% US By of August, in pickup two upstream year. activity one the had than the rebounded by has in rig count to the bottomed off year In of last it the up has was from typically lows. in at and rig quarters. or that August Well, further its XX% beginning US activity of Our count and out the begun recovered the more tick since total highs the about the time. XXXX, lag lows

of XX represents count, and solid area of earlier. at a of in rig count, mentioned East gas areas These those I out where XXXX, total the by while the numbers these followed Appalachia in So of than in we are in almost Texas the presence rig half today The areas. a clearly Arkansas, high the for volume Lower pre-pandemic region. all the half which rig improvement, stand count, XX% second have Louisiana, three account early Permian, we is still closely more about we is supporting

decrease saw we quarter, customers. a very some from the utilization, driven unit returns by During slight in

few As their to what their the to compression discussed customers try last XXXX quarters, continue anticipate evaluate needs might we've and be. needs

But to units quarter-over-quarter, considered such, we return. expected. fairly As what which will utilization overall, flat some we be is

assets that optimistic of out large are applications our gas lift we contract our XX% fleet. stay comprising to because field. volume about plants, month that those and contracts of handling likely forward, Looking stability, stability lend to gas our the activities month applications in nature the portfolio processing activities to for of only dry our Adding gas centralized with the natural are assets, gas operations to like continues the to our at

no looking stabilized customer throughout business year. actions up. has have we restraint of So significantly and summarize, better. woods, we on slowing are things to cutting means in held picking while unit are returns the capital spending and early with The XXXX out cost the dialog took The

well catch And successfully XXXX positioned That downturn over the XX in what we playing we in my is feel through worst said, energy as we years powered certainly frankly way. the enter I very seen in industry. have not so and any up

leaner and quarters. upcoming have idle over We poised stronger, our fleet ramp by the deploying to revenues emerged

can turn wait will we to stability years the further recent again, over to stations that what continue centralized focus believe market seen. compressor horsepower, for multiunit, While will have control. our we upward the we on we the bolster We manage large

to the over is quarter. demand natural require the continued services. some natural along financial continued compression I the and through investment expected turn to will expect Matt? walk resilient, to highlights it of now Matt with of demand call the it, gas stays gas as we As to be,

Matt Liuzzi

fourth EBITDA adjusted Compression million, quarterly partners limited DCF quarter good revenue including $XXX Thanks, and everyone. of of $XX to morning, Eric, Today, results, and $XX million reported million. of USA

last that of $X.XXX which benefit, down gross resulted we margin approximately the impacted from distribution of million to LP times. a the in cash recall unitholders our during per positively that had nonrecurring X.XX While and consistent quarter, quarter, of previous January, unit, EBITDA. quarter, $X In which reported announced adjusted adjusted coverage we third common period's with

horsepower fleet quarter the horsepower. million Our total of the end consistent was previous quarter with at at X.X approximately largely the

million at hair horsepower generating revenue flat under Our end essentially a was at horsepower. period X

a was percentage per Compression's quarter gross generating revenue Net a income capital slight capital quarter of average operating decrease fourth maintenance million, quarter, and net was Of the in $XX revenue X the loss was $X million per $XX.X third $XX.X our from Pricing, service the million total for quarter. in we XX.X% month was while levels. line for was fourth utilization in as historical approximately core for million quarter $X.X revenue Maintenance in margin USA the $XX.X $X.X totaled revenue which and the guidance. measured spent of line from million. was cash activities was the operating horsepower quarter. year, for Net by Adjusted and of $XX.XX. average XX%, cash down the And lastly, million level expense percentage provided with reflected by in was quarter's for quarter as QX, than $XXX less from Our with interest horsepower was point million. previous our $XXX million revenues, the million. contract operations the revenue parts fourth $XX.XX

as million we'll with are of earnings, guidance our $XXX fourth DCF, also In releasing quarter SEC that, XX-K initial we and and Last, $XXX afternoon. with to EBITDA our XXXX expect between open we as for the adjusted the And $XXX With expect million this call We to million. the questions. million. currently $XXX Form up between XXXX. file release early of

Operator

first take will we with from JPMorgan. And Instructions] question Vinay [Operator Chitteti our

VinayChitteti

bottom trending like want about unit a be And and and panning Just how horsepower we where quickly -- it possible ask potential here? potential seeing on is Would units, you small returns? break where to also you're share you for utilization to how will horsepower see here. large bottom utilization could any commentary down for

MattLiuzzi

horsepower described first Why the don't don't that's now they're things down we on -- say, units see kick when applications in release obviously, points, stay to which been break and The But utilization. we that think of in gathering going you regarding kind where the continue kind one off plants, would central seen processing we've be, was turn. I of is of systems, story the last into I I historically, what consistent publicly the a out back business if Obviously, year, is how with we've things things delivery division. are And of the model and think I kind March be really to field. the even big took tend will, like large used used.

large of obviously, operate. model think utilization horsepower north I the So small up we the staying where typically of the business horsepower, stuff see would well

think was assume is of think unit the that the December continued the really I took regards down and to of were a the actually middle part mentioned the people talked from. think 'XX. 'XX noticed that Permian the from it where I everything downwards. in really, really kind for the been fact had Obviously, volumes I about instance, that's that those we of into year. And volumes, question, year. this Permian beginning second where reason kind I quarter, interesting believe, huge from obviously, as meaningfully was in slowed throughout the I returns just up of think the we probably we think and dip And returns XXXX are And I you in coming December

continue And very that much so we -- stabilized. has

stabilized. also Mid-Con, where a you've I in of think up seen until even at lot days, that weakness, think last I least the few the has

lot third I in seeing, the of has took that place quarters so second, kind everything and And think of we're a stabilized.

month out, increasing. of of and I that all that forward quotes stuff think as is So is seeing back the on out that in, is, now, we're focus getting out. And business our about going month we the the sentiment, level there stuff think really, customer

the that if we'd think sort this So point. back resilient you regions and the the stabilization absolutely start really utilization macros, markets going what's to all gas see we've year. on throughout tick hit of believe if to that believe up the our the And in expect in view you I is demand,

VinayChitteti

with quarter. mean, versus the I quarter respect previous of slowdown seen definitely we that's Yes. fourth helpful, have especially in

quick the Just would maintain M&A Difficulty]. a follow did and on to here. appetite to for distribution, be asset small compression just asset up think a the open be opportunistic GSA attractive, We do recently or looking will [Technical understand, I you want sales delever transaction. for market is still for

EricLong

we things stated, we don't neutral. on applications. think, in generally, What have past generally highly opportunities. look cash to would M&A said We comment that leverage large I We the our flows accretive we publicly at selective. is be we're which and horsepower on focus

way five the and been three, the a even back. look to there say, or have They've it's fifth fair come We industry second, continuing fourth We think to extensively or are third M&A we things it that that in opportunities, shop our I have like like first four, been when times. time. So some marketed the time. at been didn't in don't

There coverage. companies was highly which CDM mix were by customer the equipment, that view company one in our some of assets, very history leverage two to USA significant the were Compression, together. synergies mix made of were different 'XX M&A recent similar Both combining of in accretive. most years, acquisitions. complementary The we've So two geographic of from the of was a neutral, type both an acquisition the world is and different the perspective,

So kind down exist, and were if would take circulated of things around the But at a it's those bread to our butter those. we that the things, opportunities the look not are routine fairway. being

Operator

next our with will Gershuni take UBS. We now from Shneur question

ShneurGershuni

start focus about the in your were wanted prepared sort off, build part. optimism. the just to remarks of beginning talked on extensive, you I and of to Maybe the pretty sort up

set to at sort utilization with remain of can half we and look Is bottom, results contracts and you that is I'm the the and forward to as outlined cycle right us behind the optimistic both at sort quarter you You of your fourth of in the so fair that kind are could price stage And temporary to forth? and the bottom us where your say set right margins this likely wondering to cautiously of expire for soon the prepared if it wise second to now. when stage bottom just this positive now, is cycle respect remarks. that stage is this the outlook for

EricLong

I mean, think about have what historically you the of see and where today a we if lagging with comments from indicated indicator I E&P quarters a activities the my guys. of couple been

see prices can you crude So significantly. that firmed have

You've had of for a ago. provided four built gas is or Permian couple didn't of three major which the Basin, quarters pipelines coming It out markets. exist

basis. negative had You

you're seeing gas the zero today, with natural going Permian. where out literally natural had You price gas the core prices of in in the vortex anomaly of Fast an on $XXX mid-Continent, is MMBTU. forward to north and clearly today,

spot extremely spot gas and high. seeing high prices You're is price electric

got pushing crude oil $XX. You've

quarter your a So Shneur, that two say, I observation, to quarter, think continued firm lag has bottom. probably being the it's Pricing up. fourth fair to the

And capacity. it think blizzard additional the to electrify now we're seen here, seeing highlighting is that perils I I everything. think attending of with takeaway You've the

So ups United bodes States. is this gas that probably of for have to the This the in and some in well natural geographic problems tick activity blizzard critical highlights infrastructure the how just all our here you of regions.

of buying share, selectively behind with idle of flow. been than before. have build And a they readily equipment all seen redeployed. deploying yes, have cost. can with it the ability deploy think just maybe We've worst here's to extremely the who then that that got a at form have assets They So sitting where I some equipment. new rather every they market competitors the the balance fleet cash need we've this be And we with get all And us. sheet out USA don't sudden, leverage to is high

I So spot on. are observations your think

MattLiuzzi

I'd gross numerical Just where obviously, point years. hung just one the thing plus mentioned. mentioned had have I percentage really the Eric has USA for percentage. to consistent what you and level XX operated the of basis sort amount margin, on a know with on we to the add out, versus

And our so are of year that that is with done for as we've kind pick early actions everything Eric I past, And the as all in I took years things we mentioned, margins, expectation in line about to which flow those what with which think, positive last obviously through, think deal going obviously should on. is up, was company.

ShneurGershuni

baked shaking that's nature, wondering I entire appreciate a I your do was sort fourth really for guidance, level your then in where that, your because lag if then and sort help sort guidance, if then coming under an not understand of dip circle for historical quarter fourth look the would look around be the you're the guess, just the the amount sort I out. of that maintain recovery. trying I'm another if well. into I understand and or here. Just $XXX you us or would guidance on me EBITDA, square you're you But 'XX at to sensitivities of could as the just I there conservatism do And of to can there lost understand your and is wondering than either extreme million is in going you bottom, quarter this? of that suggests expect When numbers at it me higher

MattLiuzzi

got at we as a work stuff to I quarter, of moment But and of of some through. think mentioned say, byquarter kind is, up quarter you'll would kind time, can fourth see the from there. obviously, way as into ramp I kind provide into get be those does as think -- utilization difference in then don't revenues there what Eric need lag the we obviously, its a between I obviously we numbers. And

I into So have think look budget think it, for obviously, typically we based kind of conservative we're at our as is I month on half This the we year, a the year, taken a in. and look. a coming

don't things we of tick know looks that what think wanted purposely when we to trajectory I So and exactly -- kind like. up to expect exactly admittedly,

the see think -- as that So picks to follow I you're and point. revenues at going I think stabilizes will utilization you up,

ShneurGershuni

sit ago So and Board to was a this clarify, month versus basically we half to presented today. where the

EricLong

October, November, Matt?

MattLiuzzi

I obviously, with an I to number, would go pop bit think And a because to passed these we still speaking, uncertainty. lot generally obviously extremely uncertainty things there few don't there that our with of seems think Yes, still budget And aggressive teeth. days. is of want a but a out I been are every have week now, we think up that was --

ShneurGershuni

a And to quick I wasn't just a follow per the just up understand wanted question. context maybe challenge, se.

equipment, looking for some market the of or your do reenter opportunity for to at goals? you customers for looking to you companies so achieve compression do that buy those on electric present respect that you them? that more as companies. to opportunity Does the As as for methane Compression emissions side, opportunity respond are forth, help been present has reduce an some it? something When to start ESG something USA do and cited in compression an pivoting that you How electric could is an

EricLong

And to good independent company oil customers and say, really and good reduce focus the and think first, new administration environmental our opportunity our the and observation. Compression the multiple major clearly, issues, footprint. large on I a with That's question USA technologies of exploring carbon a is I'll

upcoming the and right to in of on the get be So little position I'd benefits a now, legislative these the we're in able to we'll and waiting customers and to months, to some a with more say clarity regulatory share potential fronts advancements you. both

on compression, again, I of in electric very lot and rush particularly you call motor, As is focusing a this there we amount capacity. to electric huge current, a started when what of it surge think vortex, large pertains polar

you electric on. goes scenario of big, a all electric and of envision running, the down, demand to in on, back this bunch got you can these you compression grid current a a sudden big, where have is rush So there motors big early turn

So some sense. electrification makes

might reliable think electric I as combination sense. a in from combination areas of further make about of compression compression grid, away form driven are assets think electric where gas have deployed the that further upstream, you and/or where you some some and

are and both environment we'll see the to sleeves like. the the again, some look a like, you to fronts regulatory delineation in electrification. economic that things talk definition regulatory involving there need better what get the So clarity think and we able better future. to little we've that footprint bit to opportunities going legislative some we some of have But I what to up is look be got about our is to going then on And

Operator

And closing the to turn there back are over no Mr. further remarks. Long for like or telephone additional to I'd questions. any conference

Eric Long

page on I now glad turned we've everybody that XXXX. is the think

expected, our demand, on world As stability the natural and work more back to gas stability many work the discussions to in of and be for The get in customers. encouraged yet, and natural we positive the of saw rebound we still second the by commodity outlook than horsepower out relative both. our gas in abroad. with business, US done is there is by driven and not XXXX, the the focus both be the If oil to resilient large our and half happened crude woods to continue but we're quickly during both having began we're

stability a the of on our business importance believe whose horsepower, to solid out the world the It's XXXX last a months. the be underlying remains could and compression same. over XX gas We model we proven demand, differentiation and focused large was represented of long foundation country Our and infrastructure interplay spending business term natural positive this excellent services Compression. customer contract the point cost, built for for control, key need pressures a will between science USA on compression and when what behind the service. and focused volumes capital we the year of

positioned and are place. begun forward we call. with recovery us everyone joining market next to benefit the for safe. takes please rebound, As the be well as to on to Thanks We look has speaking that

Operator

conclude today's does participation. that again, once all And for your conference thank we and you

You may now disconnect.

USA Compression Partners (USAC) 16 Feb 212020 Q4 Earnings call transcript