What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-13 compared with 2023-02-14 · 22 added, 24 removed, 268 unchanged (15% of the section changed)

20 unchanged sentences

We operate a modern fleet of compression units, with an average age of approximately 11 years.

We acquire our compression units from third-party fabricators who build the units to our specifications, utilizing specific components from original equipment manufacturers and assembling the units in a manner that provides us the ability to meet certain operating condition thresholds.

We acquire our compression units primarily from third-party fabricators who build the units to our specifications, utilizing specific components from original equipment manufacturers and assembling the units in a manner that provides us the ability to meet certain operating condition thresholds.

Our standard new-build compression units generally are configured for multiple compression stages, which allows us to operate our units across a broad range of operating conditions.

10 unchanged sentences

Regardless of the application for which our services are provided, our customers rely on the availability of the equipment used to provide compression services and our expertise to maximize the throughput of product, reduce fuel costs and minimize emissions.

Our customers may have compression demands in conjunction with their field

development projects in areas of the U.S.

Our customers may have compression demands in conjunction with their field development projects in areas of the U.S.

where we are not currently operating, and we continually consider further expansion of our geographic areas of operation in the U.S.

based upon the level of customer demand.

Our modern, flexible fleet of compression units, which have been designed to be rapidly deployed and redeployed throughout the country, provides us with opportunities to expand into other areas with both new and existing customers.

Our modern, flexible fleet of

compression units, which have been designed to be rapidly deployed and redeployed throughout the country, provides us with opportunities to expand into other areas with both new and existing customers.

We also own and operate a fleet of equipment used to provide natural gas treating services, such as carbon dioxide and hydrogen sulfide removal and natural gas cooling and dehydration, to natural gas producers and midstream companies.

24 unchanged sentences

Units Horsepower

on Order (1) Number of Units

on Order Total

on Order (1) Number of Units on Order (1) Total

Horsepower Number of

9 unchanged sentences

________________________

(1) As of December 31, 2022, we had 66 large horsepower units, consisting of 165,000 horsepower, on order for delivery during 2023.

(1) As of December 31, 2023, we had 21 large horsepower units, consisting of 52,500 horsepower, on order for expected delivery during 2024.

Many of our compression units contain devices that enable us to monitor the units remotely through cellular and satellite networks to supplement our technicians’ on-site monitoring visits.

27 unchanged sentences

We have not experienced any material supply problems to date.

Although lead-times for new Caterpillar engines and new Ariel compressor frames have in the recent past varied between six months and one year due to changes in demand and supply allocations, as of December 31, 2022, lead-times for such engines and frames are slightly more than one year.

Lead-times for new Caterpillar engines and new Ariel compressor frames have in the recent past varied between six months to over one year due to changes in demand and supply allocations, and as of December 31, 2023, lead-times for such engines and frames are approximately one year.

Please read Part I, Item 1A “Risk Factors – Risks Related to Our Business – We depend on a limited number of suppliers and are vulnerable to product shortages and price increases, which could have a negative impact on our results of operations”.

48 unchanged sentences

These Subpart OOOOa standards expanded the 2012 NSPS by mandating certain equipment-specific emissions control practices, requiring additional controls for pneumatic controllers and pumps as well as compressors, and imposing leak detection and repair requirements for natural gas compressor and booster stations.

In addition, in November 2021, the EPA proposed a rule to further reduce methane and VOC emissions from new and existing sources in the oil and gas sector.

In November 2022, the EPA issued a supplemental proposal to expand its November 2021 proposed rule.

In addition, in December 2023, the EPA issued rules to further reduce methane and VOC emissions from new and existing sources in the oil and gas sector.

Any additional regulation of air emissions from the oil and gas sector could result in increased expenditures for pollution control equipment, which could impact our customers’ operations and negatively impact our business.

9 unchanged sentences

Methane, a primary component of natural gas, and carbon dioxide, a byproduct of the burning of natural gas, are examples of greenhouse gases (“GHGs”).

In recent years, the U.S.

Congress has considered legislation to reduce GHG emissions.

Congress, from time to time, has considered legislation to reduce GHG emissions.

At the federal level, the government could seek to pursue legislative, regulatory, or executive initiatives that may impose significant restrictions on fossil-fuel exploration and production and use, such as limitations or bans on hydraulic fracturing of oil and gas wells, bans or restrictions on new leases for production of minerals on federal properties, and imposing restrictive requirements on new pipeline infrastructure or fossil-fuel export facilities.

The Inflation Reduction Act of 2022 (the “IRA 2022”) imposes a methane emissions charge on certain oil and gas facilities, including onshore petroleum and natural gas production facilities, that emit 25,000 metric tons or more of carbon dioxide equivalent gas per year and exceed certain emissions thresholds.

While specific rules and regulations under the IRA 2022 have yet to be released, we do not believe that this methane fee will have a material adverse effect on our business, financial position, results of operations, or cash flows.

In January 2024, the EPA issued a proposed rule to impose and collect the methane emissions charge authorized under the IRA 2022.

We do not believe that this methane fee will have a material adverse effect on our business, financial position, results of operations, or cash flows.

Other energy legislation and initiatives could include a carbon tax or cap-and-trade program.

4 unchanged sentences

Congress, the EPA undertook to adopt regulations controlling GHG emissions under its existing CAA authority.

For example, in 2009, the EPA officially published its findings that emissions of carbon dioxide, methane, and

other GHGs endanger human health and the environment, allowing the agency to proceed with the adoption of regulations that restrict emissions of GHG under existing provisions of the CAA.

For example, in 2009, the EPA officially published its findings that emissions of carbon dioxide, methane, and other GHGs endanger human health and the environment, allowing the agency to proceed with the adoption of regulations that restrict emissions of GHG under existing provisions of the CAA.

In 2009 and 2010, the EPA adopted rules regarding regulation of GHG emissions from motor vehicles and required the reporting of GHG emissions in the U.S.

28 unchanged sentences

To that end, we have continued the commercialization of dual-drive technology in our natural gas compression services, deploying our first compression units with dual-drive technology in the third quarter of 2022.

Dual-drive technology offers the ability to switch compression drivers between an electric motor and a natural gas engine, to reduce our emissions of nitrogen oxide, carbon monoxide, carbon dioxide, and VOCs.

Dual-drive technology offers the ability to switch compression drivers

between an electric motor and a natural gas engine, to reduce our emissions of nitrogen oxide, carbon monoxide, carbon dioxide, and VOCs.

Water discharge .

8 unchanged sentences

On January 18, 2023, the EPA and the U.S.

Army Corps of Engineers issued a final rule revising the standard for what constitutes jurisdictional waters and wetlands subject to the protections and requirements of the CWA.

Several lawsuits challenging the final rule have been filed in federal court.

In addition, the U.S.

Supreme Court has granted review of Sackett vs.

EPA , which involves issues related to CWA scope and jurisdiction.

The Court’s decision in Sackett , which is expected in the coming months, could impact the validity of the final rule and trigger further regulatory action.

Army Corps of Engineers issued a final rule revising the standard for what constitutes jurisdictional waters and wetlands subject to the protections and requirements of the CWA (“2023 WOTUS Rule”).

On May 25, 2023, the U.S.

Supreme Court invalidated parts of the 2023 WOTUS Rule in its decision in Sackett vs.

In response to Sackett , the EPA issued a final rule conforming its definition of WOTUS to the Sackett decision and narrowing federal jurisdiction under the CWA.

That rule became effective on September 8, 2023.

Changes to the jurisdictional reach of the CWA could cause our customers to face increased costs and delays due to additional permitting and regulatory requirements, and possible challenges to permitting decisions.

16 unchanged sentences

We are not currently responsible for any remedial activities at any properties we use;

however, there always is the possibility that our future use of those properties may result in spills or releases of petroleum hydrocarbons, wastes, or other regulated substances into the environment that may cause us to become subject to remediation costs and liabilities under CERCLA, the Resource Conservation and Recovery Act or other environmental laws.

Conservation and Recovery Act or other environmental laws.

We cannot provide any assurance that the costs and liabilities associated with the future imposition of such remedial obligations upon us would not have a material adverse effect on our operations or financial position.

3 unchanged sentences

Human Capital Management

USA Compression Management Services, LLC (“USAC Management”), a wholly owned subsidiary of the General Partner, performs certain management and other administrative services for us, such as accounting, corporate development, finance, and legal.

USA Compression Management Services, LLC (“USAC Management”), a wholly owned subsidiary of the General Partner, performs management, administrative and operating services for us, and provides us with personnel to manage and operate our business.

All of our employees, including our executive officers, are employees of USAC Management.

34 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business