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As such, our compression services play a critical role in the production, processing, and transportation of both natural gas and crude oil.
−Removed: We provide compression services in shale plays throughout the U.S., including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales.
−Removed: Demand for our services is driven by the domestic production of natural gas and crude oil.
−Removed: As such, we have focused our activities in areas with attractive natural gas and crude oil production, which generally are found in these shale and unconventional resource plays.
−Removed: According to studies promulgated by the EIA, the production and transportation volumes in these shale plays are expected to collectively increase over the long term.
+Added: We have focused our compression services in unconventional resource plays throughout the U.S., including the Utica, Marcellus, Permian, Denver-Julesburg, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, and Haynesville.
+Added: According to studies promulgated by the EIA, the production and transportation volumes in these unconventional plays, namely tight oil and gas shale plays, are expected to collectively increase over the long term.
Furthermore, changes in production volumes and pressures of shale plays over time require a wider range of compression service levels than in conventional basins.
We believe we are well-positioned to meet these changing operating conditions due to the operational design flexibility inherit within our compression-unit fleets.
−Removed: Our business largely focuses on compression services serving infrastructure applications, including centralized natural gas gathering systems and processing facilities, which utilize large horsepower compression units, typically in shale plays.
−Removed: We also provide compression services in more mature basins, including gas lift applications on crude oil wells targeted by horizontal drilling techniques.
+Added: Our business includes compression services serving infrastructure applications, including centralized natural gas gathering systems and processing facilities, which utilize large-horsepower compression units and also gas lift applications on crude oil wells targeted by horizontal drilling techniques.
Gas lift is a process by which natural gas is injected into the production tubing of an existing producing well to reduce hydrostatic pressure and allow the oil to flow at a higher rate.
This process, and other artificial-lift technologies are critical to the enhancement of oil production from horizontal wells operating in tight shale plays.
−Removed: We operate a modern fleet of compression units, with an average age of approximately 11 years.
+Added: We operate a fleet of compression units with an average age of approximately 12 years and a useful life that could potentially extend decades when properly maintained.
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.
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We primarily enter into fixed-fee contracts whereby our customers are required to pay our monthly fee even during periods of limited or disrupted throughput, which enhances the stability and predictability of our cash flows.
+Added: We bill most of our customers in advance of the service date and also typically utilize annual inflation adjustments in our term contracts.
We are not directly exposed to commodity price risk because we do not take title to the natural gas or crude oil involved in our services and because the natural gas used as fuel by our compression units is supplied by our customers without cost to us.
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based upon the level of customer demand.
−Removed: Our modern, flexible fleet of
−Removed: 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.
+Added: 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.
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such information is incorporated herein by reference.
+Added: Our Relationship with Energy Transfer LP
+Added: In late 2024, we began implementing a shared services model with the owner of our General Partner, Energy Transfer.
+Added: Under this model, we will share personnel and resources in certain departments, including information technology, accounting, and human resources.
+Added: We believe this will increase efficiencies and support across our organization, while simultaneously reducing administrative costs.
+Added: As of February 6, 2025, Energy Transfer owned 100% of the membership interest in our General Partner and 46,056,228 of our common units, which constituted a 39% limited partner interest in us.
+Added: Given the significant ownership, we believe Energy Transfer will be motivated to promote and support the successful execution of the shared services model, as well as our overall business strategy.
+Added: For additional information on our related party transactions with entities affiliated with Energy Transfer, see Note 14 to our consolidated financial statements in Part II, Item 8 “Financial Statements and Supplementary Data”.
Our Operations
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________________________
−Removed: (1) As of December 31, 2023, we had 21 large horsepower units, consisting of 52,500 horsepower, on order for expected delivery during 2024.
+Added: (1) As of December 31, 2024, we had no horsepower units on order.
+Added: Subsequent to December 31, 2024, we ordered 4 large-horsepower units, consisting of 10,000 horsepower, for expected delivery during 2025.
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.
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Each of our compression units is subjected to rigorous sizing and diagnostic analyses, including lubricating oil analysis and engine exhaust emission analysis.
−Removed: We have proprietary field-service automation capabilities that allow our service technicians to electronically record and track operating,
−Removed: technical, environmental, and commercial information at the discrete unit level.
+Added: We have proprietary field-service automation capabilities that allow our service technicians to electronically record and track operating, technical, environmental, and commercial information at the discrete unit level.
These capabilities allow our field technicians to identify potential problems and often act on them before such problems result in down-time.
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Suppliers and Service Providers
−Removed: The principal manufacturers of components for our natural gas compression equipment include Caterpillar Inc., Cummins Inc., and Arrow Engine Company for engines;
−Removed: Air-X-Changers and Alfa Laval (US) for coolers;
−Removed: and Ariel Corporation, Cooper Machinery Services Gemini products, and Arrow Engine Company for compressor frames and cylinders.
−Removed: We also rely primarily on four vendors, A G Equipment Company, Alegacy Equipment, LLC., Standard Equipment Company, and Genis Holdings LLC, to package and assemble our compression units.
+Added: The principal manufacturers of components for our natural gas compression equipment include Caterpillar Inc., Cummins Inc., INNIO Waukesha, and TECO-Westinghouse for engines;
+Added: Air-X-Changers, Alfa Laval (US), AXH air-coolers, EADS Cooling Solutions, LLC, and R&R Engineering Co.
+Added: and Ariel Corporation, Cooper Machinery Services Gemini
+Added: products, and Arrow Engine Company for compressor frames and cylinders.
+Added: We also rely primarily on three vendors, A G Equipment Company, Alegacy Equipment, LLC., and Standard Equipment Company, to package and assemble our compression units.
Although we primarily rely on these suppliers, we believe alternative sources for natural gas compression equipment generally are available if needed.
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The compression services business is highly competitive.
−Removed: Some of our competitors have a broader geographic scope and greater financial and other resources than we do.
+Added: Some of our competitors have greater financial and other resources than we do.
On a regional basis, we experience competition from numerous smaller companies that may be able to more quickly adapt to changes within our industry and changes in economic conditions as a whole, more readily take advantage of available opportunities, and adopt more aggressive pricing policies.
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The cost to comply with the revised air permit programs is not expected to be material at this time.
−Removed: However, the TCEQ has stated it will consider expanding application of the new air permit program statewide.
+Added: However, the TCEQ has stated it will consider
+Added: expanding application of the new air permit program statewide.
At this point, we cannot predict the cost to comply with such requirements if the geographic scope is expanded.
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Congress, from time to time, has considered legislation to reduce GHG emissions.
−Removed: 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.
−Removed: In January 2024, the EPA issued a proposed rule to impose and collect the methane emissions charge authorized under the IRA 2022.
+Added: In November 2024, the EPA issued a final 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.
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Although a number of these lawsuits have been dismissed, others remain pending and the outcome of these cases remains difficult to predict.
−Removed: At the international level, nearly 200 nations entered into an international climate agreement at the 2015 United Nations Framework Convention on Climate Change in Paris, under which participating countries did not assume any binding obligation to reduce future emissions of GHGs but instead pledged to voluntarily limit or reduce future emissions.
−Removed: The Paris Agreement went into effect on November 4, 2016, and the U.S.
−Removed: formally rejoined in February 2021.
−Removed: has established an economy-wide target of reducing its net GHG emissions by 50-52 percent below 2005 levels by 2030 and achieving net zero GHG emissions economy-wide by no later than 2050.
−Removed: In addition, certain U.S.
−Removed: city and state governments have announced their intention to satisfy their proportionate obligations under the Paris Agreement.
Although it is not currently possible to predict with specificity how any proposed or future GHG legislation, regulation, agreements or initiatives will impact our business, any legislation or regulation of GHG emissions that may be imposed in areas in which we conduct business or on the assets we operate, including a carbon tax or cap-and-trade program, could result in increased compliance or operating costs, additional operating restrictions, or reduced demand for our services, and could have a material adverse effect on our business, financial condition, and results of operations.
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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.
−Removed: Dual-drive technology offers the ability to switch compression drivers
−Removed: between an electric motor and a natural gas engine, to reduce our emissions of nitrogen oxide, carbon monoxide, carbon dioxide, and VOCs.
+Added: 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 .
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In any event, our customers assume responsibility under the majority of our standard natural gas compression contracts for obtaining any permits that may be required under the CWA, whether for discharges or developing property by filling wetlands.
−Removed: On January 18, 2023, the EPA and the U.S.
−Removed: 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”).
−Removed: On May 25, 2023, the U.S.
−Removed: Supreme Court invalidated parts of the 2023 WOTUS Rule in its decision in Sackett vs.
−Removed: 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.
−Removed: That rule became effective on September 8, 2023.
+Added: The EPA and the U.S.
+Added: Army Corps of Engineers have changed the standard for what constitutes jurisdictional waters and wetlands subject to the protections and requirements of the CWA from time to time.
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.
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A significant portion of our customers’ natural gas production is developed from unconventional sources that require hydraulic fracturing as part of the completion process.
−Removed: Legislation to amend the Safe Drinking Water Act (“SDWA”) to repeal the exemption for hydraulic fracturing from the definition of “underground injection” and require federal permitting and regulatory control of hydraulic fracturing, as well as legislative proposals to require disclosure of the chemical constituents of the fluids used in the fracturing process, have been proposed from time to time and the U.S.
−Removed: Congress continues to consider legislation to amend the SDWA.
+Added: Legislation to amend the Safe Drinking Water Act (“SDWA”) to repeal the exemption for hydraulic fracturing from the definition of “underground injection” and require federal permitting and regulatory control of hydraulic fracturing, as well as legislative proposals to require disclosure of the chemical constituents of the fluids used in the fracturing process, have been proposed from time to time.
Several states also have proposed or adopted legislative or regulatory restrictions on hydraulic fracturing, including prohibitions on the practice.
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In addition, where contamination may be present, neighboring landowners and other third parties sometimes file claims for personal injury, property damage, and recovery of response costs.
−Removed: While we generate materials in the course of our operations that may be regulated as hazardous substances, we have not received notification that we may be potentially responsible for cleanup costs under CERCLA at any site.
+Added: While we generate materials in the course of our operations that may be regulated as hazardous
+Added: substances, we have not received notification that we may be potentially responsible for cleanup costs under CERCLA at any site.
While we do not currently own or lease any material facilities or properties for storage or maintenance of our idle compression units, we may use third-party properties for such storage and possible maintenance and repair activities.
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We are not currently responsible for any remedial activities at any properties we use;
−Removed: 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
−Removed: Conservation and Recovery Act or other environmental laws.
+Added: 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.
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.
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Human Capital Management
−Removed: 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.
+Added: USA Compression Management Services, LLC (“USAC Management”), a wholly owned subsidiary of the General Partner, performs certain 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.
As of December 31, 2024, USAC Management had 854 full-time employees.
+Added: In addition, under our shared services model with Energy Transfer, in late 2024 we began utilizing the services of Energy Transfer employees in certain departments such as information technology, accounting, and human resources.
None of our employees are subject to collective bargaining agreements.
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A portion of our senior management bonuses and field leadership bonuses are dependent on our safety performance.
−Removed: We promote employee empowerment, leadership, communication, and personal responsibility to comply with standard operating procedures and regulatory requirements, effective risk reduction processes, and personal wellness.
Our goal is operational excellence, which includes maintaining an injury- and incident-free workplace.
To achieve this, we strive to hire and maintain a highly qualified and dedicated workforce, and create a safety culture with safety accountability as part of our daily operations.
−Removed: The OSHA Total Recordable Incident Rate (“TRIR”) is a key performance indicator by which we evaluate the success of our safety program.
−Removed: TRIR provides a measure of occupational safety performance for the year by calculating the number of recordable incidents compared to the total number of hours worked by all employees.
−Removed: Out of approximately 1.85 million hours worked in 2023, our TRIR was 0.65 for 2023 versus the 2023 industry average of 0.90.
−Removed: We believe our low TRIR speaks to our investment in and focus on safety.
+Added: We promote employee empowerment, leadership, communication, and personal responsibility to comply with standard operating procedures and regulatory requirements, effective risk reduction processes, and personal wellness.
Available Information
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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.