Customer concentration
The ten largest customers account for a large share of revenue, so losing one can materially reduce cash flow.
- Scope
- Top customer accounts and contract renewals
- Materiality
- high
USA Compression Partners, LP
USA Compression Partners, LP is a Delaware limited partnership that provides natural gas compression services across the United States. Its business centers on owning and operating a large fleet of compression equipment used in gas processing, gas transportation, and crude oil production support.
59,2 %
11,2 %
+5,0 %
1.27
0.55
| % | |
|---|---|
| Contract compression services | 85% Fixed-fee rental and operation of compression units at customer sites. |
| Natural gas treating services | 8% Treating services provided alongside compression for gas handling applications. |
| Parts and service revenue | 5% Retail parts, maintenance work, freight, and crane-related services. |
| Related-party revenue | 2% Compression and related services provided to Energy Transfer-affiliated customers. |
The company serves energy-industry customers that need compression equipment to move, process, or produce hydrocarbons...
- Integrated oil companiesprimary
Buy compression services for large-scale production, processing, and transport systems where uptime and reliability matter.
- Independent exploration and production companiesprimary
Use compression and artificial lift to improve well performance and reduce operating complexity.
- Midstream processors and transportersprimary
Buy compression to move gas through gathering and pipeline systems and maintain throughput.
- Related-party Energy Transfer customerssecondary
Receive compression and related services through affiliated transactions in the ordinary course.
- Parts and service customerssecondary
Purchase maintenance support, retail parts, and reimbursable field services for installed units.
The business is concentrated in the United States, where it serves unconventional resource plays and domestic pipeline...
- •United States is the core market for all compression operations
- •Fleet is deployed across major shale and tight-oil basins
- •Permian, Marcellus, Utica, Eagle Ford, and Haynesville are key areas
- •Bakken exposure expanded after the J-W Power Acquisition
- •Geography matters because basin activity drives unit demand and redeployment
The company’s strategy is to deploy compression horsepower where shale and tight-oil production requires flexible,...
01
Expand and redeploy compression horsepowermedium-term
Fleet scale and placement determine utilization, contract wins, and customer coverage.
02
Renew and replace contracts on favorable termsshort-term
Fixed-fee contracts underpin cash flow stability and customer retention.
03
Maintain operational reliability and uptime
Customers outsource compression to maximize throughput and reduce downtime risk.
The business depends on continued drilling, production, and midstream activity in U.S...
Commodity-cycle exposure through customer activity
Compression demand depends on upstream and midstream activity tied to oil and gas production levels.
- Scope
- U.S. shale and tight-oil basins
- Materiality
- high
Supplier concentration and lead-time risk
Engines, frames, and other components come from a limited set of vendors, creating delay and pricing risk.
- Scope
- Caterpillar, Cummins, Ariel, Waukesha, and other key suppliers
- Materiality
- high
Competitive pressure
Rivals may offer newer fleets, lower prices, or more flexible terms, affecting renewals and market share.
- Scope
- Contract renewals and new deployments
- Materiality
- medium
Asset impairment on idle fleet
Units that cannot be redeployed economically may need to be written down to salvage value.
- Scope
- Idle or underutilized compression units
- Materiality
- medium
Revenue recognition on fixed-fee compression contracts
Affects reported revenue timing and quarter-to-quarter comparability
Long-lived asset impairment
Can create non-cash charges and reduce asset values
Related-party revenue classification
Affects revenue composition and customer concentration analysis
Unit-based compensation and severance
Affects operating expense comparability
: 29.4.2026