USA Compression Partners, LP Reports Second Quarter 2016 Results and Updates 2016 Outlook

USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the
“Partnership”) announced today its financial and operating results for
the second quarter 2016.

Second Quarter 2016 Summary Results

• Revenues decreased; second quarter 2016 down 4.3% from second quarter
  2015
• Net income increased; second quarter 2016 up 120.6% from second
  quarter 2015
• Net cash provided by operating activities increased; second quarter
  2016 up 7.2% from second quarter 2015
• Adjusted EBITDA decreased; second quarter 2016 down 3.8% from second
  quarter 2015
• Distributable Cash Flow decreased; second quarter 2016 down 1.6% from
  second quarter 2015
• Second quarter 2016 cash distribution of $0.525 per common unit,
  consistent with second quarter 2015
• Distributable Cash Flow Coverage of 1.03x for second quarter 2016
• Cash Coverage of 1.33x for second quarter 2016

Full-Year 2016 Outlook

USA Compression is updating its full-year 2016 guidance as follows:

• Net income range of $14.7 million to $24.7 million;
• A forward-looking estimate of net cash provided by operating
  activities is not provided because the items necessary to estimate net
  cash provided by operating activities, in particular the change in
  operating assets and liabilities, are not accessible or estimable at
  this time. The Partnership does not anticipate the changes in
  operating assets and liabilities to be material, but changes in
  accounts receivable, accounts payable, accrued liabilities and
  deferred revenue could be significant, such that the amount of net
  cash provided by operating activities would vary substantially from
  the amount of projected Adjusted EBITDA and Distributable Cash Flow;
• Adjusted EBITDA range of $140 million to $150 million; and
• Distributable Cash Flow range of $110 million to $120 million.

Second Quarter 2016 Financial and Operating
Performance

Revenues in the second quarter of 2016 decreased 4.3% to $63.5 million
from $66.4 million for the second quarter of 2015. Net income increased
120.6% to $3.3 million for the second quarter of 2016 as compared to a
net loss of $15.9 million for the second quarter of 2015. Operating
income increased 174.9% to $8.5 million for the second quarter of 2016
as compared to an operating loss of $11.4 million for the second quarter
of 2015. Net cash provided by operating activities increased 7.2% to
$36.5 million in the second quarter of 2016 as compared to $34.0 million
in the second quarter of 2015. Adjusted EBITDA decreased 3.8% to $37.1
million in the second quarter of 2016 from $38.6 million for the second
quarter of 2015. Distributable Cash Flow decreased 1.6% to $30.5 million
in the second quarter of 2016 from $31.0 million for the second quarter
of 2015.

“We are pleased with the results of our second quarter 2016. Our natural
gas infrastructure oriented asset base continues to produce stable cash
flows in a challenging energy market,” said Eric D. Long, USA
Compression’s President and Chief Executive Officer. “We generated
sufficient distributable cash flow to maintain our distribution and are
encouraged by recent discussions with a variety of our customers that
signal the potential for an increase in activity in late 2016 and into
2017. In addition, we are updating our 2016 outlook.”

“We continue to be disciplined with regards to our capital spending, and
at present have only 7,110 horsepower on order for delivery in the
remainder of 2016,” he said. “Our projected capital expenditures of
$40-50 million for the year remain unchanged.”

Average revenue generating horsepower decreased 1.9% to 1,378,496 for
the second quarter of 2016 from 1,405,039 for the second quarter of
2015. Average revenue per revenue generating horsepower per month
decreased 2.0% to $15.52 for the second quarter of 2016 from $15.83 for
the second quarter of 2015.

Gross operating margin decreased 5.2% to $44.9 million for the second
quarter of 2016 from $47.3 million for the second quarter of 2015. Gross
operating margin as a percentage of total revenues was 70.6% for the
second quarter of 2016 compared to 71.3% in the second quarter of 2015.

Expansion capital expenditures were $4.0 million, maintenance capital
expenditures were $1.6 million and cash interest expense, net was $4.6
million for the quarter ended June 30, 2016.

On July 21, 2016, the Partnership announced a cash distribution of
$0.525 per unit on its common units. This second quarter distribution
corresponds to an annualized distribution rate of $2.10 per unit. The
distribution will be paid on August 12, 2016 to unitholders of record as
of the close of business on August 2, 2016. USA Compression Holdings,
LLC, the owner of approximately 42.5% of the Partnership’s outstanding
limited partner interests, elected to reinvest 50% of this distribution
with respect to its units pursuant to the Partnership’s Distribution
Reinvestment Plan (the “DRIP”). For the second quarter of 2016, the
Distributable Cash Flow Coverage Ratio was 1.03x and the Cash Coverage
Ratio was 1.33x.

Liquidity and Credit Facility

As of June 30, 2016, the Partnership was in compliance with all
covenants and the outstanding balance under the Partnership’s $1.1
billion revolving credit facility was approximately $735.1 million. The
facility matures in 2020.

Conference Call

The Partnership will host a conference call today beginning at
11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss second
quarter 2016 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio webcast.

About USA Compression Partners, LP

USA Compression Partners, LP is a growth-oriented Delaware limited
partnership that is one of the nation’s largest independent providers of
compression services in terms of total compression fleet horsepower. The
Partnership partners with a broad customer base composed of producers,
processors, gatherers and transporters of natural gas and crude oil. The
Partnership focuses on providing compression services to infrastructure
applications primarily in high-volume gathering systems, processing
facilities and transportation applications. More information is
available at usacompression.com.

Non-GAAP Financial Measures

This news release includes the non- GAAP financial measures of Adjusted
EBITDA, gross operating margin, Distributable Cash Flow, Distributable
Cash Flow Coverage Ratio and Cash Coverage Ratio.

The Partnership’s management views Adjusted EBITDA as one of its primary
financial measures in evaluating the results of the Partnership’s
business, and the Partnership tracks this item on a monthly basis both
as an absolute amount and as a percentage of revenue compared to the
prior month, year-to-date and prior year and to budget. The Partnership
defines EBITDA as net income (loss) before net interest expense,
depreciation and amortization expense, and income taxes. The Partnership
defines Adjusted EBITDA as EBITDA plus impairment of compression
equipment, impairment of goodwill, interest income on capital lease,
unit-based compensation expense, severance charges, certain transaction
fees and loss (gain) on sale of assets and other. Adjusted EBITDA is
used as a supplemental financial measure by the Partnership’s management
and external users of its financial statements, such as investors and
commercial banks, to assess:

• the financial performance of the Partnership’s assets without regard
  to the impact of financing methods, capital structure or historical
  cost basis of the Partnership’s assets;
• the viability of capital expenditure projects and the overall rates of
  return on alternative investment opportunities;
• the ability of the Partnership’s assets to generate cash sufficient to
  make debt payments and distributions; and
• the Partnership’s operating performance as compared to those of other
  companies in its industry without regard to the impact of financing
  methods and capital structure.

The Partnership’s management believes that Adjusted EBITDA provides
useful information to investors because, when viewed with GAAP results
and the accompanying reconciliations, it provides a more complete
understanding of the Partnership’s performance than GAAP results alone.
The Partnership’s management also believes that external users of its
financial statements benefit from having access to the same financial
measures that management uses in evaluating the results of the
Partnership’s business.

Adjusted EBITDA should not be considered an alternative to, or more
meaningful than, net income (loss), operating income, cash flows from
operating activities or any other measure of financial performance or
liquidity presented in accordance with GAAP, as measures of operating
performance and liquidity. Moreover, Adjusted EBITDA as presented may
not be comparable to similarly titled measures of other companies.

Gross operating margin is defined as revenue less cost of operations,
exclusive of depreciation and amortization expense. The Partnership’s
management believes that gross operating margin is useful as a
supplemental measure of the Partnership’s performance. Gross operating
margin is impacted primarily by the pricing trends for service
operations and cost of operations, including labor rates for service
technicians, volume and per unit costs for lubricant oils, quantity and
pricing of routine preventative maintenance on compression units and
property tax rates on compression units. Gross operating margin should
not be considered an alternative to, or more meaningful than, operating
income, its most directly comparable GAAP financial measure, or any
other measure of financial performance presented in accordance with
GAAP. Moreover, gross operating margin as presented may not be
comparable to similarly titled measures of other companies. Because the
Partnership capitalizes assets, depreciation and amortization of
equipment is a necessary element of its costs. To compensate for the
limitations of gross operating margin as a measure of the Partnership’s
performance, the Partnership’s management believes that it is important
to consider operating income determined under GAAP, as well as gross
operating margin, to evaluate the Partnership’s operating profitability.
A reconciliation of gross operating margin to operating income (expense)
is provided in this news release.

Distributable Cash Flow is defined as net income (loss) plus non-cash
interest expense, non-cash income tax expense, depreciation and
amortization expense, unit-based compensation expense, severance
charges, impairment of compression equipment, impairment of goodwill,
certain transaction fees and loss (gain) on sale of assets and other,
less maintenance capital expenditures. The definition of Distributable
Cash Flow is identical to the definition of Adjusted Distributable Cash
Flow previously presented.

The Partnership’s management believes Distributable Cash Flow is an
important measure of operating performance because such measure allows
management, investors and others to compare basic cash flows the
Partnership generates (prior to the establishment of any retained cash
reserves by the Partnership’s general partner and the effect of the
DRIP) to the cash distributions the Partnership expects to pay its
unitholders.

Distributable Cash Flow Coverage Ratio, a non-GAAP measure, is defined
as Distributable Cash Flow less cash distributions to the Partnership’s
general partner and incentive distribution rights (“IDRs”), divided by
distributions declared to limited partner unitholders for the period.
Cash Coverage Ratio is defined as Distributable Cash Flow less cash
distributions to the Partnership’s general partner and IDRs divided by
cash distributions paid to limited partner unitholders, after taking
into account the non-cash impact of the DRIP. The Partnership’s
management believes Distributable Cash Flow Coverage Ratio and Cash
Coverage Ratio are important measures of operating performance because
they allow management, investors and others to gauge the Partnership’s
ability to pay cash distributions to limited partner unitholders using
the cash flows the Partnership generates. The Partnership’s
Distributable Cash Flow Coverage Ratio and Cash Coverage Ratio as
presented may not be comparable to similarly titled measures of other
companies.

This news release also contains a forward-looking estimate of Adjusted
EBITDA and Distributable Cash Flow projected to be generated by the
Partnership in its 2016 fiscal year. A forward-looking estimate of net
cash provided by operating activities and reconciliations of the
forward-looking estimates of Adjusted EBITDA and Distributable Cash Flow
to net cash provided by operating activities are not provided because
the items necessary to estimate net cash provided by operating
activities, in particular the change in operating assets and
liabilities, are not accessible or estimable at this time. The
Partnership does not anticipate the changes in operating assets and
liabilities to be material, but changes in accounts receivable, accounts
payable, accrued liabilities and deferred revenue could be significant,
such that the amount of net cash provided by operating activities would
vary substantially from the amount of projected Adjusted EBITDA and
Distributable Cash Flow.

See “Reconciliation of Non-GAAP Financial Measures” for Adjusted EBITDA
reconciled to net income (loss) and net cash provided by operating
activities, and net income (loss) and net cash provided by operating
activities reconciled to Distributable Cash Flow, Distributable Cash
Flow Coverage Ratio and Cash Coverage Ratio.

Forward-Looking Statements

Some of the information in this news release may contain forward-looking
statements. These statements can be identified by the use of
forward-looking terminology including “may,” “believe,” “expect,”
“intend,” “anticipate,” “estimate,” “continue,” or other similar words,
and include the Partnership’s expectation of future performance
contained herein, including as described under “Full-Year 2016 Outlook.”
These statements discuss future expectations, contain projections of
results of operations or of financial condition, or state other
“forward-looking” information. You are cautioned not to place undue
reliance on any forward-looking statements, which can be affected by
assumptions used or by known risks or uncertainties. Consequently, no
forward-looking statements can be guaranteed. When considering these
forward-looking statements, you should keep in mind the risk factors
noted below and other cautionary statements in this news release. The
risk factors and other factors noted throughout this news release could
cause actual results to differ materially from those contained in any
forward-looking statement. Known material factors that could cause the
Partnership’s actual results to differ materially from the results
contemplated by such forward-looking statements are described in Part I,
Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2015, which was filed on February
11, 2016, and include:

• changes in general economic conditions and changes in economic
  conditions of the crude oil and natural gas industry specifically;
• competitive conditions in the industry;
• changes in the long-term supply of and demand for crude oil and
  natural gas;
• our ability to realize the anticipated benefits of acquisitions and to
  integrate the acquired assets with our existing fleet;
• actions taken by the Partnership’s customers, competitors and
  third-party operators;
• the deterioration of the financial condition of our customers;
• changes in the availability and cost of capital;
• operating hazards, natural disasters, weather-related delays, casualty
  losses and other matters beyond the Partnership’s control;
• the effects of existing and future laws and governmental regulations;
• the effects of future litigation; and
• other factors discussed in the Partnership’s filings with the
  Securities and Exchange Commission.

All forward-looking statements speak only as of the date of this news
release and are expressly qualified in their entirety by the foregoing
cautionary statements. Unless legally required, the Partnership
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise. Unpredictable or unknown factors not discussed herein also
could have material adverse effects on forward-looking statements.

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