USA Compression Partners and Energy Transfer Complete Previously Announced Transactions
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In addition to the above transactions, ETE completed its acquisition of
USAC’s general partner and approximately 12.5 million USAC common units
from
CDM currently owns and operates approximately 1.6 million horsepower of natural gas compression and is focused primarily on large horsepower applications. The acquisition of CDM is expected to provide significant benefits for USAC unitholders as the combined business will have increased geographic coverage and will be one of the leading domestic compression providers. The acquisition further expands USAC’s geographic presence into regions where USAC was previously underrepresented and results in USAC having broad coverage across U.S. regions. As part of its overall service offerings, CDM also provides a full range of gas treating and emissions testing services. CDM’s treating activities are complementary to USAC’s growing station services offerings, in which USAC provides turnkey gas handling solutions for customers. With over 70% of horsepower greater than 1,000 horsepower and an average unit size of approximately 700 horsepower, the CDM fleet has an average age of approximately 7 years and a current operating utilization rate of over 90%. On a pro forma combined basis, USAC owns and operates a compression fleet of approximately 3.4 million horsepower.
The transaction is expected to strengthen ETP’s balance sheet by allowing ETP to use the cash proceeds from the transactions to reduce leverage.
ABOUT THE PARTNERSHIPS
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking” statements.
Forward-looking statements are identified as any statement that does not
relate strictly to historical or current facts. Statements using words
such as “anticipate,” “believe,” “intend,” “project,” “plan,” “expect,”
“continue,” “estimate,” “goal,” “forecast,” “may” or similar expressions
help identify forward-looking statements. ETE, ETP and USAC cannot give
any assurance that expectations and projections about future events will
prove to be correct. Forward-looking statements are subject to a variety
of risks, uncertainties and assumptions. These risks and uncertainties
include the risks that the benefits contemplated by the transactions may
not be realized. Additional risks include: the potential impact of the
consummation of the transactions on relationships, including with
employees, suppliers, customers, competitors and credit rating agencies,
the ability to achieve revenue, DCF and EBITDA growth, and volatility in
the price of oil, natural gas, and natural gas liquids. Actual results
and outcomes may differ materially from those expressed in such
forward-looking statements. These and other risks and uncertainties are
discussed in more detail in filings made by ETE, ETP and USAC with the
The information contained in this press release is available at www.energytransfer.com and www.usacompression.com.
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Source:
USAC Investor Contact:
Matt
Liuzzi, 512-369-1624
Chief Financial Officer
mliuzzi@usacompression.com
or
Energy
Transfer Contacts:
Investor Relations:
Helen
Ryoo, Lyndsay Hannah, Brent Ratliff, 214-981-0795
or
Media
Relations:
Vicki Granado, 214-840-5820