USA Compression Partners, LP (NYSE: USAC) is one of the largest independent providers of natural gas compression services in the United States. Founded in 1998, the company operates as a master limited partnership (MLP) and focuses on providing large-horsepower, infrastructure-oriented compression services. These services are critical for the production, processing, gathering, and transportation of natural gas through domestic pipeline systems. The company's business model is centered on deploying its compression units under long-term, fixed-fee contracts, which provides stable and predictable cash flows largely insulated from short-term commodity price fluctuations. USA Compression engineers, designs, operates, services, and repairs its fleet, maintaining a comprehensive inventory of parts and equipment to ensure high runtime for its customers. The vast majority of its revenue (typically over 98%) is generated from contract operations, with a minor portion coming from retail parts and service sales. Its geographic footprint spans major U.S. shale plays, including the Permian, Marcellus, Utica, and Eagle Ford basins, serving a diverse customer base of exploration and production (E&P) companies, midstream operators, and local distribution companies.
