USA Compression Partners, LP - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by USA Compression Partners, LP on December 6, 2016. The filing addresses a Regulation FD disclosure made by a member of management of the general partner, USA Compression GP, LLC, regarding future capital expenditure expectations.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the current or prior periods. The only financial metric disclosed is the expected range for expansion capital expenditures.
Material Changes and Outlook
Management indicated that expansion capital expenditures for the year ending December 31, 2017, are expected to be generally consistent with the year ending December 31, 2016. The expected expenditure range is $40 million to $50 million. These expenditures are projected to primarily involve large horsepower equipment orders for deployment in the following regions:
- Delaware Basin: 70%
- Marcellus Shale: 30%
The filing explicitly states that these statements do not represent the formal guidance of the Partnership.
Risks and Contingencies
The information contained in this Item is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. Consequently, it is not subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference.
Key Facts for Investor Verification
- Verify the actual expansion capital expenditures for the year ended December 31, 2016, to confirm the baseline for the 2017 projection.
- Confirm whether the $40 million to $50 million range has been updated in subsequent formal guidance or earnings releases.
- Monitor the deployment progress of large horsepower equipment in the Delaware Basin and Marcellus Shale.
- Note that the disclosed figures are informal management comments and not formal guidance.