THE
WOODLANDS, Texas, Nov. 2, 2023
/PRNewswire/ -- CSI Compressco LP ("CSI," or the "Partnership")
(NASDAQ: CCLP) today announced third quarter 2023 results.
Third Quarter 2023 Results:
- Total revenues were $99.7 million
compared to $94.9 million in the
third quarter 2022.
- Contract services revenue increased to $71.5 million compared to $67.5 million in the third quarter 2022.
- Net loss was $0.9 million
compared to a net loss of $4.5
million in the third quarter 2022.
- Adjusted EBITDA was $33.8 million
compared to $29.8 million in the
third quarter 2022.
- Trailing Twelve Months Adjusted EBITDA was $129.5 million.
- Compression fleet utilization increased to 87.6% compared to
85.1% in the third quarter 2022.
- Operating horsepower increased to 1,026,918 compared to
1,022,106 in the third quarter 2022.
- Distributable cash flow was $14.0
million compared to $11.1
million in the third quarter 2022.
- Distribution coverage ratio was 9.9x compared to 7.8x in the
third quarter 2022.
- Third quarter of 2023 distribution of $0.01 per common unit will be paid on
November 14, 2023.
- Net Leverage Ratio was 4.8x compared to 5.7x in the third
quarter 2022.
- CSI has no significant credit facility or debt maturities until
2025.
Management Commentary
John Jackson, CEO of CSI
Compressco commented, "Our third quarter results reflect the
continuing improvements in operational execution amid the backdrop
of a strong, resilient natural gas compression market. The
operating results reflect continued improvement in our contract
services gross profit percentage, increased quarterly EBITDA,
improving leverage metrics, and another sequential increase in
utilization. Our outlook continues to be upbeat as the
visibility of demand continues to be robust and longer in
duration.
Demand for medium and large HP (400 HP+) remains strong as we
exit 2023 and look to 2024 and beyond. This is evidenced by
utilization rates across the industry, the tight available supply,
and the sustained incremental demand from customers. Our overall
fleet utilization continued to improve, up to 87.6% and the
reciprocating fleet utilization also increased to 93.9%. Our
reciprocating fleet represents approximately 83% of our total
horsepower. Regarding the incremental new build demand, we have
committed capital for 2023 and 2024 with signed contracts for large
HP units for delivery beginning in the fourth quarter 2023 and
continuing into the third quarter of 2024.
Our net leverage metric continues to improve, currently at 4.8x
and down from 5.1x at June 30, 2023.
We remain committed to limiting our capital spending during 2023
such that CSI Compressco will generate free cash flow during the
year and our current net debt metrics reflect that free cash flow
generation during 2023.
The long-term outlook continues to have a very constructive
& positive tone. Our current known demand from our customers
for 2024 horsepower exceeds what we can supply from our existing
fleet. We are entering the final budget phase for many of our
customers and the request for 2025 capital commitments is ramping
up considerably. Over the fourth quarter of 2023 and the first
quarter of 2024 we will begin the allocation of CSI Compressco's
capital for 2025. This strength in the demand allows us to pursue
organic growth with strong returns while continuing to improve the
terms related to our existing fleet. We still have significant
opportunities for improvements to our rates, contracts to convert
to CPI inflation protection and length of terms on our existing
fleet. This occurs as our contracts come up for renewal and 2024
will be another active year to continue moving our contract
services fleet to market.
This current cycle is like no other that we have experienced. It
is strong, growing and disciplined. As a result, we continue to
have confidence in a lengthy cycle. We are very optimistic about
the future of natural gas, the compression space, and in particular
in CSI Compressco's position to thrive in this environment."
This press release includes the following financial measures
that are not presented in accordance with generally accepted
accounting principles in the United
States ("U.S. GAAP"): Adjusted EBITDA, distributable cash
flow, distribution coverage ratio, free cash flow, and net leverage
ratio. Please see Schedules B-E for reconciliations of these
non-GAAP financial measures to the most directly comparable U.S.
GAAP measures.
Unaudited results of operations for the quarter ended
September 30, 2023 compared to the
prior quarter and the corresponding prior year quarter are
presented in the table below.
|
Three Months
Ended
|
|
|
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Sep 30,
2022
|
|
Q3-2023 v
Q2-2023
|
|
Q3-2023 v
Q3-2022
|
|
(In Thousands, except
percentage changes)
|
Net loss
|
$
(947)
|
|
$
(2,573)
|
|
$
(4,451)
|
|
63 %
|
|
79 %
|
Adjusted
EBITDA
|
$
33,839
|
|
$
32,530
|
|
$
29,782
|
|
4 %
|
|
14 %
|
Distributable cash
flow
|
$
13,959
|
|
$
11,390
|
|
$
11,075
|
|
23 %
|
|
26 %
|
Net cash provided by
(used in) operating activities
|
$
35,162
|
|
$
4,772
|
|
$
42,395
|
|
637 %
|
|
17 %
|
Free cash
flow
|
$
22,949
|
|
$
(2,872)
|
|
$
24,983
|
|
(899) %
|
|
8 %
|
As of September 30, 2023, total
compressor fleet horsepower was 1,171,628, fleet horsepower in
service was 1,026,918, for an overall fleet utilization rate of
87.6% (we define the overall service fleet utilization rate as the
service compressor fleet horsepower in service divided by the total
compressor fleet horsepower). Idle horsepower equipment under
repair is not considered utilized, but we do count units on standby
as utilized when the client is being billed a standby service
rate.
Balance Sheet
Cash on hand at the end of the third quarter was $15.5 million. At the end of the third quarter,
$47.2 million was outstanding on the
Partnership's credit facilities. Our debt also includes
$400.0 million of first lien secured
bonds due in 2025 and $172.7 million
of second lien secured bonds due in 2026. Net leverage ratio at the
end of the quarter was 4.8x.
As of September 30, 2023, our borrowing base availability
under our credit facilities was $52.7
million. Total liquidity at quarter-end was $68.2 million. As of October 30, 2023, our
borrowing base availability under our credit facilities totaled
$41.4 million, and total liquidity
was approximately $52.8 million. This
compares to total liquidity of $46.4
million at year end 2022.
Capital Expenditures - 2023 Expectations
We expect capital expenditures for 2023 to be between
$49.0 million and $54.0 million. These capital expenditures include
approximately $20.0 million and
$23.0 million of maintenance capital
expenditures, approximately $26.0
million and $28.0 million of
capital expenditures primarily associated with the expansion of our
contract services fleet, and $3.0
million and $4.0 million of
capital expenditures related to investments in technology,
primarily software and systems. The increase in capital expenditure
guidance, when compared to the prior quarter, is offset by the
redeployment of cash proceeds from the Egypt asset sale of $5.8 million.
Third Quarter 2023 Cash Distribution on Common Units
On October 19, 2023, the board of
directors of our general partner declared a cash distribution
attributable to the quarter ended September
30, 2023 of $0.01 per
outstanding common unit. This distribution equates to a
distribution of $0.04 per outstanding
common unit on an annualized basis. This distribution will be paid
on November 14, 2023 to each of the
holders of common units of record as of the close of business on
October 30, 2023. The distribution
coverage ratio for the third quarter of 2023 was 9.9x.
Conference Call
CSI will host a conference call to discuss third quarter results
today, November 2, 2023, at 10:30 a.m. Eastern
Time. The phone number for the call is
1-866-374-8397. The conference call will also be available by
live audio webcast and may be accessed through CSI's website
at www.csicompressco.com. An audio replay of the conference
call will be available at 1-877-344-7529, conference number
10183761, replay code 5672618, for one week following the
conference call and the archived webcast will be available through
CSI's website for thirty days following the conference call.
CSI Compressco Overview
CSI Compressco is a provider of contract services including
natural gas compression services and treating services. Natural gas
compression is used for natural gas and oil production, gathering,
artificial lift, transmission, processing, and storage. Treating
services include removal of contaminants from a natural gas stream
and cooling to reduce the temperature of produced gas and liquids.
CSI Compressco's compression and related services business includes
a fleet of approximately 4,500 compressor packages providing
approximately 1.2 million in aggregate horsepower, utilizing a full
spectrum of low-, medium- and high-horsepower engines. Our treating
fleet includes amine units, gas coolers, and related equipment. CSI
Compressco's aftermarket business provides compressor package
overhaul, repair, reconfiguration, and maintenance services as well
as the sale of compressor package parts and components manufactured
by third-party suppliers. Our customers comprise a broad base of
natural gas and oil exploration and production, midstream,
transmission, and storage companies operating throughout many of
the onshore producing regions of the
United States, as well as in a number of international
locations. including the countries of Mexico, Canada, Argentina, and Chile. CSI Compressco's General Partner is
owned by Spartan Energy Partners LP.
Forward-Looking Statements
This news release contains "forward-looking statements" and
information based on our beliefs and those of our general
partner, CSI Compressco GP LLC. Forward-looking statements in
this news release are identifiable by the use of the following
words and other similar words: "anticipates," "assumes,"
"believes," "budgets," "could," "estimates," "expectations,"
"expects," "forecasts," "goal," "intends," "may," "might," "plans,"
"predicts," "projects," "schedules," "seeks," "should," "targets,"
"will," and "would." These forward-looking statements include
statements, other than statements of historical fact, including
anticipated return of standby equipment to in service, the
redeployment of idle fleet compressors, joint-bidding on potential
projects with Spartan, commodity prices and demand for CSI
Compressco's equipment and services and other statements regarding
CSI Compressco's beliefs, expectations, plans, prospects and other
future events, performance, and other statements that are not
purely historical. Such forward-looking statements reflect our
current views with respect to future events and financial
performance, and are based on assumptions that we believe to be
reasonable, but such forward-looking statements are subject to
numerous risks and uncertainties, including but not limited to:
economic and operating conditions that are outside of our control,
including the trading price of our common units, and the supply,
demand, and price of oil and natural gas; the levels of competition
we encounter; our dependence upon a limited number of customers and
the activity levels of our customers; the levels of competition we
encounter; our ability to renew our contracts with our customers,
which are generally short-term contracts; the availability of
adequate sources of capital to us, including changes to interest
rates; our existing debt levels and our ability to obtain
additional financing; our ability to continue to make cash
distributions, or increase cash distributions from current levels,
after the establishment of reserves, payment of debt service and
other contractual obligations; the restrictions on our business
that are imposed under our long-term debt agreements; the credit
and risk profile of Spartan Energy Partners; risks related to
acquisitions and our growth strategy; the availability of raw
materials and labor at reasonable prices; risks related to our
foreign operations; the effect and results of litigation,
regulatory matters, environmental laws and regulations,
settlements, audits, assessments, and contingencies; information
technology risks, including the risk from cyberattack; acts of
terrorism, war or political or civil unrest in the United States of elsewhere, including the
Russian military invasion of Ukraine; operating hazards, natural disasters,
weather-related impacts, casualty losses and other matters beyond
our control; the effects of existing and future laws and
governmental regulations; global or national health concerns,
including the outbreak of pandemics or epidemics such as the
COVID-19 pandemic, including operational challenges, workforce
challenges, and supply chain disruptions; and other risks and
uncertainties contained in our Annual Report on Form 10-K and our
other filings with the U.S. Securities and Exchange Commission
("SEC"), which are available free of charge on the SEC website at
www.sec.gov. The risks and uncertainties referred to above are
generally beyond our ability to control and we cannot predict all
the risks and uncertainties that could cause our actual results to
differ from those indicated by the forward-looking statements. If
any of these risks or uncertainties materialize, or if any of the
underlying assumptions prove incorrect, actual results may vary
from those indicated by the forward-looking statements, and such
variances may be material. All subsequent written and verbal
forward-looking statements made by or attributable to us or to
persons acting on our behalf are expressly qualified in their
entirety by reference to these risks and uncertainties. You should
not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to update or
revise any forward-looking statements we may make, except as may be
required by law.
Reconciliation of Non-GAAP Financial Measures
The Partnership includes in this release the non-GAAP financial
measures Adjusted EBITDA, distributable cash flow, distribution
coverage ratio, free cash flow, and net leverage ratio. Adjusted
EBITDA is used as a supplemental financial measure by the
Partnership's management to:
- assess the Partnership's ability to generate available cash
sufficient to make distributions to the Partnership's unitholders
and general partner;
- evaluate the financial performance of its assets without regard
to financing methods, capital structure or historical cost
basis;
- measure operating performance and return on capital as compared
to those of our competitors; and
- determine the Partnership's ability to incur and service debt
and fund capital expenditures.
The Partnership defines Adjusted EBITDA as earnings before
interest, taxes, depreciation and amortization, and before certain
charges, including impairments, bad debt expense attributable to
bankruptcy of customers, equity compensation, non-cash costs of
compressors sold, gain on extinguishment of debt, write-off of
unamortized financing costs, and excluding, severance and other
non-recurring or unusual expenses or charges.
Distributable cash flow is used as a supplemental financial
measure by the Partnership's management, as it provides important
information relating to the relationship between our financial
operating performance and our cash distribution capability.
Additionally, the Partnership uses distributable cash flow in
setting forward expectations and in communications with the board
of directors of our general partner. The Partnership defines
distributable cash flow as Adjusted EBITDA less current income tax
expense, maintenance capital expenditures, interest expense, and
severance expense, plus non-cash interest expense.
The Partnership believes that the distribution coverage ratio
provides important information relating to the relationship between
the Partnership's financial operating performance and its cash
distribution capability. The Partnership defines the distribution
coverage ratio as the ratio of distributable cash flow to the total
quarterly distribution payable, which includes, as applicable,
distributions payable on all outstanding common units and the
general partner interest.
The Partnership defines free cash flow as net cash provided by
operating activities less capital expenditures, net of sales
proceeds. Management primarily uses this metric to assess our
ability to retire debt, evaluate our capacity to further invest and
grow, and measure our performance as compared to our peer group of
companies.
The Partnership defines net leverage ratio as net debt (the sum
of the carrying value of long-term and short-term debt on its
consolidated balance sheet, less cash, excluding restricted cash on
the consolidated balance sheet and excluding outstanding letters of
credit) divided by Adjusted EBITDA for calculating net leverage
(Adjusted EBITDA as reported externally adjusted for certain items
to comply with its credit agreement) for the trailing twelve-month
period. Management primarily uses this metric to assess the
Partnership's ability to borrow, reduce debt, add to cash balances,
pay distributions, and fund investing and financing activities.
These non-GAAP financial measures should not be considered an
alternative to net income, operating income, cash flows from
operating activities, or any other measure of financial performance
presented in accordance with U.S. GAAP. These non-GAAP financial
measures may not be comparable to Adjusted EBITDA, distributable
cash flow, free cash flow or other similarly titled measures of
other entities, as other entities may not calculate these non-GAAP
financial measures in the same manner as CSI. Management
compensates for the limitation of these non-GAAP financial measures
as an analytical tool by reviewing the comparable U.S. GAAP
measures, understanding the differences between the measures and
incorporating this knowledge into management's decision-making
process. Furthermore, these non-GAAP measures should not be viewed
as indicative of the actual amount of cash that CSI has available
for distributions or that the Partnership plans to distribute for a
given period, nor should they be equated to available cash as
defined in the Partnership's partnership agreement.
Schedule A - Income Statement
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Sep 30,
2022
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
(In Thousands, Except
per Unit Amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Contract
services
|
$
71,457
|
|
$
70,521
|
|
$
67,492
|
|
$
211,625
|
|
$
194,647
|
Aftermarket
services
|
23,686
|
|
21,209
|
|
23,192
|
|
62,246
|
|
52,273
|
Equipment
rentals
|
4,197
|
|
4,773
|
|
3,869
|
|
13,084
|
|
10,987
|
Equipment
sales
|
367
|
|
276
|
|
342
|
|
902
|
|
1,522
|
Total
revenues
|
$
99,707
|
|
$
96,779
|
|
$
94,895
|
|
$
287,857
|
|
$
259,429
|
Cost of revenues
(excluding depreciation and amortization expense):
|
|
|
|
|
|
|
|
|
|
Cost of contract
services
|
$
35,153
|
|
$
35,767
|
|
$
34,793
|
|
$
107,747
|
|
$
99,418
|
Cost of aftermarket
services
|
18,202
|
|
16,924
|
|
18,056
|
|
49,340
|
|
42,051
|
Cost of equipment
rentals
|
555
|
|
555
|
|
563
|
|
1,665
|
|
1,530
|
Cost of equipment
sales
|
411
|
|
249
|
|
66
|
|
867
|
|
683
|
Total cost of
revenues
|
$
54,321
|
|
$
53,495
|
|
$
53,478
|
|
$
159,619
|
|
$
143,682
|
Depreciation and
amortization
|
19,256
|
|
19,086
|
|
19,867
|
|
57,193
|
|
58,572
|
Impairments of
long-lived assets
|
—
|
|
—
|
|
135
|
|
—
|
|
135
|
Selling, general, and
administrative expense
|
11,686
|
|
12,291
|
|
10,731
|
|
33,956
|
|
32,483
|
Interest expense,
net
|
13,410
|
|
13,747
|
|
12,615
|
|
40,472
|
|
37,552
|
Other (income) expense,
net
|
1,772
|
|
(191)
|
|
1,661
|
|
1,065
|
|
2,530
|
Loss before taxes and
discontinued operations
|
$
(738)
|
|
$
(1,649)
|
|
$
(3,592)
|
|
$
(4,448)
|
|
$
(15,525)
|
Provision for income
taxes
|
209
|
|
924
|
|
940
|
|
1,685
|
|
2,497
|
Loss from continuing
operations
|
$
(947)
|
|
$
(2,573)
|
|
$
(4,532)
|
|
$
(6,133)
|
|
$
(18,022)
|
Loss from discontinued
operations, net of taxes
|
$
—
|
|
—
|
|
81
|
|
—
|
|
173
|
Net loss
|
$
(947)
|
|
(2,573)
|
|
(4,451)
|
|
(6,133)
|
|
(17,849)
|
Net loss per basic and
diluted common unit
|
$
(0.01)
|
|
$
(0.02)
|
|
$
(0.03)
|
|
$
(0.04)
|
|
$
(0.13)
|
Schedule B - Reconciliation of Net Loss to Adjusted EBITDA,
Distributable Cash Flow and Distribution Coverage Ratio
The following table reconciles net loss to Adjusted EBITDA,
distributable cash flow and distribution coverage ratio for the
three and nine month periods ended September
30, 2023, June 30, 2023 and
September 30, 2022:
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Sep 30,
2022
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
(In Thousands, except
Ratios)
|
Net loss
|
$
(947)
|
|
$
(2,573)
|
|
$
(4,451)
|
|
$
(6,133)
|
|
$
(17,849)
|
Interest expense,
net
|
13,410
|
|
13,747
|
|
12,615
|
|
40,472
|
|
37,552
|
Provision for income
taxes
|
209
|
|
924
|
|
940
|
|
1,685
|
|
2,497
|
Depreciation and
amortization
|
19,256
|
|
19,086
|
|
19,867
|
|
57,193
|
|
58,572
|
Impairments of fixed
assets and inventory
|
—
|
|
—
|
|
135
|
|
—
|
|
135
|
Non-cash cost of
compressors sold
|
411
|
|
249
|
|
66
|
|
867
|
|
683
|
Equity
compensation
|
457
|
|
516
|
|
458
|
|
1,334
|
|
1,232
|
Outside services costs
related to unit disposals
|
—
|
|
155
|
|
—
|
|
155
|
|
—
|
Severance
|
88
|
|
58
|
|
233
|
|
213
|
|
233
|
Fire Damaged
Unit
|
893
|
|
—
|
|
—
|
|
893
|
|
—
|
Provision for income
taxes, depreciation,
amortization and impairments attributed to
discontinued operations
|
—
|
|
—
|
|
(81)
|
|
—
|
|
(173)
|
Other
|
62
|
|
368
|
|
—
|
|
430
|
|
—
|
Transaction
Costs
|
—
|
|
—
|
|
—
|
|
—
|
|
210
|
Adjusted
EBITDA
|
$
33,839
|
|
$
32,530
|
|
$
29,782
|
|
$
97,109
|
|
$
83,092
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Current income tax
expense
|
352
|
|
1,146
|
|
784
|
|
2,058
|
|
2,286
|
Maintenance capital
expenditures
|
6,105
|
|
6,005
|
|
5,121
|
|
16,408
|
|
13,723
|
Interest
expense
|
13,410
|
|
13,747
|
|
12,615
|
|
40,472
|
|
37,552
|
Severance and
other
|
88
|
|
309
|
|
233
|
|
464
|
|
443
|
Plus:
|
|
|
|
|
|
|
|
|
|
Non-cash items included
in interest expense
|
75
|
|
67
|
|
46
|
|
104
|
|
308
|
Distributable cash
flow
|
$
13,959
|
|
$
11,390
|
|
$
11,075
|
|
$
37,811
|
|
$
29,396
|
|
|
|
|
|
|
|
|
|
|
Cash distribution
attributable to period
|
$
1,412
|
|
$
1,412
|
|
$
1,412
|
|
$
4,236
|
|
$
4,236
|
Distribution coverage
ratio
|
9.9x
|
|
8.1x
|
|
7.8 x
|
|
8.9x
|
|
6.9x
|
Schedule C - Reconciliation of Net Cash Provided by
Operating Activities Operations to Free Cash Flow
The following table reconciles net cash provided by operating
activities to free cash flow for the three month periods ended
September 30, 2023, June 30, 2023 and September 30, 2022:
Results of
Operations (unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Sep 30,
2022
|
|
(In
Thousands)
|
Net cash provided by
(used in) operating activities
|
$
35,162
|
|
$
4,772
|
|
$
42,395
|
Capital expenditures,
net of sales proceeds
|
(12,213)
|
|
(7,644)
|
|
(17,412)
|
Free cash
flow
|
$
22,949
|
|
$
(2,872)
|
|
$
24,983
|
Schedule D – Reconciliation to Adjusted EBITDA Margin
(unaudited)
|
Three Months
Ended
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Sep 30,
2022
|
Consolidated
|
(In Thousands, except
Margin %)
|
Revenue
|
$ 99,707
|
|
$ 96,779
|
|
$ 94,895
|
Loss before taxes and
discontinued operations
|
$
(738)
|
|
$
(1,649)
|
|
$
(3,592)
|
Adjusted loss margin
before taxes and discontinued operations
|
(0.7) %
|
|
(1.7) %
|
|
(3.8) %
|
Adjusted EBITDA
(Schedule B)
|
$ 33,839
|
|
$ 32,530
|
|
$ 29,782
|
Adjusted EBITDA
Margin
|
33.9 %
|
|
33.6 %
|
|
31.4 %
|
Schedule E – Reconciliation of Net Loss to Adjusted
EBITDA for Net Leverage Ratio Calculation (unaudited)
(In thousands, except
ratios)
|
|
|
Twelve Months
Ended
|
|
Sep 30, 2023
|
|
|
Net loss
|
$
(10,379)
|
Interest expense,
net
|
53,423
|
Provision for income
taxes
|
3,974
|
Depreciation and
amortization
|
76,852
|
Impairments and other
charges
|
—
|
Non-cash cost of
compressors sold
|
1,566
|
Equity
Compensation
|
1,724
|
Outside services costs
related to unit disposals
|
155
|
Provision for income
taxes, depreciation, amortization and impairments attributed to
discontinued operations
|
—
|
Severance
|
412
|
Other
|
870
|
Adjusted
EBITDA
|
$
129,490
|
|
Debt
Schedule
|
Sep 30,
2023
|
7.50% First Lien
Notes
|
$
400,000
|
10.00%/10.75% Second
Lien Notes
|
172,717
|
Asset Based
Loan
|
47,200
|
Finance
Lease
|
14,869
|
Cash on Hand
|
(15,502)
|
Net
Debt
|
$
619,284
|
|
|
Net Leverage Ratio
(Net Debt/Adjusted EBITDA for Net Leverage
Calculation)
|
4.8x
|
Schedule F – Balance Sheet
|
September
30,
2023
|
|
December 31,
2022
|
(In
thousands)
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
15,502
|
|
$
8,475
|
Trade accounts
receivable, net of allowances for doubtful accounts of $365 as
of
September 30, 2023 and $736 as of December 31, 2022
|
54,864
|
|
65,085
|
Trade receivable -
affiliate
|
608
|
|
948
|
Inventories
|
46,715
|
|
45,902
|
Prepaid expenses and
other current assets
|
7,123
|
|
7,905
|
Total current
assets
|
124,812
|
|
128,315
|
Property, plant, and
equipment:
|
|
|
|
Land and
building
|
7,227
|
|
7,227
|
Compressors and
equipment
|
1,126,515
|
|
1,103,657
|
Vehicles
|
8,749
|
|
8,640
|
Construction in
progress
|
31,410
|
|
37,183
|
Total property, plant,
and equipment
|
1,173,901
|
|
1,156,707
|
Less accumulated
depreciation
|
(651,838)
|
|
(611,734)
|
Net property, plant,
and equipment
|
522,063
|
|
544,973
|
Other
assets:
|
|
|
|
Intangible assets, net
of accumulated amortization of $38,846 as of September
30, 2023 and $36,627 as of December 31, 2022
|
16,921
|
|
19,140
|
Operating lease
right-of-use assets
|
25,028
|
|
27,205
|
Deferred tax
asset
|
3
|
|
3
|
Other assets
|
3,412
|
|
2,767
|
Total other
assets
|
45,364
|
|
49,115
|
Total assets
|
$
692,239
|
|
$
722,403
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
22,408
|
|
$
34,589
|
Accrued liabilities and
other
|
60,067
|
|
49,666
|
Total current
liabilities
|
82,475
|
|
84,255
|
Other
liabilities:
|
|
|
|
Long-term debt,
net
|
619,341
|
|
634,016
|
Deferred tax
liabilities
|
1,034
|
|
1,245
|
Operating lease
liabilities
|
16,504
|
|
19,419
|
Other long-term
liabilities
|
7,532
|
|
8,742
|
Total other
liabilities
|
644,411
|
|
663,422
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
General partner
interest
|
(1,667)
|
|
(1,618)
|
Common units
(141,995,028 units issued and outstanding at September 30,
2023 and 141,237,462 units issued and outstanding at December 31,
2022)
|
(18,563)
|
|
(9,250)
|
Accumulated other
comprehensive income (loss)
|
(14,417)
|
|
(14,406)
|
Total partners'
capital
|
(34,647)
|
|
(25,274)
|
Total liabilities and
partners' capital
|
$
692,239
|
|
$
722,403
|
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SOURCE CSI Compressco LP