USAC: Multi-Year Visibility

Research evidence excerpt

USAC: Multi-Year Visibility

ty. USAC leveraged J-W's manufacturing capabilities to place 2026 0.90A 0.84E 0.86E 0.88E

multi-year engine orders through 2029, primarily targeting the highly Prev. 0.83E 0.88E 0.90E 0.93E

desired 3600 series engines. This positioning allows the company to 2027 0.90E 0.92E 0.94E 0.95E

maintain approximately 100,000 to 125,000 horsepower annual growth Prev. 0.93E 0.95E 0.97E 0.98E Distribution/Unit

while securing optionality to sell engines if market conditions shift. 2025 0.53A 0.53A 0.53A 0.53A

2026 0.53A 0.53E 0.53E 0.53E

M&A appetite is selective, with generation and compression tuck-ins on 2027 0.53E 0.53E 0.53E 0.53E

the radar. USAC has evaluated the power generation market but previously All values in USD unless otherwise noted.

walked away due to shorter contract structures and less operational Priced as of prior trading day's market close, EST (unless otherwise noted).

stickiness vs. compression. Management would entertain generation

assets with longer-term contracts, though valuation would be a key hurdle.

A handful of smaller compression startups exist as potential tuck-in targets,

and sale-leaseback conversations continue.

Updating estimates: We now forecast 2026/2027 Adjusted EBITDA of

$785MM/836MM (was $785MM/$833MM). Given its stronger balance

sheet and higher distribution coverage, USAC could evaluate distribution

increases, if cash flow is durable and supported by multi-year contracts

bookings. We maintain flat distributions in 2026 and 2027.

Disseminated: Jun 4, 2026 18:14EDT; Produced: Jun 4, 2026 18:14EDT

For Required Conflicts Disclosures, see page 6

RBC Capital Markets appreciates your consideration in the 2026 Extel All-America and All-Canada Research Team survey.