Good morning. Welcome to the USA Compression Partners LP's First Quarter 2019 Earnings Conference Call. During today's call, all parties will be in a listen only mode and following the call, the conference will be open for questions. This conference is being recorded today, May 7, 2019. I would now like to turn the conference over to Mr.
Chris Porter, Vice President, General Counsel and Secretary. Sir, please go ahead.
Good morning, everyone, and thank you for joining us. This morning, we released our financial results for the quarter ended March 31, 2019. You can find our earnings release as well as recording of this call in the Investor Relations section of our website at usacompression.com. The recording will be available through May 17, 2019. During this call, our management will discuss certain non GAAP measures.
You will find definitions and reconciliations of these non GAAP measures to the most comparable GAAP measures in the earnings release. As a reminder, our conference call will include forward looking statements. These statements include projections and expectations of our performance and represent our current beliefs. Actual results may differ materially. Please review the statements of risk included in this morning's release and in our SEC filings.
Please note that information provided on this call speaks only to management's views as of today, May 7, and may no longer be accurate at the time of a replay. I'll now turn the call over to Eric Long, President and CEO of USA Compressions.
Thank you, Chris. Good morning, everyone, and thanks for joining our call. Also with me is Matt Liuzzi, our CFO. This morning, we released our financial and operational results for the Q1 of 2019. With this quarter in the books, we've now owned the CDM assets for 4 full quarters and the integration is substantially complete.
We continue to be pleased with how the acquisition has turned out. Earlier this year, I discussed the positive outlook for 2019 and our focus as we kicked off the year. I'm happy to say that the market strength has continued through the Q1 and the outlook continues to be attractive. While natural gas prices have been volatile of late due to specific circumstances in West Texas, the natural gas sector as a whole continues to move forward driven by the same strong drivers we've discussed before. As we walk through our comments today, there are a couple of fundamental drivers that differentiate contract compression and specifically large horsepower infrastructure focused compression from those that drive the business of E and P companies or service suppliers tied to the drilling phase.
Their business is directly driven by commodity prices, which are basin specific and their ability to economically move incremental volumes out of their producing basins to the marketplace. Compression demand is driven by volumes of natural gas and corresponding regional pipeline pressures. Gas volumes are up, way up across the basins USA Compression operates in. Due to limited pipeline takeaway capacity, existing pipes are in many cases running full and at capacity, which means they are operating at higher than normal pressures requiring more compression horsepower to move those volumes. Many of USA's customers have firm transportation contractual arrangements on existing pipelines, which allows them to receive market pricing rather than to experience substantial basis differential reductions and they continue to develop and produce their oil and gas projects.
So USA's base business remains stable and strong. Over the next several years, multiple regional multiple major regional pipeline expansions are occurring across the basins in which USA Compression operates for both oil and natural gas, which will debottleneck the areas most likely improving basin specific commodity pricing and further stimulating an increase in development activity. USAA is well positioned to capitalize on continued major growth alongside of our long term core customers as well as major oil companies as they continue ramping up their activities in the Permian and Delaware basins of West Texas and Southeast New Mexico. Now turning to the Q1 of 2019. First, our fleet utilization and pricing both increased from 4th quarter levels, reflecting continuing efforts to deploy idle equipment.
2nd, operating margins were consistent with where we have operated our core compression services business over time. 3rd, we prudently spent growth capital during the quarter and will continue to self fund our 2019 CapEx program with no equity issuance anticipated. And last, while committed to operational excellence for our customers, we continue to be focused on the balance sheet and distribution coverage, both of which remain at levels acceptable for our stable business model. Last month, we declared our quarterly distribution of $0.525 per unit. Even at today's unit price, this equates to over a 12% yield.
While we all know the MLP equity market has had its challenges, even going back to our IPO in 2013, then followed by the collapse in oil prices in late 2014, we continue to believe as we always have that the USA Compression business model was and is capable of producing stable cash flows and rewarding our unitholders appropriately. Our large horsepower infrastructure focused demand driven business model provides for long term stability across commodity price cycles. And we are managing the business in a focused manner with prudent capital spending, focused revenue enhancement and effective expense controls. Given the financial market environment, we continue to play out for a future where self funding is the norm and additional equity is not required for our CapEx program. Our 2019 CapEx program reflects modest growth focused on high return assets in order to balance customer demand in our balance sheet capabilities, resulting in attractive financial returns for USA's unitholders.
Our business is driven by the production of natural gas and the movement through pipeline systems and processing plants. Demand for natural gas continues due to its relative abundance, attractive pricing for end users and the environmentally friendly characteristics. We don't see this changing anytime soon. And as we've said, the more gas moving through the system, the more the demand for our compression services. The EIA continues to see increasing production in the U.
S. It estimates 91 Bcf per day in 2019, reflecting almost a 10% increase over 2018 levels. This increasing production, which is transported through the U. S. And far beyond our shores, is requiring our customers to continue to invest in infrastructure to move, process and ultimately deliver that gas.
As I mentioned, the increase is in both utilization and pricing. As everyone is aware, we are effectively sold out of available idle equipment in the large horsepower classes, but we continue to work to increase both metrics selectively pushing through rate increases and making sure our assets are achieving optimal pricing out in the field. 1 quarter into 2019, the market has been playing out as we expected and we continue to believe our focus on large horsepower infrastructure oriented applications will differentiate USA Compression from our peers. This year, we are taking a prudent approach to capital spending and as the year continues, we will start to make plans for 2020 beyond. Those things stand right now, we believe we are in a really good position.
So now for the 4th quarter results. In the first quarter, the market remains strong with average utilization during the quarter of 24.2% compared to Q4 average utilization of 93.8%. As our fleet continues our fleet review continues, we have been purposely bringing some units back from customers and deploying them elsewhere to generate better returns. For the remainder of the year, we have approximately 103,000 new horsepower set to be delivered. Those units are already committed to customers with many of them fully contracted.
The demand for the largest horsepower classes has continued to remain strong. From an operating perspective, our total fleet horsepower at period end was virtually unchanged at approximately 3,600,000 horsepower. Active horsepower at period end increased by over 31,000 horsepower to just under 3,300,000 horsepower. Our relatively small amount of idle equipment consists primarily of the much smaller horsepower units, which actually have seen a bit of an uptick in utilization. We haven't changed our focus on the larger horsepower equipment and don't expect to acquire a meaningful amount of smaller horsepower equipment.
But as we are able, we've been working to get the smaller horsepower auto units out working in the field as long as the economics are right and the attractive run-in crude prices has helped in this regard. The average blend of pricing across the fleet tick upwards during the quarter by a few cents as a result of new delivery units and selective service rate increases on equipment already deployed and working in the field. Average monthly revenue was $16.45 per horsepower for Q1, a slight increase over the Q4. This will continue to be a focus for us as we move through the year. We expect general midstream infrastructure activity levels and tight supply demand dynamics for large horsepower equipment to continue to be positive for both utilization and pricing in the sector.
Earlier, I mentioned our plan to prudently spend growth capital allocation in 2019 and we continue to expect to spend somewhere between $140,000,000 $150,000,000 in expansion capital. This amount has not changed. We expect Q2 to be the highest point for capital spending during the year and then things will taper off as we get into the back half of the year. Consistent with our recent history, the new unit orders are predominantly large horsepower units focused on the 2,500 horsepower class and above. Q1 growth capital was approximately $33,000,000 including delivery of approximately 28,000 total new unit horsepower.
Of that total growth CapEx number, about 2 thirds was related to those new unit deliveries. As things have stabilized with regards to sourcing new equipment, lead times for the large horsepower equipment have been reduced to levels more in line with historical practice closer to 40 weeks. Regardless of the change, we continue to see prudent capital allocation within the industry and do not expect to see a flood of equipment into our sector. We are focused on earning an appropriate return on capital for our investments and that is why we've been prudent with our 2019 capital plan and why we are taking a cautious approach to new unit orders in 2020. Our top customers have all put in their orders for our services for the rest of the year and we remain focused on meeting those requirements and our entire remaining 2019 order book has been committed to customers.
It's a little too early to provide information on our 2020 order plan, but as we move through the year, we'll keep you posted. An overview of the Q1 financial performance reflected a strong start to the year as we reported increased horsepower metrics and improved pricing even as we had fewer active units deployed in the field due primarily to the removal of certain smaller horsepower units. Adjusted EBITDA of $101,400,000 and an adjusted EBITDA margin of 59.4 percent reflected the solid operating performance by our team and continued commitment to controlling expenses. In Q1, our overall gross operating margin was 66.6 percent in line with USA's historical levels. Our bank covenant leverage was 4.54x for the quarter and our distributable cash flow coverage ratio was 1.16x.
While slightly off from the 4th quarter metrics, that quarter had benefited from some non recurring items as we discussed at the time. Putting that aside, this quarter's performance continues to trend towards our longer term goals for the company. Now let's switch over to the market dynamics for a few minutes. At the end of 2018, West Texas Intermediate was $45 per barrel and Henry Hub Gas was trading at $3.25 per Mcf. By the time we reported 2018 earnings in mid February, crude had moved up to $56 per barrel and gas had moved down to $2.60 per Mcf.
And now in early May, crude has continued its climb up to over $60 per barrel, while gas has stabilized around the $2.50 to $2.60 per Mcf level. As we've discussed before, our business is a demand driven business. Driving that demand is the demand for and corresponding production of natural gas. Now I mentioned both crude oil and natural gas prices for a reason. As everyone is aware, we don't move crude oil.
But out in West Texas and New Mexico, the economics of crude oil are driving the activity and a lot of gas is being produced alongside that crude oil. To put it simply, you can't produce the oil unless you produce the natural gas as well. And that associated gas dynamic has been driving a lot of our growth in the region. Turning to natural gas, the price of natural gas has generally been behaving the way everybody expected outside of the occasional weather related price spikes and pipeline related basis blowouts, the tremendous production levels have kept the price relatively range bound. But consider what this does for the end user.
Natural gas has become a very plentiful and economical fuel source that can be transported all over the world. Close to home, you're seeing new petrochemical plants being built and power generation switching to cleaner burning natural gas. Beyond our borders, Mexico continues to build out their gas import infrastructure to access that gas coming out of places like Texas, New Mexico's and others in and around the Gulf Coast. And perhaps the biggest sea change over the coming years are the plans for LNG exports. At the end of 2017, the U.
S. Could export around 2.75 Bcf per day of LNG. By the end of 2018, that number had grown to just under 5 Bcf a day and by the end of 2019, the EIA expects the export capacity to be nearing 9 Bcf per day, putting the U. S. Into 3rd place globally behind Australia and Qatar.
That's a pretty big deal and that kind of investment will naturally have trickle down effects to guys like us to help move that gas from producing regions to the areas where it can be chilled, liquefied and ultimately exported. And so our view of the market is that demand for domestically produced gas will continue to increase over the coming years. More gas moving around the country and now to other parts of the world requires more gas infrastructure and thereby increasing demand for compression. On a more regional basis, the Permian and Delaware Basins continue to show the most activity. I've talked before about the majors of larger producers positioning themselves for years of investment As we witnessed the bidding for Anadarko taking place, the Delaware Basin is taking center stage.
As I mentioned, the associated gas being produced alongside the crude oil is something that producers must deal with. Several weeks back, some unexpected maintenance issues on some of the large takeaway pipes drove the basis for gas out there into negative territory and this news seemed to create a bit of panic. Things have recovered back to normal. We see the bigger producers still moving full steam ahead with their investments and did not see any meaningful change in production levels. Remember, our large horsepower units out there serve existing production, so rig count may move up and down.
The overall trend is increasing levels of natural gas production that need to find a way out of the basin. In the SCOOPSTACK merge place, it has developed into more of a haves and have not situation and depends on the producer and their exact location in acreage geology. This is an area where we have historically operated and as we move forward, we are aligning USA Compression in our assets with those operators in the more favorable areas. We would much rather have equipment out to the better operators who value our run time and level of service and are willing to pay for it than to spread ourselves thin with projects that don't earn the returns that we feel are adequate. Our other operating regions, the Marcellus and Utica shales, South Texas, the Eagle Ford Shale, Louisiana as well as Colorado are each performing.
We continue to witness the market dynamics at play in each region adding to the overall stability of our business. With our diversified footprint and young asset fleet, we've been able to focus our efforts and capital on the areas where we get the best returns. We are not just growing just to grow, but rather in this environment making sure that the projects we take on are worthwhile with customers who value our services and appreciate the long term relationship that USA Compression has maintained with them. Through the rest of the year, I expect that you'll see a similar pattern. The business strategy works and as we manage our capital structure, we are focused on strong operational performance, expense controls and prudence capital spending, all while staying true to our strategy of large horsepower infrastructure based applications.
I will now turn the call over to Matt to walk through some of the financial highlights of the quarter. Matt?
Thanks, Eric, and good morning, everyone. Today, USA Compression reported a great start to 2019, including quarterly revenue of $171,000,000 adjusted EBITDA of $101,400,000 and DCF to limited partners of $54,900,000 In April, we announced a cash distribution to our unitholders of $0.525 per LP common unit, consistent with the previous quarter, which resulted in coverage of 1.16 times. Our total fleet horsepower as of the end of Q1 was just over 3,600,000 horsepower. Our revenue generating horsepower at period end was approximately 3,300,000 horsepower. On a net basis, we added about 31,000 of active horsepower to the fleet during the quarter.
Our average horsepower utilization for the Q1 was 94.2% and pricing as measured by average revenue per revenue generating horsepower per month was $16.45 for Q1. This also represented a modest increase from Q4 levels. Total revenue for the Q1 was $171,000,000 of which approximately $168,000,000 reflected our core contract operations revenues, very much consistent with Q4. Parts and service revenue was down from Q4. Gross operating margin as a percentage of revenue was 67% in the quarter.
Net income for the quarter was 6,600,000 Net cash provided by operating activities was approximately $48,000,000 in the quarter. Operating income was $35,500,000 in the quarter and maintenance capital totaled $6,900,000 in the quarter with cash interest expense net of $27,200,000 dollars Today, we are reaffirming our guidance previously provided for 2019. We currently expect 2019 adjusted EBITDA between $380,000,000 $420,000,000 and DCF of between $180,000,000 $220,000,000 And last, we expect to file our Form 10 Q with the SEC as early as this afternoon. And with that, we'll open the call to questions.
All right. Thank you. Our first question will come from Praveen Narra with Raymond James.
Hi, good morning guys. It's very clear that the large horsepower market is doing well and you mentioned improvements in the smaller kind of sub-one thousand horsepower market. Could you talk a little bit more about that? It seems like we're nearing 80% utilization of that. Could you kind of identify what basins you're seeing that, where we're seeing that incremental horsepower demand on the smaller side?
And is it as large as the Permian on gas lift application or how should we see that?
Yes, this is Eric. And keep in mind that we do have a relatively small fleet. So we don't have a broad geographic focus associated with it. We're seeing a tick up in the Permian associated with smaller horsepower. The SCOOPSTACK merge, we're seeing a little bit of tick up in activity.
Interestingly, the Fort Worth Basin is seeing a tick up in activity. The Colorado continues to kind of follow along with some of the uncertainties that you've seen from a regulatory environment. So I think that would suggest that you're actually seeing fairly broad utilization tick ups. I think the activities where people have been rationalizing their fields, downsizing from lots of small compressors to central compression. Those days are behind us.
And so I think, again, for our activities, which tend to be more midcontinent in the West Texas focus, that would be our areas of predominant tick up, but pretty broad overall for everybody.
That's good to hear. And then on the large horsepower equipment, as you're putting out new equipment, are we seeing an elongation of contracting terms?
It varies from geographic area to geographic area, and it varies from customer to customer. With some of the large plays that are now being promulgated, we're actually starting to see some movement toward longer term contracts. So typically when people have some uncertainty about A, what their developmental plans are due to commodity pricing or B, just the inherent viability of the plays that's early on, they're proving up acreage. So now we move beyond the proving up acreage and now moving toward mining type of exercises. So I think our customers' willingness to enter into longer term contracts is becoming more feasible.
That's all. If I could probably just squeeze one more in. I know you mentioned you don't really want to get into 2020 putting numbers out for orders yet. But I guess, can you talk about the lead times and how early on you actually need to make that decision at this point in the cycle?
Yes. So I think we mentioned that the lead times for the major components have come in somewhat. We were looking a year ago at in the excess of a year lead time. Now we're in the low 40 weeks range. So if you think about that, that's roughly 9 months from today.
So we actively assess the marketplace. We don't have to make just one order over the course of the year. We've always added assets on a quarter by quarterly basis or adding commitments on a quarterly by quarterly basis. So you'll not see us just make an announcement one day where we said, oh, we made one big giant order for 2020. We'll be lagging into it and we've already contemplated what that lagging is going to look like to some degree.
But I think we want to approach 2020 somewhat cautiously in light of the softening of the lead times. We want to make sure that the demand truly develops. And I think the indicators that we're seeing from our primary customers are that 2020 is going to look a lot like 2019 and with the equipment availability improving somewhat, it gives us a little bit more time before we have to make some of those major CapEx decisions.
Perfect. Thank you very much.
Thank you.
All right. Thank you. Our next question will come from Jeremy Tonet with JPMorgan.
Hey, good morning, guys. This is Charlie on. I think you addressed it a little bit, but just looking at the existing units, it came down a bit versus last quarter. It sounded like that was mainly due to removal of some smaller horsepower. I was curious if there's anything else going on there.
I know that you're reconfiguring some existing units for redeployments. Just curious how that number might trend over the next couple of quarters?
Yes, Charlie, it's Matt. Really, it's nothing more than really what you had mentioned. We had a couple of customers, I would say they were inherited customers through the CDM transaction that we decided we were going to start bringing some units back from. And so we consciously starts and stops and really the new unit deliveries, everything was sort of right on our internal plans as it were.
Okay. Thanks. It's helpful. One other on kind of I guess more high level, you talked a little bit about some activities and you said Fort Worth. 1 of your peers talked about specifically the Rockies in the Northeast seeing more activity.
I guess I'm curious, are you seeing anything any interesting developments in those areas? Or could this
maybe more
an aggressive approach for maybe a peer versus kind of keeping your return hurdles intact?
Yes. I would say it's probably some folks looking to buy some market share rather than looking at some systemic fundamental drivers. We've Northeast is an area that we've had operations from the formation of the company. We continue to see every opportunity or most every opportunity that avails itself in that part of the world. We're very selective in our customers and in our return thresholds that we see.
So we continue to see business as normal in that part of the world and we also continue to see some cautionary signals being coming out of the Rocky Mountains, particularly Colorado right now in light of some of the regulatory uncertainty. So I think we're being highly selective both with our the customers whom we choose. There are some financial restructurings going on right now with some of the upstream guys. We want to make sure that our assets are deployed with the most creditworthy customers who exist. I think we've said in our script that we're not chasing growth just for the sake of growth.
We grow for the sake of profitability and accretion and creating value for our shareholders. So both those areas are areas that we do have a footprint in the presence and to the extent we deploy new capital will be on projects that achieve our return thresholds.
Makes sense. Thanks. That's it for me. Thanks, Charlie.
Thank you. Our next question will come from Barrett Blight with MUFG Securities.
Hey, guys. Just a quick question sort of on leverage and what are we what's the target at this point and sort of timeframe for achieving it based on the results you're seeing today?
Yes, Barrett, it's Matt. I don't think anything's really changed on that. I think as we now I think you're seeing things really start to click here with the full integration. So we expect to continue to work on building coverage that's going to allow us to pay down debt. And I think something towards the low 4s is still where we want to target.
That doesn't happen overnight. So it's going to be here in the nearer term future, but I think directionally that's where we're headed.
So when you say low 4s, is that the near term target or is that the long term target?
Well, I'd say that's the long term, but not 10 year target. I think it's going to take a little while, but in the next couple of years, I think we get down headed towards that level.
Okay. Thank you. That's really all I was kind of looking for today.
Okay. Thanks, Barry.
Thank you. And our next question comes from Thomas Curran with B. Riley FBR.
Good morning, guys.
Good morning. Hey,
Scott. Curious, for fabrication of large horsepower units for those packages when you order them at this point, what lead times are you being quoted by the fabricators? And how does that compare to say 6 months and a year ago?
Good question. And again, I think it's specific to the various fabricators. There are small guys, intermediate guys, large guys, guys who specialize in big horsepower, guys who specialize in small horsepower, folks that are domestic and folks that are international. Generically, what I would say is that think about a snake, the anaconda eating the guinea pig, it takes a while to work through the system. So a year, 30 months ago from a year to 30 months ago, there was a lot of eating of guinea pigs going on.
And I think what you're seeing now is the fabricators are running relatively full through the first call it the first in the back half of this year, the Q1 of next year. And then as we start to see looking at kind of the second quarter, Q3 and Q4 of 2020, there appears to be a fair amount of fabrication capacity available. So that would suggest to us that the pipeline constraints that you're seeing coming out of the Permian and Delaware Basin are being recognized and are starting to have an impact on the E and P guys and the private equity backed E and Ps and some of the smaller midstream guys on some of their developmental plans. So I think when we look at some of the takeaway capacity issues, it's been going on in the Northeast for a while, they're being addressed, Mid Continent being addressed, Permian, Delaware being addressed. There's a year to 18 months of lead time.
So what we think is that over the next year to 18 months, things are going to be kind of status quo, there'll be some moderate growth, but not excessive growth. And then once the takeaway capacity is dealt with, basis differential will improve, commodity prices received net back of the wellhead both for oil and natural gas depending on which base you're in should improve and it should again kind of further accelerate activity and we'll see what the fabricators look like at that point in time. But we view that as a pretty good leading indicator of what owner operators and competitors and peers take a look at from a demand signal stance and it would suggest that kind of that second, 3rd Q4 of 2020, people haven't slammed on the brakes, but they also haven't matched the accelerator either.
Thank you for that. Very thorough answer and creative metaphor evoked quite a visual there. Shifting gears to the long time overarching secular theme that's been out there for contract compression, which has been the sort of stop and start transition towards outsourcing for the operators. Could you update us on your current estimate as to how much of the total active horsepower out there is currently in the hands of the contractors? What percentage?
That's a great question. What we look toward is if you go back when we started USA Compression 20 some odd years ago, domestically, we produced and consumed 52 Bcf, 53 Bcf of gas per day and today we're kind of in the 90 going to 100 Bcf or so range, roughly double. And what I look at is over the last 20 years on a percentage basis, how much have the contract compression guys grown versus the total number of assets that were built and deployed into the market by Caterpillar, Aerial and others. It looks to us that roughly 20% or so of the market over the last 20 years has been captured by USA and our peer group in the contract compression sector. When we look at activity today and the asset what we're quoting and we look at horsepower that's being built in 2019 and probably going to be built in 2020, it looks to us that that mix is still about 20% contract compression and 80% owner operator.
Some of the bigger guys and the large regional gathering systems, some of the big processing facilities, etcetera. So honestly, when we look at it, we see that the absolute amount of horsepower in the hands of the USA and on Archrock and some of our smaller peers have grown substantially, but on a percentage basis, it remains about the same at roughly 20% or so. What we do think is coming is that with the focus on living within everybody's means, the self funding requirement that Wall Street and others are placing on E and Ps, midstreams and pipeline companies. Equity is precious. Leverage is sacrosanct.
Coverage is extremely important. We continue to see signals from people who historically might have owned compression looking at it as not necessarily a core business competency. It's not something that they look at and say, I have to own my compression. It's something that is near and dear to my balance sheet. Frankly, we're starting to see moves by some people who historically have acquired and owned and operated assets looking to outsource.
And I think that that to us is the more exciting trend is a potential and I'm not going to call radical shift, but a methodical shift to larger and larger customers who control vast amounts of acreage or vast amounts of gathering systems and vast amounts of processing assets looking going forward to make alternative arrangements for their incremental compression, not necessarily monetize your existing assets, but more importantly on the incremental growth projects turning over the operations, maintenance, construction, development, the day to day contract compression to the likes of the USA Compression. So we think that over the next 5 to 10 years that trend will potentially accelerate. And I think USA Compression is kind of uniquely positioned to capitalize on those large horsepower applications with some of the lowest leverage in the industry, some of the best coverage in the industry, availability under our senior credit facilities and our ability to tap into the marketplace for some of these select opportunities that are very, very accretive financially with extremely creditworthy customers.
That was a helpful answer. Thanks for taking my questions.
Thanks, sir.
All right. Thank you. At this time, there are no further questions in the queue. So I would like to turn the call back over to Eric Long for closing remarks.
Thank you, operator, and thank you all for joining us on the call today. The Q1 was a great start to the year and a great way to wrap up the 1st 12 months of the combined USA Compression, CDM business operations. The market for compression services continues to be strong and our focus hasn't changed, driving utilization of pricing, watching the expenses while operating in a safe manner and providing our customers the level of service they have become accustomed to. With the integration behind us, we are focused on driving attractive economic returns for our unitholders over the long term. We've proven the model is sustainable during the downturn.
We've now demonstrated that we've been able to successfully integrate a business with great assets like CDM and we now look forward to continuing to deliver results for our unitholders. We look forward to updating you on the next quarterly call. Thank you for your continued interest in and support of USA Compression.
Thank you, ladies and gentlemen. This concludes today's teleconference. You may now disconnect. Please enjoy the rest of your day.