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Achieved record performance in 2025 by leveraging a multiyear transformation focused on large horsepower and electric motor drive compression, which align with high-growth midstream applications.
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Maintained fleet utilization at or above 95% for 11 consecutive quarters, driven by steady increases in natural gas production and the high reliability of standardized operations.
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Successfully high-graded the fleet through the sale of 325,000 horsepower of older or non-strategic assets, redeploying $192 million in proceeds into higher-return new build investments.
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Observed a significant increase in asset ‘stickiness,’ with the average time a compressor remains on location rising to 73 months, a 61% increase since 2021.
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Attributed margin expansion to disciplined pricing strategies and the deployment of digital tools, including machine learning and remote monitoring, to optimize maintenance and reduce unplanned downtime.
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Benefited from a strategic weighting toward the Permian Basin, where associated gas volumes continue to grow despite relatively flat oil production, creating sustained compression demand.
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2026 adjusted EBITDA guidance of $865 million to $915 million assumes continued horsepower growth and the full-year impact of 2025 rate increases, though new price hikes are expected to be more modest.
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Growth CapEx is targeted at $250 million to $275 million, primarily supporting 170,000 horsepower of new deliveries that are already 85% contracted for 2026.
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Management anticipates a long-term demand runway driven by 14 Bcf/d of additional LNG export capacity expected to come online through 2030 and emerging AI-driven power generation needs.
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The company expects to operate with a leverage ratio below 3.0x in the near term, providing flexibility for further organic growth or accretive M&A opportunities.
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Supply chain lead times for large horsepower equipment have extended to 110-120 weeks, prompting the company to already begin booking units for 2027 delivery.
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Fourth quarter 2025 results included a $23 million one-time benefit from prior period sales and use tax audit settlements and credits.
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Asset sales in 2025 generated $47 million in net gains but will result in an estimated $18 million reduction in 2026 adjusted EBITDA due to the removal of those units from the fleet.
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Successfully pre-funded the redemption of 2028 notes through an $800 million bond issuance at 6%, effectively extending the nearest bond maturity to 2032.
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Maintenance CapEx is forecasted to increase to $125 million to $135 million in 2026 due to a planned increase in overhaul activity across the fleet.
