USA Compression Partners, LPUSAC
USA Compression Partners, LP Leases Disclosure
Lease Accounting
We maintain both finance leases and operating leases, primarily related to office space, warehouse facilities, and certain corporate equipment. Our leases have remaining lease terms of up to seven years, some of which include options that permit renewals for additional periods.
We determine if an arrangement is a lease at inception. Operating leases are included in lease right-of-use (“ROU”) assets, accrued liabilities, and operating lease liabilities within our Consolidated Balance Sheets. Finance leases are included in property and equipment, accrued liabilities, and other liabilities within our Consolidated Balance Sheets.
ROU lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. ROU lease assets also include any lease payments made and exclude lease incentives. Our lease terms
may include options to extend or terminate the lease which is recognized when it is reasonably certain that we will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable costs such as our proportionate share of actual costs for utilities, common area maintenance, property taxes, and insurance are not included in the lease liability and are recognized in the period in which they are incurred.
For short-term leases (leases that have terms of twelve months or less upon commencement), lease payments are recognized on a straight-line basis and no ROU assets are recorded. For certain equipment leases, such as office equipment, we account for the lease and non-lease components as a single-lease component.
Supplemental balance sheet information related to leases consisted of the following (in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating leases: | |||||||||||
| Lease right-of-use assets | $ | 13,716 | $ | 14,336 | |||||||
| (4,412) | (4,013) | ||||||||||
| Operating lease liabilities | (10,704) | (11,678) | |||||||||
| Finance leases: | |||||||||||
| Property and equipment, gross | $ | 4,417 | $ | 4,417 | |||||||
| Accumulated depreciation | (3,528) | (3,130) | |||||||||
| 889 | 1,287 | ||||||||||
| (407) | (374) | ||||||||||
| (720) | (1,127) | ||||||||||
Components of lease expense consisted of the following (in thousands):
| Year Ended December 31, | |||||||||||||||||||||||
| Income Statement Line Item | 2025 | 2024 | 2023 | ||||||||||||||||||||
| Operating lease costs: | |||||||||||||||||||||||
| Operating lease cost | Cost of operations, exclusive of depreciation and amortization | $ | 3,837 | $ | 3,856 | $ | 3,586 | ||||||||||||||||
| Operating lease cost | Selling, general, and administrative | 1,516 | 1,442 | 1,490 | |||||||||||||||||||
| Total operating lease costs | 5,353 | 5,298 | 5,076 | ||||||||||||||||||||
| Finance lease costs: | |||||||||||||||||||||||
| Amortization of lease assets | Depreciation and amortization | 398 | 502 | 351 | |||||||||||||||||||
| Short-term lease costs: | |||||||||||||||||||||||
| Short-term lease cost | Cost of operations, exclusive of depreciation and amortization | 60 | 76 | 135 | |||||||||||||||||||
| Short-term lease cost | Selling, general, and administrative | 29 | — | 39 | |||||||||||||||||||
| Total short-term lease costs | 89 | 76 | 174 | ||||||||||||||||||||
| Variable lease costs: | |||||||||||||||||||||||
| Variable lease cost | Cost of operations, exclusive of depreciation and amortization | 424 | 65 | 10 | |||||||||||||||||||
| Variable lease cost | Selling, general, and administrative | 893 | 963 | 803 | |||||||||||||||||||
| Total variable lease costs | 1,317 | 1,028 | 813 | ||||||||||||||||||||
| Total lease costs | $ | 7,157 | $ | 6,904 | $ | 6,414 | |||||||||||||||||
The weighted-average remaining lease terms and weighted-average discount rates were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Weighted-average remaining lease term: | |||||||||||||||||
| Operating leases | 6 years | 4 years | 5 years | ||||||||||||||
| Finance leases | 3 years | 4 years | 4 years | ||||||||||||||
| Weighted-average discount rate: | |||||||||||||||||
| Operating leases | 6.5 | % | 5.4 | % | 5.1 | % | |||||||||||
| Finance leases | 7.1 | % | 7.2 | % | 6.3 | % | |||||||||||
Supplemental cash flow information related to leases consisted of the following (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | (5,536) | $ | (5,439) | $ | (5,034) | |||||||||||
| Operating cash flows from finance leases | (136) | (157) | (174) | ||||||||||||||
| Financing cash flows from finance leases | (374) | (436) | (489) | ||||||||||||||
| ROU assets obtained in exchange for lease obligations: | |||||||||||||||||
| Operating leases | $ | 4,116 | $ | 1,432 | $ | 3,105 | |||||||||||
| Finance leases | — | 756 | — | ||||||||||||||
Maturities of lease liabilities as of December 31, 2025, consisted of the following (in thousands):
| Operating Leases | Finance Leases | Total | |||||||||||||||
| 2026 | $ | 5,135 | $ | 481 | $ | 5,616 | |||||||||||
| 2027 | 3,866 | 484 | 4,350 | ||||||||||||||
| 2028 | 3,566 | 154 | 3,720 | ||||||||||||||
| 2029 | 2,844 | 54 | 2,898 | ||||||||||||||
| 2030 | 511 | 54 | 565 | ||||||||||||||
| Thereafter | 1,194 | 45 | 1,239 | ||||||||||||||
| Total lease payments | 17,116 | 1,272 | 18,388 | ||||||||||||||
| Less: present-value discount | (2,000) | (145) | (2,145) | ||||||||||||||
| Present value of lease liabilities | $ | 15,116 | $ | 1,127 | $ | 16,243 | |||||||||||
As of December 31, 2025, we have entered into one operating lease that has not yet commenced with an estimated present value of $3.7 million. This operating lease will commence in the first quarter of 2026 and has a primary term of three years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 14, 2023 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.