USA Compression Partners, LPUSAC
USA Compression Partners, LP Revenue Disclosure
Revenue Recognition
Disaggregation of Revenue
The following table disaggregates our revenue by type of service (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Contract operations revenue | $ | 971,636 | $ | 925,243 | $ | 823,661 | |||||||||||
Retail parts and services revenue | 26,463 | 25,206 | 22,517 | ||||||||||||||
Total revenues | $ | 998,099 | $ | 950,449 | $ | 846,178 | |||||||||||
The following table disaggregates our revenue by timing of provision of services or transfer of goods (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Services provided over time: | |||||||||||||||||
| Primary term | $ | 790,233 | $ | 799,161 | $ | 643,284 | |||||||||||
| Month-to-month | 181,403 | 126,082 | 180,377 | ||||||||||||||
| Total services provided over time | 971,636 | 925,243 | 823,661 | ||||||||||||||
| Services provided or goods transferred at a point in time | 26,463 | 25,206 | 22,517 | ||||||||||||||
| Total revenues | $ | 998,099 | $ | 950,449 | $ | 846,178 | |||||||||||
Contract operations revenue
Revenue from contracted compression, natural gas treating, and maintenance services is recognized ratably as services are provided to our customers under our fixed-fee contracts over the term of the contract. Initial contract terms typically range from six months to five years. However, we usually continue to provide compression services at a specific location beyond the initial contract term, either through contract renewal or on a month-to-month or longer basis. We primarily enter into fixed-fee contracts whereby our customers are required to pay our monthly fee even during periods of limited or disrupted throughput. Services generally are billed monthly, one month in advance of the commencement of the service month, except for certain customers who are billed at the beginning of the service month, and payment generally is due 30 days after receipt of our
invoice. Amounts invoiced in advance are recorded as deferred revenue until earned, at which time they are recognized as revenue. The amount of consideration we receive and revenue we recognize is based on the fixed-fee rate stated in each service contract.
Variable consideration exists in select contracts when billing rates vary based on actual equipment availability or volume of total installed horsepower.
Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone service fee. We generally determine standalone service fees based on the service fees charged to customers or use expected cost plus margin.
The majority of our service performance obligations are satisfied over time as services are rendered at selected customer locations on a monthly basis and based on specific performance criteria identified in the applicable contract. The monthly service for each location is substantially the same service month-to-month and is promised consecutively over the service contract term. We measure progress and performance of the service consistently using a straight-line, time-based method as each month passes, because our performance obligations are satisfied evenly over the contract term as the customer simultaneously receives and consumes the benefits provided by our service. If variable consideration exists, it is allocated to the distinct monthly service within the series to which such variable consideration relates. We have elected to apply the invoicing practical expedient to recognize revenue for such variable consideration, as the invoice corresponds directly to the value transferred to the customer based on our performance completed to date.
There are typically no material obligations for returns or refunds. Our standard contracts do not usually include material non-cash consideration.
Contract Balances with Customers
The balances of the Partnership's accounts receivable from contracts with customers and contract liabilities at January 1, 2024 were $95.4 million, net of allowances for credit losses and $68.6 million, respectively.
Deferred Revenue
We record contract liabilities as deferred revenue when cash payments are received or due in advance of our performance. Components of deferred revenue were as follows (in thousands):
| December 31, | |||||||||||||||||
| Balance sheet location | 2025 | 2024 | |||||||||||||||
Current (1) | Deferred revenue | $ | 65,013 | $ | 63,900 | ||||||||||||
Noncurrent | Other liabilities | 4,486 | 6,616 | ||||||||||||||
Total | $ | 69,499 | $ | 70,516 | |||||||||||||
________________________
(1)We recognized $63.6 million of revenue during the year ended December 31, 2025, related to our deferred revenue balance as of December 31, 2024.
Retail parts and services revenue
Retail parts and services revenue primarily is earned on directly reimbursable freight and crane charges that are the financial responsibility of the customers and maintenance work on units that are outside the scope of core maintenance activities. Revenue from retail parts and services is recognized at the point-in-time the part is transferred or service is provided and control is transferred to the customer. At such time, the customer has the ability to direct the use of the benefits of such part or service after we have performed our services. We bill upon completion of the service or transfer of the parts, and payment generally is due 30 days after receipt of our invoice. The amount of consideration we receive and revenue we recognize is based on the invoice amount. There are typically no material obligations for returns, refunds, or warranties. Our standard contracts do not usually include material variable or non-cash consideration.
Performance Obligations
As of December 31, 2025, the aggregate amount of transaction price allocated to unsatisfied performance obligations related to our contract operations revenue was $1.2 billion. We expect to recognize these remaining performance obligations as follows (in thousands):
| 2026 | 2027 | 2028 | 2029 | Thereafter | Total | ||||||||||||||||||||||||||||||
| Remaining performance obligations | $ | 636,057 | $ | 353,559 | $ | 155,320 | $ | 38,456 | $ | 17,420 | $ | 1,200,812 | |||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 14, 2023 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.