Discounted Cash Flow (DCF) Analysis Levered

USA Compression Partners, LP (USAC)

$21.54

+0.24 (+1.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 30.69 | 21.54 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	280.22	584.35	698.37	667.68	632.64	819.91	1,062.61	1,377.14	1,784.78	2,313.09
Revenue (%)
Operating Cash Flow	124.64	226.34	300.58	293.20	265.43	347.84	450.81	584.25	757.18	981.31
Operating Cash Flow (%)
Capital Expenditure	-105.89	-266.57	-171.15	-109.07	-45.21	-215.46	-279.24	-361.90	-469.02	-607.85
Capital Expenditure (%)
Free Cash Flow	18.76	-40.23	129.43	184.13	220.21	132.38	171.56	222.35	288.16	373.46

Weighted Average Cost Of Capital

Share price	$ 21.54
Beta	1.446
Diluted Shares Outstanding	97.07
Cost of Debt
Tax Rate	7.84
After-tax Cost of Debt	6.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.464
Total Debt	1,991.79
Total Equity	2,090.84
Total Capital	4,082.63
Debt Weighting	48.79
Equity Weighting	51.21
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	280.22	584.35	698.37	667.68	632.64	819.91	1,062.61	1,377.14	1,784.78	2,313.09
Operating Cash Flow	124.64	226.34	300.58	293.20	265.43	347.84	450.81	584.25	757.18	981.31
Capital Expenditure	-105.89	-266.57	-171.15	-109.07	-45.21	-215.46	-279.24	-361.90	-469.02	-607.85
Free Cash Flow	18.76	-40.23	129.43	184.13	220.21	132.38	171.56	222.35	288.16	373.46
WACC
PV LFCF						104.25	124.76	149.31	178.69	213.86
SUM PV LFCF										903.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.29
Free cash flow (t + 1)	380.93
Terminal Value	6,056.15
Present Value of Terminal Value	4,066.82

Intrinsic Value

Enterprise Value	4,970.80
Net Debt	1,991.79
Equity Value	2,979.01
Shares Outstanding	97.07
Equity Value Per Share	30.69