Strategic Integration and Operational Drivers

• The JW Power acquisition significantly diversified the portfolio across all major basins and introduced internal manufacturing capabilities to mitigate supply chain risks.

• Management attributed strong Q1 performance to successful integration of legacy data into a new ERP system and immediate onboarding of new customers to the combined platform.

• Operational momentum was driven by a 10% year-over-year utilization increase in the small horsepower class and contracting over 90% of expected 2026 horsepower additions.

• The introduction of manufacturing capabilities allows the company to manage engine lead times that have tripled from 50 weeks to approximately 150 weeks.

• Strategic positioning now includes the ability to acquire engines with the optionality to package for internal contract compression or resale to third parties.

• Management noted that current spot natural gas prices do not yet reflect the LNG risks associated with geopolitical tensions in the Strait of Hormuz.

• Lower-than-expected churn rates in Q1 reflect extreme tightness in the compression market, positioning the company for outsized growth in late 2026.

Growth Strategy and Guidance Assumptions

• The company has placed advanced orders for engines through 2028 and portions of 2029 to ensure business continuity amid extended manufacturer lead times.

• Strategic planning assumes a consistent growth trajectory of adding over 100,000 horsepower annually to the fleet through 2027.

• Management expects $10 million to $20 million in annual run-rate synergies from the JW Power integration by the end of 2027.

• Financial guidance assumes leverage will tick slightly higher in Q2 2026 due to new horsepower deliveries before trending back toward the 3.75x target by year-end.

• Second-half margins may face pressure from lubricant contract renewals if oil prices remain elevated, though management is focused on minimizing these cost increases and improving the efficiency of the organization.

Structural Changes and Risk Factors

• The JW Power acquisition resulted in a lower aggregate gross margin (64.4%) due to the inclusion of manufacturing and AMS operations which have different margin profiles than legacy assets.

• Q1 financial results exclude the first eleven days of JW Power operations, while operating metrics like utilization fully incorporate the new horsepower contribution.

• Maintenance capital expenditures were temporarily deferred in February to accommodate the transition to a new SAP system.

• Management flagged the risk of rising lubricant costs in an inflationary oil environment, noting that most impacts will materialize in the second half of 2026.