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EXHIBIT
99.1
 (UNIVERSAL COMPRESSION LOGO)
      
    Universal Compression
4444 Brittmoore Road
Houston, Texas 77041
 
 FOR IMMEDIATE RELEASE
 Universal Compression Holdings and Universal Compression Partners
Report Second Quarter 2007 Results
 Houston, August 7, 2007  Universal Compression Holdings, Inc. (NYSE: UCO) and Universal
Compression Partners, L.P. (NASDAQ: UCLP)
 Universal Compression Holdings, Inc. Financial Results
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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.  Page 2
  Merger Update
  Universal Compression Partners, L.P. Financial Results
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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.  Page 3
  Conference Call
  www.universalcompression.com www.universalcompression.com
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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.  Page 4
   Forward-Looking Statements
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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.  Page 5
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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.
Page 6
 UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
 Three Months EndedJune 30,
    
    
    March 31,
    
    
    June 30,2007
    
    
    2007
    
    
    2006Revenue:Domestic contract compression
    
    $
    103,596
    
    
    $
    102,034
    
    
    $
    101,460International contract compression
    
    
    40,014
    
    
    
    38,534
    
    
    
    35,010Fabrication
    
    
    134,988
    
    
    
    54,616
    
    
    
    38,528Aftermarket services
    
    
    55,989
    
    
    
    44,179
    
    
    
    43,718Total revenue
    
    
    334,587
    
    
    
    239,363
    
    
    
    218,716Costs and expenses:Cost of sales (excluding depreciation and amortization expense):Domestic contract compression
    
    
    40,543
    
    
    
    41,056
    
    
    
    35,792International contract compression
    
    
    10,637
    
    
    
    10,315
    
    
    
    8,430Fabrication
    
    
    112,602
    
    
    
    47,237
    
    
    
    33,797Aftermarket services
    
    
    41,262
    
    
    
    34,436
    
    
    
    36,359Depreciation and amortization
    
    
    35,792
    
    
    
    34,863
    
    
    
    30,013Selling, general and administrative
    
    
    36,802
    
    
    
    35,741
    
    
    
    29,461Interest expense, net
    
    
    14,063
    
    
    
    14,039
    
    
    
    14,605Merger-related expenses
    
    
    4,792
    
    
    
    1,373
    
    
    
    Foreign currency (gain) loss
    
    
    (962
    )
    
    
    (693
    )
    
    
    299Minority interest
    
    
    1,642
    
    
    
    1,324
    
    
    
    Other (income) expense, net
    
    
    (518
    )
    
    
    (1,731
    )
    
    
    (360
    )Total costs and expenses
    
    
    296,655
    
    
    
    217,960
    
    
    
    188,396Income before income taxes
    
    
    37,932
    
    
    
    21,403
    
    
    
    30,320Income tax expense
    
    
    12,765
    
    
    
    7,079
    
    
    
    8,504Net income
    
    $
    25,167
    
    
    $
    14,324
    
    
    $
    21,816Weighted average common and common
equivalent shares outstanding:Basic
    
    
    30,003
    
    
    
    29,820
    
    
    
    29,891Diluted
    
    
    31,182
    
    
    
    30,881
    
    
    
    31,040Earnings per share:Basic
    
    $
    0.84
    
    
    $
    0.48
    
    
    $
    0.73Diluted
    
    $
    0.81
    
    
    $
    0.46
    
    
    $
    0.70




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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.
Page 7
 UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
 Three Months EndedJune 30,
    
    
    March 31,
    
    
    June 30,2007
    
    
    2007
    
    
    2006Revenue:Domestic contract compression
    
    $
    103,596
    
    
    $
    102,034
    
    
    $
    101,460International contract compression
    
    
    40,014
    
    
    
    38,534
    
    
    
    35,010Fabrication
    
    
    134,988
    
    
    
    54,616
    
    
    
    38,528Aftermarket services
    
    
    55,989
    
    
    
    44,179
    
    
    
    43,718Total
    
    $
    334,587
    
    
    $
    239,363
    
    
    $
    218,716Gross Margin:Domestic contract compression
    
    $
    63,053
    
    
    $
    60,978
    
    
    $
    65,668International contract compression
    
    
    29,377
    
    
    
    28,219
    
    
    
    26,580Fabrication
    
    
    22,386
    
    
    
    7,379
    
    
    
    4,731Aftermarket services
    
    
    14,727
    
    
    
    9,743
    
    
    
    7,359Total (1)
    
    $
    129,543
    
    
    $
    106,319
    
    
    $
    104,338Selling, General and Administrative
    
    $
    36,802
    
    
    $
    35,741
    
    
    $
    29,461% of Revenue
    
    
    11
    %
    
    
    15
    %
    
    
    13
    %EBITDA, as adjusted (1)
    
    $
    93,259
    
    
    $
    72,309
    
    
    $
    75,237% of Revenue
    
    
    28
    %
    
    
    30
    %
    
    
    34
    %Capital Expenditures
    
    $
    72,019
    
    
    $
    59,560
    
    
    $
    59,402Proceeds from Sale of PP&E
    
    
    3,814
    
    
    
    3,690
    
    
    
    4,070Net Capital Expenditures
    
    $
    68,205
    
    
    $
    55,870
    
    
    $
    55,332Gross Margin Percentage:Domestic contract compression
    
    
    61
    %
    
    
    60
    %
    
    
    65
    %International contract compression
    
    
    73
    %
    
    
    73
    %
    
    
    76
    %Fabrication
    
    
    17
    %
    
    
    14
    %
    
    
    12
    %Aftermarket services
    
    
    26
    %
    
    
    22
    %
    
    
    17
    %Total
    
    
    39
    %
    
    
    44
    %
    
    
    48
    %Reconciliation of GAAP to Non-GAAP Financial Information:Net income
    
    $
    25,167
    
    
    $
    14,324
    
    
    $
    21,816Income tax expense
    
    
    12,765
    
    
    
    7,079
    
    
    
    8,504Depreciation and amortization
    
    
    35,792
    
    
    
    34,863
    
    
    
    30,013Interest expense, net
    
    
    14,063
    
    
    
    14,039
    
    
    
    14,605Foreign currency (gain) loss
    
    
    (962
    )
    
    
    (693
    )
    
    
    299Merger-related expenses
    
    
    4,792
    
    
    
    1,373
    
    
    
    Minority interest
    
    
    1,642
    
    
    
    1,324
    
    
    
    EBITDA, as adjusted (1)
    
    
    93,259
    
    
    
    72,309
    
    
    
    75,237Selling, general and administrative
    
    
    36,802
    
    
    
    35,741
    
    
    
    29,461Other (income) expense, net
    
    
    (518
    )
    
    
    (1,731
    )
    
    
    (360
    )Gross Margin (1)
    
    $
    129,543
    
    
    $
    106,319
    
    
    $
    104,338
 June 30,
    
    
    March 31,
    
    
    June 30,2007
    
    
    2007
    
    
    2006Debt and Capital Lease Obligations
    
    $
    872,997
    
    
    $
    856,582
    
    
    $
    898,855Stockholders Equity
    
    $
    986,075
    
    
    $
    935,856
    
    
    $
    904,308Total Debt to Capitalization
    
    
    47.0
    %
    
    
    47.8
    %
    
    
    49.8
    %
 
 (1)
    
    Management believes disclosure of EBITDA, as adjusted, and Gross Margin, non-GAAP measures,
provide useful information to investors because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our performance than GAAP results
alone. Management uses EBITDA, as adjusted, and Gross Margin as supplemental measures to review
current period operating performance, comparability measures and performance measures for period to
period comparisons. In addition, EBITDA, as adjusted, is used by management as a valuation
measure.




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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.
Page 8
 UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
 Three Months EndedJune 30,
2007
    
    

March 31,
2007
    
    

June 30,
2006Total Available Horsepower (at period end):Domestic contract compression
    
    
    2,147
    
    
    
    2,098
    
    
    
    1,989International contract compression
    
    
    614
    
    
    
    608
    
    
    
    595Total
    
    
    2,761
    
    
    
    2,706
    
    
    
    2,584Average Operating Horsepower:Domestic contract compression
    
    
    1,825
    
    
    
    1,822
    
    
    
    1,794International contract compression
    
    
    556
    
    
    
    552
    
    
    
    549Total
    
    
    2,381
    
    
    
    2,374
    
    
    
    2,343Horsepower Utilization:Spot (at period end)
    
    
    87.1
    %
    
    
    87.7
    %
    
    
    90.2
    %Average
    
    
    87.3
    %
    
    
    88.3
    %
    
    
    91.1
    %Fabrication Backlog (in millions)
    
    $
    223
    
    
    $
    280
    
    
    $
    275




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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.
Page 9
 UNIVERSAL COMPRESSION PARTNERS, L.P.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
 Three Months EndedJune 30,
    
    
    March 31,2007
    
    
    2007Revenue
    
    $
    18,804
    
    
    $
    17,585Costs and expenses:Cost of sales (excluding depreciation and amortization expense)
    
    
    7,573
    
    
    
    7,018Depreciation
    
    
    2,968
    
    
    
    2,782Selling, general and administrative
    
    
    3,915
    
    
    
    3,259Interest expense, net
    
    
    2,093
    
    
    
    2,133Other (income) expense, net
    
    
    (3
    )
    
    
    (6
    )Total costs and expenses
    
    
    16,546
    
    
    
    15,186Income before income taxes
    
    
    2,258
    
    
    
    2,399Income tax (benefit) expense
    
    
    (6
    )
    
    
    56Net income
    
    $
    2,264
    
    
    $
    2,343General partner interest in net income
    
    $
    45
    
    
    $
    47Limited partner interest in net income
    
    $
    2,219
    
    
    $
    2,296Weighted average limited partners units outstanding:Basic
    
    
    12,650
    
    
    
    12,650Diluted
    
    
    12,709
    
    
    
    12,671Earnings per limited partner unit:Basic
    
    $
    0.18
    
    
    $
    0.18Diluted
    
    $
    0.17
    
    
    $
    0.18




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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.
Page 10
 UNIVERSAL COMPRESSION PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands, except per unit amounts)
 Three Months EndedJune 30,
    
    
    March 31,2007
    
    
    2007Revenue
    
    $
    18,804
    
    
    $
    17,585Gross Margin, as adjusted (1)
    
    $
    12,908
    
    
    $
    11,974EBITDA, as further adjusted (1)
    
    $
    10,411
    
    
    $
    9,480% of Revenue
    
    
    55
    %
    
    
    54
    %Capital Expenditures
    
    $
    10,071
    
    
    $
    6,079Proceeds from Sale of PP&E
    
    
    
    
    
    
    Net Capital Expenditures
    
    $
    10,071
    
    
    $
    6,079Gross Margin percentage, as adjusted
    
    
    69
    %
    
    
    68
    %Reconciliation of GAAP to Non-GAAP Financial Information:Net income
    
    $
    2,264
    
    
    $
    2,343Income tax (benefit) expense
    
    
    (6
    )
    
    
    56Depreciation
    
    
    2,968
    
    
    
    2,782Cap on operating and selling, general and administrative costs provided by Universal
Compression Holdings (UCO)
    
    
    1,789
    
    
    
    1,578Non-cash selling, general and administrative costs
    
    
    1,303
    
    
    
    588Interest expense, net
    
    
    2,093
    
    
    
    2,133EBITDA, as further adjusted (1)
    
    
    10,411
    
    
    
    9,480Cash selling, general and administrative costs
    
    
    2,612
    
    
    
    2,671Less: cap on selling, general and administrative costs provided by UCO (1)
    
    
    (112
    )
    
    
    (171
    )Other income, net
    
    
    (3
    )
    
    
    (6
    )Gross Margin, as adjusted for operating cost caps provided by UCO (1)
    
    $
    12,908
    
    
    $
    11,974Less: Cash interest expense
    
    
    (2,085
    )
    
    
    (2,077
    )Less: Cash selling, general and administrative, as adjusted for cost caps provided by UCO (1)
    
    
    (2,500
    )
    
    
    (2,500
    )Less: Maintenance capital expenditures
    
    
    (1,438
    )
    
    
    (1,373
    )Distributable cash flow (2)
    
    $
    6,885
    
    
    $
    6,024Distributions per Unit
    
    $
    0.35
    
    
    $
    0.35Distribution to All Unitholders
    
    $
    5,957
    
    
    $
    4,518Distributable Cash Flow Coverage
    
    
    1.16x
    
    
    
    1.33x
 June 30,
    
    
    March 31,2007
    
    
    2007Debt
    
    $
    121,000
    
    
    $
    125,000Total Partners Capital
    
    $
    74,861
    
    
    $
    71,064Total Debt to Capitalization
    
    
    61.8
    %
    
    
    63.8
    %Total Debt to Annualized EBITDA, as further adjusted UCO (1)
    
    
    2.9x
    
    
    
    3.3xEBITDA, as further adjusted (1) to Interest Expense
    
    
    5.0x
    
    
    
    4.4x
 
 (1)
    
    Management believes disclosure of EBITDA, as further adjusted, and
Gross Margin, as adjusted, non-GAAP measures, provide useful information to
investors because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our performance
than GAAP results alone. Management uses EBITDA, as further adjusted, and
Gross Margin, as adjusted, as supplemental measures to review current period
operating performance, comparability measures and performance measures for
period to period comparisons. In addition, EBITDA, as further adjusted, is
used by management as a valuation measure.(2)
    
    Distributable cash flow, a non-GAAP measure, is a significant liquidity
metric used by management to compare basic cash flows generated by us to the
cash distributions we expect to pay our partners. Using this metric, management
can quickly compute the coverage ratio of estimated cash flows to planned cash
distributions.




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Universal Compression Holdings, Inc. and Universal Compression Partners, L.P.
Page 11
 UNIVERSAL COMPRESSION PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
 Three Months EndedJune 30,
    
    
    March 31,2007
    
    
    2007Total Available Horsepower (at period end)
    
    
    387
    
    
    
    358Average Operating Horsepower
    
    
    348
    
    
    
    331Horsepower Utilization:Spot (at period end)
    
    
    92.7
    %
    
    
    93.4
    %Average
    
    
    93.1
    %
    
    
    94.8
    %Combined Domestic Contract Compression Horsepower of Universal Compression Holdings
and Universal Compression Partners covered by contracts converted to service agreements
    
    
    1,194
    
    
    
    1,154Total Available Domestic Contract Compression Horsepower of Universal Compression Holdings
and Universal Compression Partners (at period end):
    
    
    2,147
    
    
    
    2,098% of Domestic Contract Compression Horsepower of Universal Compression Holdings
and Universal Compression Partners under Converted Contract Form
    
    
    55.6
    %
    
    
    55.0
    %