USA Compression Partners (USAC) issues a Schedule K-1 to all unitholders. If you also own Energy Transfer (ET), you already received a USAC K-1 inside your ET tax package. If you own USAC directly too, you now have two separate USAC K-1s with different EINs. They are not duplicates. Do not combine them.
By Lucas Andersen — Last updated March 6, 2026
USAC’s K-1 requires its own basis calculation — separate from ET. → Track your USAC basis free
Energy Transfer (ET) owns USAC’s general partner. When you buy ET units, your K-1 package includes three sub-entities: ET itself, Sunoco LP (SUN), and USA Compression Partners (USAC). Each has its own EIN and its own K-1.
If you ALSO own USAC units directly, you receive a completely separate USAC K-1 — with a different EIN, different basis, and separate §469(k) passive activity treatment. The specific mistake: investors see two K-1s with “USA Compression Partners” on them and assume one is a duplicate. They are not. One came through your ET package, one came directly from USAC. Compare the EINs — they are different. Enter both separately in TurboTax or your tax software. If you enter only one or combine the numbers, your basis is wrong and your tax return is wrong.
This is the exact same pattern as Sunoco LP (SUN). See the Energy Transfer (ET) guide for the full three-entity breakdown.
USAC’s 2025 K-1 tax packages are already available online as of February 20, 2026. Download at taxpackagesupport.com/usac or call 1-855-521-8151. If you also own ET, ET’s package (which includes its own USAC sub-entity K-1) is expected March 16, 2026.
USAC provides natural gas compression services to producers and midstream operators. It owns and operates compression units across multiple basins — Texas, Louisiana, Oklahoma, Pennsylvania, West Virginia, and Ohio. Unlike pipeline MLPs that own fixed infrastructure, USAC’s assets are compression equipment deployed at well sites and gathering systems. This means the depreciation profile and state filing footprint differ from a pipeline MLP.
USAC distributes approximately $0.525/unit per quarter (~$2.10/year annualized — verify against your actual K-1). Worked example: 300 units purchased at $25/unit ($7,500 basis). At an illustrative 60–75% return of capital, basis erodes ~$1.35–$1.58/unit per year. After 5 years: IRS-adjusted basis approximately $5,130–$5,475 vs broker’s $7,500 — a gap of $2,025–$2,370 (27–32%). If you also own ET, you have a separate, smaller USAC basis from the ET allocation that erodes independently.
Step 1: Enter your ET K-1 package as three separate K-1 entries (ET, USAC, SUN) using the EINs from your ET package. Step 2: Enter your direct USAC K-1 as an additional, separate K-1 entry using the EIN from your direct USAC K-1. You should now have FOUR K-1 entries total if you own both ET and USAC. Check “Publicly Traded Partnership” for each. Do NOT combine Box 1 or Box 19A figures across the two USAC K-1s.
USAC operates compression equipment across Texas (no income tax), Louisiana, Oklahoma, Pennsylvania, West Virginia, and Ohio. Check your K-1 state supplement for exact allocations. The compression business can shift state allocations as equipment is deployed to different basins.
Thinking two USAC K-1s are duplicates (compare EINs). Entering only the direct USAC K-1 and ignoring the USAC sub-entity from your ET package. Combining basis from the two separate USAC positions. Not tracking USAC basis separately from ET basis. Confusing the USAC inside your ET package with your direct USAC holding.