NOTE N — SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

In connection with the Offering of 7.25% Senior Notes described in Note E - Long-Term Debt and Other Borrowings, each of the following current domestic restricted subsidiaries (each a 100% owned subsidiary; together, the “Guarantor Subsidiaries”), have agreed to fully and unconditionally on a joint and several senior unsecured basis guarantee obligations relating to the 7.25% Senior Notes:

Compressor Systems, Inc.

CSI Compressco Field Services International LLC

CSI Compressco Holdings LLC

CSI Compressco International LLC

CSI Compressco Leasing LLC

CSI Compressco Operating LLC

CSI Compressco Sub, Inc.

CSI Compression Holdings, LLC

Pump Systems International, Inc.

Rotary Compressor Systems, Inc.

In connection with the Offering, we agreed to file a registration statement with the SEC that would allow the holders of the Securities to exchange their restricted Securities for registered and freely tradable notes and guarantees having substantially the same terms as the Securities and evidencing the same indebtedness as the restricted Securities. In anticipation of filings such registration statement, we are presenting the following condensed consolidating financial information pursuant to Rule 3-10 of Regulation S-X. These schedules are presented using the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions. The Other Subsidiaries column includes financial information for those subsidiaries that do not guarantee the 7.25% Senior Notes. Financial information of the Issuers includes CSI Compressco Finance Inc., which had no assets or operations for any of the periods presented.

Condensed Consolidating Balance Sheet

December 31, 2014

(In Thousands)



	Issuers		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS
Current assets	$	28	$	197,182	$	34,277	$	—		$	231,487
Property, plant, and equipment, net	—		669,576		16,851		—			686,427
Investments in subsidiaries	562,290		17,303		—		(579,593		)	—
Intangible and other assets, net	9,650		303,327		1,773		—			314,750
Intercompany receivables	335,151		—		—		(335,151		)	—
Total non-current assets	907,091		990,206		18,624		(914,744		)	1,001,177
Total assets	$	907,119	$	1,187,388	$	52,901	$	(914,744	)	$	1,232,664

LIABILITIES AND PARTNERS' CAPITAL
Current liabilities	$	11,634	$	116,780	$	5,677	$	—		$	134,091
Amounts payable to affiliate	44		987		5,449		—			6,480
Long-term debt	344,961		195,000		—		—			539,961
Intercompany payables	—		311,389		23,762		(335,151		)	—
Other long-term liabilities	199		942		710		—			1,851
Total liabilities	356,838		625,098		35,598		(335,151		)	682,383
Total partners' capital	550,281		562,290		17,303		(579,593		)	550,281
Total liabilities and partners' capital	$	907,119	$	1,187,388	$	52,901	$	(914,744	)	$	1,232,664

Condensed Consolidating Balance Sheet

December 31, 2013

(In Thousands)



	Issuers		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS
Current assets	$	28	$	26,629	$	22,322	$	—		$	48,979
Property, plant, and equipment, net	—		90,761		11,253		—			102,014
Investments in subsidiaries	173,716		16,587		—		(190,303		)	—
Intangible and other assets, net	—		73,170		946		—			74,116
Intercompany receivables	213		9,593		—		(9,806		)	—
Total non-current assets	173,929		190,111		12,199		(200,109		)	176,130
Total assets	$	173,957	$	216,740	$	34,521	$	(200,109	)	$	225,109

LIABILITIES AND PARTNERS' CAPITAL
Current liabilities	$	91	$	7,585	$	5,019	$	—		$	12,695
Amounts payable to affiliate	44		1,572		2,594		—			4,210
Long-term debt	—		29,959		—		—			29,959
Intercompany payables	—		—		9,806		(9,806		)	—
Other long-term liabilities	106		3,908		515		—			4,529
Total liabilities	241		43,024		17,934		(9,806		)	51,393
Total partners' capital	173,716		173,716		16,587		(190,303		)	173,716
Total liabilities and partners' capital	$	173,957	$	216,740	$	34,521	$	(200,109	)	$	225,109

Condensed Consolidating Statement of Operations

and Comprehensive Income

December 31, 2014

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	249,284		$	49,172		$	(15,809	)	$	282,647
Cost of revenues (excluding depreciation and amortization expense)	—			152,940			37,536			(15,809		)	174,667
Selling, general and administrative expense	1,544			27,306			3,250			—			32,100
Depreciation and amortization	—			39,828			1,330			—			41,158
Interest expense, net	11,507			1,354			103			—			12,964
Other expense, net	502			7,477			3,693			—			11,672
Equity in net income of subsidiaries	(24,811		)	(1,832		)	—			26,643			—
Income before income tax provision	11,258			22,211			3,260			(26,643		)	10,086
Provision for income taxes	—			(2,600		)	1,428			—			(1,172		)
Net income	11,258			24,811			1,832			(26,643		)	11,258
Other comprehensive income (loss)	—			—			(3,749		)	—			(3,749		)
Comprehensive income	$	11,258		$	24,811		$	(1,917	)	$	(26,643	)	$	7,509

Condensed Consolidating Statement of Operations

and Comprehensive Income

December 31, 2013

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	89,936		$	42,223		$	(10,858	)	$	121,301
Cost of revenues (excluding depreciation and amortization expense)	—			46,028			32,946			(10,858		)	68,116
Selling, general and administrative expense	1,459			12,514			3,494			—			17,467
Depreciation and amortization	—			13,229			1,413			—			14,642
Interest expense, net	—			212			257			—			469
Other expense, net	—			193			589			—			782
Equity in net income of subsidiaries	(19,026		)	(1,993		)	—			21,019			—
Income before income tax provision	17,567			19,753			3,524			(21,019		)	19,825
Provision for income taxes	—			727			1,531			—			2,258
Net income	17,567			19,026			1,993			(21,019		)	17,567
Other comprehensive income (loss)	—			—			(591		)	—			(591		)
Comprehensive income	$	17,567		$	19,026		$	1,402		$	(21,019	)	$	16,976

Condensed Consolidating Statement of Operations

and Comprehensive Income

December 31, 2012

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries		Eliminations			Consolidation
Revenues	$	—		$	78,903		$	40,383	$	(10,704	)	$	108,582
Cost of revenues (excluding depreciation and amortization expense)	—			38,365			29,839		(10,704		)	57,500
Selling, general and administrative expense	1,905			12,759			2,606		—			17,270
Depreciation and amortization	—			12,284			943		—			13,227
Interest expense, net	—			(307		)	332		—			25
Other expense, net	—			277			599		—			876
Equity in net income of subsidiaries	(18,236		)	(4,038		)	—		22,274			—
Income before income tax provision	16,331			19,563			6,064		(22,274		)	19,684
Provision for income taxes	—			1,327			2,026		—			3,353
Net income	16,331			18,236			4,038		(22,274		)	16,331
Other comprehensive income (loss)	—			—			102					102
Comprehensive income	$	16,331		$	18,236		$	4,140	$	(22,274	)	$	16,433

Condensed Consolidating Statement of Cash Flows

December 31, 2014

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Net cash provided by (used in) operating activities	$	14,688		$	22,767		$	7,364		$	—		$	44,819
Investing activities:
Purchases of property, plant, and equipment, net	—			(44,313		)	(3,824		)	—			(48,137		)
Acquisition of CSI	—			(825,000		)	—			—			(825,000		)
Intercompany investment activity	(367,512		)	(2,633		)				370,145			—
Advances and other investing activities				(805		)	—						(805		)
Net cash provided by (used in) investing activities	(367,512		)	(872,751		)	(3,824		)	370,145			(873,942		)
Financing activities:
Proceeds from long-term debt	344,961			257,897			—			—			602,858
Payments of long-term debt	—			(93,584		)	—			—			(93,584		)
Proceeds from issuance of partnership common units, net of underwriters' discount	395,794			—			—			—			395,794
Distributions	(36,687		)	—			—			—			(36,687		)
Payment of financing costs	(9,649		)	(12,837		)	—			—			(22,486		)
Intercompany contribution (distribution)	—			367,512			2,633			(370,145		)	—
Intercompany loan activity	(350,000		)	350,000			—			—			—
Contribution from general partner	8,405			—			—			—			8,405
Net cash provided by (used in) financing activities	352,824			868,988			2,633			(370,145		)	854,300
Effect of exchange rate changes on cash	—			—			(588		)	—			(588		)
Increase (decrease) in cash and cash equivalents	—			19,004			5,585			—			24,589
Cash and cash equivalents at beginning of period	—			4,339			5,138			—			9,477
Cash and cash equivalents at end of period	$	—		$	23,343		$	10,723		$	—		$	34,066

Condensed Consolidating Statement of Cash Flows

December 31, 2013

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Net cash provided by (used in) operating activities	$	—		$	21,733		$	7,402		$	—		$	29,135
Investing activities:
Purchases of property, plant, and equipment, net	—			(19,263		)	(5,311		)	—			(24,574		)
Intercompany investment activity	26,969			—			—			(26,969		)	—
Net cash provided by (used in) investing activities	26,969			(19,263		)	(5,311		)	(26,969		)	(24,574		)
Financing activities:
Proceeds from long-term debt	—			19,909			—			—			19,909
Distributions	(26,969		)	—			—			—			(26,969		)
Payment of financing costs	—			(916		)				—			(916		)
Intercompany contribution (distribution)	—			(26,969		)	—			26,969			—
Intercompany loan activity	—			291			(291		)	—			—
Net cash provided by (used in) financing activities	(26,969		)	(7,685		)	(291		)	26,969			(7,976		)
Effect of exchange rate changes on cash	—			—			(74		)	—			(74		)
Increase (decrease) in cash and cash equivalents	—			(5,215		)	1,726			—			(3,489		)
Cash and cash equivalents at beginning of period	—			9,554			3,412			—			12,966
Cash and cash equivalents at end of period	$	—		$	4,339		$	5,138		$	—		$	9,477

Condensed Consolidating Statement of Cash Flows

December 31, 2012

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Net cash provided by (used in) operating activities	$	—		$	32,677		$	(1,568	)	$	—		$	31,109
Investing activities:
Purchases of property, plant, and equipment, net	—			(18,658		)	(2,289		)	—			(20,947		)
Intercompany investment activity	24,732			—			—			(24,732		)	—
Advances and other investing activities	—			(39		)	—			—			(39		)
Net cash provided by (used in) investing activities	24,732			(18,697		)	(2,289		)	(24,732		)	(20,986		)
Financing activities:
Proceeds from long-term debt	—			10,050			—			—			10,050
Distributions	(24,732		)	—			—			—			(24,732		)
Intercompany contribution (distribution)	—			(24,732		)	—			24,732			—
Intercompany loan activity	—			2,746			(2,746		)	—			—
Net cash provided by (used in) financing activities	(24,732		)	(11,936		)	(2,746		)	24,732			(14,682		)
Effect of exchange rate changes on cash	—			—			49			—			49
Increase (decrease) in cash and cash equivalents	—			2,044			(6,554		)	—			(4,510		)
Cash and cash equivalents at beginning of period	—			7,510			9,966			—			17,476
Cash and cash equivalents at end of period	$	—		$	9,554		$	3,412		$	—		$	12,966