SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

The $295.9 million in aggregate principal amount of the 7.25% Senior Notes as of September 30, 2017 is fully and unconditionally guaranteed, subject to certain customary release provisions, on a joint and several senior unsecured basis, by the following domestic restricted subsidiaries (each a "Guarantor Subsidiary" and collectively the "Guarantor Subsidiaries"):

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.

As a result of these guarantees, 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. In addition to the financial information of the Partnership, 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

September 30, 2017

(In Thousands)



	Issuers		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets	$	—	$	77,524	$	22,047	$	—		$	99,571
Property, plant, and equipment, net	—		586,236		25,430		—			611,666
Investments in subsidiaries	179,080		16,472		—		(195,552		)	—
Intangible and other assets, net	—		34,389		316		—			34,705
Intercompany receivables	293,156		—		—		(293,156		)	—
Total non-current assets	472,236		637,097		25,746		(488,708		)	646,371
Total assets	$	472,236	$	714,621	$	47,793	$	(488,708	)	$	745,942

LIABILITIES AND PARTNERS' CAPITAL
Current liabilities	$	3,327	$	38,554	$	2,907	$	—		$	44,788
Amounts payable to affiliates	—		10,219		1,789		—			12,008
Long-term debt, net	287,795		218,976		—		—			506,771
Series A Preferred Units	78,120		—		—		—			78,120
Intercompany payables	—		267,792		25,364		(293,156		)	—
Other long-term liabilities	—		—		1,261		—			1,261
Total liabilities	369,242		535,541		31,321		(293,156		)	642,948
Total partners' capital	102,994		179,080		16,472		(195,552		)	102,994
Total liabilities and partners' capital	$	472,236	$	714,621	$	47,793	$	(488,708	)	$	745,942

Condensed Consolidating Balance Sheet

December 31, 2016

(In Thousands)



	Issuers		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets	$	35	$	74,574	$	27,395	$	—		$	102,004
Property, plant, and equipment, net	—		624,051		22,955		—			647,006
Investments in subsidiaries	214,703		15,112		—		(229,815		)	—
Intangible and other assets, net	—		36,794		336		—			37,130
Intercompany receivables	312,227		—		—		(312,227		)	—
Total non-current assets	526,930		675,957		23,291		(542,042		)	684,136
Total assets	$	526,965	$	750,531	$	50,686	$	(542,042	)	$	786,140

LIABILITIES AND PARTNERS' CAPITAL
Current liabilities	$	8,089	$	31,789	$	3,856	$	—		$	43,734
Amounts payable to affiliates	874		3,780		1,526		—			6,180
Long-term debt, net	286,623		217,467		—		—			504,090
Series A Preferred Units	88,130		—		—		—			88,130
Intercompany payables	—		282,753		29,474		(312,227		)	—
Other long-term liabilities	—		39		718		—			757
Total liabilities	383,716		535,828		35,574		(312,227		)	642,891
Total partners' capital	143,249		214,703		15,112		(229,815		)	143,249
Total liabilities and partners' capital	$	526,965	$	750,531	$	50,686	$	(542,042	)	$	786,140

Condensed Consolidating Statement of Operations

and Comprehensive Income

Three Months Ended September 30, 2017

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	65,278		$	7,574		$	(1,254	)	$	71,598
Cost of revenues (excluding depreciation and amortization expense)	—			42,031			4,727			(1,254		)	45,504
Selling, general and administrative expense	263			7,961			458			—			8,682
Depreciation and amortization	—			16,522			839			—			17,361
Insurance recoveries	—			(2,352		)	—			—			(2,352		)
Interest expense, net	7,826			3,245			—			—			11,071
Series A Preferred FV Adjustment	(1,300		)	—			—			—			(1,300		)
Other expense, net	—			(446		)	127			—			(319		)
Equity in net (income) loss of subsidiaries	1,032			(976		)	—			(56		)	—
Income before income tax provision	(7,821		)	(707		)	1,423			56			(7,049		)
Provision (benefit) for income taxes	—			325			447			—			772
Net income (loss)	(7,821		)	(1,032		)	976			56			(7,821		)
Other comprehensive income (loss)	(326		)	(326		)	(326		)	652			(326		)
Comprehensive income (loss)	$	(8,147	)	$	(1,358	)	$	650		$	708		$	(8,147	)

Condensed Consolidating Statement of Operations

and Comprehensive Income

Three Months Ended September 30, 2016

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	64,496		$	8,404		$	(2,186	)	$	70,714
Cost of revenues (excluding depreciation and amortization expense)	—			36,814			5,898			(2,186		)	40,526
Selling, general and administrative expense	1,736			7,206			337			—			9,279
Depreciation and amortization	—			17,123			699			—			17,822
Interest expense, net	6,485			3,277			—			—			9,762
Series A Preferred FV Adjustment	7,198			—			—			—			7,198
Other expense, net	1,583			62			253			—			1,898
Equity in net income of subsidiaries	(1,031		)	(1,108		)	—			2,139			—
Income (loss) before income tax provision	(15,971		)	1,122			1,217			(2,139		)	(15,771		)
Provision (benefit) for income taxes	—			91			109			—			200
Net income (loss)	(15,971		)	1,031			1,108			(2,139		)	(15,971		)
Other comprehensive income (loss)	(577		)	(577		)	(577		)	1,154			(577		)
Comprehensive income (loss)	$	(16,548	)	$	454		$	531		$	(985	)	$	(16,548	)

Condensed Consolidating Statement of Operations

and Comprehensive Income

Nine Months Ended September 30, 2017

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	196,376		$	20,276		$	(4,187	)	$	212,465
Cost of revenues (excluding depreciation and amortization expense)	—			128,936			13,401			(4,187		)	138,150
Selling, general and administrative expense	2,247			22,264			1,167			—			25,678
Depreciation and amortization	—			49,439			2,421			—			51,860
Insurance recoveries	—			(2,352		)	—			—			(2,352		)
Interest expense, net	23,675			8,228			—			—			31,903
Series A Preferred FV Adjustment	(4,963		)	—			—			—			(4,963		)
Other expense, net	—			156			(372		)	—			(216		)
Equity in net income of subsidiaries	8,827			(2,004		)	—			(6,823		)	—
Income before income tax provision	(29,786		)	(8,291		)	3,659			6,823			(27,595		)
Provision for income taxes	—			536			1,655			—			2,191
Net income	(29,786		)	(8,827		)	2,004			6,823			(29,786		)
Other comprehensive income (loss)	(644		)	(644		)	(644		)	1,288			(644		)
Comprehensive income (loss)	$	(30,430	)	$	(9,471	)	$	1,360		$	8,111		$	(30,430	)

Condensed Consolidating Statement of Operations

and Comprehensive Income

Nine Months Ended September 30, 2016

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	205,989		$	31,698		$	(9,192	)	$	228,495
Cost of revenues (excluding depreciation and amortization expense)	—			119,705			22,052			(9,192		)	132,565
Selling, general and administrative expense	3,047			23,380			1,265			—			27,692
Depreciation and amortization	—			52,878			2,138			—			55,016
Long-live asset impairment	—			7,797			69			—			7,866
Goodwill impairment	—			91,574			760			—			92,334
Interest expense, net	19,447			7,987			—			—			27,434
Series A Preferred FV Adjustment	7,198			—			—			—			7,198
Other expense, net	1,583			167			1,143			—			2,893
Equity in net income of subsidiaries	94,725			(3,869		)	—			(90,856		)	—
Income before income tax provision	(126,000		)	(93,630		)	4,271			90,856			(124,503		)
Provision (benefit) for income taxes	—			1,095			402			—			1,497
Net income	(126,000		)	(94,725		)	3,869			90,856			(126,000		)
Other comprehensive income (loss)	(1,496		)	(1,496		)	(1,496		)	2,992			(1,496		)
Comprehensive income (loss)	$	(127,496	)	$	(96,221	)	$	2,373		$	93,848		$	(127,496	)

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2017

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—		$	29,445		$	(4,873	)	$	—		$	24,572
Investing activities:
Purchases of property, plant, and equipment, net	—			(14,086		)	373			—			(13,713		)
Insurance recoveries	—			2,352			—			—			2,352
Intercompany investment activity	26,271			—			—			(26,271		)	—
Advances and other investing activities	—			25			—			—			25
Net cash provided by (used in) investing activities	26,271			(11,709		)	373			(26,271		)	(11,336		)
Financing activities:
Proceeds from long-term debt	—			66,300			—			—			66,300
Payments of long-term debt	—			(64,900		)	—			—			(64,900		)
Proceeds from Series A Preferred Units, net of offering costs	(37		)	—			—			—			(37		)
Distributions	(26,152		)	—			—			—			(26,152		)
Other Financing Activities	(82		)	(1,608		)	—			—			(1,690		)
Intercompany contribution (distribution)	—			(26,271		)	—			26,271			—
Net cash provided by (used in) financing activities	(26,271		)	(26,479		)	—			26,271			(26,479		)
Effect of exchange rate changes on cash	—			—			(176		)	—			(176		)
Increase (decrease) in cash and cash equivalents	—			(8,743		)	(4,676		)	—			(13,419		)
Cash and cash equivalents at beginning of period	—			12,201			8,596			—			20,797
Cash and cash equivalents at end of period	$	—		$	3,458		$	3,920		$	—		$	7,378

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2016

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(58,521	)	$	101,259		$	2,784		$	—		$	45,522
Investing activities:
Purchases of property, plant, and equipment, net	—			(6,158		)	(1,444		)	—			(7,602		)
Intercompany investment activity	38,366			—			—			(38,366		)	—
Advances and other investing activities	—			20						—			20
Net cash provided by (used in) investing activities	38,366			(6,138		)	(1,444		)	(38,366		)	(7,582		)
Financing activities:
Proceeds from long-term debt	—			53,000			—			—			53,000
Payments of long-term debt	(18,800		)	(107,000		)	—			—			(125,800		)
Proceeds from issuance of Series A Preferred	77,321			—			—			—			77,321
Distributions	(38,366		)	—			—			—			(38,366		)
Other Financing Activities	—			(840		)	—			—			(840		)
Intercompany contribution (distribution)	—			(38,366		)	—			38,366			—
Net cash provided by (used in) financing activities	20,155			(93,206		)	—			38,366			(34,685		)
Effect of exchange rate changes on cash	—			—			(522		)	—			(522		)
Increase (decrease) in cash and cash equivalents	—			1,915			818			—			2,733
Cash and cash equivalents at beginning of period	—			2,711			7,909			—			10,620
Cash and cash equivalents at end of period	$	—		$	4,626		$	8,727		$	—		$	13,353