SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

The $295.9 million in aggregate principal amount of the 7.25% Senior Notes as of December 31, 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 which are each a 100% owned subsidiary (each a "Guarantor Subsidiary" and collectively the "Guarantor Subsidiaries"):

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.

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

December 31, 2017

(In Thousands)



	Issuers		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets	$	—	$	78,942	$	23,205	$	—		$	102,147
Property, plant, and equipment, net	—		581,092		25,387		—			606,479
Investments in subsidiaries	169,411		19,146		—		(188,557		)	—
Intangible and other assets, net	—		33,688		618		—			34,306
Intercompany receivables	292,373		—		—		(292,373		)	—
Total non-current assets	461,784		633,926		26,005		(480,930		)	640,785
Total assets	$	461,784	$	712,868	$	49,210	$	(480,930	)	$	742,932

LIABILITIES AND PARTNERS' CAPITAL
Current liabilities	$	8,306	$	49,639	$	3,027	$	—		$	60,972
Amounts payable to affiliate	—		1,475		1,559		—			3,034
Long-term debt	288,191		223,985		—		—			512,176
Series A Preferred Units	70,260		—		—		—			70,260
Intercompany payables	—		268,216		24,157		(292,373		)	—
Other long-term liabilities	—		142		1,321		—			1,463
Total liabilities	366,757		543,457		30,064		(292,373		)	647,905
Total partners' capital	95,027		169,411		19,146		(188,557		)	95,027
Total liabilities and partners' capital	$	461,784	$	712,868	$	49,210	$	(480,930	)	$	742,932

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 affiliate	874		3,780		1,526		—			6,180
Long-term debt	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 (Loss)

December 31, 2017

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	273,649		$	28,175		$	(6,258	)	$	295,566
Cost of revenues (excluding depreciation and amortization expense)	—			181,121			18,635			(6,258		)	193,498
Depreciation and amortization	—			65,920			3,220			—			69,140
Insurance recoveries	—			(2,352		)	—			—			(2,352		)
Selling, general and administrative expense	1,314			30,504			1,620			—			33,438
Interest expense, net	31,402			11,733			—			—			43,135
Series A Preferred FV Adjustment	(3,402		)	—			—			—			(3,402		)
Other expense, net	—			2,147			(2,363		)	—			(216		)
Equity in net (income) loss of subsidiaries	11,145			(5,112		)	—			(6,033		)	—
Income (loss) before income tax provision	(40,459		)	(10,312		)	7,063			6,033			(37,675		)
Provision (benefit) for income taxes	—			833			1,951			—			2,784
Net income (loss)	(40,459		)	(11,145		)	5,112			6,033			(40,459		)
Other comprehensive income (loss)	(1,078		)	(1,078		)	(1,078		)	2,156			(1,078		)
Comprehensive income (loss)	$	(41,537	)	$	(12,223	)	$	4,034		$	8,189		$	(41,537	)

Condensed Consolidating Statement of Operations

and Comprehensive Income (Loss)

December 31, 2016

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	283,846		$	38,653		$	(11,136	)	$	311,363
Cost of revenues (excluding depreciation and amortization expense)	—			175,314			27,082			(11,136		)	191,260
Depreciation and amortization	—			69,327			2,796			—			72,123
Impairments of long-lived assets	—			10,154			69			—			10,223
Selling, general and administrative expense	3,969			30,574			1,679			—			36,222
Goodwill impairment	—			91,575			759			—			92,334
Interest expense, net	24,667			13,388			—			—			38,055
Series A Preferred FV Adjustment	5,036			—			—			—			5,036
Other expense, net	737			44			1,602			—			2,383
Equity in net income of subsidiaries	103,729			(3,798		)	—			(99,931		)	—
Income (loss) before income tax provision	(138,138		)	(102,732		)	4,666			99,931			(136,273		)
Provision (benefit) for income taxes	—			997			868			—			1,865
Net income (loss)	(138,138		)	(103,729		)	3,798			99,931			(138,138		)
Other comprehensive income (loss)	(2,018		)	(2,018		)	(2,018		)	4,036			(2,018		)
Comprehensive income (loss)	$	(140,156	)	$	(105,747	)	$	1,780		$	103,967		$	(140,156	)

Condensed Consolidating Statement of Operations

and Comprehensive Income (Loss)

December 31, 2015

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	435,954		$	42,956		$	(21,269	)	$	457,641
Cost of revenues (excluding depreciation and amortization expense)	—			280,479			31,450			(21,269		)	290,660
Depreciation and amortization	—			78,185			3,653			—			81,838
Impairments of long-lived assets	—			11,797			—			—			11,797
Selling, general and administrative expense	2,314			39,113			2,052			—			43,479
Goodwill impairment	—			138,035			1,409			—			139,444
Interest expense, net	26,740			8,224			—			—			34,964
Other expense, net	406			(272		)	2,056			—			2,190
Equity in net income of subsidiaries	117,170			(1,086		)	—			(116,084		)	—
Income (loss) before income tax provision	(146,630		)	(118,521		)	2,336			116,084			(146,731		)
Provision (benefit) for income taxes	—			(1,351		)	1,250			—			(101		)
Net income (loss)	(146,630		)	(117,170		)	1,086			116,084			(146,630		)
Other comprehensive income (loss)	(5,057		)	(5,057		)	(5,057		)	10,114			(5,057		)
Comprehensive income (loss)	$	(151,687	)	$	(122,227	)	$	(3,971	)	$	126,198		$	(151,687	)

Condensed Consolidating Statement of Cash Flows

December 31, 2017

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—		$	44,456		$	(5,388	)	$	—		$	39,068
Investing activities:
Purchases of property, plant, and equipment, net	—			(25,499		)	373			—			(25,126		)
Insurance recoveries associated with damaged equipment	—			2,352			—			—			2,352
Intercompany investment activity	33,187			—			—			(33,187		)	—
Advances and other investing activities	—			21			—			—			21
Net cash provided by (used in) investing activities	33,187			(23,126		)	373			(33,187		)	(22,753		)
Financing activities:
Proceeds from long-term debt	—			80,900			—			—			80,900
Payments of long-term debt	—			(74,900		)	—			—			(74,900		)
Proceeds from issuance of Series A Preferred	(37		)	—			—			—			(37		)
Distributions	(33,068		)	—			—			—			(33,068		)
Intercompany contribution (distribution)	—			(33,187		)	—			33,187			—
Financing costs and other	(82		)	(2,147		)	—			—			(2,229		)
Net cash provided by (used in) financing activities	(33,187		)	(29,334		)	—			33,187			(29,334		)
Effect of exchange rate changes on cash	—			—			(177		)	—			(177		)
Increase (decrease) in cash and cash equivalents	—			(8,004		)	(5,192		)	—			(13,196		)
Cash and cash equivalents at beginning of period	—			12,201			8,596			—			20,797
Cash and cash equivalents at end of period	$	—		$	4,197		$	3,404		$	—		$	7,601

Condensed Consolidating Statement of Cash Flows

December 31, 2016

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(26,052	)	$	86,348		$	1,148		$	—		$	61,444
Investing activities:
Purchases of property, plant, and equipment, net	—			(10,895		)	236			—			(10,659		)
Intercompany investment activity	51,254			—			—			(51,254		)	—
Advances and other investing activities	—			(22		)	—			—			(22		)
Net cash provided by (used in) investing activities	51,254			(10,917		)	236			(51,254		)	(10,681		)
Financing activities:
Proceeds from long-term debt	—			109,000			—			—			109,000
Payments of long-term debt	(50,882		)	(122,000		)	—			—			(172,882		)
Proceeds from issuance of Series A Preferred	76,934			—			—			—			76,934
Distributions	(51,254		)	—			—			—			(51,254		)
Intercompany contribution (distribution)	—			(51,254		)	—			51,254			—
Financing costs and other	—			(1,688		)	—			—			(1,688		)
Net cash provided by (used in) financing activities	(25,202		)	(65,942		)	—			51,254			(39,890		)
Effect of exchange rate changes on cash	—			—			(696		)	—			(696		)
Increase (decrease) in cash and cash equivalents	—			9,489			688			—			10,177
Cash and cash equivalents at beginning of period	—			2,712			7,908			—			10,620
Cash and cash equivalents at end of period	$	—		$	12,201		$	8,596		$	—		$	20,797

Condensed Consolidating Statement of Cash Flows

December 31, 2015

(In Thousands)



	Issuers			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—		$	84,351		$	17,542		$	—		$	101,893
Investing activities:
Purchases of property, plant, and equipment, net	—			(76,553		)	(18,719		)	—			(95,272		)
Intercompany investment activity	68,360			—			—			(68,360		)	—
Advances and other investing activities				(69		)	—						(69		)
Net cash provided by (used in) investing activities	68,360			(76,622		)	(18,719		)	(68,360		)	(95,341		)
Financing activities:
Proceeds from long-term debt	—			63,000			—			—			63,000
Payments of long-term debt	—			(23,000		)	—			—			(23,000		)
Distributions	(68,360		)	—			—			—			(68,360		)
Intercompany contribution (distribution)	—			(68,360		)	—			68,360			—
Net cash provided by (used in) financing activities	(68,360		)	(28,360		)	—			68,360			(28,360		)
Effect of exchange rate changes on cash	—			—			(1,638		)	—			(1,638		)
Increase (decrease) in cash and cash equivalents	—			(20,631		)	(2,815		)	—			(23,446		)
Cash and cash equivalents at beginning of period	—			23,343			10,723			—			34,066
Cash and cash equivalents at end of period	$	—		$	2,712		$	7,908		$	—		$	10,620