USA Compression Partners, LP (USAC) finalized its legal redomiciliation from Delaware to Texas on July 6, 2026. The company’s stock price fell 3.2% following the announcement.
An SEC filing details a new Texas Partnership Agreement that restricts legal remedies available to unitholders. The agreement replaces traditional fiduciary duties with a good faith standard for the General Partner. This change shields leadership from liability except in cases of fraud, bad faith, or willful misconduct.
The new governance framework establishes a Texas Business Court as the exclusive forum for most legal actions. This designation potentially limits the ability of unitholders to bring suits in preferred jurisdictions.