USA Compression Partners (NYSE:USAC) Posts Quarterly Earnings Results, Meets Expectations

USA Compression Partners (NYSE:USAC) issued its earnings results on Tuesday. The oil and gas company reported $0.33 earnings per share for the quarter, hitting the consensus estimate of $0.33, FiscalAI reports. The business had revenue of $357.19 million for the quarter, compared to analyst estimates of $348.32 million. USA Compression Partners had a return on equity of 179.77% and a net margin of 12.43%.

Here are the key takeaways from USA Compression Partners’ conference call:

• USA Compression reported sequential growth in revenue, Adjusted EBITDA, and Distributable Cash Flow, with average revenue-generating horsepower, revenue per horsepower, total revenue, and Adjusted EBITDA reaching record levels.
• Demand for compression remains healthy despite measured near-term growth. More than 60% of horsepower scheduled for 2027 delivery is contracted, and the company has an approximately $500 million new-unit order book through 2029.
• The company narrowed full-year Adjusted EBITDA guidance to $770 million-$780 million from $770 million-$800 million, citing higher fuel, lube oil, labor, and other commodity-linked costs, as well as softer retail parts and service activity.
• Leverage remained near target at 3.78 times, while the company issued $600 million of 6.750% senior notes due 2035 and ended the quarter with approximately $1.06 billion of available ABL capacity, preserving financial flexibility for growth and capital allocation.

USA Compression Partners Stock Performance

Shares of USA Compression Partners stock traded down $0.97 on Wednesday, hitting $24.70. The stock had a trading volume of 46,580 shares, compared to its average volume of 252,524. USA Compression Partners has a 52-week low of $22.57 and a 52-week high of $30.55. The company has a current ratio of 1.35, a quick ratio of 0.68 and a debt-to-equity ratio of 10.25. The stock has a market cap of $3.58 billion, a price-to-earnings ratio of 23.30 and a beta of 0.28. The company’s 50 day moving average price is $25.95 and its 200 day moving average price is $26.73.

USA Compression Partners Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 6th. Stockholders of record on Monday, October 26th will be issued a $0.5250 dividend. This represents a $2.10 annualized dividend and a dividend yield of 8.5%. The ex-dividend date of this dividend is Monday, October 26th. USA Compression Partners’s payout ratio is presently 198.11%.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Zacks Research upgraded shares of USA Compression Partners from a “strong sell” rating to a “hold” rating in a research note on Monday, August 31st. Wall Street Zen downgraded shares of USA Compression Partners from a “buy” rating to a “hold” rating in a research report on Saturday, September 26th. Finally, Royal Bank Of Canada boosted their price objective on shares of USA Compression Partners from $30.00 to $31.00 and gave the stock a “sector perform” rating in a research report on Tuesday, September 1st. One investment analyst has rated the stock with a Strong Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $29.50.

Insider Transactions at USA Compression Partners

In other news, Director Bradford Whitehurst acquired 6,000 shares of USA Compression Partners stock in a transaction on Friday, August 21st. The stock was bought at an average price of $26.10 per share, for a total transaction of $156,600.00. Following the completion of the purchase, the director owned 43,616 shares in the company, valued at $1,138,377.60. This represents a 15.95% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink.

About USA Compression Partners

USA Compression Partners LP (NYSE: USAC) is a master limited partnership that provides natural gas compression services in the United States. The company owns and operates a fleet of natural gas compression equipment and supplies compression to producers, processors, gatherers and pipeline operators under primarily fee-based contracts.

Its services support several stages of the natural gas value chain, including the gathering and processing of natural gas, transportation through interstate and intrastate pipelines, and natural gas storage.