USA Compression's Q3 Earnings Lag Estimates, Revenues Top

In This Article:

USA Compression Partners USAC reported a third-quarter adjusted net profit of 13 cents per common unit, which missed the Zacks Consensus Estimate of 20 cents due to higher total costs and other expenses. However, the metric improved from the year-ago quarter's adjusted net profit of 9 cents per common unit on the back of a higher-than-expected revenue-generating capacity.

The largest independent provider of natural gas compression services generated revenues of $240 million, improving 10.5% from the year-ago quarter’s level and beating the Zacks Consensus Estimate of $238 million. This revenue growth was due to a 7.7% increase in Contract operations and a huge 162.5% jump in Related party revenues.

USA Compression Partners, LP Price, Consensus and EPS Surprise

USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners, LP Price, Consensus and EPS Surprise

USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote

Adjusted EBITDA increased 11.9% to $145.7 million and surpassed our estimate of $142.5 million.

Distributable cash flow decreased from $86.6 million in the prior-year quarter to $71.6 million. The company reported a net income worth $19.3 million compared with $20.9 million a year ago.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The oil and gas equipment and services company reported net operating cash flow of $48.5 million in the third quarter, down from the prior-year quarter’s $50.1 million.

Adjusted gross operating margin of 65.9% marked an increase from the year-ago period’s 65.5%.

The company’s revenue-generating capacity increased 6.1% year over year to 3.6 million horsepower, surpassing the Zacks Consensus Estimate of 3.4 million horsepower by 0.1%. Further, the average monthly revenue per horsepower rose to $20.60 from $19.10 in the third quarter of 2023. The figure was below our estimate of $20.87.

Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.6%, up from 93.6% a year ago.

USAC’s DCF, Cost, Capex & Balance Sheet

USAC’s distributable cash flow available to limited partners totaled $86.6 million (providing 1.4X distribution coverage), up 20.9% from the year-ago level.

Notably, on Oct. 10, USAC declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the third quarter. The distribution was paid on Nov. 1, 2024, to its common unitholders of record as of Oct. 21.

The company reported $164.3 million in costs and expenses, up 5.2% from the year-ago quarter’s $156.1 million. It spent $34.1 million on growth capex. Maintenance capex amounted to $9.1 million.

As of Sept. 30, 2024, USA Compression had a net long-term debt of $2.5 billion.

Waiting for permission
Allow microphone access to enable voice search

Try again.