USA Compression Partners (NYSE:USAC) Issues Quarterly Earnings Results

USA Compression Partners (NYSE:USAC) issued its quarterly earnings results on Tuesday. The oil and gas company reported $0.31 EPS for the quarter, topping the consensus estimate of $0.28 by $0.03, FiscalAI reports. USA Compression Partners had a negative return on equity of 807.33% and a net margin of 11.91%.The company had revenue of $342.15 million for the quarter, compared to the consensus estimate of $340.49 million.

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

• USA Compression expects approximately 2.5% annual new-horsepower growth through 2029, adding more than 500,000 horsepower by 2030, supported by anticipated U.S. natural-gas and LNG demand growth.
• Customer visibility is improving, with approximately 50% of units planned for 2027 and 15% of 2028 units already contracted; extended equipment lead times are encouraging customers to plan further in advance.
• Second-quarter revenue rose 37% year over year to $342.1 million, while management maintained full-year adjusted EBITDA guidance of $770 million-$800 million and distributable cash flow guidance of $480 million-$510 million.
• Margins remain pressured by the lower-margin J-W manufacturing and aftermarket businesses, integration costs, and higher lube-oil prices; management expects approximately $1 million per month of incremental lube-oil expense in the second half, with no direct contractual pass-through.
• Despite improved cash flow and leverage of 3.72 times, management said excess cash will currently prioritize fleet growth and maintaining prudent leverage, suggesting distribution growth is possible later but not an immediate commitment.

USA Compression Partners Stock Performance

Shares of NYSE USAC traded down $0.19 during trading hours on Wednesday, reaching $26.13. The stock had a trading volume of 6,155 shares, compared to its average volume of 223,750. The company has a market cap of $3.79 billion, a price-to-earnings ratio of 26.94 and a beta of 0.22. The company has a debt-to-equity ratio of 9.41, a current ratio of 1.55 and a quick ratio of 0.86. The business’s fifty day moving average is $26.66 and its two-hundred day moving average is $27.05. USA Compression Partners has a twelve month low of $21.85 and a twelve month high of $30.55.

USA Compression Partners Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Monday, July 27th will be paid a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a dividend yield of 8.0%. The ex-dividend date is Monday, July 27th. USA Compression Partners’s dividend payout ratio is presently 216.49%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on USAC. Citigroup raised their price objective on shares of USA Compression Partners from $26.00 to $28.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 13th. Mizuho increased their price target on shares of USA Compression Partners from $28.00 to $29.00 and gave the company a “neutral” rating in a report on Friday, June 12th. Royal Bank Of Canada raised their price target on shares of USA Compression Partners from $29.00 to $30.00 and gave the stock a “sector perform” rating in a research report on Friday, June 5th. Finally, Zacks Research downgraded shares of USA Compression Partners from a “hold” rating to a “strong sell” rating in a report on Monday, July 6th. One analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, USA Compression Partners presently has an average rating of “Hold” and an average price target of $29.25.

Institutional Trading of USA Compression Partners

Several institutional investors have recently made changes to their positions in USAC. BNP Paribas Financial Markets increased its stake in USA Compression Partners by 233.3% in the third quarter. BNP Paribas Financial Markets now owns 1,443 shares of the oil and gas company’s stock valued at $35,000 after acquiring an additional 1,010 shares during the period. Abel Hall LLC bought a new position in USA Compression Partners during the fourth quarter worth about $230,000. Virtu Financial LLC bought a new position in USA Compression Partners during the fourth quarter worth about $294,000. Commonwealth Equity Services LLC boosted its holdings in USA Compression Partners by 5.7% during the fourth quarter. Commonwealth Equity Services LLC now owns 13,482 shares of the oil and gas company’s stock valued at $310,000 after purchasing an additional 724 shares in the last quarter. Finally, Mariner LLC boosted its holdings in USA Compression Partners by 8.6% during the fourth quarter. Mariner LLC now owns 16,565 shares of the oil and gas company’s stock valued at $381,000 after purchasing an additional 1,313 shares in the last quarter. 47.77% of the stock is currently owned by institutional investors and hedge funds.

USA Compression Partners Company Profile

USA Compression Partners (NYSE: USAC) is a Houston-based master limited partnership specializing in natural gas compression services for oil and gas producers. The company offers a full suite of midstream compression solutions designed to enhance production flow and optimize field operations. Its core activities include the design, engineering, fabrication, installation, operation and maintenance of natural gas compression equipment onshore across key U.S. basins.

USA Compression’s product and service offerings encompass new equipment deployment, aftermarket parts and component sales, field service support, and instrumentation and control systems.