USA Compression Partners (NYSE:USAC) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

USA Compression Partners (NYSE:USAC) released its earnings results on Tuesday. The oil and gas company reported $0.31 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.03, FiscalAI reports. The business had revenue of $342.15 million during the quarter, compared to analysts’ expectations of $340.49 million. USA Compression Partners had a net margin of 12.43% and a return on equity of 852.23%.

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 Trading Up 1.9%

Shares of USAC traded up $0.50 during midday trading on Thursday, hitting $26.21. 104,529 shares of the stock were exchanged, compared to its average volume of 224,066. USA Compression Partners has a 52-week low of $21.85 and a 52-week high of $30.55. The company has a debt-to-equity ratio of 9.41, a quick ratio of 0.86 and a current ratio of 1.55. The stock has a fifty day simple moving average of $26.60 and a 200 day simple moving average of $27.05. The firm has a market cap of $3.80 billion, a P/E ratio of 24.73 and a beta of 0.22.

USA Compression Partners Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Monday, July 27th will be issued a $0.525 dividend. This represents a $2.10 annualized dividend and a yield of 8.0%. The ex-dividend date is Monday, July 27th. USA Compression Partners’s payout ratio is presently 198.11%.

Hedge Funds Weigh In On USA Compression Partners

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. BNP Paribas Financial Markets increased its stake in USA Compression Partners by 233.3% during the third quarter. BNP Paribas Financial Markets now owns 1,443 shares of the oil and gas company’s stock worth $35,000 after purchasing an additional 1,010 shares during the period. Abel Hall LLC purchased a new stake in USA Compression Partners during the 4th quarter worth approximately $230,000. Virtu Financial LLC acquired a new stake in USA Compression Partners during the 4th quarter worth approximately $294,000. Commonwealth Equity Services LLC lifted its holdings in USA Compression Partners by 5.7% during the 4th quarter. Commonwealth Equity Services LLC now owns 13,482 shares of the oil and gas company’s stock worth $310,000 after buying an additional 724 shares in the last quarter. Finally, Mariner LLC boosted its position in USA Compression Partners by 8.6% in the 4th quarter. Mariner LLC now owns 16,565 shares of the oil and gas company’s stock valued at $381,000 after buying an additional 1,313 shares during the period. 47.77% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have commented on USAC. Royal Bank Of Canada boosted their price objective on USA Compression Partners from $29.00 to $30.00 and gave the stock a “sector perform” rating in a research note on Friday, June 5th. Mizuho increased their price objective on USA Compression Partners from $28.00 to $29.00 and gave the company a “neutral” rating in a research note on Friday, June 12th. Zacks Research lowered USA Compression Partners from a “hold” rating to a “strong sell” rating in a report on Monday, July 6th. Finally, Citigroup lifted their target price 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. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, USA Compression Partners currently has a consensus rating of “Hold” and a consensus price target of $29.25.

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.