Group 1 - USA Compression Partners (USAC) shares increased by 8.5% to close at $27.76, with a notable trading volume compared to normal sessions, reflecting an 8.6% gain over the past four weeks [1][2] - The surge in USAC's stock price is attributed to strong natural gas demand from shale plays, leading to increased demand for its compression services, supported by a diversified and creditworthy customer base [2][3] - The company is expected to report quarterly earnings of $0.26 per share, representing a year-over-year increase of 160%, with revenues projected at $241.6 million, up 7.4% from the previous year [3][4] Group 2 - The consensus EPS estimate for USAC has been revised 1.5% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [4] - USA Compression is part of the Zacks Oil and Gas - Mechanical and Equipment industry, where Nov Inc. (NOV) has seen a slight increase of 0.5% in its stock price, but has returned -1.4% over the past month [4] - In contrast, Nov Inc. has experienced a -5.1% change in its EPS estimate over the past month, reflecting a -35.2% change from the previous year, and currently holds a Zacks Rank of 5 (Strong Sell) [5]

Group 1 - USA Compression Partners, LP (USAC) has reached a key level of support and is showing potential for a bullish breakout due to a "golden cross" formation in its moving averages [1] - The golden cross indicates a trend reversal, starting from a downtrend, followed by a crossover of the shorter moving average above the longer one, and culminating in an upward price movement [2] - USAC has moved 12.3% higher over the last four weeks and currently holds a 2 (Buy) rating on the Zacks Rank, supported by a positive earnings outlook with no earnings estimates cut and an increase in the Zacks Consensus Estimate [3] Group 2 - Investors are encouraged to monitor USAC for potential gains due to its key technical level and favorable earnings estimate revisions [4]

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-a ...

[Performance Overview](index=1&type=section&id=Performance%20Overview) USA Compression reported record revenues and Adjusted EBITDA for Q3 2024, driven by strong operational execution and higher pricing in a tightening market [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company achieved record total revenues of $240.0 million, a 10.5% increase year-over-year, with significant growth in Adjusted EBITDA and Distributable Cash Flow despite a slight decrease in net income Q3 2024 vs. Q3 2023 Financial Highlights | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $240.0 million | $217.1 million | +10.5% | | Net Income | $19.3 million | $20.9 million | -7.7% | | Adjusted EBITDA | $145.7 million | $130.2 million | +11.9% | | Distributable Cash Flow | $86.6 million | $71.6 million | +20.9% | | DCF Coverage | 1.41x | 1.39x | +0.02x | | Net Cash from Operations | $48.5 million | $50.1 million | -3.2% | [Operational Highlights](index=1&type=section&id=Operational%20Highlights) Operational metrics showed strong year-over-year improvement, with record average revenue-generating horsepower, increased revenue per horsepower per month, and improved utilization Q3 2024 vs. Q3 2023 Operational Highlights | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Avg. Revenue-Generating Horsepower | 3.56 million | 3.36 million | +6.0% | | Avg. Revenue per HP per Month | $20.60 | $19.10 | +7.9% | | Average Horsepower Utilization | 94.6% | 93.6% | +1.0 p.p. | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted the record-setting quarter, attributing it to strong operational execution and a tightening market, leading to increased full-year 2024 expansion capital expenditure guidance - CEO Clint Green noted that record revenues and Adjusted EBITDA were driven by **record revenue-generating horsepower** and **pricing**, reflecting a tight compression services market expected to persist[4](index=4&type=chunk) - Full-year 2024 expansion capital expenditure guidance was increased to a range of **$240.0 million to $250.0 million**[5](index=5&type=chunk) [Financial Condition and Shareholder Returns](index=1&type=section&id=Financial%20Condition%20and%20Shareholder%20Returns) As of September 30, 2024, the Partnership maintained compliance with debt covenants, with substantial credit facility availability, and declared a consistent quarterly cash distribution [Liquidity and Long-Term Debt](index=3&type=section&id=Liquidity%20and%20Long-Term%20Debt) At the end of Q3 2024, the company maintained compliance with all debt covenants, with $641.8 million available on its revolving credit facility and $1.75 billion in senior notes outstanding - As of September 30, 2024, the Partnership was in compliance with all debt covenants[8](index=8&type=chunk) - Outstanding borrowings under the revolving credit facility were **$803.2 million**, with **$641.8 million** available to be drawn[8](index=8&type=chunk) - Total outstanding senior notes amounted to **$1.75 billion**, split between 6.875% notes due 2027 (**$750.0 million**) and 7.125% notes due 2029 (**$1.0 billion**)[8](index=8&type=chunk) [Capital Expenditures and Distributions](index=1&type=section&id=Capital%20Expenditures%20and%20Distributions) For Q3 2024, the company reported expansion and maintenance capital expenditures, alongside a consistent quarterly cash distribution of $0.525 per common unit Q3 2024 Expenditures and Distribution | Item | Amount | | :--- | :--- | | Expansion Capital Expenditures | $34.1 million | | Maintenance Capital Expenditures | $9.1 million | | Cash Interest Expense, net | $47.1 million | | Quarterly Cash Distribution per Unit | $0.525 | [Full-Year 2024 Outlook](index=3&type=section&id=Full-Year%202024%20Outlook) USA Compression confirmed its full-year 2024 guidance, projecting Net Income, Adjusted EBITDA, and Distributable Cash Flow within specified ranges Full-Year 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Income | $105.0 million to $125.0 million | | Adjusted EBITDA | $565.0 million to $585.0 million | | Distributable Cash Flow | $345.0 million to $365.0 million | [Financial Statements](index=6&type=section&id=Financial%20Statements) The condensed consolidated financial statements detail the company's performance, showing increased revenue but a slight net income decrease due to higher interest expense and derivative losses [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues for Q3 2024 increased to $240.0 million, though net income decreased to $19.3 million, primarily impacted by higher interest expense and derivative losses Q3 2024 vs. Q3 2023 Statement of Operations (in thousands) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Revenues | $239,968 | $217,085 | | Operating Income | $75,676 | $60,954 | | Interest Expense, net | ($49,361) | ($43,257) | | Net Income | $19,327 | $20,902 | | Basic and Diluted EPS | $0.13 | $0.09 | [Selected Balance Sheet Data](index=7&type=section&id=Selected%20Balance%20Sheet%20Data) As of September 30, 2024, the company reported total assets of $2.80 billion, net long-term debt of $2.53 billion, and a total partners' deficit of $107.3 million Balance Sheet Data as of September 30, 2024 (in thousands) | Item | Amount | | :--- | :--- | | Total Assets | $2,803,627 | | Long-term Debt, net | $2,532,398 | | Total Partners' Deficit | ($107,254) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities slightly decreased to $48.5 million in Q3 2024, with net cash used in investing and financing activities at $28.4 million and $20.0 million respectively Q3 2024 vs. Q3 2023 Cash Flows (in thousands) | Activity | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $48,481 | $50,072 | | Net Cash used in Investing Activities | ($28,379) | ($48,082) | | Net Cash used in Financing Activities | ($20,032) | ($2,015) | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The report utilizes non-GAAP measures like Adjusted EBITDA and Distributable Cash Flow, providing definitions and reconciliations to offer a comprehensive view of operational profitability and cash generation [Definitions of Non-GAAP Measures](index=3&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company defines key non-GAAP metrics including Adjusted Gross Margin, Adjusted EBITDA, and Distributable Cash Flow, which provide supplemental information on operating profitability and distribution capacity - **Adjusted gross margin:** Defined as revenue less cost of operations, excluding depreciation and amortization[14](index=14&type=chunk) - **Adjusted EBITDA:** Used to assess financial performance without regard to financing methods, capital structure, or historical cost basis[17](index=17&type=chunk) - **Distributable Cash Flow (DCF):** An important measure of operating performance used to compare cash flows generated to cash distributions expected to be paid to common unitholders[22](index=22&type=chunk) [Reconciliation of Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Adjusted EBITDA for Q3 2024 was reconciled to $145.7 million from net income, with key adjustments for interest expense, depreciation, amortization, and derivative losses Reconciliation of Net Income to Adjusted EBITDA for Q3 2024 (in thousands) | Description | Amount | | :--- | :--- | | **Net Income** | **$19,327** | | Interest expense, net | $49,361 | | Depreciation and amortization | $67,237 | | Income tax expense | $793 | | **EBITDA** | **$136,718** | | Unit-based compensation expense | $2,669 | | Loss (gain) on derivative instrument | $6,218 | | Other adjustments | $85 | | **Adjusted EBITDA** | **$145,690** | [Other Information](index=3&type=section&id=Other%20Information) This section provides details for the investor conference call and includes standard forward-looking statement disclaimers outlining potential risks that could affect future results [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) A conference call was hosted on November 5, 2024, at 11:00 a.m. Eastern Time to discuss third-quarter results, accessible via webcast and phone - A conference call was scheduled for 11:00 a.m. Eastern Time on November 5, 2024, to discuss Q3 performance[10](index=10&type=chunk) - Access was provided via webcast on the company's investor relations website or by phone[11](index=11&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements, including the 2024 outlook, subject to various risks and uncertainties such as economic conditions, interest rate changes, and competitive pressures - The news release contains forward-looking statements, including the 'Full-Year 2024 Outlook,' which are not guarantees of future performance[26](index=26&type=chunk) - Known material risks include changes in economic conditions for crude oil and natural gas, interest rate changes, competitive conditions, and information technology risks like cyberattacks[26](index=26&type=chunk)

USA Compression Partners (USAC) is set to release third-quarter results on Nov. 5, 2024. The Zacks Consensus Estimate for earnings is pegged at 20 cents per share and that for revenues is pinned at $238.37 million.Let us delve into the factors that are likely to have influenced this oil and gas equipment and service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at USAC’s performance in the last reported quarter.Stay up-to-date with all quarterly releases: See Zac ...

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A month has gone by since the last earnings report for USA Compression Partners (USAC) . Shares have added about 2% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is USA Compression due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. USA Compression Q2 Earnings & Rev ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style S ...

USA Compression Partners (USAC) reported a second-quarter adjusted net profit of 21 cents per common unit, which beat the Zacks Consensus Estimate of 17 cents due to its improved pricing and utilization. The metric also improved significantly from the year-ago quarter's adjusted net profit of 8 cents per share on the back of a higher-than-expected, revenue-generating capacity. The largest independent provider of natural gas compression services generated revenues of $235.3 million, improving 13.7% from the ...

Financial Data and Key Metrics Changes - The company reported record revenues, adjusted gross margin, adjusted EBITDA, average revenue generating horsepower, and average revenue per revenue generating horsepower for Q2 2024 [4][20] - Period end utilization reached an all-time high of 95%, with large horsepower units over 1,000 horsepower utilized at 99% [4][5] - The leverage ratio decreased to 4.23x, aligning with the long-term goal of 3.75x to 4.25x [5] Business Line Data and Key Metrics Changes - Revenue increased by 3% sequentially and 14% year-over-year, driven by higher utilization and pricing improvements, averaging $20.29 for the second quarter [16] - The total fleet horsepower at the end of the quarter was approximately 3.9 million horsepower, with a 1% increase in revenue generating horsepower due to the conversion of idle units to active status [18] Market Data and Key Metrics Changes - The company anticipates steady and growing opportunities as customers maintain capital discipline to support increasing oil and natural gas demand [7] - The electrification of the Permian Basin is projected to create additional power generation requirements, with power demand expected to grow significantly by 2030 [11][12] Company Strategy and Development Direction - The company focuses on capital structure management, including refinancing senior notes and exiting Series A preferred units before considering changes to the distribution policy [9] - The long-term outlook for the natural gas compression market remains positive, driven by strong demand for power generation and LNG exports [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the natural gas compression market, citing strong demand drivers and the company's ability to convert idle equipment to active status [7][20] - The company is cautious about growth due to potential regulatory changes stemming from upcoming elections, which could impact the energy sector [26] Other Important Information - The company plans to beta test dual drive compression units that can generate power, allowing for opportunistic sales back to the grid [13] - The company has maintained a strong commitment to safety and continues to improve safety programs and culture [14] Q&A Session Summary Question: Compression equipment lead times and sourcing delays - Management indicated that lead times for equipment remain around 30 to 40 weeks for engines, with no significant changes in delivery times [22][23] Question: Elevated CapEx spend levels and long-term growth - Management acknowledged the uncertainty in the energy sector due to upcoming elections but remains optimistic about growth opportunities [24][25] Question: Order book build and growth CapEx into next year - Management expressed optimism about demand and indicated that they are accelerating capital expenditures to optimize existing assets [28][29] Question: Operating cost inflation and its impact - Management noted that inflation, particularly in labor, is affecting operating costs, but they expect some costs to roll off as units are deployed [30][31] Question: Percentage of units associated with gas lift - Approximately 40% to 50% of units are associated with gas lift, primarily in the Permian Basin [40] Question: Interest rate hedge and potential gains - Management indicated that monetizing the hedge is an opportunity that will be discussed with the board [41] Question: Changes in distribution policy post-preferred extinguishing - Management clarified that any changes to the distribution policy will be at the board's discretion and not automatically assumed [44] Question: Customer movement towards owning compression equipment - Management noted that various factors influence customer decisions, and there is no significant trend towards purchasing equipment instead of outsourcing [46][49]