USA pression Partners(USAC) - 2025 Q3 - Quarterly Results

Financial Performance - Record total revenues of $250.3 million for Q3 2025, up from $240.0 million in Q3 2024, representing a 1.3% increase[5] - Record net income of $34.5 million for Q3 2025, compared to $19.3 million for Q3 2024, reflecting an increase of 79.3%[5] - Record Adjusted EBITDA of $160.3 million for Q3 2025, compared to $145.7 million for Q3 2024, marking a 10.0% increase[5] - Record Distributable Cash Flow of $103.8 million for Q3 2025, up from $86.6 million in Q3 2024, a 19.8% increase[5] - Total revenues for the three months ended September 30, 2025, were $250,256,000, a 4.3% increase from $239,968,000 in the same period of 2024[36] - Operating income for the same period was $83,937,000, compared to $75,676,000 in September 2024, reflecting a 10.0% year-over-year growth[36] - Net income attributable to common unitholders for the three months ended September 30, 2025, was $32,538,000, up 117.5% from $14,939,000 in the prior year[36] - Adjusted EBITDA for the three months ended September 30, 2025, was $160,265,000, an increase from $145,690,000 in the same period of 2024[45] - Net cash provided by operating activities for the three months ended September 30, 2025, was $75,879,000, compared to $48,481,000 in September 2024, representing a 56.7% increase[40] - Net income for Q3 2025 was $34.488 million, up 21% from $28.559 million in Q2 2025 and 79% from $19.327 million in Q3 2024[47] - Distributable Cash Flow increased to $103.845 million in Q3 2025, compared to $89.926 million in Q2 2025 and $86.606 million in Q3 2024, reflecting a growth of 15% quarter-over-quarter and 20% year-over-year[47] Capital Expenditures - Expansion capital expenditures were $37.3 million, while maintenance capital expenditures were $9.0 million for Q3 2025[3] - Maintenance capital expenditures for Q3 2025 were $8.990 million, a decrease from $11.733 million in Q2 2025 and an increase from $9.123 million in Q3 2024[47] Cash Distribution - The Partnership announced a cash distribution of $0.525 per common unit for Q3 2025, consistent with Q3 2024[5] - The company declared distributions of $0.525 per common unit for the respective periods, consistent across the last three quarters[36] Debt and Assets - As of September 30, 2025, the Partnership had outstanding borrowings of $54.7 million under its $1.75 billion revolving credit facility[13] - Total assets as of September 30, 2025, were $2,659,214,000, while long-term debt stood at $2,529,382,000[38] - The company reported a total partners' deficit of $150,214,000 as of September 30, 2025[38] Guidance and Expectations - Full-year 2025 Adjusted EBITDA guidance tightened to a range of $610 million to $620 million[18] - The partnership expects to generate significant Adjusted EBITDA and Distributable Cash Flow in the fiscal year 2025, although specific projections could not be reconciled to net income due to estimation uncertainties[30] Risks - The partnership faces risks including changes in economic conditions, competitive pressures, and potential impacts from geopolitical events[32] Other Financial Metrics - Average revenue per revenue-generating horsepower per month was $21.46 for Q3 2025, compared to $20.60 for Q3 2024, a 4.2% increase[5] - Average horsepower utilization was 94.0% for Q3 2025, slightly down from 94.6% in Q3 2024[5] - The Distributable Cash Flow Coverage Ratio improved to 1.61x in Q3 2025, up from 1.40x in Q2 2025 and 1.41x in Q3 2024[47] Non-Operating Items - Severance charges and other employee costs rose to $2.463 million in Q3 2025, compared to $472,000 in Q2 2025 and $223,000 in Q3 2024[47] - Non-cash interest expense was $2.133 million in Q3 2025, slightly down from $2.231 million in Q2 2025 and $2.251 million in Q3 2024[47] - The company recorded a loss on disposition of assets amounting to $830,000 in Q3 2025, compared to a gain of $39,000 in Q2 2025 and a loss of $123,000 in Q3 2024[47] - The company incurred an impairment of assets totaling $622,000 in Q3 2025, a significant decrease from $3.242 million in Q2 2025[47] - Changes in operating assets and liabilities resulted in a cash outflow of $34.567 million in Q3 2025, contrasting with an inflow of $21.107 million in Q2 2025 and an outflow of $51.428 million in Q3 2024[47]