USA pression Partners(US:USAC)2025-11-05 21:36Financial Performance - Total revenues for the three months ended September 30, 2025, were $250,256,000, representing a 4.3% increase from $239,968,000 for the same period in 2024 [135]. - Net income for the three months ended September 30, 2025, was $34,488,000, an increase of 78.4% from $19,327,000 for the same period in 2024 [135]. - Operating income for the three months ended September 30, 2025, was $83,937,000, a 10.9% increase from $75,676,000 for the same period in 2024 [135]. - Total revenues for the nine months ended September 30, 2025, increased by 5.8% to $745.6 million compared to $704.6 million for the same period in 2024 [149]. - Net income for the nine months ended September 30, 2025, was $83.559 million, up from $74.138 million in the same period of 2024, representing a 12.4% increase [204]. - Adjusted EBITDA for the nine months ended September 30, 2025, increased by 7.1% to $459.3 million, with an adjusted EBITDA percentage of 61.6% [163]. - Adjusted EBITDA for Q3 2025 was $160.265 million, compared to $145.690 million in Q3 2024, indicating a 10% increase year-over-year [204]. Revenue Sources - Contract operations revenue increased by $7,500,000, or 3.4%, to $227,990,000 for the three months ended September 30, 2025, compared to $220,518,000 for the same period in 2024 [135]. - Related-party revenue surged by 91.7% to $48.4 million, attributed to revenue recognized from existing customers acquired by Energy Transfer [149][153]. - Contract operations revenue rose by $18.0 million, a 2.7% increase, primarily due to a 4.9% increase in average revenue per revenue-generating horsepower per month [149]. Cost Management - Costs of operations, exclusive of depreciation and amortization, decreased by 5.9% to $76,951,000 for the three months ended September 30, 2025, compared to $81,814,000 for the same period in 2024 [135]. - Selling, general, and administrative expenses decreased by 7.5% to $48.5 million for the nine months ended September 30, 2025, primarily due to a decrease in unit-based compensation [149][156]. - Depreciation and amortization expense increased by 5.9% to $71,222,000 for the three months ended September 30, 2025, compared to $67,237,000 for the same period in 2024 [135]. Cash Flow and Investments - Net cash provided by operating activities increased by $43.6 million for the nine months ended September 30, 2025, primarily due to a $55.5 million decrease in inventory purchases [183]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $254.774 million, compared to $211.139 million in the same period of 2024, a 20.6% increase [204]. - Net cash used in investing activities decreased by $111.3 million for the nine months ended September 30, 2025, primarily due to a $110.3 million decrease in capital expenditures [184]. Capital Expenditures - Maintenance capital expenditures for the nine months ended September 30, 2025, were $31.6 million, up from $23.8 million in the same period of 2024 [178]. - Expansion capital expenditures for the nine months ended September 30, 2025, were $77.6 million, down from $205.9 million in the same period of 2024 [179]. - The company plans to spend between $38.0 million and $42.0 million in maintenance capital expenditures for the year 2025 [178]. Debt and Interest - Interest expense, net, decreased by $2.7 million for the nine months ended September 30, 2025, due to lower weighted-average interest rates and decreased borrowings [159]. - Interest expense, net for the nine months ended September 30, 2025, was $142.109 million, slightly down from $144.855 million in the same period of 2024 [204]. - As of September 30, 2025, the company had outstanding borrowings under the Credit Agreement of $54.7 million, with $1.69 billion of remaining unused availability [186]. Asset Management - Impairment of assets for the nine months ended September 30, 2025, was $7.5 million, reflecting the evaluation of idle fleet deployment under current market conditions [157]. - The company retired 26 compression units with approximately 19,000 aggregate horsepower during the nine months ended September 30, 2025 [158]. - Impairment of assets for the nine months ended September 30, 2025, was $7.509 million, compared to $311,000 in the same period of 2024 [204]. Performance Metrics - Average revenue per revenue-generating horsepower per month increased by 4.2% to $21.46 for the three months ended September 30, 2025, compared to $20.60 for the same period in 2024 [130]. - Average horsepower utilization for the three months ended September 30, 2025, was 94.0%, a decrease of 0.6% from 94.6% for the same period in 2024 [128]. - DCF for the nine months ended September 30, 2025, was $282.5 million, up 9.1% from $259.1 million in 2024 [217]. - The DCF Coverage Ratio for the three months ended September 30, 2025, was 1.61x, compared to 1.41x in the same period of 2024 [217].