USA Compression Q4 Earnings Match Estimates, Revenues Rise Y/Y

Core Insights - USA Compression Partners (USAC) reported a fourth-quarter adjusted net profit of 28 cents per common unit, matching the Zacks Consensus Estimate and improving from 18 cents per common unit in the previous year [1][8] - The company generated revenues of $252.5 million, a 2.7% increase from the prior year, and exceeded the Zacks Consensus Estimate by $1 million [2][8] - Distributable cash flow (DCF) rose to $103.2 million, up 7.2% year-over-year, with a declared cash distribution of 52.5 cents per unit [5][8] Revenue and Profitability - The revenue growth was attributed to a 3.9% increase in contract operations and a 3.4% rise in related-party revenues [2] - Adjusted EBITDA decreased by 0.6% to $154.5 million, missing the estimate of $156.2 million [2] - The average monthly revenue per horsepower increased to $21.69 from $20.85, although it was lower than the estimate of $21.91 [4] Operational Metrics - The company's revenue-generating capacity slightly declined to 3.58 million horsepower, exceeding the estimate of 3.57 million horsepower [4] - The average quarterly horsepower utilization rate remained stable at 94.5%, consistent with the prior year [4] Financial Position - Total costs and expenses increased by 2.7% to $175.9 million, with growth capital expenditures of $40 million and maintenance capital expenditures of $7.8 million [6] - As of December 31, 2025, USAC had a net long-term debt of $2.5 billion [6] Future Guidance - For full-year 2026, USAC expects adjusted EBITDA to be between $770 million and $800 million, with distributable cash flow projected to range from $480 million to $510 million [7] - Expansion capital expenditures are anticipated to be between $230 million and $250 million, while maintenance capital expenditures are expected to total between $60 million and $70 million [7]