USA pression Partners(US:USAC)2025-11-05 16:00Financial Performance Highlights - The company achieved record revenues of $2503 million, a 4% year-over-year increase[5] - Record Adjusted EBITDA reached $1603 million, a 10% year-over-year increase[5] - The company reported a record distribution coverage of 161x[5] - Average revenue generating horsepower was 355 million, with pricing continuing at record levels of $2146 per revenue generating horsepower, a 4% year-over-year increase[5] Operational Efficiency - Total utilization remained strong at 94%, with large horsepower utilization at 98%[5] Debt Management - The company extended the majority of its debt maturities in Q3 at lower rates[5] - $420 million of $500 million Series A Preferred Units have been converted into Common Units[36] Future Growth and Market Position - The company is well-positioned to benefit from natural gas demand growth, driven by increased LNG exports and the electrification of everything (EoE)[6, 8] - Over 60% of the company's active fleet is located within the Permian and along the Gulf Coast, regions expected to benefit most from increased exports[9] - Approximately 33 million additional contract compression HP capacity is projected to be required to meet the incremental U S natural gas demand[9] Capital Structure and Returns - USAC has outperformed the S&P Value Index and MLP peers over the past three years on a total equity return basis[22] - Conversions of 84% of Preferred to Common Units has minimal impact on USAC's financial metrics[26]