USA Compression 2Q results miss Street's view

USA Compression Partners 2nd-quarter performance misses analysts' expectations

Associated Press

AUSTIN, Texas (AP) -- USA Compression Partners LP said Tuesday that its second-quarter net income climbed, helped by steady demand for its compression services and double-digit revenue growth.

But the results missed analysts' estimates, and the stock fell in afternoon trading.

The Austin, Texas, company, which compresses natural gas and serves the energy industry, earned $2.4 million, or 8 cents per common unit, for the three months ended June 30. That compares with earnings of $997,000 a year earlier. There was no per unit results for the prior-year period because the company did not go public until January.

Analysts, on average, expected earnings of 12 cents per unit, according to a FactSet survey.

Revenue increased 15 percent to $33.3 million from $28.9 million mostly due to a 17 percent rise in contract operation revenue excluding retail parts and services.

Wall Street was looking for higher revenue of $34.5 million.

Shares of USA Compression declined 85 cents, or 3 percent, to $24.37. The stock has traded in a 52-week range of $17.25 to $26.50.

The company also announced Tuesday that it is buying compression assets owned by S&R Compression LLC for about $187 million. The assets, which include 983 compression units, are mostly located in Texas and Oklahoma and are mostly used in connection with crude oil production.

The deal is expected to close in the third quarter.

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