CSI Compressco LP (CCLP) Announces Q3 2023 Results: 14% YoY Quarterly Adjusted EBITDA Growth
CSI Compressco LP (NASDAQ:CCLP) reported total revenues of $99.7 million in Q3 2023, up from $94.9 million in Q3 2022.
Adjusted EBITDA for Q3 2023 was $33.8 million, marking a 14% YoY growth.
Net loss decreased to $0.9 million in Q3 2023, compared to a net loss of $4.5 million in Q3 2022.
Compression fleet utilization increased to 87.6% in Q3 2023, up from 85.1% in Q3 2022.
CSI Compressco LP (NASDAQ:CCLP) announced its third quarter 2023 results on November 2, 2023. The company reported a 14% year-on-year quarterly adjusted EBITDA growth and continued leverage reduction. The total revenues for Q3 2023 were $99.7 million, up from $94.9 million in Q3 2022. The contract services revenue also increased to $71.5 million in Q3 2023, compared to $67.5 million in Q3 2022.
Financial Highlights
The company reported a net loss of $0.9 million in Q3 2023, a significant reduction from a net loss of $4.5 million in Q3 2022. The adjusted EBITDA for Q3 2023 was $33.8 million, marking a 14% YoY growth from $29.8 million in Q3 2022. The trailing twelve months adjusted EBITDA was $129.5 million.
The compression fleet utilization increased to 87.6% in Q3 2023, up from 85.1% in Q3 2022. The operating horsepower also increased to 1,026,918 in Q3 2023, compared to 1,022,106 in Q3 2022. The distributable cash flow was $14.0 million in Q3 2023, up from $11.1 million in Q3 2022. The distribution coverage ratio was 9.9x in Q3 2023, compared to 7.8x in Q3 2022.
Management Commentary
John Jackson, CEO of CSI Compressco commented, Our third quarter results reflect the continuing improvements in operational execution amid the backdrop of a strong, resilient natural gas compression market. The operating results reflect continued improvement in our contract services gross profit percentage, increased quarterly EBITDA, improving leverage metrics, and another sequential increase in utilization. Our outlook continues to be upbeat as the visibility of demand continues to be robust and longer in duration."
Financial Tables
CSI Compressco LP (NASDAQ:CCLP) reported a net loss of $947 thousand for Q3 2023, a 63% improvement from Q2 2023 and a 79% improvement from Q3 2022. The adjusted EBITDA for Q3 2023 was $33.8 million, a 4% increase from Q2 2023 and a 14% increase from Q3 2022. The distributable cash flow for Q3 2023 was $13.9 million, a 23% increase from Q2 2023 and a 26% increase from Q3 2022.
As of September 30, 2023, the total compressor fleet horsepower was 1,171,628, and the fleet horsepower in service was 1,026,918, resulting in an overall fleet utilization rate of 87.6%. The cash on hand at the end of the third quarter was $15.5 million, and $47.2 million was outstanding on the Partnerships credit facilities. The net leverage ratio at the end of the quarter was 4.8x.
Company Performance Analysis
CSI Compressco LP (NASDAQ:CCLP) has shown significant improvements in its financial performance in Q3 2023. The company has managed to increase its total revenues and contract services revenue, while reducing its net loss. The increase in compression fleet utilization and operating horsepower indicates a strong operational performance. The company's efforts towards leverage reduction are also evident from the decrease in the net leverage ratio from 5.7x in Q3 2022 to 4.8x in Q3 2023.
Explore the complete 8-K earnings release (here) from CSI Compressco LP for further details.
This article first appeared on GuruFocus.
