USA Compression Partners LP (USAC) Reports Record Revenues of $217.1 Million in Q3 2023
USA Compression Partners LP (NYSE:USAC) reported record total revenues of $217.1 million for Q3 2023, up from $179.6 million in Q3 2022.
Net income for Q3 2023 was $20.9 million, more than double the $9.6 million reported for Q3 2022.
Adjusted EBITDA increased to $130.2 million in Q3 2023, up from $109.2 million in Q3 2022.
Distributable Cash Flow Coverage improved to 1.39x in Q3 2023, compared to 1.07x in Q3 2022.
USA Compression Partners LP (NYSE:USAC) released its Q3 2023 earnings report on October 31, 2023. The company reported record total revenues of $217.1 million, a significant increase from $179.6 million in Q3 2022. Net income for Q3 2023 was $20.9 million, more than double the $9.6 million reported for the same period in 2022.
Financial Highlights
USAC's net income for Q3 2023 includes a $3.4 million gain on a derivative instrument. Net cash provided by operating activities was $50.1 million for Q3 2023, slightly up from $49.2 million for Q3 2022. Adjusted EBITDA was $130.2 million for Q3 2023, a significant increase from $109.2 million for Q3 2022. Distributable Cash Flow was $71.6 million for Q3 2023, compared to $55.2 million for Q3 2022. The Distributable Cash Flow Coverage was 1.39x for Q3 2023, an improvement from 1.07x for Q3 2022.
Operational Highlights
USAC reported average horsepower utilization of 93.6% for Q3 2023, up from 90.3% for Q3 2022. The company also reported record average revenue-generating horsepower of 3.36 million for Q3 2023, compared to 3.09 million for Q3 2022. The average revenue per revenue-generating horsepower per month was $19.10 for Q3 2023, up from $17.53 for Q3 2022.
Management Commentary
I am pleased to report our third-quarter results continued the trend of improving financial and operational results and highlight our employees commitment to create value for all USA Compression stakeholders. Our third-quarter achievements again featured consecutive-quarter record-setting revenues, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage, commented Eric D. Long, USA Compressions President and Chief Executive Officer.
Financial Outlook
For the full year 2023, USAC updated its guidance to a net income range of $73.0 million to $83.0 million, an Adjusted EBITDA range of $500.0 million to $510.0 million, and a Distributable Cash Flow range of $270.0 million to $280.0 million.
About USA Compression Partners LP
USA Compression Partners LP is one of the nations largest independent providers of natural gas compression services in terms of total compression fleet horsepower. The company partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications.
Explore the complete 8-K earnings release (here) from USA Compression Partners LP for further details.
This article first appeared on GuruFocus.
