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USA Compression (USAC) Makes No Impact Despite Q2 Narrower Loss

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USA Compression Partners, LP USAC stock has seen no significant change since the firm’s second-quarter 2021 earnings release on Aug 3. Even though this industry player's overall results were tepid with narrower-than-anticipated loss and a top-line miss, its efforts to restrain cost and expenses are appreciative.

Delving Deeper

USA Compression Partners reported second-quarter 2021 net loss per common unit of 10 cents, narrower than the Zacks Consensus Estimate of a loss of 13 cents, attributable to lower costs and expenses.

However, the loss was wider than the year-ago quarter’s loss per share of 6 cents. The unfavorable comparisons were due to lower-than-expected revenue-generating horsepower capacity, which came in at 2,944,909 horsepower, falling short of the Zacks Consensus Estimate of 3,007,000 horsepower.

Revenues of $157 million were 7.1% lower than the year-ago quarter’s reading and also missed the Zacks Consensus Estimate of $160 million.

Adjusted EBITDA was down 5.2% to $100 million. Moreover, the partnership’s distributable cash flow fell from $58.7 million in the prior-year quarter to $52.5 million.

The firm reported an operating cash flow of $99.5 million in the quarter, up from $97.4 million generated in the prior-year quarter. Also, gross operating margin of 70.9% improved from the year-ago period’s 70.4%.

In the second quarter, the firm’s revenue-generating horsepower capacity decreased 7.7% to 2,944,909 horsepower from the level recorded in the corresponding period of last year. Further, the average monthly revenue per horsepower fell to $16.55 from $16.79 in the second quarter of 2020. USA Compression Partners’ average quarterly horsepower utilization rate came in at 82.4%, down from 88% in the year-ago period.

USA Compression Partners, LP Price, Consensus and EPS Surprise

USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners, LP Price, Consensus and EPS Surprise

USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote

DCF, Capex & Balance Sheet

USA Compression Partners’ DCF available to limited partners for the second quarter totaled $52.5 million (providing 1.03X distribution coverage), down 10.6% from the year-ago level. On Jul 15, the firm announced second-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis).

It spent $8.2 million as growth capex. The partnership’s maintenance capex consisted of $5 million.

As of Jun 30, 2021, the firm had $1.93 billion of net long-term debt. Net debt-to-capitalization was 89.9%.


For 2021, USA Compression Partners projects DCF between $193 million and $213 million. It estimates adjusted EBITDA within $385-$405 million.

Zacks Rank & Key Picks

USA Compression Partners currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Matador Resources Co. MTDR, Devon Energy Corp. DVN and Continental Resources, Inc. CLR, each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Devon Energy Corporation (DVN) : Free Stock Analysis Report

Continental Resources, Inc. (CLR) : Free Stock Analysis Report

USA Compression Partners, LP (USAC) : Free Stock Analysis Report

Matador Resources Company (MTDR) : Free Stock Analysis Report

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