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USA Compression (USAC) Stock Stabilizes Despite Lower Q1 Loss

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USA Compression Partners, LP USAC stock has seen insignificant change since the company’s first-quarter 2021 earnings release on May 4. Even though this industry player's overall results remained subdued with narrower loss and a top-line miss, it restrained its cost and expenses.

Delving Deeper

USA Compression Partners reported first-quarter 2021 net loss per common unit of 12 cents, narrower than the Zacks Consensus Estimate of a loss of 14 cents, attributable to lower costs and expenses.

However, the year-ago quarter’s earnings per share were reported at 4 cents. The unfavorable comparisons were due to lower-than-expected revenue-generating horsepower capacity, which came in at 2,994,418 horsepower, falling short of the Zacks Consensus Estimate of 3,036,000 horsepower.

Revenues of $158 million were 11.7% lower than the year-ago quarter’s reading and also missed the Zacks Consensus Estimate of $161 million.

Adjusted EBITDA was down 6.24% to $99.6 million. Moreover, the partnership’s distributable cash flow fell from $54.7 million in the prior-year quarter to $52.6 million.

The partnership reported operating cash flow of $39.6 million in the quarter, down from $50.07 million generated in the prior-year quarter. Also, gross operating margin of 69.1% improved from the year-ago period’s 66.9%.

In the first quarter, the firm’s revenue-generating horsepower capacity decreased 9.8% to 2,994,418 horsepower from the level recorded in the corresponding period of last year. Further, the average monthly revenue per horsepower fell to $16.60 from $16.89 in the first quarter of 2020. Meanwhile, USA Compression Partners’ average quarterly horsepower utilization rate came in at 83.1%, down from 92.5% 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 reported that its DCF available to limited partners for the first quarter totaled $52.6 million (providing 1.03X distribution coverage), down 3.9% from the year-ago level. Notably, on Apr 14, the firm announced first-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis).

USA Compression Partners spent $4.2 million on growth capex. The partnership’s maintenance capex consisted of $4.5 million.

As of Mar 31, 2021, the firm had $1.96 billion of net long-term debt. Net debt-to-capitalization was 87.6%.


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

Zacks Rank & Key Picks

USA Compression Partners currently carries a Zacks Rank #4 (Sell).

Some better-ranked players in the energy space are Whiting Petroleum Corp. WLL, Matador Resources Co. MTDR 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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Continental Resources, Inc. (CLR) : Free Stock Analysis Report

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

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