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USA Compression (USAC) Incurs Wider-Than-Expected Q1 Loss
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USA Compression Partners, LP (USAC - Free Report) reported first-quarter 2023 net loss per common unit of a penny, compared to the Zacks Consensus Estimate of a profit of a penny. The unfavorable comparison was due to an increase in costs and expenses.
However, USAC’s bottom line improved from the year-earlier quarter’s loss of 9 cents on the back of higher-than-expected revenue-generating horsepower capacity, which, at 3,241,296 horsepower, came ahead of the Zacks Consensus Estimate of 3,096,000 horsepower.
Revenues of $197.1 million were 20.6% above the year-ago quarter and beat the Zacks Consensus Estimate of $189 million.
Adjusted EBITDA was up 20.1% to $118.2 million. Moreover, the partnership’s distributable cash flow rose from $50.1 million in the prior-year quarter to $62.6 million.
The partnership reported operating cash flow of $42.3 million in the quarter. This marked an increase from $35.1 million generated in the prior-year quarter. However, gross operating margin, at 66.2%, marked a slight drop from the year-ago period’s 67.1%.
In the first quarter, the partnership’s revenue-generating horsepower capacity increased 8.8% from last year’s corresponding period to 3,241,296 horsepower. Further, the average monthly revenue per horsepower rose to $18.19 from $16.87 in the first quarter of 2022. Meanwhile, USA Compression Partners’ average quarterly horsepower utilization rate came in at 92.6%, up from 84.9% in the year-ago period.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners reported that its DCF available to limited partners for the first quarter totaled $62.6 million (providing 1.21X distribution coverage), up 25% from the year-ago level. Notably, on Apr 13, the partnership announced first-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis).
USAC reported total costs and expenses of $146.1 million in first-quarter 2023, rising 13.8% from the year-ago quarter.
USA Compression Partners spent $51.2 million on growth capex. The partnership’s maintenance capex consisted of $5 million.
As of Mar 31, 2023, the partnership had $2.2 billion in net long-term debt.
Guidance
For 2023, USA Compression Partners projects full-year DCF between $260 million and $280 million. Meanwhile, it expects adjusted EBITDA of $490-$510 million.
Zacks Rank & Stock Picks
USA Compression Partners currently carries a Zacks Rank #4 (Sell).
Meanwhile, investors interested in the energy sector might look at operators like Weatherford International (WFRD - Free Report) , Riley Exploration Permian (REPX - Free Report) and Sunoco LP (SUN - Free Report) . Each of the companies has a Zacks Rank #1 (Strong Buy).
Weatherford International: WFRD beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters. Weatherford International has a trailing four-quarter earnings surprise of 0.5%, on average.
WFRD is valued at around $4.3 billion. Weatherford International has seen its shares inch up 78.9% in a year.
Sunoco LP: SUN beat the Zacks Consensus Estimate for earnings twice in the trailing four quarters. Over the past 30 days, Sunoco saw the Zacks Consensus Estimate for 2023 move up 0.7%.
Sunoco is valued at around $4.6 billion. SUN has seen its shares gain 1% in a year.
Riley Exploration Permian: Riley Exploration Permian beat the Zacks Consensus Estimate for earnings in three of the last four quarters. REPX has a trailing four-quarter earnings surprise of roughly 12.7%, on average.
Riley Exploration Permian is valued at around $814 million. REPX has seen its shares surge 56.2% in a year.
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USA Compression (USAC) Incurs Wider-Than-Expected Q1 Loss
USA Compression Partners, LP (USAC - Free Report) reported first-quarter 2023 net loss per common unit of a penny, compared to the Zacks Consensus Estimate of a profit of a penny. The unfavorable comparison was due to an increase in costs and expenses.
However, USAC’s bottom line improved from the year-earlier quarter’s loss of 9 cents on the back of higher-than-expected revenue-generating horsepower capacity, which, at 3,241,296 horsepower, came ahead of the Zacks Consensus Estimate of 3,096,000 horsepower.
Revenues of $197.1 million were 20.6% above the year-ago quarter and beat the Zacks Consensus Estimate of $189 million.
Adjusted EBITDA was up 20.1% to $118.2 million. Moreover, the partnership’s distributable cash flow rose from $50.1 million in the prior-year quarter to $62.6 million.
The partnership reported operating cash flow of $42.3 million in the quarter. This marked an increase from $35.1 million generated in the prior-year quarter. However, gross operating margin, at 66.2%, marked a slight drop from the year-ago period’s 67.1%.
In the first quarter, the partnership’s revenue-generating horsepower capacity increased 8.8% from last year’s corresponding period to 3,241,296 horsepower. Further, the average monthly revenue per horsepower rose to $18.19 from $16.87 in the first quarter of 2022. Meanwhile, USA Compression Partners’ average quarterly horsepower utilization rate came in at 92.6%, up from 84.9% in the year-ago period.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote
DCF, Cost, Capex & Balance Sheet
USA Compression Partners reported that its DCF available to limited partners for the first quarter totaled $62.6 million (providing 1.21X distribution coverage), up 25% from the year-ago level. Notably, on Apr 13, the partnership announced first-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis).
USAC reported total costs and expenses of $146.1 million in first-quarter 2023, rising 13.8% from the year-ago quarter.
USA Compression Partners spent $51.2 million on growth capex. The partnership’s maintenance capex consisted of $5 million.
As of Mar 31, 2023, the partnership had $2.2 billion in net long-term debt.
Guidance
For 2023, USA Compression Partners projects full-year DCF between $260 million and $280 million. Meanwhile, it expects adjusted EBITDA of $490-$510 million.
Zacks Rank & Stock Picks
USA Compression Partners currently carries a Zacks Rank #4 (Sell).
Meanwhile, investors interested in the energy sector might look at operators like Weatherford International (WFRD - Free Report) , Riley Exploration Permian (REPX - Free Report) and Sunoco LP (SUN - Free Report) . Each of the companies has a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Weatherford International: WFRD beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters. Weatherford International has a trailing four-quarter earnings surprise of 0.5%, on average.
WFRD is valued at around $4.3 billion. Weatherford International has seen its shares inch up 78.9% in a year.
Sunoco LP: SUN beat the Zacks Consensus Estimate for earnings twice in the trailing four quarters. Over the past 30 days, Sunoco saw the Zacks Consensus Estimate for 2023 move up 0.7%.
Sunoco is valued at around $4.6 billion. SUN has seen its shares gain 1% in a year.
Riley Exploration Permian: Riley Exploration Permian beat the Zacks Consensus Estimate for earnings in three of the last four quarters. REPX has a trailing four-quarter earnings surprise of roughly 12.7%, on average.
Riley Exploration Permian is valued at around $814 million. REPX has seen its shares surge 56.2% in a year.