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USA Compression (USAC) Stock Stabilizes Despite Lower Q1 Loss

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USA Compression Partners, LP (USAC - Free Report) 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.

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. , Matador Resources Co. (MTDR - Free Report) and Continental Resources, Inc. , 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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