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USA Compression (USAC) Q4 Loss Wider Than Estimates, Sales Up
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USA Compression Partners, LP (USAC - Free Report) reported a fourth-quarter 2021 net loss per common unit of 9 cents, wider than the Zacks Consensus Estimate of a loss of 7 cents, due to higher total other expenses.
However, the loss was narrower than the year-ago quarter’s loss of 14 cents per share. This favorable comparison was due to the partnership posting a net income of $3.1 million for the fourth quarter of 2021 compared to a net loss of $1.5 million for the same period last year.
Revenues of $159.9 million were approximately 1% higher than the year-ago quarter’s reading of $158.4 million.
Adjusted EBITDA increased by about 0.92% to $99.2 million from the last year’s fourth-quarter figure of $98.3 million. Moreover, the partnership’s distributable cash flow rose from $50.5 million in the prior-year quarter to $52 million.
The firm reported operating cash flow of $81 million in the quarter, down from $97.5 million generated in the prior-year quarter. Also, its gross operating margin of 68.1% declined from the year-ago period’s 68.4%.
In the fourth quarter, USA Compression Partners’ revenue-generating horsepower capacity decreased about 1.7% to 2,950,623 horsepower from the level recorded in the corresponding period of last year. Average monthly revenues per horsepower were $16.62, higher than the year-ago quarter’s figure of $16.55. USAC’s average quarterly horsepower utilization rate came in at 82.9%, lower than 83% in the year-ago period.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners’ DCF available to limited partners for the fourth quarter equaled $52 million (providing 1.02X distribution coverage), up 2.9% from the year-ago level. On Jan 13, the firm announced a fourth-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis).
It spent $14.3 million as growth capex. The partnership’s maintenance capex amounted to $4.7 million.
As of Dec 31, 2021, USA Compression Partners had $1.97 billion of net long-term debt. Net debt-to-capitalization was 95.1%.
Guidance For 2022, USAC projects DCF between $213 million and $233 million. It estimates adjusted EBITDA within the $406-$426 million range. Additionally, the firm expects its net income for the year in the range of $33 million-$53 million.
USA Compression Partners expressed confidence in the health of the U.S. economy and saw improved customer demand/pricing for its compression services. At the same time, the partnership cautioned about the uncertainty and moderation of activity levels by operators across the broader sector.
Zacks Rank & Key Picks
USA Compression Partners currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy space are Denbury Inc. , Ranger Oil and ExxonMobil (XOM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury stock has rallied 70.6% in a year. The Zacks Consensus Estimate for Denbury’s 2022 earnings has been revised upward three times over the past 60 days.
The Zacks Consensus Estimate for DEN’s 2022 earnings is projected at $6.47 per share, which is an increase of about 154.7% from the projected year-ago earnings of $2.54.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $9.29 per share, which is an increase of a massive 162.3% from the projected year-ago earnings of $3.54.
ROCC beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 25%. Ranger Oil’s stock has increased 112.7% in a year
ExxonMobil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.8%. ExxonMobil stock has gone up 49.3% in a year.
XOM is valued at around $332 billion. The Zacks Consensus Estimate for ExxonMobil’s 2022 earnings has been revised upward by about 15.1% over the past 60 days from $5.95 to $6.85 per share.
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USA Compression (USAC) Q4 Loss Wider Than Estimates, Sales Up
USA Compression Partners, LP (USAC - Free Report) reported a fourth-quarter 2021 net loss per common unit of 9 cents, wider than the Zacks Consensus Estimate of a loss of 7 cents, due to higher total other expenses.
However, the loss was narrower than the year-ago quarter’s loss of 14 cents per share. This favorable comparison was due to the partnership posting a net income of $3.1 million for the fourth quarter of 2021 compared to a net loss of $1.5 million for the same period last year.
Revenues of $159.9 million were approximately 1% higher than the year-ago quarter’s reading of $158.4 million.
Adjusted EBITDA increased by about 0.92% to $99.2 million from the last year’s fourth-quarter figure of $98.3 million. Moreover, the partnership’s distributable cash flow rose from $50.5 million in the prior-year quarter to $52 million.
The firm reported operating cash flow of $81 million in the quarter, down from $97.5 million generated in the prior-year quarter. Also, its gross operating margin of 68.1% declined from the year-ago period’s 68.4%.
In the fourth quarter, USA Compression Partners’ revenue-generating horsepower capacity decreased about 1.7% to 2,950,623 horsepower from the level recorded in the corresponding period of last year. Average monthly revenues per horsepower were $16.62, higher than the year-ago quarter’s figure of $16.55. USAC’s average quarterly horsepower utilization rate came in at 82.9%, lower than 83% 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, Capex & Balance Sheet
USA Compression Partners’ DCF available to limited partners for the fourth quarter equaled $52 million (providing 1.02X distribution coverage), up 2.9% from the year-ago level. On Jan 13, the firm announced a fourth-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis).
It spent $14.3 million as growth capex. The partnership’s maintenance capex amounted to $4.7 million.
As of Dec 31, 2021, USA Compression Partners had $1.97 billion of net long-term debt. Net debt-to-capitalization was 95.1%.
Guidance
For 2022, USAC projects DCF between $213 million and $233 million. It estimates adjusted EBITDA within the $406-$426 million range. Additionally, the firm expects its net income for the year in the range of $33 million-$53 million.
USA Compression Partners expressed confidence in the health of the U.S. economy and saw improved customer demand/pricing for its compression services. At the same time, the partnership cautioned about the uncertainty and moderation of activity levels by operators across the broader sector.
Zacks Rank & Key Picks
USA Compression Partners currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy space are Denbury Inc. , Ranger Oil and ExxonMobil (XOM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury stock has rallied 70.6% in a year. The Zacks Consensus Estimate for Denbury’s 2022 earnings has been revised upward three times over the past 60 days.
The Zacks Consensus Estimate for DEN’s 2022 earnings is projected at $6.47 per share, which is an increase of about 154.7% from the projected year-ago earnings of $2.54.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $9.29 per share, which is an increase of a massive 162.3% from the projected year-ago earnings of $3.54.
ROCC beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 25%. Ranger Oil’s stock has increased 112.7% in a year
ExxonMobil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.8%. ExxonMobil stock has gone up 49.3% in a year.
XOM is valued at around $332 billion. The Zacks Consensus Estimate for ExxonMobil’s 2022 earnings has been revised upward by about 15.1% over the past 60 days from $5.95 to $6.85 per share.