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USA Compression (USAC) Stock Rises 7% Despite Wider Q1 Loss
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USA Compression Partners, LP (USAC - Free Report) stock has risen 7.1% since the first-quarter 2022 earnings announcement on May 3.
The stock price surged despite USA Compression’s first-quarter loss being wider than the Zacks Consensus Estimate. However, this rise can be attributed to an increase in revenues and operating profit, highlighting a better performance.
Behind the Earnings Headlines
USA Compression reported a first-quarter 2022 net loss of 9 cents per common unit, wider than the Zacks Consensus Estimate of a loss of 4 cents, due to higher total costs and expenses.
However, the loss was narrower than the year-ago quarter’s loss of 12 cents per share. This favorable comparison was due to the partnership posting a net income of $3.25 million for the first quarter of 2022 compared with the net income of just $371,000 for the same period last year.
Revenues of $163.4 million were approximately 3.7% higher than the year-ago quarter’s reading of $157.5 million.
Adjusted EBITDA decreased about 1.13% to $98.4 million from the last year’s first-quarter figure of $99.6 million. Moreover, the partnership’s distributable cash flow also declined from $52.6 million in the prior-year quarter to $50.1 million.
The firm reported operating cash flow of $35.1 million in the quarter, down from the $39.6 million generated in the prior-year quarter. Also, its gross operating margin of 67.1% declined from the year-ago period’s 69.1%.
In the first quarter, USA Compression Partners’ revenue-generating horsepower capacity decreased about 0.5% to 2,978,422 horsepower from the level recorded in the corresponding period of last year. Average monthly revenues per horsepower were $16.87, higher than the year-ago quarter’s figure of $16.60. USAC’s average quarterly horsepower utilization rate came in at 84.9%, higher than 83.1% in the year-ago period.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners’ DCF available to limited partners for the first quarter equaled $50.1 million (providing 0.98X distribution coverage), down 4.7% from the year-ago level. On Apr 14, the firm announced a first-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis). The distribution was paid out on May 6, 2022 to common unitholders of record as of Apr 25, 2022.
It spent $20.1 million as growth capex. The partnership’s maintenance capex amounted to $5.8 million.
As of Mar 31, 2022, USA Compression Partners had $2.02 billion of net long-term debt.
Guidance
For 2022, USAC maintained its DCF guidance of $213 million to $233 million. It still estimates the adjusted EBITDA outlook within the $406-$426 million range.
Additionally, the firm still expects its net income for the year in the range of $33 million-$53 million.
Zacks Rank & Key Picks
USA Compression Partners currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy space are Ranger Oil , Murphy USA (MUSA - Free Report) and PDC Energy , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $14.14 per share, which is an increase of a massive 158% from the projected year-ago earnings of $5.48.
Ranger Oil beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 56.4%. ROCC stock has increased 101.9% in a year.
Murphy USA is valued at around $6.16 billion. The Zacks Consensus Estimate for Murphy USA’s 2022 earnings per share has been revised upward by about 47.3% over the past 60 days from $11.42 to $16.82.
Murphy USA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 49.1%. MUSA stock has increased 90.2% in a year.
PDC Energy’s stock price has increased 75.6% in a year. The Zacks Consensus Estimate for PDC Energy’s 2022 earnings has been revised about 36.4% upward over the past 60 days from $13.08 per share to $17.84.
The Zacks Consensus Estimate for PDCE’s 2022 earnings is pegged at $17.84 per share, up 123.3% from the projected year-ago earnings of $7.99.
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USA Compression (USAC) Stock Rises 7% Despite Wider Q1 Loss
USA Compression Partners, LP (USAC - Free Report) stock has risen 7.1% since the first-quarter 2022 earnings announcement on May 3.
The stock price surged despite USA Compression’s first-quarter loss being wider than the Zacks Consensus Estimate. However, this rise can be attributed to an increase in revenues and operating profit, highlighting a better performance.
Behind the Earnings Headlines
USA Compression reported a first-quarter 2022 net loss of 9 cents per common unit, wider than the Zacks Consensus Estimate of a loss of 4 cents, due to higher total costs and expenses.
However, the loss was narrower than the year-ago quarter’s loss of 12 cents per share. This favorable comparison was due to the partnership posting a net income of $3.25 million for the first quarter of 2022 compared with the net income of just $371,000 for the same period last year.
Revenues of $163.4 million were approximately 3.7% higher than the year-ago quarter’s reading of $157.5 million.
Adjusted EBITDA decreased about 1.13% to $98.4 million from the last year’s first-quarter figure of $99.6 million. Moreover, the partnership’s distributable cash flow also declined from $52.6 million in the prior-year quarter to $50.1 million.
The firm reported operating cash flow of $35.1 million in the quarter, down from the $39.6 million generated in the prior-year quarter. Also, its gross operating margin of 67.1% declined from the year-ago period’s 69.1%.
In the first quarter, USA Compression Partners’ revenue-generating horsepower capacity decreased about 0.5% to 2,978,422 horsepower from the level recorded in the corresponding period of last year. Average monthly revenues per horsepower were $16.87, higher than the year-ago quarter’s figure of $16.60. USAC’s average quarterly horsepower utilization rate came in at 84.9%, higher than 83.1% 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 first quarter equaled $50.1 million (providing 0.98X distribution coverage), down 4.7% from the year-ago level. On Apr 14, the firm announced a first-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis). The distribution was paid out on May 6, 2022 to common unitholders of record as of Apr 25, 2022.
It spent $20.1 million as growth capex. The partnership’s maintenance capex amounted to $5.8 million.
As of Mar 31, 2022, USA Compression Partners had $2.02 billion of net long-term debt.
Guidance
For 2022, USAC maintained its DCF guidance of $213 million to $233 million. It still estimates the adjusted EBITDA outlook within the $406-$426 million range.
Additionally, the firm still expects its net income for the year in the range of $33 million-$53 million.
Zacks Rank & Key Picks
USA Compression Partners currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy space are Ranger Oil , Murphy USA (MUSA - Free Report) and PDC Energy , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $14.14 per share, which is an increase of a massive 158% from the projected year-ago earnings of $5.48.
Ranger Oil beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 56.4%. ROCC stock has increased 101.9% in a year.
Murphy USA is valued at around $6.16 billion. The Zacks Consensus Estimate for Murphy USA’s 2022 earnings per share has been revised upward by about 47.3% over the past 60 days from $11.42 to $16.82.
Murphy USA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 49.1%. MUSA stock has increased 90.2% in a year.
PDC Energy’s stock price has increased 75.6% in a year. The Zacks Consensus Estimate for PDC Energy’s 2022 earnings has been revised about 36.4% upward over the past 60 days from $13.08 per share to $17.84.
The Zacks Consensus Estimate for PDCE’s 2022 earnings is pegged at $17.84 per share, up 123.3% from the projected year-ago earnings of $7.99.