We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
USA Compression (USAC) Q4 Earnings Lag Estimates, Revenues Top
Read MoreHide Full Article
USA Compression Partners, LP (USAC - Free Report) reported fourth-quarter 2023 adjusted net profit of 10 cents per common unit, which lagged the Zacks Consensus Estimate of 12 cents due to higher total costs and other expenses. However, the metric improved significantly from the year-ago quarter's adjusted net loss of 4 cents per share. This was backed by a net income worth $12.8 million compared with $8.4 million a year ago.
Revenues of $225 million were up 18.4% from the year-ago quarter’s level and beat the Zacks Consensus Estimate of $222 million.
Adjusted EBITDA increased 22.7% to $138.6 million and came ahead of our estimate of $131.7 million. Distributable cash flow increased from $60.6 million in the prior-year quarter to $79.9 million.
USAC reported operating cash flow of $91.6 million in the fourth quarter, up from the prior-year quarter’s $82.1 million. Gross operating margin of 67.5% marked an increase from the year-ago period’s 65.3%.
The company’s revenue-generating capacity increased 7.6% to 3.41 million horsepower year over year. However, the figure was lower than our estimate of 3.44 million horsepower. Further, the average monthly revenue per horsepower rose to $19.52 from $17.81 in the fourth quarter of 2022.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate came in at 94.1%, up from 91.3% a year ago.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USAC’s distributable cash flow available to limited partners totaled $79.9 million (providing 1.48x distribution coverage), up 31.8% from the year-ago level.
Notably, on Jan 11, it announced fourth-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis). The distribution was paid on Feb 2, 2024, to common unitholders of record as of Jan 23, 2024.
It reported $156.5 million in costs and expenses, up 9.1% from the year-ago quarter’s $143.4 million.
It spent $90.1 million on growth capex. Maintenance capex amounted to $6.6 million.
As of Dec 31, 2023, USA Compression had a net long-term debt of $2.3 billion.
Guidance
For 2024, USAC anticipates distributable cash flow in the $310-$330 million range. Management expects adjusted EBITDA in the band of $555-$575 million.
The company also anticipates 2024 net income in the $95-$115 million range.
Subsea 7 is valued at $4.02 billion. The company currently pays a dividend of 38 cents per share, or 2.89%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Energy Transfer is valued at $44.31 billion. The company currently pays a dividend of $1.26 per share, or 8.94%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Repsol is valued at around $19.15 billion. The company currently pays a dividend of $1.26 per share, or 8.94%, on an annual basis.
REPYY engages in the exploration, development, and extraction of crude oil and natural gas, as well as the transportation of petroleum products and liquefied petroleum gas. Additionally, it operates in petroleum refining.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
USA Compression (USAC) Q4 Earnings Lag Estimates, Revenues Top
USA Compression Partners, LP (USAC - Free Report) reported fourth-quarter 2023 adjusted net profit of 10 cents per common unit, which lagged the Zacks Consensus Estimate of 12 cents due to higher total costs and other expenses. However, the metric improved significantly from the year-ago quarter's adjusted net loss of 4 cents per share. This was backed by a net income worth $12.8 million compared with $8.4 million a year ago.
Revenues of $225 million were up 18.4% from the year-ago quarter’s level and beat the Zacks Consensus Estimate of $222 million.
Adjusted EBITDA increased 22.7% to $138.6 million and came ahead of our estimate of $131.7 million. Distributable cash flow increased from $60.6 million in the prior-year quarter to $79.9 million.
USAC reported operating cash flow of $91.6 million in the fourth quarter, up from the prior-year quarter’s $82.1 million. Gross operating margin of 67.5% marked an increase from the year-ago period’s 65.3%.
The company’s revenue-generating capacity increased 7.6% to 3.41 million horsepower year over year. However, the figure was lower than our estimate of 3.44 million horsepower. Further, the average monthly revenue per horsepower rose to $19.52 from $17.81 in the fourth quarter of 2022.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate came in at 94.1%, up from 91.3% a year ago.
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
USAC’s distributable cash flow available to limited partners totaled $79.9 million (providing 1.48x distribution coverage), up 31.8% from the year-ago level.
Notably, on Jan 11, it announced fourth-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis). The distribution was paid on Feb 2, 2024, to common unitholders of record as of Jan 23, 2024.
It reported $156.5 million in costs and expenses, up 9.1% from the year-ago quarter’s $143.4 million.
It spent $90.1 million on growth capex. Maintenance capex amounted to $6.6 million.
As of Dec 31, 2023, USA Compression had a net long-term debt of $2.3 billion.
Guidance
For 2024, USAC anticipates distributable cash flow in the $310-$330 million range. Management expects adjusted EBITDA in the band of $555-$575 million.
The company also anticipates 2024 net income in the $95-$115 million range.
Zacks Rank and Other Key Picks
Currently, USAC carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at some other top-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) and Energy Transfer LP (ET - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Repsol, S.A. (REPYY - Free Report) , carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 is valued at $4.02 billion. The company currently pays a dividend of 38 cents per share, or 2.89%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Energy Transfer is valued at $44.31 billion. The company currently pays a dividend of $1.26 per share, or 8.94%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Repsol is valued at around $19.15 billion. The company currently pays a dividend of $1.26 per share, or 8.94%, on an annual basis.
REPYY engages in the exploration, development, and extraction of crude oil and natural gas, as well as the transportation of petroleum products and liquefied petroleum gas. Additionally, it operates in petroleum refining.