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USA Compression Q2 Earnings Beat Estimates, Revenues Rise Y/Y
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Key Takeaways
Average monthly revenue per horsepower increased to $21.31 from $20.29 a year ago.
USAC's distributable cash flow rose 4.7% to $89.9M, covering its distribution 1.4 times.
Costs and expenses rose 9.9% year over year to $173.5M in the quarter.
USA Compression Partners (USAC - Free Report) reported a second-quarter adjusted net profit of 22 cents per common unit, which beat the Zacks Consensus Estimate of 21 cents. The metric improved from the year-ago quarter's adjusted net profit of 21 cents per common unit on the back of increased average revenue per horsepower.
The largest independent provider of natural gas compression services generated revenues of $250 million, improving 6% from the year-ago quarter’s level and beating the Zacks Consensus Estimate of $245 million. This growth was due to a 1% increase in Contract operations, a 28% jump in Parts and service revenues and 8% high Related party revenues.
Adjusted EBITDA increased 4% to $149.5 million, which surpassed our estimate of $143.7 million.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USAC’s distributable cash flow increased to $89.9 million from $85.9 million in the prior-year quarter. The company reported a net income worth $28.6 million compared with $31.2 million in the year-ago quarter.
The oil and gas equipment and services company reported net operating cash flow of $54.7 million in the second quarter, down from the prior-year quarter’s $65.9 million.
Adjusted gross operating margin of 65.4% marked a decrease from the year-ago period’s 66.8%.
The company’s revenue-generating capacity declined slightly year over year to 3.5 million horsepower. However, the figure was higher than our estimate by 1%.
Further, the average monthly revenue per horsepower rose to $21.31 from $20.29 in the second quarter of 2024. The figure was below our estimate of $21.86.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.4%, slightly down from 94.7% a year ago.
USAC’s DCF, Cost, Capex & Balance Sheet
USAC’s distributable cash flow available to limited partners totaled $89.9 million (providing 1.4X distribution coverage), up 4.7% from the year-ago level.
Notably, on July 17, USAC declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the second quarter. The distribution will be paid on Aug. 8, 2025, to its common unitholders of record as of July 28.
The company reported $173.5 million in costs and expenses, up 9.9% from the year-ago quarter’s $157.9 million. It spent $18.1 million on growth capex. Maintenance capex amounted to $11.7 million.
As of June 30, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.
USAC’s Guidance
USA Compression expects its full-year 2025 adjusted EBITDA to be between $590 million and $610 million. This Zacks Rank #3 (Hold) company also expects distributable cash flow to range from $350 million to $370 million, expansion capital expenditures to be between $120 million and $140 million, and maintenance capital expenditures to total in the band of $38 million to $42 million.
While we have discussed USAC’s second-quarter results in detail, let us take a look at three other key reports in this space.
San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation (VLO - Free Report) , reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.
The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.
As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.
Norway-based integrated oil and gas operator, Equinor ASA (EQNR - Free Report) , reported second-quarter 2025 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents. Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.
As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million. During the same time, Equinor generated a negative net cash flow of $2,579 million compared with $4,022 million in the year-ago period. Equinor’s capital expenditures amounted to $3.4 billion in the second quarter.
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USA Compression Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
USA Compression Partners (USAC - Free Report) reported a second-quarter adjusted net profit of 22 cents per common unit, which beat the Zacks Consensus Estimate of 21 cents. The metric improved from the year-ago quarter's adjusted net profit of 21 cents per common unit on the back of increased average revenue per horsepower.
The largest independent provider of natural gas compression services generated revenues of $250 million, improving 6% from the year-ago quarter’s level and beating the Zacks Consensus Estimate of $245 million. This growth was due to a 1% increase in Contract operations, a 28% jump in Parts and service revenues and 8% high Related party revenues.
Adjusted EBITDA increased 4% to $149.5 million, which surpassed our estimate of $143.7 million.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote
USAC’s distributable cash flow increased to $89.9 million from $85.9 million in the prior-year quarter. The company reported a net income worth $28.6 million compared with $31.2 million in the year-ago quarter.
The oil and gas equipment and services company reported net operating cash flow of $54.7 million in the second quarter, down from the prior-year quarter’s $65.9 million.
Adjusted gross operating margin of 65.4% marked a decrease from the year-ago period’s 66.8%.
The company’s revenue-generating capacity declined slightly year over year to 3.5 million horsepower. However, the figure was higher than our estimate by 1%.
Further, the average monthly revenue per horsepower rose to $21.31 from $20.29 in the second quarter of 2024. The figure was below our estimate of $21.86.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.4%, slightly down from 94.7% a year ago.
USAC’s DCF, Cost, Capex & Balance Sheet
USAC’s distributable cash flow available to limited partners totaled $89.9 million (providing 1.4X distribution coverage), up 4.7% from the year-ago level.
Notably, on July 17, USAC declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the second quarter. The distribution will be paid on Aug. 8, 2025, to its common unitholders of record as of July 28.
The company reported $173.5 million in costs and expenses, up 9.9% from the year-ago quarter’s $157.9 million. It spent $18.1 million on growth capex. Maintenance capex amounted to $11.7 million.
As of June 30, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.
USAC’s Guidance
USA Compression expects its full-year 2025 adjusted EBITDA to be between $590 million and $610 million. This Zacks Rank #3 (Hold) company also expects distributable cash flow to range from $350 million to $370 million, expansion capital expenditures to be between $120 million and $140 million, and maintenance capital expenditures to total in the band of $38 million to $42 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed USAC’s second-quarter results in detail, let us take a look at three other key reports in this space.
San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation (VLO - Free Report) , reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.
The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.
As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.
Norway-based integrated oil and gas operator, Equinor ASA (EQNR - Free Report) , reported second-quarter 2025 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents. Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.
As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million. During the same time, Equinor generated a negative net cash flow of $2,579 million compared with $4,022 million in the year-ago period. Equinor’s capital expenditures amounted to $3.4 billion in the second quarter.