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.
EFXT vs. USAC: Who Wins the Natural Gas Compression Face-Off?
Read MoreHide Full Article
Key Takeaways
Enerflex runs 1.1M hp globally with around 94% utilization and adds engineered systems and power.
USA Compression Partners tops 4.4M hp and adds some 200k idle hp via 3-W Power to redeploy.
EFXT rose 284% in a year and trades just above 16X forward P/E, vs. around 20X for USAC.
The natural gas compression market sits at the heart of the energy value chain, enabling the movement of gas from production sites to end-users. As global demand rises—driven by LNG exports, power generation and emerging needs like data centers—compression providers are seeing strong tailwinds. Enerflex Ltd. (EFXT - Free Report) and USA Compression Partners, LP (USAC - Free Report) are two key players in this space, but their business models and growth drivers differ meaningfully, making for an interesting comparison.
EFXT: Integrated Model With Multiple Growth Levers
Enerflex operates a diversified and integrated energy infrastructure platform, combining compression, engineered systems and aftermarket services. This model allows it to capture value across the entire lifecycle — from manufacturing to long-term service contracts — creating both cost efficiencies and revenue visibility. Its Energy Infrastructure segment alone has roughly $1.2 billion in contracted revenues with around 5-year average contract duration, supporting predictable cash flows.
The company operates over 1.1 million horsepower of compression globally and continues to expand its fleet, particularly in North America, where utilization remains strong at around 94%. This places Enerflex firmly in the “must-run” category of energy infrastructure.
What differentiates Enerflex, however, is its exposure beyond pure compression. Its engineered systems and power solutions businesses allow it to benefit from structural trends such as LNG expansion and rising electricity demand. Notably, Enerflex is building a pipeline of over 1.5 GW of data-center-related power opportunities, positioning it to capitalize on AI-driven energy demand growth.
This diversification provides both stability and growth optionality, giving Enerflex an edge in a market where compression demand is rising but evolving.
USAC: Pure-Play Scale and Stability
USA Compression Partners is a leading pure-play compression provider in the United States, with a focus on large-scale contract compression. Its fleet exceeds 4.4 million horsepower across major U.S. basins, offering strong scale advantages and operational efficiency.
A key recent development is the J-W Power acquisition, which significantly expands USAC’s footprint and adds approximately 200,000 idle horsepower, some of which can be quickly deployed to drive near-term revenues. The deal is expected to generate $10–$20 million in annual synergies by 2027, improving margins and efficiency.
USA Compression Partners’ business model is built on fixed-fee, long-term contracts (typically 2-5 years), which insulate it from commodity price volatility and provide steady cash flows. This has supported strong financial performance, including record EBITDA of $613.8 million in 2025 and a projected increase to $770-$800 million in 2026.
Additionally, the company maintains high fleet utilization (around 94-95%) and benefits from growing natural gas production across key basins, reinforcing its stable, income-oriented investment profile.
Price Performance
Enerflex has significantly outperformed USAC, with its stock rising 284% over the past year, compared to just 7.2% for USA Compression Partners. This reflects stronger investor confidence in Enerflex’s growth story, particularly its exposure to emerging demand drivers like data centers.
Image Source: Zacks Investment Research
Valuation
On a forward price-to-earnings basis, Enerflex trades at just above 16X, while USAC trades at around 20X. Despite its stronger growth profile, Enerflex is available at a discount, suggesting more attractive relative valuation.
Image Source: Zacks Investment Research
EPS Estimate Revisions
Earnings growth expectations are solid for both companies, but the trajectories differ slightly:
USAC offers steady, consistent growth.
Image Source: Zacks Investment Research
Meanwhile, Enerflex shows an accelerating earnings trajectory, supported by its diversified business model.
Image Source: Zacks Investment Research
Which Is the Better Stock?
Both Enerflex and USA Compression Partners are well-positioned to benefit from strong fundamentals in the natural gas compression market. USAC stands out for its scale, stable contract structure and income-generating model, especially with the added boost from the J-W acquisition. However, Enerflex offers a more diversified and forward-looking growth profile, with exposure to compression, power generation and emerging energy trends like data centers.
Importantly, Enerflex currently carries a Zacks Rank #1 (Strong Buy), reflecting positive earnings estimate revisions and strong growth momentum. In contrast, USAC has a Zacks Rank #3 (Hold), indicating more neutral expectations. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Given its stronger price performance, attractive valuation and broader growth drivers, Enerflex appears to be the better pick at the moment.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
EFXT vs. USAC: Who Wins the Natural Gas Compression Face-Off?
Key Takeaways
The natural gas compression market sits at the heart of the energy value chain, enabling the movement of gas from production sites to end-users. As global demand rises—driven by LNG exports, power generation and emerging needs like data centers—compression providers are seeing strong tailwinds. Enerflex Ltd. (EFXT - Free Report) and USA Compression Partners, LP (USAC - Free Report) are two key players in this space, but their business models and growth drivers differ meaningfully, making for an interesting comparison.
EFXT: Integrated Model With Multiple Growth Levers
Enerflex operates a diversified and integrated energy infrastructure platform, combining compression, engineered systems and aftermarket services. This model allows it to capture value across the entire lifecycle — from manufacturing to long-term service contracts — creating both cost efficiencies and revenue visibility. Its Energy Infrastructure segment alone has roughly $1.2 billion in contracted revenues with around 5-year average contract duration, supporting predictable cash flows.
The company operates over 1.1 million horsepower of compression globally and continues to expand its fleet, particularly in North America, where utilization remains strong at around 94%. This places Enerflex firmly in the “must-run” category of energy infrastructure.
What differentiates Enerflex, however, is its exposure beyond pure compression. Its engineered systems and power solutions businesses allow it to benefit from structural trends such as LNG expansion and rising electricity demand. Notably, Enerflex is building a pipeline of over 1.5 GW of data-center-related power opportunities, positioning it to capitalize on AI-driven energy demand growth.
This diversification provides both stability and growth optionality, giving Enerflex an edge in a market where compression demand is rising but evolving.
USAC: Pure-Play Scale and Stability
USA Compression Partners is a leading pure-play compression provider in the United States, with a focus on large-scale contract compression. Its fleet exceeds 4.4 million horsepower across major U.S. basins, offering strong scale advantages and operational efficiency.
A key recent development is the J-W Power acquisition, which significantly expands USAC’s footprint and adds approximately 200,000 idle horsepower, some of which can be quickly deployed to drive near-term revenues. The deal is expected to generate $10–$20 million in annual synergies by 2027, improving margins and efficiency.
USA Compression Partners’ business model is built on fixed-fee, long-term contracts (typically 2-5 years), which insulate it from commodity price volatility and provide steady cash flows. This has supported strong financial performance, including record EBITDA of $613.8 million in 2025 and a projected increase to $770-$800 million in 2026.
Additionally, the company maintains high fleet utilization (around 94-95%) and benefits from growing natural gas production across key basins, reinforcing its stable, income-oriented investment profile.
Price Performance
Enerflex has significantly outperformed USAC, with its stock rising 284% over the past year, compared to just 7.2% for USA Compression Partners. This reflects stronger investor confidence in Enerflex’s growth story, particularly its exposure to emerging demand drivers like data centers.
Valuation
On a forward price-to-earnings basis, Enerflex trades at just above 16X, while USAC trades at around 20X. Despite its stronger growth profile, Enerflex is available at a discount, suggesting more attractive relative valuation.
EPS Estimate Revisions
Earnings growth expectations are solid for both companies, but the trajectories differ slightly:
USAC offers steady, consistent growth.
Meanwhile, Enerflex shows an accelerating earnings trajectory, supported by its diversified business model.
Which Is the Better Stock?
Both Enerflex and USA Compression Partners are well-positioned to benefit from strong fundamentals in the natural gas compression market. USAC stands out for its scale, stable contract structure and income-generating model, especially with the added boost from the J-W acquisition. However, Enerflex offers a more diversified and forward-looking growth profile, with exposure to compression, power generation and emerging energy trends like data centers.
Importantly, Enerflex currently carries a Zacks Rank #1 (Strong Buy), reflecting positive earnings estimate revisions and strong growth momentum. In contrast, USAC has a Zacks Rank #3 (Hold), indicating more neutral expectations. You can see the complete list of today’s Zacks #1 Rank stocks here.
Given its stronger price performance, attractive valuation and broader growth drivers, Enerflex appears to be the better pick at the moment.