USA Compression Partners (NYSE:USAC) Posts Earnings Results, Misses Estimates By $0.08 EPS

USA Compression Partners (NYSE:USAC) posted its quarterly earnings results on Tuesday. The oil and gas company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.35 by ($0.08), FiscalAI reports. The company had revenue of $331.28 million for the quarter, compared to the consensus estimate of $308.35 million. USA Compression Partners had a net margin of 11.91% and a negative return on equity of 106.34%.

Here are the key takeaways from USA Compression Partners’ conference call:

• J?W Power integration completed and operations combined under a new ERP, with management targeting $10–$20M of annual run?rate synergies by year?end 2027 and >90% of 2026 new horsepower already contracted.
• Management is proactively securing supply as engine lead times have stretched to ~150 weeks, placing multi?year engine orders and using J?W’s manufacturing to buy engines with optionality to deploy internally or resell, which they say limits downside.
• Company reported record average pricing of $22.73/HP (up 5% sequential, 8% YoY), adjusted gross margin of 64.4%, net income of $38.3M and strengthened DCF/leverage metrics while maintaining full?year guidance ranges.
• Management acknowledges J?W’s operations have a lower gross margin profile (manufacturing/AMS represented ~10% of legacy EBITDA), average utilization dipped after the acquisition, and leverage may temporarily tick higher in Q2 as new horsepower is delivered.
• Capital plan calls for continued growth (~100k–125k HP/year), expansion capex focused on new units with maintenance normalization, and management says the high?yield market is open if they choose to access capital to smooth debt tranches.

USA Compression Partners Trading Up 1.3%

Shares of USA Compression Partners stock traded up $0.35 on Thursday, reaching $27.35. The stock had a trading volume of 71,063 shares, compared to its average volume of 211,132. USA Compression Partners has a 1 year low of $21.85 and a 1 year high of $28.90. The company has a market cap of $3.96 billion, a P/E ratio of 28.18 and a beta of 0.22. The business’s 50 day moving average is $27.50 and its two-hundred day moving average is $25.46.

USA Compression Partners Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Monday, April 27th will be issued a dividend of $0.525 per share. The ex-dividend date of this dividend is Monday, April 27th. This represents a $2.10 dividend on an annualized basis and a yield of 7.7%. USA Compression Partners’s dividend payout ratio is 250.00%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on USAC shares. Zacks Research downgraded shares of USA Compression Partners from a “strong-buy” rating to a “hold” rating in a research report on Thursday, April 16th. Wall Street Zen lowered USA Compression Partners from a “buy” rating to a “hold” rating in a report on Saturday, February 21st. Texas Capital raised USA Compression Partners from a “hold” rating to a “strong-buy” rating in a research report on Monday, March 9th. Mizuho boosted their target price on USA Compression Partners from $23.00 to $25.00 and gave the company a “neutral” rating in a research note on Monday, January 12th. Finally, Stifel Nicolaus increased their price target on USA Compression Partners from $27.00 to $30.00 and gave the stock a “hold” rating in a research note on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $26.67.

Institutional Investors Weigh In On USA Compression Partners

Institutional investors have recently made changes to their positions in the business. Morgan Stanley increased its position in USA Compression Partners by 123.5% during the 4th quarter. Morgan Stanley now owns 2,712,603 shares of the oil and gas company’s stock valued at $62,390,000 after purchasing an additional 1,498,928 shares during the period. Goldman Sachs Group Inc. raised its position in USA Compression Partners by 82.7% in the first quarter. Goldman Sachs Group Inc. now owns 2,863,377 shares of the oil and gas company’s stock worth $77,254,000 after acquiring an additional 1,296,339 shares during the period. JPMorgan Chase & Co. lifted its position in shares of USA Compression Partners by 29.8% during the 4th quarter. JPMorgan Chase & Co. now owns 4,599,073 shares of the oil and gas company’s stock valued at $105,779,000 after buying an additional 1,056,548 shares in the last quarter. Corient Private Wealth LLC raised its position in shares of USA Compression Partners by 131.7% during the 2nd quarter. Corient Private Wealth LLC now owns 412,900 shares of the oil and gas company’s stock valued at $10,038,000 after purchasing an additional 234,730 shares during the period. Finally, HRT Financial LP purchased a new stake in USA Compression Partners in the 4th quarter worth $2,999,000. Hedge funds and other institutional investors own 47.77% of the company’s stock.

USA Compression Partners Company Profile

USA Compression Partners (NYSE: USAC) is a Houston-based master limited partnership specializing in natural gas compression services for oil and gas producers. The company offers a full suite of midstream compression solutions designed to enhance production flow and optimize field operations. Its core activities include the design, engineering, fabrication, installation, operation and maintenance of natural gas compression equipment onshore across key U.S. basins.

USA Compression’s product and service offerings encompass new equipment deployment, aftermarket parts and component sales, field service support, and instrumentation and control systems.