CSI Compressco LP Announces Quarterly Distribution

Rhea-AI Summary

CSI Compressco LP (CCLP) announced a cash distribution of $0.01 per outstanding common unit for the quarter ended December 31, 2023, totaling $0.04 per outstanding common unit on an annualized basis. The distribution will be paid on February 14, 2024, to common unitholders of record as of January 31, 2024.

Insights

Financial Analyst

The declaration of a cash distribution by CSI Compressco represents a direct financial event with implications for unitholders' immediate cash flow. It is essential to assess the distribution size relative to the company's earnings and cash flow statements. A distribution of $0.01 per quarter suggests a modest yield, which may be indicative of a conservative payout policy or reflect the company's reinvestment strategy for growth. Investors often look at distribution consistency and growth as signs of a company's financial health and stability.

Furthermore, the timing and amount of the distribution can affect investor sentiment and the company's stock liquidity. It is also critical to examine the sustainability of such distributions by analyzing the company's debt levels, operational efficiency and market position. In the oil and gas industry, where CSI Compressco operates, factors such as commodity prices, regulatory changes and capital expenditure requirements are crucial determinants of a company's ability to maintain or increase cash distributions over time.

Market Research Analyst

From a market perspective, the announcement of a cash distribution can signal management's confidence in the company's financial stability and future earnings potential. It can also attract income-focused investors and potentially increase demand for the company's units. Analyzing past distribution patterns and comparing them with industry peers can provide insights into the company's competitive positioning. It is important to note that the market's reaction to such announcements can be influenced by broader economic conditions, investor expectations and the company's historical performance.

Additionally, the market will likely monitor the subsequent cash distributions and any changes in the company's operational strategy or capital allocation, which could be inferred from future distributions. Such changes could indicate shifts in the company's growth trajectory or financial priorities, which are key factors for long-term valuation.

THE WOODLANDS, Texas, Jan. 18, 2024 /PRNewswire/ -- CSI Compressco LP ("CSI Compressco") (NASDAQ: CCLP) announced today that the board of directors of its general partner has declared a cash distribution attributable to the quarter ended December 31, 2023 of $0.01 per outstanding common unit, or $0.04 per outstanding common unit on an annualized basis. This cash distribution will be paid on February 14, 2024 to all common unitholders of record as of the close of business on January 31, 2024.

About CSI Compressco

CSI Compressco is a provider of compression services and equipment for natural gas and oil production, gathering, artificial lift, transmission, processing, and storage. In addition, CSI Compressco provides a variety of natural gas treating services. CSI Compressco's contract services business includes a fleet of approximately 4,500 compressor packages providing approximately 1.2 million in aggregate horsepower, utilizing a full spectrum of low-, medium- and high-horsepower engines. Additionally, our gas treating equipment fleet includes natural gas cooling units used to reduce the temperature of natural gas so that it can be further treated, processed, or compressed. CSI Compressco also provides well monitoring and automated sand separation services in conjunction with compression and related services in Mexico. CSI Compressco's aftermarket business provides compressor package reconfiguration and maintenance services. CSI Compressco's customers comprise a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada, Argentina, and Chile. CSI Compressco's General Partner is owned by Spartan Energy Partners LP. Concurrent with this announcement we are providing qualified notice to brokers and nominees that hold CSI Compressco LP units on behalf of non-US investors as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Please note that one hundred percent (100%) of CSI Compressco LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of CSI Compressco LP's distributions to foreign investors are subject to federal tax withholding at the highest applicable effective tax rate. Nominees, and not CSI Compressco LP, are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors. For purposes of Treasury Regulation Section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold.

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SOURCE CSI Compressco LP

FAQ

What is the cash distribution announced by CSI Compressco LP for the quarter ended December 31, 2023?

CSI Compressco LP announced a cash distribution of $0.01 per outstanding common unit for the quarter ended December 31, 2023.

When will the cash distribution be paid to the common unitholders?

The cash distribution will be paid on February 14, 2024, to common unitholders of record as of January 31, 2024.