USA Compression Partners Reports Fourth-Quarter 2024 Results and Provides 2025 Outlook; Achieves Record Results
USA Compression Partners (NYSE: USAC) reported strong fourth-quarter 2024 results with record total revenues of $245.9 million, up from $225.0 million in Q4 2023. Net income doubled to $25.4 million from $12.8 million year-over-year. The company achieved record net cash from operations of $130.2 million and Adjusted EBITDA of $155.5 million.
Operational highlights include record average revenue-generating horsepower of 3.56 million and record average revenue per horsepower of $20.85. The company maintained a strong 94.5% horsepower utilization rate.
For 2025, USAC provided guidance with Adjusted EBITDA of $590-610 million and expansion capital expenditures of $120-140 million. The company expects benefits from Energy Transfer shared services model implementation and anticipates reduced back-office costs throughout 2025-2026.
USA Compression Partners (NYSE: USAC) ha riportato forti risultati per il quarto trimestre del 2024 con entrate totali record di $245,9 milioni, in aumento rispetto ai $225,0 milioni del Q4 2023. Il reddito netto è raddoppiato a $25,4 milioni rispetto ai $12,8 milioni dell'anno precedente. L'azienda ha raggiunto un record di liquidità netta da operazioni di $130,2 milioni e un EBITDA rettificato di $155,5 milioni.
I punti salienti operativi includono una media record di potenza generatrice di entrate di 3,56 milioni di cavalli vapore e una media record di entrate per cavallo vapore di $20,85. L'azienda ha mantenuto un forte tasso di utilizzo della potenza del 94,5%.
Per il 2025, USAC ha fornito indicazioni con un EBITDA rettificato di $590-610 milioni e spese in conto capitale per l'espansione di $120-140 milioni. L'azienda prevede benefici dall'implementazione del modello di servizi condivisi di Energy Transfer e si aspetta riduzioni dei costi di back-office per tutto il 2025-2026.
USA Compression Partners (NYSE: USAC) informó de sólidos resultados para el cuarto trimestre de 2024 con ingresos totales récord de $245.9 millones, un aumento respecto a los $225.0 millones del Q4 2023. El ingreso neto se duplicó a $25.4 millones desde $12.8 millones en comparación año tras año. La compañía alcanzó un récord de flujo de efectivo neto de operaciones de $130.2 millones y un EBITDA ajustado de $155.5 millones.
Los aspectos destacados operativos incluyen un récord promedio de caballos de fuerza generadores de ingresos de 3.56 millones y un récord promedio de ingresos por caballo de fuerza de $20.85. La compañía mantuvo una fuerte tasa de utilización de caballos de fuerza del 94.5%.
Para 2025, USAC proporcionó orientación con un EBITDA ajustado de $590-610 millones y gastos de capital para la expansión de $120-140 millones. La compañía espera beneficios de la implementación del modelo de servicios compartidos de Energy Transfer y anticipa reducir costos de back-office durante 2025-2026.
USA Compression Partners (NYSE: USAC)는 2024년 4분기 강력한 실적을 보고하며 총 수익이 2억 4,590만 달러로 기록을 세웠습니다, 이는 2023년 4분기의 2억 2,500만 달러에서 증가한 수치입니다. 순이익은 1,540만 달러로 두 배 증가했습니다, 지난해 같은 기간 1280만 달러에서 성장했습니다. 회사는 운영에서의 순 현금 흐름이 1억 3,020만 달러로 기록을 세웠습니다 그리고 조정된 EBITDA는 1억 5,550만 달러입니다.
운영의 주요 하이라이트에는 수익을 생성하는 평균 출력이 356만 마력으로 기록을 세웠습니다 그리고 마력당 평균 수익이 20.85달러로 기록되었습니다. 회사는 94.5%의 높은 마력 사용률을 유지했습니다.
2025년을 위해 USAC는 조정된 EBITDA가 5억 9천만에서 6억 1천만 달러, 확장 자본 지출이 1억 2천만에서 1억 4천만 달러가 될 것으로 예상했습니다. 회사는 Energy Transfer의 공유 서비스 모델 구현으로부터 혜택을 받을 것으로 기대하고 있으며, 2025-2026년 동안 백 오피스 비용의 감소를 예상하고 있습니다.
USA Compression Partners (NYSE: USAC) a rapporté de solides résultats pour le quatrième trimestre 2024 avec des revenus totaux record de 245,9 millions de dollars, en hausse par rapport à 225,0 millions de dollars au T4 2023. Le bénéfice net a doublé pour atteindre 25,4 millions de dollars, contre 12,8 millions de dollars d'une année sur l'autre. L'entreprise a atteint un record de cash flow net d'exploitation de 130,2 millions de dollars et un EBITDA ajusté de 155,5 millions de dollars.
Les points saillants opérationnels comprennent un record de puissance moyenne génératrice de revenus de 3,56 millions de chevaux-vapeur et un record de revenus moyens par cheval-vapeur de 20,85 dollars. L'entreprise a maintenu un taux d'utilisation de puissance de 94,5%.
Pour 2025, USAC a fourni des prévisions avec un EBITDA ajusté de 590-610 millions de dollars et des dépenses d'investissement en expansion de 120-140 millions de dollars. L'entreprise s'attend à des bénéfices grâce à la mise en œuvre du modèle de services partagés de Energy Transfer et anticipe une réduction des coûts de back-office d'ici 2025-2026.
USA Compression Partners (NYSE: USAC) berichtete über starke Ergebnisse im vierten Quartal 2024 mit Rekordgesamterlösen von 245,9 Millionen Dollar, ein Anstieg von 225,0 Millionen Dollar im Q4 2023. Der Nettogewinn verdoppelte sich auf 25,4 Millionen Dollar, gegenüber 12,8 Millionen Dollar im Vorjahresvergleich. Das Unternehmen erreichte einen Rekord an Nettokasse aus dem operativen Geschäft von 130,2 Millionen Dollar und ein bereinigtes EBITDA von 155,5 Millionen Dollar.
Zu den operativen Highlights gehören ein Rekorddurchschnitt von umsatzgenerierenden Pferdestärken von 3,56 Millionen und ein Rekorddurchschnitt von Einnahmen pro Pferdestärke von 20,85 Dollar. Das Unternehmen hielt eine starke Auslastungsrate von 94,5% der Pferdestärken aufrecht.
Für 2025 gab USAC eine Prognose mit einem bereinigten EBITDA von 590-610 Millionen Dollar und Investitionen für Expansion in Höhe von 120-140 Millionen Dollar heraus. Das Unternehmen erwartet Vorteile aus der Umsetzung des Shared-Services-Modells von Energy Transfer und geht davon aus, dass die Kosten für die Backoffice-Aktivitäten in den Jahren 2025-2026 gesenkt werden.
- Record quarterly revenue of $245.9M, up 9.3% YoY
- Net income doubled to $25.4M from $12.8M YoY
- Record net cash from operations at $130.2M, up 42.1% YoY
- Distributable Cash Flow increased to $96.3M from $79.9M YoY
- Improved Distributable Cash Flow Coverage to 1.56x from 1.48x YoY
- High horsepower utilization rate of 94.5%
- None.
Insights
The Q4 2024 results demonstrate remarkable financial execution with several key achievements that signal robust operational momentum. The
Three critical metrics deserve attention:
- The Distributable Cash Flow coverage ratio of 1.56x (up from 1.48x) indicates enhanced dividend sustainability and financial flexibility
- Record average revenue per horsepower of
$20.85 reflects strong pricing power and operational efficiency - The
42.1% surge in operating cash flow to$130.2M demonstrates superior cash generation capabilities
The 2025 outlook is particularly compelling due to three strategic advantages:
- Positioning in the Permian Basin and Gulf Coast regions aligns with growing LNG export demand
- Implementation of Energy Transfer shared services model should drive cost efficiencies
- Strong balance sheet with
$827.1M credit facility availability provides ample growth capital
The company's strategic focus on large horsepower units and high-utilization assets (94.5%) positions it well to capitalize on increasing natural gas infrastructure demands, particularly from AI data centers and LNG export facilities. The back-loaded capital expenditure plan for 2025 suggests disciplined growth management while maintaining operational excellence.
Financial Highlights
-
Record total revenues of
for fourth-quarter 2024, compared to$245.9 million for fourth-quarter 2023.$225.0 million -
Net income was
for fourth-quarter 2024, compared to$25.4 million for fourth-quarter 2023.$12.8 million -
Record net cash provided by operating activities was
for fourth-quarter 2024, compared to$130.2 million for fourth-quarter 2023.$91.6 million -
Adjusted EBITDA of
for fourth-quarter 2024, compared to$155.5 million for fourth-quarter 2023.$138.6 million -
Distributable Cash Flow of
for fourth-quarter 2024, compared to$96.3 million for fourth-quarter 2023.$79.9 million - Distributable Cash Flow Coverage was 1.56x for fourth-quarter 2024, compared to 1.48x for fourth-quarter 2023.
-
Paid cash distribution of
per common unit for fourth-quarter 2024, consistent with fourth-quarter 2023.$0.52 5
Operational Highlights
- Record average revenue-generating horsepower of 3.56 million for fourth-quarter 2024, compared to 3.41 million for fourth-quarter 2023.
-
Record average revenue per revenue-generating horsepower per month of
for fourth-quarter 2024, compared to$20.85 for fourth-quarter 2023.$19.52 -
Average horsepower utilization was
94.5% for fourth-quarter 2024, compared to94.1% for fourth-quarter 2023.
“Our fourth-quarter financial results included another consecutive quarter of record-setting revenues and Adjusted EBITDA, as well as record-setting Distributable Cash Flow and Distributable Cash Flow Coverage. These financial results were driven by improved operational efficiencies as we again achieved record average revenue per-horsepower of
“We believe the macro backdrop continues to be favorable in the near- and medium-term. We expect the price of oil to remain constructive and continue to drive growth in associated gas volumes, particularly in the Permian. We believe our assets in
“Looking forward to 2025, we anticipate an expansion capital range of
Expansion capital expenditures were
On January 16, 2025, the Partnership announced a fourth-quarter cash distribution of
Operational and Financial Data
Three Months Ended |
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Year Ended |
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December 31,
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September 30,
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December 31,
|
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December 31,
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December 31,
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Operational data: |
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Fleet horsepower (at period end) (1) |
|
3,862,102 |
|
|
3,862,445 |
|
|
|
3,775,660 |
|
|
|
3,862,102 |
|
|
|
3,775,660 |
|
|
Revenue-generating horsepower (at period end) (2) |
|
3,567,842 |
|
|
3,570,508 |
|
|
|
3,433,775 |
|
|
|
3,567,842 |
|
|
|
3,433,775 |
|
|
Average revenue-generating horsepower (3) |
|
3,563,306 |
|
|
3,560,891 |
|
|
|
3,408,934 |
|
|
|
3,528,172 |
|
|
|
3,328,999 |
|
|
Revenue-generating compression units (at period end) |
|
4,269 |
|
|
4,270 |
|
|
|
4,237 |
|
|
|
4,269 |
|
|
|
4,237 |
|
|
Horsepower utilization (at period end) (4) |
|
94.6 |
% |
|
|
94.4 |
% |
|
|
94.3 |
% |
|
|
94.6 |
% |
|
|
94.3 |
% |
Average horsepower utilization (for the period) (4) |
|
94.5 |
% |
|
|
94.6 |
% |
|
|
94.1 |
% |
|
|
94.6 |
% |
|
|
93.4 |
% |
|
|
|
|
|
|
|
|
|
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Financial data ($ in thousands, except per horsepower data): |
|
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|
|
|
|
|
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Total revenues |
$ |
245,892 |
|
$ |
239,968 |
|
|
$ |
225,049 |
|
|
$ |
950,449 |
|
|
$ |
846,178 |
|
|
Average revenue per revenue-generating horsepower per month (5) |
$ |
20.85 |
|
$ |
20.60 |
|
|
$ |
19.52 |
|
|
$ |
20.43 |
|
|
$ |
18.86 |
|
|
Net income |
$ |
25,437 |
|
|
$ |
19,327 |
|
|
$ |
12,841 |
|
|
$ |
99,575 |
|
|
$ |
68,268 |
|
Operating income |
$ |
74,529 |
|
|
$ |
75,676 |
|
|
$ |
68,543 |
|
|
$ |
294,449 |
|
|
$ |
231,981 |
|
Net cash provided by operating activities |
$ |
130,195 |
|
|
$ |
48,481 |
|
|
$ |
91,604 |
|
|
$ |
341,334 |
|
|
$ |
271,885 |
|
Gross margin |
$ |
99,259 |
|
|
$ |
90,917 |
|
|
$ |
89,386 |
|
|
$ |
372,967 |
|
|
$ |
315,374 |
|
Adjusted gross margin (6) |
$ |
168,214 |
|
|
$ |
158,154 |
|
|
$ |
151,856 |
|
|
$ |
637,723 |
|
|
$ |
561,470 |
|
Adjusted gross margin percentage (7) |
|
68.4 |
% |
|
|
65.9 |
% |
|
|
67.5 |
% |
|
|
67.1 |
% |
|
|
66.4 |
% |
Adjusted EBITDA (6) |
$ |
155,524 |
|
|
$ |
145,690 |
|
|
$ |
138,616 |
|
$ |
584,282 |
|
$ |
511,939 |
|
||
Adjusted EBITDA percentage (7) |
|
63.2 |
% |
|
|
60.7 |
% |
|
|
61.6 |
% |
|
|
61.5 |
% |
|
|
60.5 |
% |
Distributable Cash Flow (6) |
$ |
96,259 |
|
|
$ |
86,606 |
|
|
$ |
79,888 |
|
|
$ |
355,317 |
|
|
$ |
281,113 |
|
Distributable Cash Flow Coverage Ratio (6) |
1.56 |
x |
|
1.41 |
x |
|
|
1.48 |
x |
|
|
1.44 |
x |
|
|
1.35 |
x |
____________________________________ |
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(1) |
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Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 20,310 and 21,690 of non-marketable horsepower as of December 31, 2024, and 2023, respectively. As of December 31, 2024, the Partnership had no horsepower on order. Subsequent to December 31, 2024, the Partnership ordered 10,000 large horsepower for expected delivery during 2025. |
(2) |
|
Revenue-generating horsepower is horsepower under contract for which the Partnership is billing a customer. |
(3) |
|
Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period. |
(4) |
|
Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is expected to be delivered, divided by (ii) total available horsepower less idle horsepower that is under repair.
Horsepower utilization based on revenue-generating horsepower and fleet horsepower was
Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was |
(5) |
|
Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period. |
(6) |
|
Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio are all non- |
(7) |
|
Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue. |
Liquidity and Long-Term Debt
As of December 31, 2024, the Partnership was in compliance with all covenants under its
Full-Year 2025 Outlook
USA Compression is providing its full-year 2025 guidance as follows (in thousands):
Full-Year 2025 Outlook |
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Low |
|
High |
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Adjusted EBITDA (1) |
$ |
590,000 |
|
$ |
610,000 |
Distributable Cash Flow (1) |
$ |
350,000 |
|
$ |
370,000 |
|
|||||
Capital Expenditures: |
|
||||
Expansion capital expenditures (2) |
$ |
120,000 |
|
$ |
140,000 |
Maintenance capital expenditures |
$ |
38,000 |
|
$ |
42,000 |
____________________________________ |
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(1) |
|
The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. |
(2) |
|
Includes approximately |
Conference Call
The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss fourth-quarter 2024 performance. The call will be broadcast live over the internet. Investors may participate by audio webcast, or if located in the
By Webcast: |
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Connect to the webcast via the “Events” page of |
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By Phone: |
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Dial (888) 440-5655 at least 10 minutes before the call and ask for the |
About USA Compression Partners, LP
USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com.
Non-GAAP Financial Measures
This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio.
Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes Adjusted gross margin is useful to investors as a supplemental measure of the Partnership’s operating profitability. Management uses adjusted gross margin to assess operating performance as compared to historical results, budget and forecast amounts, expected return on capital investment, and our competitors. Adjusted gross margin primarily is impacted by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume, and per-unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units, and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted gross margin, as presented, may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its cost structure. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability.
Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year, and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense (benefit). The Partnership defines Adjusted EBITDA as EBITDA plus impairment of assets, impairment of goodwill, interest income on capital leases, unit-based compensation expense (benefit), severance charges, certain transaction expenses, loss (gain) on disposition of assets, loss on extinguishment of debt, loss (gain) on derivative instrument, and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess:
- the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure, or the historical cost basis of the Partnership’s assets;
- the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;
- the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and
- the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure.
Management believes Adjusted EBITDA provides useful information to investors because, when viewed in conjunction with the Partnership’s GAAP results and the accompanying reconciliations, it may provide a more complete assessment of the Partnership’s performance as compared to considering solely GAAP results. Management also believes that external users of the Partnership’s financial statements benefit from having access to the same financial measures that management uses to evaluate the results of the Partnership’s business.
Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.
Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of assets, impairment of goodwill, certain transaction expenses, severance charges, loss (gain) on disposition of assets, loss on extinguishment of debt, change in fair value of derivative instrument, proceeds from insurance recovery, and other, less distributions on Preferred Units and maintenance capital expenditures.
Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Distributable Cash Flow, as presented, may not be comparable to similarly titled measures of other companies.
Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors, and others to compare the cash flows that the Partnership generates (after distributions on Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions that the Partnership expects to pay its common unitholders.
Distributable Cash Flow Coverage Ratio is defined as the period’s Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it permits management, investors, and others to assess the Partnership’s ability to pay distributions to common unitholders out of the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio, as presented, may not be comparable to similarly titled measures of other companies.
This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership for its 2025 fiscal year. The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations.
See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.
Forward-Looking Statements
Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2025 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include:
-
changes in economic conditions of the crude oil and natural gas industries, including any impact from the ongoing military conflict involving
Russia andUkraine or the conflict in theMiddle East ; - changes in general economic conditions, including inflation or supply chain disruptions;
- changes in the long-term supply of and demand for crude oil and natural gas;
- competitive conditions in the Partnership’s industry, including competition for employees in a tight labor market;
- our ability to realize the anticipated benefits of the shared services integration with Energy Transfer;
- changes in the availability and cost of capital, including changes to interest rates;
- renegotiation of material terms of customer contracts;
- actions taken by the Partnership’s customers, competitors, and third-party operators;
- operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control;
- the deterioration of the financial condition of the Partnership’s customers, which may result in the initiation of bankruptcy proceedings with respect to certain customers;
- the restrictions on the Partnership’s business that are imposed under the Partnership’s long-term debt agreements;
- information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems;
- the effects of existing and future laws and governmental regulations;
- the effects of future litigation; and
- other factors discussed in the Partnership’s filings with the SEC.
All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.
USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per unit amounts – Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Contract operations |
$ |
222,985 |
|
|
$ |
220,518 |
|
|
$ |
212,325 |
|
|
$ |
885,250 |
|
|
$ |
802,562 |
|
Parts and service |
|
6,854 |
|
|
|
5,756 |
|
|
|
6,757 |
|
|
|
23,897 |
|
|
|
21,890 |
|
Related party |
|
16,053 |
|
|
|
13,694 |
|
|
|
5,967 |
|
|
|
41,302 |
|
|
|
21,726 |
|
Total revenues |
|
245,892 |
|
|
|
239,968 |
|
|
|
225,049 |
|
|
|
950,449 |
|
|
|
846,178 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of operations, exclusive of depreciation and amortization |
|
77,678 |
|
|
|
81,814 |
|
|
|
73,193 |
|
|
|
312,726 |
|
|
|
284,708 |
|
Depreciation and amortization |
|
68,955 |
|
|
|
67,237 |
|
|
|
62,470 |
|
|
|
264,756 |
|
|
|
246,096 |
|
Selling, general, and administrative |
|
20,302 |
|
|
|
15,364 |
|
|
|
18,578 |
|
|
|
72,666 |
|
|
|
72,714 |
|
Loss (gain) on disposition of assets |
|
3,826 |
|
|
|
(123 |
) |
|
|
2,265 |
|
|
|
4,939 |
|
|
|
(1,667 |
) |
Impairment of assets |
|
602 |
|
|
|
— |
|
|
|
— |
|
|
|
913 |
|
|
|
12,346 |
|
Total costs and expenses |
|
171,363 |
|
|
|
164,292 |
|
|
|
156,506 |
|
|
|
656,000 |
|
|
|
614,197 |
|
Operating income |
|
74,529 |
|
|
|
75,676 |
|
|
|
68,543 |
|
|
|
294,449 |
|
|
|
231,981 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
(48,616 |
) |
|
|
(49,361 |
) |
|
|
(44,832 |
) |
|
|
(193,471 |
) |
|
|
(169,924 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,966 |
) |
|
|
— |
|
Gain (loss) on derivative instrument |
|
— |
|
|
|
(6,218 |
) |
|
|
(10,538 |
) |
|
|
5,684 |
|
|
|
7,449 |
|
Other |
|
27 |
|
|
|
23 |
|
|
|
23 |
|
|
|
110 |
|
|
|
127 |
|
Total other expense |
|
(48,589 |
) |
|
|
(55,556 |
) |
|
|
(55,347 |
) |
|
|
(192,643 |
) |
|
|
(162,348 |
) |
Net income before income tax expense |
|
25,940 |
|
|
|
20,120 |
|
|
|
13,196 |
|
|
|
101,806 |
|
|
|
69,633 |
|
Income tax expense |
|
503 |
|
|
|
793 |
|
|
|
355 |
|
|
|
2,231 |
|
|
|
1,365 |
|
Net income |
|
25,437 |
|
|
|
19,327 |
|
|
|
12,841 |
|
|
|
99,575 |
|
|
|
68,268 |
|
Less: distributions on Preferred Units |
|
(4,387 |
) |
|
|
(4,388 |
) |
|
|
(11,212 |
) |
|
|
(17,550 |
) |
|
|
(47,775 |
) |
Net income attributable to common unitholders’ interests |
$ |
21,050 |
|
|
$ |
14,939 |
|
|
$ |
1,629 |
|
|
$ |
82,025 |
|
|
$ |
20,493 |
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common units outstanding – basic |
|
117,074 |
|
|
|
117,017 |
|
|
|
99,715 |
|
|
|
113,389 |
|
|
|
98,634 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common units outstanding – diluted |
|
118,089 |
|
|
|
118,256 |
|
|
|
102,929 |
|
|
|
114,501 |
|
|
|
100,675 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic net income per common unit |
$ |
0.18 |
|
|
$ |
0.13 |
|
|
$ |
0.02 |
|
|
$ |
0.72 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted net income per common unit |
$ |
0.18 |
|
|
$ |
0.13 |
|
|
$ |
0.02 |
|
|
$ |
0.72 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
||||||||||||||
Distributions declared per common unit for respective periods |
$ |
0.525 |
|
|
$ |
0.525 |
|
|
$ |
0.525 |
|
|
$ |
2.10 |
|
|
$ |
2.10 |
|
USA COMPRESSION PARTNERS, LP SELECTED BALANCE SHEET DATA (In thousands, except unit amounts – Unaudited) |
|||
|
|
||
|
December 31,
|
||
Selected Balance Sheet data: |
|
||
Total assets |
$ |
2,745,601 |
|
Long-term debt, net |
$ |
2,502,557 |
|
Total partners’ deficit |
$ |
(141,051 |
) |
|
|
||
Common units outstanding |
|
117,314,783 |
|
USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands — Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net cash provided by operating activities |
$ |
130,195 |
|
|
$ |
48,481 |
|
|
$ |
91,604 |
|
|
$ |
341,334 |
|
|
$ |
271,885 |
|
Net cash used in investing activities |
|
(26,920 |
) |
|
|
(28,379 |
) |
|
|
(79,262 |
) |
|
|
(202,014 |
) |
|
|
(232,653 |
) |
Net cash used in financing activities |
|
(103,340 |
) |
|
|
(20,032 |
) |
|
|
(12,337 |
) |
|
|
(139,317 |
) |
|
|
(39,256 |
) |
USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED GROSS MARGIN TO GROSS MARGIN (In thousands — Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented: |
|||||||||||||||||||
|
|
|
|
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Total revenues |
$ |
245,892 |
|
|
$ |
239,968 |
|
|
$ |
225,049 |
|
|
$ |
950,449 |
|
|
$ |
846,178 |
|
Cost of operations, exclusive of depreciation and amortization |
|
(77,678 |
) |
|
|
(81,814 |
) |
|
|
(73,193 |
) |
|
|
(312,726 |
) |
|
|
(284,708 |
) |
Depreciation and amortization |
|
(68,955 |
) |
|
(67,237 |
) |
|
|
(62,470 |
) |
|
|
(264,756 |
) |
|
|
(246,096 |
) |
|
Gross margin |
$ |
99,259 |
|
$ |
90,917 |
|
$ |
89,386 |
|
|
$ |
372,967 |
|
|
$ |
315,374 |
|
||
Depreciation and amortization |
|
68,955 |
|
|
|
67,237 |
|
|
62,470 |
|
|
|
264,756 |
|
|
|
246,096 |
|
|
Adjusted gross margin |
$ |
168,214 |
|
$ |
158,154 |
|
|
$ |
151,856 |
|
|
$ |
637,723 |
|
|
$ |
561,470 |
|
USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (In thousands — Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
The following table reconciles Adjusted EBITDA to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented: |
|||||||||||||||||||
Three Months Ended |
|
Year Ended |
|||||||||||||||||
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|||||||||||
Net income |
$ |
25,437 |
|
|
$ |
19,327 |
|
|
$ |
12,841 |
|
|
$ |
99,575 |
|
|
$ |
68,268 |
|
Interest expense, net |
|
48,616 |
|
|
|
49,361 |
|
|
|
44,832 |
|
|
|
193,471 |
|
|
|
169,924 |
|
Depreciation and amortization |
|
68,955 |
|
|
|
67,237 |
|
|
|
62,470 |
|
|
|
264,756 |
|
|
|
246,096 |
|
Income tax expense |
|
503 |
|
|
|
793 |
|
|
|
355 |
|
|
|
2,231 |
|
|
|
1,365 |
|
EBITDA |
$ |
143,511 |
|
|
$ |
136,718 |
|
|
$ |
120,498 |
|
|
$ |
560,033 |
|
|
$ |
485,653 |
|
Unit-based compensation expense (1) |
|
5,552 |
|
|
|
2,669 |
|
|
|
4,517 |
|
|
|
16,552 |
|
|
|
22,169 |
|
Transaction expenses (2) |
|
(23 |
) |
|
|
(15 |
) |
|
|
46 |
|
|
|
133 |
|
|
|
46 |
|
Severance charges |
|
2,056 |
|
|
|
223 |
|
|
|
752 |
|
|
|
2,430 |
|
|
|
841 |
|
Loss (gain) on disposition of assets |
|
3,826 |
|
|
|
(123 |
) |
|
|
2,265 |
|
|
|
4,939 |
|
|
|
(1,667 |
) |
Loss on extinguishment of debt (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,966 |
|
|
|
— |
|
Loss (gain) on derivative instrument |
|
— |
|
|
|
6,218 |
|
|
|
10,538 |
|
|
|
(5,684 |
) |
|
|
(7,449 |
) |
Impairment of assets (4) |
|
602 |
|
|
|
— |
|
|
|
— |
|
|
|
913 |
|
|
|
12,346 |
|
Adjusted EBITDA |
$ |
155,524 |
|
|
$ |
145,690 |
|
|
$ |
138,616 |
|
|
$ |
584,282 |
|
|
$ |
511,939 |
|
Interest expense, net |
|
(48,616 |
) |
|
|
(49,361 |
) |
|
|
(44,832 |
) |
|
|
(193,471 |
) |
|
|
(169,924 |
) |
Non-cash interest expense |
|
2,245 |
|
|
|
2,251 |
|
|
|
1,819 |
|
|
|
8,748 |
|
|
|
7,279 |
|
Income tax expense |
|
(503 |
) |
|
|
(793 |
) |
|
|
(355 |
) |
|
|
(2,231 |
) |
|
|
(1,365 |
) |
Transaction expenses |
|
23 |
|
|
|
15 |
|
|
|
(46 |
) |
|
|
(133 |
) |
|
|
(46 |
) |
Severance charges |
|
(2,056 |
) |
|
|
(223 |
) |
|
|
(752 |
) |
|
|
(2,430 |
) |
|
|
(841 |
) |
Cash received on derivative instrument |
|
— |
|
|
|
2,000 |
|
|
|
2,501 |
|
|
|
6,888 |
|
|
|
6,245 |
|
Other |
|
777 |
|
|
|
330 |
|
|
|
1,494 |
|
|
|
1,204 |
|
|
|
1,448 |
|
Changes in operating assets and liabilities |
|
22,801 |
|
|
|
(51,428 |
) |
|
|
(6,841 |
) |
|
|
(61,523 |
) |
|
|
(82,850 |
) |
Net cash provided by operating activities |
$ |
130,195 |
|
|
$ |
48,481 |
|
|
$ |
91,604 |
|
|
$ |
341,334 |
|
|
$ |
271,885 |
|
____________________________________ |
||
(1) |
|
For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, unit-based compensation expense included |
(2) |
|
Represents certain expenses related to potential and completed transactions and other items. The Partnership believes it is useful to investors to exclude these expenses. |
(3) |
|
This loss on extinguishment of debt is a result of the satisfaction and discharge of the senior notes due 2026. This amount represents the write-off of deferred financing costs of |
(4) |
|
Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows. |
USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (Dollars in thousands — Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
The following table reconciles Distributable Cash Flow to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented: |
|||||||||||||||||||
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net income |
$ |
25,437 |
|
|
$ |
19,327 |
|
|
$ |
12,841 |
|
|
$ |
99,575 |
|
|
$ |
68,268 |
|
Non-cash interest expense |
|
2,245 |
|
|
|
2,251 |
|
|
|
1,819 |
|
|
|
8,748 |
|
|
|
7,279 |
|
Depreciation and amortization |
|
68,955 |
|
|
|
67,237 |
|
|
|
62,470 |
|
|
|
264,756 |
|
|
|
246,096 |
|
Non-cash income tax expense (benefit) |
|
147 |
|
|
|
330 |
|
|
|
(6 |
) |
|
|
574 |
|
|
|
(52 |
) |
Unit-based compensation expense (1) |
|
5,552 |
|
|
|
2,669 |
|
|
|
4,517 |
|
|
|
16,552 |
|
|
|
22,169 |
|
Transaction expenses (2) |
|
(23 |
) |
|
|
(15 |
) |
|
|
46 |
|
|
|
133 |
|
|
|
46 |
|
Severance charges |
|
2,056 |
|
|
|
223 |
|
|
|
752 |
|
|
|
2,430 |
|
|
|
841 |
|
Loss (gain) on disposition of assets |
|
3,826 |
|
|
|
(123 |
) |
|
|
2,265 |
|
|
|
4,939 |
|
|
|
(1,667 |
) |
Loss on extinguishment of debt (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,966 |
|
|
|
— |
|
Change in fair value of derivative instrument |
|
— |
|
|
|
8,218 |
|
|
|
13,039 |
|
|
|
1,204 |
|
|
|
(1,204 |
) |
Impairment of assets (4) |
|
602 |
|
|
|
— |
|
|
|
— |
|
|
|
913 |
|
|
|
12,346 |
|
Distributions on Preferred Units |
|
(4,387 |
) |
|
|
(4,388 |
) |
|
|
(11,212 |
) |
|
|
(17,550 |
) |
|
|
(47,775 |
) |
Maintenance capital expenditures (5) |
|
(8,151 |
) |
|
|
(9,123 |
) |
|
|
(6,643 |
) |
|
|
(31,923 |
) |
|
|
(25,234 |
) |
Distributable Cash Flow |
$ |
96,259 |
|
|
$ |
86,606 |
|
|
$ |
79,888 |
|
|
$ |
355,317 |
|
|
$ |
281,113 |
|
Maintenance capital expenditures |
|
8,151 |
|
|
|
9,123 |
|
|
|
6,643 |
|
|
|
31,923 |
|
|
|
25,234 |
|
Transaction expenses |
|
23 |
|
|
|
15 |
|
|
|
(46 |
) |
|
|
(133 |
) |
|
|
(46 |
) |
Severance charges |
|
(2,056 |
) |
|
|
(223 |
) |
|
|
(752 |
) |
|
|
(2,430 |
) |
|
|
(841 |
) |
Distributions on Preferred Units |
|
4,387 |
|
|
|
4,388 |
|
|
|
11,212 |
|
|
|
17,550 |
|
|
|
47,775 |
|
Other |
|
630 |
|
|
|
— |
|
|
|
1,500 |
|
|
|
630 |
|
|
|
1,500 |
|
Changes in operating assets and liabilities |
|
22,801 |
|
|
|
(51,428 |
) |
|
|
(6,841 |
) |
|
|
(61,523 |
) |
|
|
(82,850 |
) |
Net cash provided by operating activities |
$ |
130,195 |
|
|
$ |
48,481 |
|
|
$ |
91,604 |
|
|
$ |
341,334 |
|
|
$ |
271,885 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Distributable Cash Flow |
$ |
96,259 |
|
|
$ |
86,606 |
|
|
$ |
79,888 |
|
|
$ |
355,317 |
|
|
$ |
281,113 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Distributions for Distributable Cash Flow Coverage Ratio (6) |
$ |
61,702 |
|
|
$ |
61,437 |
|
|
$ |
54,067 |
|
|
$ |
245,990 |
|
|
$ |
208,856 |
|
|
|
|
|
|
|
|
|||||||||||||
Distributable Cash Flow Coverage Ratio |
|
1.56 |
x |
|
1.41 |
x |
|
|
1.48 |
x |
|
1.44 |
x |
|
|
1.35 |
x |
____________________________________ |
||
(1) |
|
For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, unit-based compensation expense included |
(2) |
|
Represents certain expenses related to potential and completed transactions and other items. The Partnership believes it is useful to investors to exclude these expenses. |
(3) |
|
This loss on extinguishment of debt is a result of the satisfaction and discharge of the senior notes due 2026. This amount represents the write-off of deferred financing costs of |
(4) |
|
Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows. |
(5) |
|
Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow. |
(6) |
|
Represents distributions to the holders of the Partnership’s common units as of the record date. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250211243121/en/
Investor Contact:
USA Compression Partners, LP
Investor Relations
ir@usacompression.com
Source: USA Compression Partners, LP