USA Compression Partners (USAC) is rated BUY, offering a 9%+ yield and nearing positive free cash flow by 2026. USAC's partnership with Energy Transfer (ET) enhances growth prospects and is expected to cut $5 million in annual corporate costs. This relationship should materialize in additional business opportunities from the Hugh Brinson and Desert Southwest pipelines.
USAC expects adjusted EBITDA of $590-$610 million and distributable cash flow between $350 million and $370 million for 2025.
USA Compression Partners, LP Common Units (NYSE:USAC ) Q2 2025 Earnings Conference Call August 6, 2025 11:00 AM ET Company Participants Christopher M. Paulsen - VP, CFO & Treasurer of USA Compression GP LLC Christopher W.
The headline numbers for USA Compression (USAC) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
USAC offers a strong 8.7% yield, supported by fee-based contracts and a decade-long record of steady distributions. Its position in the Permian Basin, ties to Energy Transfer, and rising natural gas demand from data centers underpin long-term growth. Risks include sub-investment grade credit ratings and a leveraged balance sheet, exposing USAC to interest rate and renewal risks.
USAC maintains a strong 8.7% yield and is nearing positive free cash flow, reducing perceived risk for income-focused investors. Revenue per horsepower continues to rise, though USAC's growth lags peers due to a focus on financial stability over aggressive expansion. Deployment of new high-horsepower compressors and disciplined CAPEX should drive EBITDA gains and a free cash flow inflection by 2026.
USA Compression (USAC) reported earnings 30 days ago. What's next for the stock?
USAC expects adjusted EBITDA of $590-$610 million and distributable cash flow between $350 million and $370 million for 2025.
The headline numbers for USA Compression (USAC) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
USA Compression Partners (USAC) provides essential natural gas compression services, ensuring steady cash flow regardless of gas prices, but faces challenges with slower equipment growth and rising borrowing costs. High utilization rates and strong pricing power support USAC's business, but limited fleet growth and cautious expansion plans signal potential revenue growth constraints. Financially, USAC shows solid revenue and cash flow, but rising debt and a recent earnings miss highlight increasing execution risks and financial leverage concerns.
USA Compression Partners, LP Common Units (NYSE:USAC ) Q1 2025 Earnings Conference Call May 6, 2025 9:00 AM ET Company Participants Christopher W. Porter - Vice President, General Counsel and Secretary Clint Green - President and Chief Executive Officer Christopher M.
USA Compression is rated as a HOLD due to a stable, near-term outlook, high yield of 7.4%, but has limited growth options due to high debt. The company reported record EBITDA in Q4, driven by an 8% increase in revenue per deployed horsepower and a 6% rise in total deployed horsepower. New management is focused on reducing CAPEX to become free cash flow positive, despite market growth in natural gas and AI-related stock appreciation.