USA Compression Q2 revenue beats on fleet expansion, higher pricing
USA Compression Q2 revenue beats on fleet expansion, higher pricing
Overview
US natural gas compression provider's Q2 revenue rose and beat analyst expectations
Adjusted EBITDA for Q2 missed analyst expectations
Company maintained cash distribution at $0.525 per unit
Outlook
USA Compression confirms 2026 Adjusted EBITDA guidance of $770 mln to $800 mln
Company maintains 2026 Distributable Cash Flow outlook of $480 mln to $510 mln
About half of planned 2027 new horsepower already contracted, with meaningful 2028 commitments
Result Drivers
FLEET EXPANSION - Higher average revenue-generating horsepower and increased number of compression units contributed to revenue growth
PRICING IMPROVEMENT - Average revenue per revenue-generating horsepower per month increased to $22.84 from $21.31 a year earlier
INTEGRATION PROGRESS - Co cited operational integration and SAP platform rollout as supporting improved results, per CEO Clint Green
Company press release: ID:nBw3Xjss6a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $342.15 mln | $332.89 mln (5 Analysts) |
Q2 EPS |
| $0.31 |
|
Q2 Net Income |
| $45.65 mln |
|
Q2 Adjusted EBITDA | Miss | $193.20 mln | $195.47 mln (6 Analysts) |
Q2 Adjusted Gross Margin |
| 63.50% |
|
Q2 Operating Income |
| $100.38 mln |
|
Q2 Pretax Profit |
| $51.13 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy."
Wall Street's median 12-month price target for USA Compression Partners, LP is $30.00, about 16.7% above its August 3 closing price of $25.70
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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