Record Revenues and Net Income Surge for USAC

By Tamara Parker • Tuesday, February 11 15:21 • Permanent Link

USA Compression Partners, LP (NYSE: USAC) has reported its financial and operating results for the fourth quarter of 2024, highlighting record total revenues of $245.9 million, marking an increase from $225.0 million in the same period of 2023. Net income also saw a substantial increase, reaching $25.4 million compared to $12.8 million in the fourth quarter of 2023.

The company's record net cash provided by operating activities stood at $130.2 million for the fourth quarter of 2024, up from $91.6 million in the same period of 2023. Adjusted EBITDA also saw an increase, reaching $155.5 million for the fourth quarter of 2024 compared to $138.6 million for the fourth quarter of 2023.

Moreover, distributable cash flow for the fourth quarter of 2024 amounted to $96.3 million, a significant increase from $79.9 million in the fourth quarter of 2023. The distributable cash flow coverage ratio was reported at 1.56x for the fourth quarter of 2024, compared to 1.48x for the same period in 2023.

Operationally, USA Compression Partners achieved a record average revenue-generating horsepower of 3.56 million for the fourth quarter of 2024, up from 3.41 million for the fourth quarter of 2023. The average revenue per revenue-generating horsepower per month also saw an increase, reaching $20.85 for the fourth quarter of 2024 compared to $19.52 for the fourth quarter of 2023. The average horsepower utilization was reported at 94.5% for the fourth quarter of 2024, an improvement from 94.1% in the fourth quarter of 2023.

Looking ahead to 2025, the company anticipates an expansion capital range of $120 million to $140 million, with a focus on contracted new horsepower unit additions. Additionally, the full-year 2025 outlook includes adjusted EBITDA in the range of $590,000 to $610,000 and distributable cash flow in the range of $350,000 to $370,000.

The company's resilience and growth are attributed to improved operational efficiencies, achieving record-setting financial results. Clint Green, USA Compression's President and CEO, expressed confidence in the favorable macro backdrop and the company's positioning to benefit from anticipated growth in natural gas volumes.

USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services and provides midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. The market has reacted to these announcements by moving the company's shares -2.9% to a price of $28.39. If you want to know more, read the company's complete 8-K report here.

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