USA Compression Partners Reports Q3 2024 Results Affirms 2024 Outlook

06 Nov, 2024

USA Compression Partners reported record total revenues of $240.0 million for the third-quarter of 2024, compared to $217.1 million for the same period in 2023. Despite the growth in revenue, net income slightly decreased to $19.3 million in Q3 2024, down from $20.9 million in Q3 2023. Additionally, net cash provided by operating activities was $48.5 million, a slight drop from $50.1 million in 2023.

Adjusted EBITDA saw a significant increase, rising to $145.7 million in Q3 2024 from $130.2 million in Q3 2023. Distributable Cash Flow also grew to $86.6 million, up from $71.6 million in the same quarter last year. This led to a slight increase in the Distributable Cash Flow Coverage ratio, which was 1.41x for Q3 2024, compared to 1.39x in Q3 2023. The company maintained its quarterly cash distribution at $0.525 per common unit, consistent with the third-quarter distribution of the previous year.

In operational highlights, USA Compression reported a record average revenue-generating horsepower of 3.56 million, compared to 3.36 million in the same period last year. The average revenue per revenue-generating horsepower per month also reached a new high of $20.60, up from $19.10 in Q3 2023. Average horsepower utilization increased to 94.6%, compared to 93.6% in the same quarter last year, reflecting strong demand in the compression services space.

The company is increasing its full-year 2024 expansion capital expenditures to between $240.0 million and $250.0 million, driven by the costs associated with preparing active compression units for redeployment. As of September 30, 2024, USA Compression maintained a strong balance sheet, with $796.3 million in unused availability under its revolving credit facility, and continued compliance with all covenants.

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