USA Compression Q3 revenue misses estimates

Overview

• USA Compression Q3 revenue missed analyst expectations despite record total revenues

• Adjusted EBITDA for Q3 beat analyst estimates, reflecting strong operational performance

• Company improved full-year 2025 guidance, indicating confidence in operational performance

Outlook

• USA Compression tightens full-year 2025 Adjusted EBITDA guidance to $610 mln-$620 mln

• Company expects 2025 Distributable Cash Flow of $370 mln-$380 mln

• Expansion capital expenditures for 2025 projected at $115 mln-$125 mln

Result Drivers

• REVENUE PER HORSEPOWER - Record average revenue per revenue-generating horsepower contributed to increased total revenues

• COST SAVINGS - CEO Clint Green highlighted savings in SG&A, operating expenses, and interest expenses as key drivers of improved results

• CASH FLOW IMPROVEMENT - Net cash provided by operating activities increased significantly, boosting distributable cash flow coverage

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "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 $26.00, about 15.4% above its November 4 closing price of $21.99

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw4mtlZZa

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(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.)