On August 6, 2024, USA Compression Partners LP (USAC, Financial) released its 8-K filing detailing its financial and operational results for the second quarter of 2024. USA Compression Partners LP provides compression services in the United States, focusing on infrastructure applications related to natural gas processing and transportation, as well as crude oil production enhancement.
Performance Overview
USA Compression Partners LP reported total revenues of $235.3 million for Q2 2024, a 13.7% increase from $206.9 million in Q2 2023. However, this figure fell short of the analyst estimate of $239.13 million. Net income for the quarter was $31.2 million, up from $23.6 million in the same period last year, translating to an earnings per share (EPS) of $0.23, which exceeded the analyst estimate of $0.19.
Operational Highlights
USA Compression Partners LP achieved record average revenue-generating horsepower of 3.52 million for Q2 2024, compared to 3.31 million in Q2 2023. The average horsepower utilization rate also improved to 94.7% from 93.4% in the same period last year. The company reported a record average revenue per revenue-generating horsepower per month of $20.29, up from $18.65 in Q2 2023.
Financial Achievements
Key financial metrics for Q2 2024 include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $235.3 million | $206.9 million |
| Net Income | $31.2 million | $23.6 million |
| Adjusted EBITDA | $143.7 million | $125.0 million |
| Distributable Cash Flow | $85.9 million | $67.0 million |
Updated 2024 Outlook
USA Compression Partners LP has raised its 2024 net income outlook to a range of $105.0 million to $125.0 million, up from the previous range of $95.0 million to $115.0 million. The company also increased its Adjusted EBITDA outlook to a range of $565.0 million to $585.0 million, from $555.0 million to $575.0 million. The Distributable Cash Flow outlook has been revised to a range of $345.0 million to $365.0 million, up from $340.0 million to $360.0 million.
"Our second-quarter financial and operational results reflected another strong quarter of execution from our high-quality and diversified asset base. Our second-quarter 2024 results continued to deliver growth and again achieved record-setting revenues and Adjusted EBITDA, while maintaining our sector-leading margin, as well as a new record for exit utilization of 95%," commented Eric D. Long, USA Compression’s President and Chief Executive Officer.
Income Statement Highlights
For Q2 2024, USA Compression Partners LP reported:
- Operating income of $77.4 million, up from $51.4 million in Q2 2023.
- Net cash provided by operating activities of $96.7 million, compared to $87.9 million in Q2 2023.
- Gross margin of $91.8 million, up from $77.0 million in Q2 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, USA Compression Partners LP had total assets of $2.82 billion and long-term debt of $2.48 billion. The company reported net cash provided by operating activities of $96.7 million for Q2 2024, compared to $87.9 million in Q2 2023. Net cash used in investing activities was $48.1 million, while net cash used in financing activities was $48.6 million.
Analysis
USA Compression Partners LP's performance in Q2 2024 demonstrates robust growth in revenue and net income, driven by increased demand for its compression services. The company's ability to achieve record revenue-generating horsepower and maintain high utilization rates underscores its strong operational capabilities. However, the shortfall in revenue compared to analyst estimates may raise concerns about future growth prospects. The updated 2024 outlook reflects confidence in continued financial strength, supported by strategic capital expenditures and a favorable market environment.
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Explore the complete 8-K earnings release (here) from USA Compression Partners LP for further details.
