USA Compression Partners USAC reported first-quarter adjusted net profit of 18 cents per common unit, which missed the Zacks Consensus Estimate of 22 cents due to higher total costs and other expenses. However, the metric improved from the year-ago quarter's adjusted net profit of 16 cents per common unit on the back of increased average revenue per horsepower. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The largest independent provider of natural gas compression services generated revenues of $245.2 million, which increased 7% from the year-ago quarter’s level and beat the Zacks Consensus Estimate of $244 million. This growth was due to a 3.2% increase in Contract operations and a huge 165.5% jump in Related party revenues.

Adjusted EBITDA increased 7.2% to $149.5 million, which surpassed our estimate of $146.2 million.

USA Compression Partners, LP Price, Consensus and EPS SurpriseUSA Compression Partners, LP Price, Consensus and EPS Surprise

USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote

USAC’s distributable cash flow decreased to $86.6 million from $88.7 million in the prior-year quarter. The company reported a net income worth $20.5 million compared with $23.6 million in the year-ago quarter.

The oil and gas equipment and services company reported net operating cash flow of $54.7 million in the first quarter, down from the prior-year quarter’s $65.9 million.

Adjusted gross operating margin of 66.7% marked a decrease from the year-ago period’s 67.3%.

The company’s revenue-generating capacity increased 2.4% year over year to 3.6 million horsepower. However, the figure was below our estimate of 1.9%.

Further, the average monthly revenue per horsepower rose to $21.06 from $19.96 in the first quarter of 2024. The figure was below our estimate of $21.62.

Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.4%, slightly down from 94.8% a year ago.

USAC’s DCF, Cost, Capex & Balance Sheet

USAC’s distributable cash flow available to limited partners totaled $88.7 million (providing 1.4X distribution coverage), up 2.7% from the year-ago level.

Notably, on April 17, USAC declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the first quarter. The distribution will be paid on May 9, 2025, to its common unitholders of record as of April 28.

The company reported $175.8 million in costs and expenses, up 8.3% from the year-ago quarter’s $162.4 million. It spent $22.2 million on growth capex. Maintenance capex amounted to $10.9 million.

As of March 31, 2025, USA Compression had a net long-term debt of $2.5 billion.

Story Continues

USAC’s Guidance

USA Compression expects its full-year 2025 adjusted EBITDA to be between $590 million and $610 million. This Zacks Rank #5 (Strong Sell) company also expects distributable cash flow to range from $350 million to $370 million, expansion capital expenditures to be between $120 million and $140 million, and maintenance capital expenditures to total in the band of $38 million to $42 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed USAC’s first-quarter results in detail, let us take a look at three other key reports in this space.

Oil and gas equipment and services provider Liberty Energy LBRT reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.

As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.

Another oil and gas equipment and services provider Halliburton Company HAL posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.

As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.

Houston, TX-based oil and gas equipment and services provider Baker Hughes BKR reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.

As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.

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Halliburton Company (HAL):Free Stock Analysis Report

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