7/25/2023 0 Comments Video compression![]() ![]() Our first quarter 2023 results are the direct result of our returns-based capital investment strategy and feature consecutive quarterly record revenues, adjusted EBITDA and distributable cash flow. That impressive performance appears to have legs as USA Compression Partners exited March 2023 on a high note with its horsepower utilization rate sitting at 92.7%, up from 91.8% at the end of December 2022 and 86.1% at the end of March 2022.ĭuring the company's first quarter of 2023 earnings call, management had this to say: Its GAAP operating margin grew by over 440 basis points during this period, hitting 25.9% in the first quarter of 2023. ![]() (The author, with data provided by USA Compression Partners)Įffective cost management efforts, economies of scale, and ample pricing power enabled the firm to grow its GAAP operating income by 45% year-over-year last quarter, bringing it up to $51 million. USA Compression Partners' financials have been on a powerful upswing of late. When combined with its improving pricing power (seen via its average revenue per revenue-generating horsepower per month growing from $16.87 in the first quarter of 2022 to $18.19 in the first quarter of 2023), USA Compression Partners was able to grow its GAAP revenues to $197 million last quarter, up 21% year-over-year. From the end of March 2022 to the end of March 2023, the number of the company's revenue-generating compression units grew by 6%, a feat made possible due to significant utilization rate increases and USA Compression Partners' capital investment program. In the upcoming table down below, I complied some key financial and operational data from USA Compression Partners' first quarter of 2023 earnings update. As of this writing, units of USAC yield a juicy ~10.7%. The recovery in US energy production seen since 2021 (I will cover that later on) has been a boon to its business and income-seeking investors should take note. ![]() USA Compression Partners' business is heavily influenced by the trajectory of domestic oil, natural gas liquids, and natural gas production. (USA Compression Partners - March 2023 IR Presentation) Its services allow for the processing and transportation of natural gas through pipeline systems, and enhancing crude oil production through artificial lift processes.Īn overview of USA Compression Partners' ownership structure. Its business primarily caters to infrastructure applications such as centralized natural gas gathering systems and processing facilities, including infrastructure in numerous energy producing regions across the US such as the Permian Basin, Eagle Ford, Marcellus, Bakken, and more. USA Compression Partners provides natural gas compression services in the US and is one of the largest entities in this space according to the firm. ![]() Please note that Energy Transfer has a large economic interest in USA Compression Partners via ~46.1 million common units, warrants to acquire up to ~10 million common units, USA Compression Partners Series A preferred units, and its general partnership interest. USA Compression Partners LP ( NYSE: USAC) is a limited partnership managed by USA Compression GP LLC, the general manager that's wholly owned by Energy Transfer LP ( ET). ![]()
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