Yahoo Finance USA Compression (USAC) Q1 Earnings & Revenues Top Estimates
USA Compression Partners, LP USAC reported first-quarter 2024 adjusted net profit of 16 cents per common unit, which beat the Zacks Consensus Estimate of 12 cents. This was due to improved pricing and utilization. The metric also improved significantly from the year-ago quarter's adjusted net loss of one cent per share on the back of higher-than-expected revenue-generating capacity.
The largest independent provider of natural gas compression services generated revenues of $229 million, improving 16.2% from the year-ago quarter’s level and beating the Zacks Consensus Estimate of $226 million.
Adjusted EBITDA increased 17.9% to $139.4 million and came ahead of our estimate of $138.4 million.
Distributable cash flow increased from $62.6 million in the prior-year quarter to $86.6 million. The company reported a net income worth $23.6 million compared with $10.9 million a year ago.
USAC reported operating cash flow of $65.9 million in the first quarter, up from the prior-year quarter’s $42.3 million. Adjusted gross operating margin of 67.3% marked an increase from the year-ago period’s 66.2%.
The company’s revenue-generating capacity increased 7.1% year over year to 3.5 million horsepower, which surpassed the Zacks Consensus Estimate of 3.48 million horsepower. However, the figure came in below our estimate of 3.52 million horsepower.
Further, the average monthly revenue per horsepower rose to $19.96 from $18.19 in the first quarter of 2023 and surpassed our estimate of $19.77.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate came in at 94.8%, up from 92.6% a year ago and exceeded our prediction of 94.1%.
USA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote
DCF, Cost, Capex & Balance Sheet
USAC’s distributable cash flow available to limited partners totaled $86.6 million (providing 1.41X distribution coverage), up 38.3% from the year-ago level.
Notably, on Apr 11, USAC announced first-quarter cash distribution of 52.50 cents per unit ($2.10 on an annualized basis). The distribution was paid on May 3, 2024, to common unitholders of record as of Apr 22.
The company reported $162.4 million in costs and expenses, up 11.2% from the year-ago quarter’s $146.1 million.
It spent $104.8 million on growth capex. Maintenance capex amounted to $5.8 million.
As of May 31, 2024, USA Compression had a net long-term debt of $2.5 billion.
Guidance
For 2024, USAC anticipates distributable cash flow in the $340-$360 million range. Management expects adjusted EBITDA in the band of $555-$575 million.
This Zacks Rank #2 (Buy) company also anticipates 2024 net income in the $95-$115 million range.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Q1 Energy Earnings So Far
While we have discussed USA Compression Partners’ first-quarter results in detail, let’s take a look at some other key energy reports of this season.
Independent oil and natural gas company Magnolia Oil & Gas Corporation MGY announced adjusted net income of 49 cents per share, which beat the Zacks Consensus Estimate of 44 cents. However, the bottom line deteriorated from the year-ago quarter’s level of 56 cents.
Total revenues came in at $319.4 million, which beat the Zacks Consensus Estimate of $308 million. The top line also improved 3.6% from $308.4 million recorded in the year-ago period. As of Mar 31, 2024, the company had cash and cash equivalents worth $399.3 million and long-term debt of $393.5 million, with debt to total capital of about 17.2%.
SLB SLB, the largest oilfield contractor, announced earnings of 75 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 74 cents. The bottom line also increased from the year-ago quarter’s level of 63 cents.
SLB’s strong quarterly earnings resulted from higher evaluation and stimulation activities in the international market. As of Mar 31, 2024, the company had approximately $3.5 billion in cash and short-term investments and a long-term debt of $10.7 billion.
Independent oil refiner and marketer Valero Energy VLO came up with adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.18, driven by a decline in total cost of sales. Adjusted operating income in the Refining segment totaled $1.7 billion, down from $4.1 billion in the year-ago quarter. The figure, however, was above our estimate of $1.6 billion.
Valero’s total cost of sales declined to $29.8 billion from the year-ago figure of $32.1 billion. The figure was also below our estimate of $30.4 billion, primarily due to lower material costs and operating expenses. The first-quarter capital investment totaled $661 million, of which $563 million was allotted for sustaining the business.
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