USA Compression Partners, LP (NYSE: USAC), one of the largest independent providers of natural gas compression services in the United States, has officially filed its Annual Report on Form 10-K for the fiscal year ending December 31, 2024. This filing with the U.S. Securities and Exchange Commission (SEC) offers a comprehensive look into the company’s financial performance, operational efficiency, and strategic outlook for the upcoming year.
The report is now available on the company’s Investor Relations page under SEC Filings, as well as on the SEC’s official website. Investors and stakeholders interested in a printed copy of the report, including full financial statements, can request one at no charge through the company’s Investor Relations office, located at 8117 Preston Road, Suite 510A, Dallas, TX 75225.
The 2024 report highlights a year of impressive growth, record-setting revenues, and strong financial performance, driven by increasing demand for natural gas infrastructure, operational improvements, and strategic investments.
Record-Breaking Financial Highlights
Despite ongoing volatility in the energy sector, USA Compression achieved remarkable financial results in 2024. The company reported several key metrics that underscore its strong market position:
- Total Revenue: USA Compression reported record total revenues of $245.9 million for the fourth quarter of 2024, marking a significant increase from $225.0 million in the same period of 2023. This growth reflects strong demand for natural gas compression services as the industry continues to expand.
- Net Income: The company posted a net income of $25.4 million in the fourth quarter of 2024, more than doubling from $12.8 million in the previous year. This increase is attributed to operational efficiencies, optimized pricing strategies, and expansion into key natural gas regions.
- Adjusted EBITDA: Adjusted EBITDA, a key profitability metric, rose to $155.5 million in the fourth quarter of 2024, compared to $138.6 million in the same quarter of 2023. This reflects improved cost management and revenue optimization strategies.
- Distributable Cash Flow: The company generated a distributable cash flow of $96.3 million for the fourth quarter, a notable rise from $79.9 million in the previous year, allowing USA Compression to maintain strong dividend payouts.
For the full fiscal year 2024, USA Compression recorded the following financial highlights:
- Net Income: $99.6 million
- Adjusted EBITDA: $584.3 million
- Distributable Cash Flow: $355.3 million
These figures reinforce USA Compression’s solid financial standing and commitment to providing strong returns for investors.
Operational Milestones and Market Expansion
In addition to its robust financial performance, USA Compression achieved several operational milestones in 2024 that further solidified its position in the natural gas compression industry:
- Revenue-Generating Horsepower: The company reported a record-breaking average revenue-generating horsepower of 3.56 million for the fourth quarter of 2024, up from 3.41 million in the same quarter of 2023. This increase reflects expanded service offerings and growing customer demand.
- Revenue per Horsepower: USA Compression achieved an all-time high in revenue per revenue-generating horsepower per month, reaching $20.85 in Q4 2024, compared to $19.52 in the previous year. This growth is largely due to favorable contract renewals and improved pricing strategies.
- Horsepower Utilization: The company maintained a high horsepower utilization rate of 94.5% in Q4 2024, a slight increase from 94.1% in the previous year, indicating strong equipment deployment and efficiency in operations.
USA Compression continues to focus on expanding its service footprint, particularly in high-growth natural gas regions such as the Permian Basin, Eagle Ford, and Appalachian regions, where demand for compression services remains high.
2025 Outlook: A Promising Year Ahead
Looking forward, USA Compression has provided an optimistic financial outlook for 2025, expecting continued growth and strong financial performance. The company has set the following projections:
- Adjusted EBITDA: Expected to range between $590 million and $610 million, reflecting steady revenue growth and cost efficiencies.
- Distributable Cash Flow: Forecasted between $350 million and $370 million, supporting sustainable dividend distributions.
- Expansion Capital Expenditures: Projected to be between $120 million and $140 million, highlighting the company’s commitment to investing in new equipment and market expansion.
- Maintenance Capital Expenditures: Estimated at $38 million to $42 million, ensuring operational efficiency and fleet reliability.
USA Compression’s leadership remains confident in its ability to navigate market dynamics, capitalize on emerging opportunities, and continue delivering value to stakeholders.
Strategic Focus and Industry Trends
As the global energy transition accelerates, the role of natural gas in ensuring energy reliability and reducing carbon emissions remains crucial. USA Compression is well-positioned to support the industry’s shift toward cleaner energy solutions by optimizing compression infrastructure and enhancing service efficiency. Key strategic initiatives include:
- Sustainability and Emissions Reduction: The company is actively exploring technologies to improve fuel efficiency and reduce emissions in its compression fleet, aligning with industry trends toward sustainability.
- Technology Integration: Investments in digital monitoring systems and automation are expected to enhance operational efficiency and reduce downtime.
- Expansion into Key Markets: Continued investment in high-growth natural gas basins ensures that USA Compression remains a leader in infrastructure development.
About USA Compression Partners, LP
USA Compression Partners, LP is one of the largest providers of natural gas compression services in the United States, offering mission-critical compression solutions to producers, processors, and transporters of natural gas. The company primarily focuses on midstream compression services, enabling the efficient transportation and processing of natural gas.
With a robust fleet of high-horsepower compression units and a commitment to customer service excellence, USA Compression plays a key role in the country’s energy infrastructure, ensuring a steady and reliable flow of natural gas to meet growing domestic and international demand.
Conclusion
The filing of USA Compression’s 2024 Annual Report highlights a year of exceptional financial and operational performance. With record revenue, strong earnings growth, and an optimistic outlook for 2025, the company remains well-positioned to capitalize on industry opportunities. By focusing on strategic expansion, technological advancements, and sustainability initiatives, USA Compression is set to maintain its leadership in the natural gas compression market.
As the energy sector continues to evolve, USA Compression’s resilience, operational efficiency, and strong market presence will ensure its continued success in the years to come.
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