USA Compression Partners (NYSE: USAC) reported Q4 EPS of $0.01, $0.10 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $171.98 million versus the consensus estimate of $170.76 million.

• Total revenues were $172.0 million for the fourth quarter 2018 and $584.4 million for the full-year 2018.
• Net income was $10.2 million for the fourth quarter 2018 and net loss was $10.6 million for the full-year 2018.
• Net cash provided by operating activities was $93.1 million for the fourth quarter 2018 and $226.3 million for the full-year 2018.
• Adjusted EBITDA was $103.3 million for the fourth quarter 2018 and $320.5 million for the full-year 2018.
• Distributable Cash Flow was $56.4 million for the fourth quarter 2018 and $177.8 million for the full-year 2018.
• Announced cash distribution of $0.525 per common unit.
• Distributable Cash Flow Coverage was 1.19x for the fourth quarter 2018.
• Cash Coverage was 1.20x for the fourth quarter 2018.

“The fourth quarter wrapped up a transformational year for USA Compression. We successfully completed the acquisition and integration of CDM Resources and have been operating our compression fleet of nearly 4 million horsepower as a single combined company with an expanded and diverse geographic footprint across all the key domestic producing basins,” commented Eric D. Long, USA Compression’s President & Chief Executive Officer. “The quarter saw continued strength in demand for our compression services, as evidenced by increases in both average horsepower utilization and pricing. Financially, we achieved very strong results, including gross operating margin percentage of 67.7% and Adjusted EBITDA percentage of 60.0%, both up meaningfully over the third quarter levels. As we mentioned in last quarter’s call, we believe the addition of the high quality CDM assets and customers has strengthened USA Compression, adding scale, stability, and further expanding our ability to serve our customers everywhere they operate,” he added.

He continued, “The current market for compression services is stronger than we’ve seen in quite a while, due in part to increasing domestic gas production and the continued supply tightness for equipment to serve this growing production. With this backdrop, as we look forward to 2019 and beyond, we plan to continue to execute on our strategic priorities – prudently deploying organic growth capital to high return projects at levels that do not require equity issuance, focusing our efforts internally to ensure financial strength and flexibility, and continuing to achieve attractive margins. For 2019, we have commitments for the delivery of approximately 132,000 horsepower throughout the year – as in recent years, that spending is focused entirely on the largest horsepower class, and substantially all has already been committed to customers. Over the course of the year, through a combination of new unit deliveries and the optimization of our existing fleet, we expect to continue to de-lever the business while growing coverage.”

Full-Year 2019 Outlook

USA Compression is providing its full-year 2019 guidance as follows:

• Net income range of $20.0 million to $60.0 million;
• A forward-looking estimate of net cash provided by operating activities is not provided because the items necessary to estimate net cash provided by operating activities, in particular the change in operating assets and liabilities, are not accessible or estimable at this time. The Partnership does not anticipate the changes in operating assets and liabilities to be material, but changes in accounts receivable, accounts payable, accrued liabilities and deferred revenue could be significant, such that the amount of net cash provided by operating activities would vary substantially from the amount of projected Adjusted EBITDA and Distributable Cash Flow;
• Adjusted EBITDA range of $380.0 million to $420.0 million; and
• Distributable Cash Flow range of $180.0 million to $220.0 million.

For earnings history and earnings-related data on USA Compression Partners (USAC) click here.