USA Compression Partners (NYSE: USAC) reported Q1 EPS of ($0.02), $0.01 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $170.7 million versus the consensus estimate of $171.47 million.

• Total revenues were $170.7 million.
• Net income was $6.6 million.
• Net cash provided by operating activities was $47.8 million.
• Adjusted EBITDA was $101.4 million.
• Distributable Cash Flow was $54.9 million.
• Announced cash distribution of $0.525 per common unit.
• Distributable Cash Flow Coverage was 1.16x.
• Cash Coverage was 1.16x.

“The first quarter represented a great start to the year for USA Compression. Having now owned the CDM assets for a full 12 months, we’ve successfully completed the integration and continue to see the benefits from the combination as we operate the combined company across our diverse geographical footprint,” commented Eric D. Long, USA Compression’s President & Chief Executive Officer. “We experienced an increase in both utilization and pricing to near record levels, reflecting continued strong market dynamics and our focus on high-quality customers operating in active regions. Continued strong operating margins - Gross Operating Margin Percentage of 66.6% and Adjusted EBITDA Percentage of 59.4% - demonstrate the stability of our large horsepower-focused business model and reflect the successful achievement of the full cost synergies we expected with the CDM transaction.”

He continued, “The market dynamics from which we’ve benefitted over the last several quarters have continued through the first quarter and into the second quarter. U.S. natural gas production is strong, as is the demand for that natural gas, both domestically and abroad, which is driving the demand for our compression services. We remain focused on deploying capital in a prudent manner which, combined with attractive margins, should keep USA Compression positioned well within our industry. Our commitments for new large horsepower deliveries for the remainder of 2019 are approximately 103,000 horsepower, allowing us to meet customer demand without any planned equity issuance. The remainder of the year looks to continue many of the positive macro trends we have been experiencing lately.”

Full-Year 2019 Outlook

USA Compression is confirming 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.