USA Compression Partners (NYSE: USAC) reported Q3 EPS of $0.02, $0.06 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $175.8 million versus the consensus estimate of $172.45 million.

Third Quarter 2019 Highlights

• Total revenues were $175.8 million for the third quarter 2019, compared to $168.9 million for the third quarter 2018.
• Net income was $13.3 million for the third quarter 2019, compared to a net loss of $0.6 million for the third quarter 2018.
• Net cash provided by operating activities was $61.3 million for the third quarter 2019, compared to $38.8 million for the third quarter 2018.
• Adjusted EBITDA was $104.3 million for the third quarter 2019, compared to $90.1 million for the third quarter 2018.
• Distributable Cash Flow was $54.9 million for the third quarter 2019, compared to $47.5 million for the third quarter 2018.
• Announced cash distribution of $0.525 per common unit for the third quarter 2019, consistent with the third quarter 2018.
• Distributable Cash Flow Coverage was 1.08x for the third quarter 2019, compared to 1.01x for the third quarter 2018.
• Cash Coverage was 1.09x for the third quarter 2019, compared to 1.01x for the third quarter 2018.

“The third quarter continued the solid performance USA Compression has achieved thus far during 2019, demonstrating the continued stability of our contract compression services business and leading to solid Adjusted EBITDA and Distributable Cash Flow generation during the quarter,” commented Eric D. Long, USA Compression’s President & Chief Executive Officer. “Pricing across the fleet moved up and utilization remained at high levels, reflecting the current attractive marketplace and robust demand for our infrastructure-based services.”

He continued, “While the broader energy industry continues to evolve throughout the world, the outlook for domestic natural gas production and demand looks positive, driven by industrial demand, global exports, including LNG, and the continual replacement of coal-fired power generation. We believe these macro factors will continue to support the buildout of natural gas infrastructure in this country, which will continue to require the large horsepower compression services that USA Compression provides.”

“Our capital investment program for 2019 is almost complete, with expected deliveries in the fourth quarter of only 8,750 horsepower. Looking ahead to 2020, many of our customers continue to refine their capital budgets as they form a view on where the industry is headed in the next 12 – 24 months. Accordingly, at this stage, we continue to be cautious with respect to our capital spending, with a total of 56,500 horsepower currently on order for delivery in 2020. Consistent with our past, we plan to invest limited capital in only the most attractive opportunities with the financially strongest of our customers, and by doing so, work to reduce leverage and build Distributable Cash Flow coverage over time.”

Full-Year 2019 Outlook

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

• Net income range of $35.0 million to $45.0 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 $405.0 million to $415.0 million; and
• Distributable Cash Flow range of $210.0 million to $220.0 million.

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