USA Compression Partners (NYSE: USAC) reported Q4 EPS of ($0.03), $0.03 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $178.19 million versus the consensus estimate of $178.19 million.

Fourth Quarter 2019 Highlights

• Total revenues were $178.2 million for the fourth quarter 2019, compared to $172.0 million for the fourth quarter 2018.
• Net income was $9.3 million for the fourth quarter 2019, compared to $10.2 million for the fourth quarter 2018.
• Net cash provided by operating activities was $91.7 million for the fourth quarter 2019, compared to $93.1 million for the fourth quarter 2018.
• Adjusted EBITDA was $109.2 million for the fourth quarter 2019, compared to $103.3 million for the fourth quarter 2018.
• Distributable Cash Flow was $58.0 million for the fourth quarter 2019, compared to $56.4 million for the fourth quarter 2018.
• Announced cash distribution of $0.525 per common unit for the fourth quarter 2019, consistent with the fourth quarter 2018.
• Distributable Cash Flow Coverage was 1.14x for the fourth quarter 2019, compared to 1.19x for the fourth quarter 2018.

“The fourth quarter wrapped up a solid year of operating and financial performance for USA Compression, highlighting the stability in our contract compression services business, as we maintained strong utilization across the fleet while increasing pricing and continuing to achieve very attractive operating margins,” commented Eric D. Long, USA Compression’s President and Chief Executive Officer. “As we executed on a reduced capital spending program throughout the year, we continued to focus our efforts on selective new projects with established, well-capitalized customers under long term fee-based contracts. We also managed our leverage profile and Distributable Cash Flow coverage, positioning USA Compression for a great start to 2020.”

He continued, “As we look ahead to 2020, we anticipate some moderation in overall industry activity levels, and accordingly, have reduced our expected capital spending program. We currently have 56,500 large horsepower on order for delivery in 2020, which is down more than 50 percent from the full year 2019 level. While we believe the macro factors driving global natural gas demand continue to be favorable for infrastructure investment in the United States, we are taking a cautious approach with respect to spending, including the avoidance of issuing additional equity. We expect this restraint will provide us the ability to pursue high-quality projects and customers, continue our focus on lowering leverage and building Distributable Cash Flow coverage, all while continuing to drive strong and stable financial performance for our unitholders.”

Full-Year 2020 Outlook

USA Compression is providing its full-year 2020 guidance as follows:

• Net income range of $40.0 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 $415.0 million to $435.0 million; and
• Distributable Cash Flow range of $210.0 million to $230.0 million.

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