USA Compression Partners (NYSE: USAC) reported Q4 EPS of ($0.14), $0.05 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $158.4 million versus the consensus estimate of $161.54 million.

Fourth Quarter 2020 Highlights

• Total revenues were $158.4 million for the fourth quarter 2020, compared to $178.2 million for the fourth quarter 2019.
• Net loss was $1.5 million for the fourth quarter 2020, compared to net income of $9.3 million for the fourth quarter 2019.
• Net cash provided by operating activities was $97.5 million for the fourth quarter 2020, compared to $91.7 million for the fourth quarter 2019.
• Adjusted EBITDA was $98.3 million for the fourth quarter 2020, compared to $109.2 million for the fourth quarter 2019.
• Distributable Cash Flow was $50.5 million for the fourth quarter 2020, compared to $58.0 million for the fourth quarter 2019.
• Announced cash distribution of $0.525 per common unit for the fourth quarter 2020, consistent with the fourth quarter 2019.
• Distributable Cash Flow Coverage was 0.99x for the fourth quarter 2020, compared to 1.14x for the fourth quarter 2019.

“USA Compression wrapped up 2020 with a fourth quarter that reflected very modest quarter-over-quarter declines in utilization and revenue, demonstrating a level of operational stability that would have been hard to imagine nine months ago,” commented Eric D. Long, USA Compression’s President and Chief Executive Officer. “While we continued to see some impact of the ongoing industry softness in certain operating regions, at the same time, other regions performed well and helped balance out our overall business.”

He continued, “The broader natural gas market finished the year on a positive note, with natural gas prices having their best quarter of the year in the fourth quarter. And with the EIA estimating that 2020 dry natural gas production was down a mere 1.9% from 2019’s level, the continued robust demand and production numbers point to the importance of natural gas as a fuel and a raw feedstock for a wide array of products that consumers demand. Given the vast natural gas infrastructure and abundance of supply, we believe that natural gas will remain an important part of this country’s energy landscape.”

“During the quarter, we continued to focus on controlling expenses, resulting in operating margins in line with our historical levels. Our capital spending for the quarter was further reduced from previous quarters, and for the year came in meaningfully below initial expectations. Looking ahead to 2021, we have no new units on order, exercising capital discipline in a still-uncertain marketplace. While the exact timing and duration of a recovery is still unknown, we expect to power through by continuing to focus on operational excellence and customer-focused service.”

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