UPDATE: USA Compression Partners (USAC) Misses Q1 EPS by 1c, Revenues Miss
USA Compression Partners (NYSE: USAC) reported Q1 EPS of ($0.12), $0.01 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $157.5 million versus the consensus estimate of $159.85 million.
First Quarter 2021 Highlights
- Total revenues were $157.5 million for the first quarter 2021, compared to $179.0 million for the first quarter 2020.
- Net income was $0.4 million for the first quarter 2021, compared to a net loss of $602.5 million for the first quarter 2020.
- Net cash provided by operating activities was $39.6 million for the first quarter 2021, compared to $50.1 million for the first quarter 2020.
- Adjusted EBITDA was $99.6 million for the first quarter 2021, compared to $106.2 million for the first quarter 2020.
- Distributable Cash Flow was $52.6 million for the first quarter 2021, compared to $54.7 million for the first quarter 2020.
- Announced cash distribution of $0.525 per common unit for the first quarter 2021, consistent with the first quarter 2020.
- Distributable Cash Flow Coverage was 1.03x for the first quarter 2021, compared to 1.08x for the first quarter 2020.
“The first quarter of 2021 came in fairly consistent with the fourth quarter of 2020, reflecting what we expected would be a period of stability as we started the year,” commented Eric D. Long, USA Compression’s President and Chief Executive Officer. “While the general stability in both crude oil and natural gas prices has allowed customers to better plan their budgets and capital spending programs, lingering uncertainty around the timing of a recovery as well as the impact of potential legislative and regulatory changes on the industry have lent a cautious tone to overall activity.”
He continued, “With overall domestic natural gas production increasing modestly, we are now back at pre-COVID-19 levels, illustrating the importance of clean-burning natural gas to our country’s economy. While we acknowledge that renewable energy will increasingly become a more important contributor to our country’s energy needs, we believe the reliability and abundance of domestic natural gas will remain critical to serving our country’s energy needs.”
“As we previously discussed, our capital spending plans have been meaningfully reduced going into 2021. We continue to expect zero new unit deliveries during the year, instead spending nominal amounts of growth capital, primarily consisting of reconfigurations to prepare units for redeployment and first-time start-up costs. Partly as a result of this capital spending discipline, our debt levels and corresponding leverage were better than we expected for the first quarter.”
“While the recovery takes hold, we continue to focus on things within our control, namely capital spending and expense management. As you’ll note, our operating margins remain strong, reflecting continued focus on the core operations of the business, and helping improve Distributable Cash Flow coverage for the quarter.”
Full-Year 2021 Outlook
USA Compression is confirming its full-year 2021 guidance as follows:
- Net income range of $0.0 million to $20.0 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 $385.0 million to $405.0 million; and
- Distributable Cash Flow range of $193.0 million to $213.0 million.
For earnings history and earnings-related data on USA Compression Partners (USAC) click here.