Reports Q4 revenue $94M vs. $80.2M last year. John Jackson, CEO of CSI Compressco commented, "Our fourth quarter results reflected a continuing robust demand for compression and related services. We are now seeing over the last couple of quarters the impact of this demand translate into positive improvements in our financial results as the inflation impacts have slowed. The sequential improvements continued with higher EBITDA, contract services revenue, improved utilization and continued pricing improvement. We continued to add new build units to our fleet while upgrading some of our existing units through a combination of electric drive conversions and reconfiguring units to more industry-standard applications. Our overall fleet utilization improved to 86.8%, however, our reciprocating fleet improved to 93.3% and our reciprocating fleet represents over 82% of our total horsepower. Our leverage ratio has continued to improve during the fourth quarter reflecting the improving financial results. As we look to 2023, we expect a continuing strong demand for horsepower in general but very tight supply for medium to large horsepower. We plan to spend lower amounts of growth capital in 2023 when compared to 2022 as we want to generate free cash flow. We will be looking to continue to improve our leverage ratio in 2023 through a combination of improving financial results and absolute debt paydown with our free cash flow. Our outlook, using the midpoint of our guidance, would reduce our net leverage ratio to approximately 5x by year end 2023. We remain bullish on the industry as the demand for compression combined with a reduced interest in ownership by E&P companies is providing a strong backdrop for growth for the foreseeable future."
Published first on TheFly
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