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USA Compression
(NYSE:USAC)
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Rating:63Neutral
Price Target:
$28.00
â–²(3.44% Upside)
Action:Reiterated
Date:09/25/26
USAC’s score is driven primarily by solid operating performance and cash generation but is held back by significant balance-sheet risk (very high leverage and thin/negative equity). The latest earnings call supported the outlook with maintained guidance and strong demand/utilization, while technical indicators point to weak near-term momentum. Valuation is mixed: an attractive ~8% yield offsets a relatively high P/E.
Positive Factors
Contracted Growth Visibility
Multi-year contracting visibility supports recurring revenue and reduces reliance on spot demand or immediate renegotiations. With new horsepower already committed and additional fleet growth planned through 2030, USAC has a clearer foundation for sustaining utilization and cash generation.
Negative Factors
High Leverage and Thin Equity
Very high leverage and thin or negative equity reduce financial flexibility and make the business more sensitive to weaker operating conditions. Debt service, refinancing needs, and limited balance-sheet capacity could constrain expansion and distributions if energy-services demand becomes less favorable.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted Growth Visibility
Multi-year contracting visibility supports recurring revenue and reduces reliance on spot demand or immediate renegotiations. With new horsepower already committed and additional fleet growth planned through 2030, USAC has a clearer foundation for sustaining utilization and cash generation.
Read all positive factors
USA Compression Key Performance Indicators (KPIs)
Any
Fleet Horsepower
Total horsepower capacity the company owns, whether deployed or idle. Indicates growth potential and capital intensity—excess idle horsepower can be a source of near‑term growth if demand returns, but it also represents assets that incur maintenance and depreciation costs.
Total horsepower capacity the company owns, whether deployed or idle. Indicates growth potential and capital intensity—excess idle horsepower can be a source of near‑term growth if demand returns, but it also represents assets that incur maintenance and depreciation costs.
Data provided by:
The Fly
The FlyUSA Compression (USAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.76B
Dividend Yield8.09%
Average Volume (3M)407.52K
Price to Earnings (P/E)23.7
Beta (1Y)0.37
Revenue Growth19.87%
EPS Growth60.57%
CountryUS
Employees885
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.07
Shares Outstanding144,943,340
10 Day Avg. Volume281,085
30 Day Avg. Volume407,521
Financial Highlights & Ratios
PEG Ratio1.50
Price to Book (P/B)-24.69
Price to Sales (P/S)2.78
P/FCF Ratio10.03
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue5.77
Enterprise Value/Gross Profit12.93
Enterprise Value/Ebitda10.15
Forecast
1Y Price Target
$29.50Price Target Upside8.98% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)1.28
Revenue Forecast (FY)$1.38B
USA Compression Business Overview & Revenue Model
Company Description
USA Compression Partners, LP, a growth-focused Delaware limited partnership, is a leading provider of natural gas compression services, notably possessing the industry's largest compression fleet by horsepower. The company delivers vital compressi...
How the Company Makes Money
USAC primarily makes money by contracting out its compression horsepower and operating expertise to customers that need natural gas compression. Its core revenue stream is service revenue generated under long-term, fixed-fee (often called “fee-bas...
USA Compression Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture driven by the accretive J‑W acquisition, material revenue and cash‑flow growth (+37% revenue YoY), strong fleet scale (4.95M HP) and solid utilization (92%), along with maintained full‑year guidance and a clear multi‑year horsepower growth plan (2.5% annual through 2029, >500k HP by 2030). Near‑term headwinds include margin dilution from acquisition mix, incremental lube oil costs (~$1M/month in H2), extended equipment lead times (up to ~200 weeks) that require earlier capital commitments, and some integration/idle‑asset redeployment work. Overall, the highlights (scale, revenue growth, contracting visibility, in‑house manufacturing and telemetry investments, improved liquidity and guidance) outweigh the lowlights, which are being actively managed and partially mitigated by integration and contractual actions.Positive Updates
Strong Revenue and Earnings Growth
Total revenues of $342.1M in Q2 2026, up 37% year‑over‑year (from $250.1M). Contract operations revenue of $304.9M, up 34% YoY. Net income of $45.7M and operating income of $100.4M. Net cash provided by operating activities of $145.7M.
Negative Updates
Margin Pressure from Acquisition Mix and Integration
Adjusted gross margin reported at 63.5% with sequential margin decline attributed to the inclusion of J‑W (manufacturing and AMS are lower‑margin relative to core contract compression) and integration effects; company expects gradual improvement from operational investments.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and Earnings Growth
Total revenues of $342.1M in Q2 2026, up 37% year‑over‑year (from $250.1M). Contract operations revenue of $304.9M, up 34% YoY. Net income of $45.7M and operating income of $100.4M. Net cash provided by operating activities of $145.7M.
Read all positive updates
Company Guidance
The guidance emphasized measured growth and clear financial ranges: full-year adjusted EBITDA of $770–800M, distributable cash flow of $480–510M, maintenance capex $60–70M and expansion capex $230–250M (Q2 expansion/maintenance were $46.8M and $16.9M); management expects ~2.5% average annual new horsepower growth through 2029 (targeting 2–3% annually) and to add over 500,000 HP by 2030, with ~50% of 2027 new units already contracted and mid-teens % for 2028; Q2 revenue $342.1M (+37% YoY), contract ops $304.9M (+34%), net income $45.7M, operating income $100.4M, cash from ops $145.7M, cash interest $47.4M, adjusted gross margin 63.5%, fleet ~4.95M HP (average active ~4.45M, utilization 92%), ARPRH $22.84/month (+0.5% seq, +7% YoY); incremental lube-oil cost ~$1M/month in H2, telemetry critical mass in 2027, manufacturing capacity ~100–125k HP/year, leverage 3.72x (near-term target ~3.75x) and distribution yield approaching ~8%.USA Compression Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
33
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.18B | 998.10M | 950.45M | 846.18M | 704.60M | 632.64M |
| Gross Profit | 525.20M | 384.48M | 641.72M | 565.20M | 473.90M | 441.85M |
| EBITDA | 669.17M | 588.41M | 567.49M | 489.60M | 408.98M | 382.17M |
| Net Income | 146.24M | 111.32M | 99.58M | 68.27M | 30.32M | 10.28M |
Balance Sheet | ||||||
| Total Assets | 3.69B | 2.62B | 2.75B | 2.74B | 2.67B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 9.48M | 8.56M | 14.00K | 11.00K | 35.00K | 0.00 |
| Total Debt | 2.96B | 2.55B | 2.52B | 2.35B | 2.13B | 2.00B |
| Total Liabilities | 3.40B | 2.73B | 2.72B | 2.55B | 2.30B | 2.19B |
| Stockholders Equity | 287.07M | -112.50M | 27.76M | 183.05M | 361.01M | 578.42M |
Cash Flow | ||||||
| Free Cash Flow | 309.81M | 276.99M | 136.48M | 33.36M | 126.37M | 220.21M |
| Operating Cash Flow | 447.15M | 394.26M | 341.33M | 271.88M | 260.59M | 265.43M |
| Investing Cash Flow | -577.43M | -114.96M | -202.01M | -232.65M | -129.94M | -39.19M |
| Financing Cash Flow | 139.75M | -270.75M | -139.32M | -39.26M | -130.61M | -226.24M |
USA Compression Technical Analysis
Neutral
27.07
Price Trends
26.32
Negative
26.42
Negative
26.02
Negative
Market Momentum
-0.28
Negative
50.28
Neutral
65.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USAC, the sentiment is Neutral. The current price of 27.07 is above the 20-day moving average (MA) of 25.74, above the 50-day MA of 26.32, and above the 200-day MA of 26.02, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 65.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USAC.
USA Compression Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $426.93M | 20.31 | 7.31% | 1.57% | 15.42% | 13.10% | |
67 Neutral | $5.31B | 16.28 | 21.96% | 2.91% | 11.54% | 40.91% | |
66 Neutral | $6.12B | 74.77 | 7.85% | 0.63% | 70.52% | 70.05% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $5.41B | 60.76 | 5.55% | 3.67% | 8.23% | -6.88% | |
63 Neutral | $3.76B | 23.73 | 141.15% | 8.09% | 19.87% | 60.57% | |
58 Neutral | $6.76B | 72.96 | 1.53% | 2.29% | -1.63% | -78.44% |
* Energy Sector Average
USAC
USA Compression
25.95
4.95
23.57%
AROC
Archrock
30.28
6.80
28.95%
NOV
NOV
18.97
6.54
52.65%
NGS
Natural Gas Services Group
33.10
7.28
28.22%
SEI
Solaris Energy Infrastructure
76.40
24.91
48.38%
KGS
Kodiak Gas Services, Inc.
53.47
20.67
63.02%
USA Compression Corporate Events
Business Operations and StrategyPrivate Placements and Financing
USA Compression Issues New Senior Notes to Refinance Debt
Positive
Sep 24, 2026
On September 18, 2026, USA Compression Partners, LP and its subsidiary USA Compression Finance Corp. issued $600 million of 6.750% senior notes due 2035 under a new indenture, with the notes guaranteed on a senior unsecured basis by most of the pa...
Business Operations and StrategyDelistings and Listing Changes
USA Compression shifts stock listing to Texas Exchange
Positive
Sep 10, 2026
On September 3, 2026, USA Compression Partners, LP approved the voluntary withdrawal of its common units from the New York Stock Exchange and a transfer of the listing to the Texas Stock Exchange. Trading on the NYSE is expected to end at market c...
Business Operations and Strategy
USA Compression to Present at Citi Natural Resources Conference
Neutral
Aug 5, 2026
USA Compression Partners said members of its senior management team will attend the 2026 Citi Natural Resources Conference on August 11, where they plan to hold a series of meetings with investors. The partnership will post the presentation materi...
Business Operations and StrategyRegulatory Filings and Compliance
USA Compression Completes Legal Redomiciliation to Texas
Neutral
Jul 6, 2026
On July 6, 2026, USA Compression Partners, LP completed a legal redomiciliation from Delaware to Texas via a plan of conversion, with its general partner and wholly owned subsidiary USAC Finance Corp. moving jurisdictions concurrently. The partner...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.