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USA Compression Partners USAC reported a third-quarter adjusted net profit of 26 cents per common unit, which beat the Zacks Consensus Estimate of 22 cents. The metric improved from the year-ago quarter's adjusted net profit of 13 cents per common unit on the back of increased average revenue per horsepower.
The largest independent provider of natural gas compression services generated revenues of $250.3 million, improving 4.3% from the year-ago quarter’s level and beating the Zacks Consensus Estimate of $247 million. This growth was due to a 3.4% increase in contract operations and a 23.4% rise in related-party revenues.
USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote
Adjusted EBITDA increased 10% to $160.3 million, which surpassed our estimate of $146.8 million.
USAC’s distributable cash flow increased to $103.8 million from $86.6 million in the prior-year quarter. The company reported a net income worth $34.5 million compared with $19.3 million in the year-ago quarter.
The oil and gas equipment and services company reported net operating cash flow of $75.9 million in the third quarter, up from the prior-year quarter’s $48.5 million.
Adjusted gross operating margin of 69.3% marked an increase from the year-ago period’s 65.9%.
The company’s revenue-generating capacity declined slightly year over year to 3.6 million horsepower. However, the figure was in line with our estimate.
Further, the average monthly revenue per horsepower rose to $21.46 from $20.60 in the third quarter of 2024. The figure was above our estimate of $21.42.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94%, slightly down from 94.6% a year ago.
USAC’s distributable cash flow available to limited partners totaled $103.8 million (providing 1.61X distribution coverage), up 15.5% from the year-ago level.
Notably, on Oct. 16, 2025, USAC declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the third quarter. The distribution paid on Nov. 7, 2025, to its common unitholders of record as of Oct. 27.
The company reported $166.3 million in costs and expenses, down 4.1% from the year-ago quarter’s $173.5 million. It spent $37.3 million on growth capex. Maintenance capex amounted to $9 million.
As of Sept. 30, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.
USA Compression expects its full-year 2025 adjusted EBITDA to be between $610 million and $620 million. This Zacks Rank #2 (Buy) company also expects distributable cash flow to range from $370 million to $380 million, expansion capital expenditures to be between $115 million and $125 million, and maintenance capital expenditures to total in the band of $38 million to $42 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While we have discussed USAC’s third-quarter results in detail, let us take a look at three other key reports in this space.
Liberty Energy Inc. LBRT, a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston-based Halliburton Company HAL, one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.
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This article originally published on Zacks Investment Research (zacks.com).
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