USA Compression Q4 Earnings Match Estimates, Revenues Rise Y/Y

USA Compression Partners USAC reported a fourth-quarter adjusted net profit of 28 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter's adjusted net profit of 18 cents per common unit, driven by a year-over-year increase in average monthly revenue per horsepower.

The largest independent provider of natural gas compression services generated revenues of $252.5 million, improving 2.7% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by $1 million. This growth was due to a 3.9% increase in contract operations and a 3.4% rise in related-party revenues.

USA Compression Partners, LP Price, Consensus and EPS Surprise

USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote

Adjusted EBITDA decreased 0.6% to $154.5 million, which missed our estimate of $156.2 million.

USAC’s distributable cash flow increased to $103.2 million from $96.3 million in the prior-year quarter. The company reported a net income worth $27.8 million compared with $25.4 million in the year-ago quarter.

The oil and gas equipment and services company reported net operating cash flow of $139.5 million in the fourth quarter, up from the prior-year quarter’s $130.2 million.

Adjusted gross operating margin of 66.8% marked a decrease from the year-ago period’s 68.4%.

The company’s revenue-generating capacity declined slightly year over year to 3.58 million horsepower. However, the figure exceeded our estimate of 3.57 million horsepower.

Further, the average monthly revenue per horsepower rose to $21.69 from $20.85 in the fourth quarter of 2024. The figure was lower than our estimate of $21.91.

Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.5%, which was in line with the prior-year quarter’s level.

USAC’s DCF, Cost, Capex & Balance Sheet

USAC’s distributable cash flow available to limited partners totaled $103.2 million (providing 1.36x distribution coverage), up 7.2% from the year-ago level.

Notably, on Jan. 15, 2026, USAC declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the fourth quarter. The distribution was paid on Feb. 6, 2026, to its common unitholders of record as of Jan. 26.

The company reported $175.9 million in costs and expenses, up 2.7% from $171.4 million in the year-ago quarter. It spent $40 million on growth capex. Maintenance capex amounted to $7.8 million.

As of Dec. 31, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.

USAC’s Guidance

USA Compression expects its full-year 2026 adjusted EBITDA to be between $770 million and $800 million. This Zacks Rank #2 (Buy) company also expects distributable cash flow to range from $480 million to $510 million, expansion capital expenditures to be between $230 million and $250 million, and maintenance capital expenditures to total in the band of $60 million to $70 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed USAC’s fourth-quarter results in detail, let us take a look at three other key reports in other space.

Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products,posted fourth-quarter 2025 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.22. The bottom line improved from the year-ago quarter’s level of 64 cents. The better-than-expected quarterly results can be mainly attributed to a surge in refining margins, higher ethanol production volumes and lower total cost of sales.

Valero Energy had cash and cash equivalents of $4.7 billion at the end of the fourth quarter. As of Dec. 31, 2025, it had a total debt of $8.3 billion and finance-lease obligations of $2.4 billion.

Baker Hughes Company BKR, a Houston, TX-based oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.

Baker Hughes Company’s net capital expenditure in the fourth quarter was $321 million. As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.

Halliburton Company HAL, another Houston, TX-based oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.

Halliburton reported fourth-quarter capital expenditure of $337 million, well below our projection of $390.4 million. As of Dec. 31, 2025, the company had approximately $2.2 billion in cash and cash equivalents, and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.

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This article originally published on Zacks Investment Research (zacks.com).

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