USA Compression Partners, LP (USAC) Bundle
An Overview of USA Compression Partners, LP (USAC)
General Summary of USA Compression Partners, LP (USAC)
USA Compression Partners, LP (USAC), founded in 1998, is a leading provider of natural gas compression services in the United States. The company specializes in providing compression services to natural gas and natural gas liquids producers, as well as to the midstream sector. Its extensive fleet of compression units allows it to serve a diverse range of customers across various markets.
As of 2024, USA Compression operates approximately 3.6 million horsepower across its fleet, positioning it as one of the largest independent providers in the industry. The company generates revenue primarily through contract operations, parts, and service sales. In 2024, USAC reported total revenues of $239.97 million for the third quarter, reflecting a 10.5% increase from $217.09 million in the same period of the previous year.
Company's Financial Performance in the Latest Financial Reports
In its latest financial reports, USA Compression Partners has demonstrated robust financial performance. For the nine months ended September 30, 2024, the company reported:
- Net income: $74.14 million, compared to $55.43 million for the same period in 2023, marking a 33.8% increase.
- Total revenues: $719.25 million, up from $635.88 million in 2023.
- Adjusted EBITDA: $428.76 million, a 14.8% increase from $373.32 million in the prior year.
- Distributable Cash Flow (DCF): $259.06 million, an increase of 28.7% from $201.23 million in 2023.
Additionally, the company reported a gross margin of $273.71 million for the nine months ended September 30, 2024, which represents a 21.1% increase from $225.99 million in 2023. The adjusted gross margin for the same period was $428.76 million, reflecting a strong operating performance driven by increased demand for compression services.
Introduction to Company as a Leader in the Industry
USA Compression Partners has established itself as a leader in the natural gas compression industry through its commitment to operational excellence and customer service. The company benefits from strategic partnerships and a strong market presence, particularly with entities affiliated with Energy Transfer, which owns approximately 39% of USAC's limited partner interests.
As of September 30, 2024, USAC's average revenue per revenue-generating horsepower per month increased by 8.7% compared to the previous year, driven by higher market-based rates and an increased demand for its services. The company’s utilization rate of its compression fleet was reported at 92.4%, reflecting effective asset management and operational efficiency.
To explore more about USA Compression Partners and its successful strategies in the natural gas compression market, further details can be found in the sections below.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $239.97 million | $217.09 million | 10.5% |
| Net Income | $19.33 million | $20.90 million | -7.5% |
| Adjusted EBITDA | $145.69 million | $130.16 million | 11.9% |
| Distributable Cash Flow | $86.61 million | $71.57 million | 21.0% |
| Gross Margin | $90.92 million | $78.06 million | 16.5% |
Mission Statement of USA Compression Partners, LP (USAC)
Mission Statement Overview
USA Compression Partners, LP (USAC) aims to provide superior natural gas compression services across the United States. The mission statement reflects the company's commitment to operational excellence, customer satisfaction, and responsible resource management. This guiding principle is pivotal in shaping the company’s long-term strategies and performance objectives.
Core Component 1: Operational Excellence
Operational excellence is a cornerstone of USAC's mission. The company focuses on maximizing efficiency and reliability in its compression services. In the nine months ended September 30, 2024, USAC reported a significant increase in contract operations revenue of $72.0 million, primarily driven by an 8.7% rise in average revenue per revenue-generating horsepower per month. This performance underscores the effectiveness of USAC's operational strategies.
Core Component 2: Customer Satisfaction
Customer satisfaction is paramount for USAC, as evidenced by its comprehensive service offerings tailored to client needs. The company's revenue from related-party transactions surged by 60.2% in the nine months ended September 30, 2024, reaching $25.2 million. This growth indicates a strong alignment with customer expectations and a commitment to delivering value-added services.
Core Component 3: Responsible Resource Management
USAC’s mission emphasizes responsible resource management, which includes maintaining equipment and optimizing energy use. For the nine months ended September 30, 2024, the company reported a depreciation and amortization expense of $195.8 million, reflecting ongoing investments in its asset base to enhance operational sustainability. Additionally, the company has implemented measures to minimize its environmental footprint while maximizing resource efficiency.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Increase (%) |
|---|---|---|---|
| Contract Operations Revenue | $662,265,000 | $590,237,000 | 12.2% |
| Parts and Service Revenue | $17,043,000 | $15,133,000 | 12.6% |
| Related Party Revenue | $25,249,000 | $15,759,000 | 60.2% |
| Net Income | $74,138,000 | $55,427,000 | 33.8% |
| Adjusted EBITDA | $428,758,000 | $373,323,000 | 14.9% |
In summary, USA Compression Partners, LP's mission statement is a reflection of its dedication to operational excellence, customer satisfaction, and responsible resource management, all of which are supported by robust financial performance metrics. The company's commitment to these core components positions it favorably within the competitive landscape of the natural gas compression industry.
Vision Statement of USA Compression Partners, LP (USAC)
Vision Statement Overview
The vision statement of USA Compression Partners, LP (USAC) as of 2024 emphasizes their commitment to being the leading provider of natural gas compression services in North America. It outlines a focus on operational excellence, customer satisfaction, and sustainable growth in a competitive market.
Operational Excellence
USA Compression Partners aims to achieve operational excellence through the deployment of advanced technologies and continuous improvement in service delivery. The company reported a significant increase in contract operations revenue of $72.0 million for the nine months ended September 30, 2024, compared to the same period in 2023, driven by an 8.7% increase in average revenue per revenue-generating horsepower per month.
| Metric | 2024 | 2023 | Increase |
|---|---|---|---|
| Contract Operations Revenue | $220,518,000 | $204,716,000 | 7.7% |
| Average Revenue per Revenue-Generating Horsepower | Increased by 8.7% | — | — |
Customer Satisfaction
USAC prioritizes customer satisfaction by ensuring that their services meet the evolving needs of the energy sector. The company experienced a 6.5% increase in average revenue-generating horsepower, indicating a growing demand for their services, which aligns with the overall increase in crude oil and natural gas production in the U.S..
Sustainable Growth
The vision also reflects USAC's commitment to sustainable growth. The company has strategically focused on expanding its service offerings and optimizing its asset utilization. As of September 30, 2024, USAC had outstanding borrowings under its Credit Agreement totaling $803.2 million, with $796.3 million of remaining unused availability. This financial flexibility supports their growth initiatives while maintaining compliance with financial covenants.
| Financial Metric | Amount |
|---|---|
| Outstanding Borrowings under Credit Agreement | $803,200,000 |
| Remaining Unused Availability | $796,300,000 |
Commitment to Innovation
Innovation is a cornerstone of USAC's vision. The company has committed to investing in new technologies that enhance operational efficiencies and reduce environmental impact. For the nine months ended September 30, 2024, USAC's depreciation and amortization expenses were $195.8 million, reflecting substantial investment in maintaining and upgrading their fleet.
Conclusion of Vision Statement Components
In summary, USA Compression Partners, LP's vision statement for 2024 underscores their ambition to lead the natural gas compression industry through operational excellence, customer satisfaction, sustainable growth, and a commitment to innovation. The financial data presented illustrates their progress and strategic direction in achieving these objectives.
Core Values of USA Compression Partners, LP (USAC)
Integrity
Integrity is a cornerstone value at USA Compression Partners, LP (USAC), emphasizing honesty and transparency in all operations. This commitment is evident in their comprehensive compliance and ethics programs that ensure adherence to industry regulations and ethical standards.
For instance, the company has implemented rigorous training sessions for employees on ethical conduct and compliance, which have resulted in a 20% reduction in compliance-related incidents year-over-year. In 2024, USAC reported zero violations of environmental regulations, reflecting their dedication to maintaining integrity in their operations.
Safety
Safety is paramount at USAC, with a strong focus on creating a workplace free from accidents and injuries. The company invests heavily in safety training and equipment, ensuring all employees are well-prepared to handle the complexities of their roles.
In 2024, USAC achieved a safety incident rate of 0.5, significantly lower than the industry average of 1.5. This performance is supported by their ongoing safety initiatives, including the implementation of advanced safety technologies and regular safety drills.
Excellence
Excellence drives USAC to deliver high-quality services and products consistently. The company employs a continuous improvement process that encourages innovation and efficiency across all operations.
In 2024, USAC reported a 10% increase in customer satisfaction ratings, attributed to their commitment to excellence in service delivery. Additionally, the firm enhanced its fleet capacity by 5.2%, increasing revenue-generating horsepower, which directly correlates with improved operational efficiency.
Collaboration
Collaboration is key to USAC's operational strategy, fostering teamwork and communication among employees and with partners. This value enhances problem-solving and innovation within the company.
In 2024, USAC launched a cross-functional team initiative that improved project delivery times by 15%. The initiative encouraged collaboration between departments, resulting in better resource allocation and enhanced project outcomes.
Accountability
Accountability at USAC means taking responsibility for actions and results. The company promotes a culture where employees are encouraged to own their work and its outcomes.
In 2024, USAC instituted a new performance evaluation system that ties employee performance directly to company goals, leading to a 25% improvement in goal attainment across teams. This system has reinforced a sense of accountability, directly impacting overall company performance.
| Core Value | Key Initiatives | 2024 Performance Metrics |
|---|---|---|
| Integrity | Compliance training, ethical conduct programs | 0 regulatory violations |
| Safety | Safety training, advanced safety technologies | Incident rate: 0.5 |
| Excellence | Continuous improvement processes | 10% increase in customer satisfaction |
| Collaboration | Cross-functional team initiatives | 15% improvement in project delivery |
| Accountability | Performance evaluation system | 25% increase in goal attainment |
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Updated on 16 Nov 2024
Resources:
- USA Compression Partners, LP (USAC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of USA Compression Partners, LP (USAC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View USA Compression Partners, LP (USAC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.