USA Compression Partners, LP SEC 10-Q Report

USA Compression Partners, LP, a leading provider of natural gas compression services, has released its Form 10-Q report for the third quarter of 2025. The report details the company's financial and operational performance, showcasing significant growth in revenues and strategic business initiatives aimed at expanding its market presence and operational capacity.

Financial Highlights

Total Revenues: $245.2 million, reflecting a 7.0% increase compared to the same period in 2024, driven by higher market-based rates and increased demand for services.

Gross Margin: $93.2 million, an increase of 2.5% from the previous year, due to higher revenues offset by increased costs of operations.

Operating Income: $69.4 million, up 3.8% from the prior year, supported by increased revenues and cost management.

Net Income: $20.5 million, a decrease of 13.0% compared to the same period in 2024, primarily due to higher income tax expenses and impairment charges.

Basic and Diluted Net Income Per Common Unit: $0.14, down from $0.19 in the previous year, reflecting the impact of increased costs and tax expenses.

Business Highlights

Revenue Segments: The company reported a 3.2% increase in contract operations revenue, driven by higher market-based rates on newly deployed and redeployed compression units, and CPI-based and other market-based price increases on existing customer contracts.

Sales Units: The fleet horsepower at the end of the period was 3,859,920, a 0.7% increase from the previous year. Revenue-generating horsepower increased by 1.8% to 3,559,624, reflecting increased demand for compression services.

Operational Performance: Average revenue per revenue-generating horsepower per month increased by 5.5% to $21.06, primarily due to higher market-based rates and price increases on existing contracts.

Horsepower Utilization: The average horsepower utilization for the period was 94.4%, slightly down from 94.8% in the previous year, due to a decrease in horsepower that is on-contract but not yet active.

Future Outlook: The company plans to spend between $120.0 million and $140.0 million in expansion capital expenditures for 2025, focusing on the acquisition of new compression units and increasing operational capacity.

Customer Segments: Related-party revenue increased significantly by 165.5% due to existing customers acquired by Energy Transfer, now classified as related-party revenue.

Operational Challenges: The company recorded a $3.6 million impairment of assets due to the unmarketability of certain compression units and prohibitive retrofitting costs.

Expansion Plans: The company has binding commitments to purchase $44.7 million worth of additional compression units and serialized parts, expected to be settled within the next 12 months.

SEC Filing: USA Compression Partners, LP [ USAC ] - 10-Q - May. 06, 2025