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USA Compression
(NYSE:USAC)
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Rating:68Neutral
Price Target:
$29.00
â–²(9.31% Upside)
Action:Reiterated
Date:05/15/26
USAC’s score is driven by strong profitability/cash generation and supportive technical momentum (price above key moving averages with positive MACD). The rating is held back mainly by elevated balance-sheet risk, while valuation is mixed (high yield offset by a mid-to-high P/E) and the earnings call was broadly constructive with guidance maintained but notable supply-chain and near-term leverage/margin risks.
Positive Factors
Consistent cash generation
Operating cash flow consistently exceeds net income and scaled up into 2024–TTM, supporting repeatable free cash flow. That durable cash conversion funds maintenance capex, expansion orders, and distributions, giving management flexibility across commodity cycles and reducing reliance on external financing.
Negative Factors
Elevated and volatile leverage
Historically high and unstable leverage, including periods of very high debt and negative equity, constrains financial flexibility. Elevated leverage raises refinancing and interest-rate sensitivity, limits ability to pursue opportunistic investments, and increases bankruptcy risk during prolonged commodity downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Operating cash flow consistently exceeds net income and scaled up into 2024–TTM, supporting repeatable free cash flow. That durable cash conversion funds maintenance capex, expansion orders, and distributions, giving management flexibility across commodity cycles and reducing reliance on external financing.
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
$3.82B
Dividend Yield9.11%
Average Volume (3M)285.79K
Price to Earnings (P/E)26.0
Beta (1Y)0.44
Revenue Growth12.18%
EPS Growth45.56%
CountryUS
Employees854
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.98
Shares Outstanding144,972,350
10 Day Avg. Volume420,071
30 Day Avg. Volume285,793
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 Cap1.59
Enterprise Value/Revenue5.59
Enterprise Value/Gross Profit10.83
Enterprise Value/Ebitda9.61
Forecast
1Y Price Target
$28.75Price Target Upside8.37% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.25
Revenue Forecast (FY)$1.34B
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 makes money primarily by contracting with customers (typically energy producers, processors, and midstream pipeline/operators) to provide compression services using its fleet of compression units. Revenue is generated through service contract...
USA Compression Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlights substantial progress on integration, manufacturing and capacity optionality, record pricing, strong first-quarter cash generation and safety performance. These positives are tempered by material supply-chain risks (notably multi-year engine lead times), a near-term utilization dip from acquired idle horsepower, and margin and timing pressures stemming from the JW mix and deferred maintenance. Management has a clear plan to capture synergies, maintain guidance, and manage leverage, and many risks have mitigants (resale optionality for engines, CPI-linked contracts, planned efficiencies). On balance, the positive operational and financial developments and strategic optionality outweigh the near-term supply chain and margin headwinds.Positive Updates
Safety Performance
Combined TRIR of 0.39 in 2025, a 50% reduction versus 2024 and well below the BLS industry average of 0.70; company has beaten that benchmark for twelve consecutive years.
Negative Updates
Supply Chain & Extended Engine Lead Times
Engine lead times have lengthened dramatically (management cited examples from ~50 weeks to ~150 weeks and Cat lead times of ~100+ weeks); this presents planning and business continuity challenges and has driven multi-year advance orders.
Read all updates
Q1-2026 Updates
Positive
Negative
Safety Performance
Combined TRIR of 0.39 in 2025, a 50% reduction versus 2024 and well below the BLS industry average of 0.70; company has beaten that benchmark for twelve consecutive years.
Read all positive updates
Company Guidance
Management maintained full-year guidance, reiterating adjusted EBITDA of $770–$800M and distributable cash flow (DCF) of $480–$510M, with full-year maintenance capital expected at $60–$70M and expansion capital at $230–$250M; Q1 expansion and maintenance spend were $26.4M and $9.2M, respectively. Q1 financials included net income of $38.3M, operating income of $91.4M, net cash from operations of $86.1M and cash interest expense of $47.1M, adjusted gross margin of 64.4% and average pricing of $22.73 per horsepower (up 5% sequentially, 8% year‑over‑year). Operational metrics driving guidance: average active horsepower of 4.438M, total fleet ~4.931M (up ~1.037M QoQ), Q1 utilization 91.9%, small‑hp utilization up nearly 10% YoY, and management said it has contracted >90% of nearly 110k new horsepower for 2026 and expects >100k new hp/year (possibly up to ~125k) going forward. Leverage was 3.74x at quarter end with a near‑term target of ~3.75x (expected to tick higher in Q2 as new hp is delivered then trend lower by year‑end), distribution coverage ~1.72x, and expected $10–20M of annual run‑rate synergies by year‑end 2027; the company is also managing multi‑year engine orders amid stretched lead times (recently ~150 weeks) and noted engine cost is ~25–40% of total skid cost and manufacturing capacity of ~100–125k hp.USA Compression Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
42
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 998.10M | 950.45M | 846.18M | 704.60M | 632.64M |
| Gross Profit | 559.55M | 384.48M | 641.72M | 565.20M | 473.90M | 441.85M |
| EBITDA | 630.92M | 588.41M | 567.49M | 489.60M | 408.98M | 382.17M |
| Net Income | 129.15M | 111.32M | 99.58M | 68.27M | 30.32M | 10.28M |
Balance Sheet | ||||||
| Total Assets | 3.73B | 2.62B | 2.75B | 2.74B | 2.67B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 14.52M | 8.56M | 14.00K | 11.00K | 35.00K | 0.00 |
| Total Debt | 2.99B | 2.55B | 2.52B | 2.35B | 2.13B | 2.00B |
| Total Liabilities | 3.42B | 2.73B | 2.72B | 2.55B | 2.30B | 2.19B |
| Stockholders Equity | 316.67M | -112.50M | 27.76M | 183.05M | 361.01M | 578.42M |
Cash Flow | ||||||
| Free Cash Flow | 302.57M | 276.99M | 136.48M | 33.36M | 126.37M | 220.21M |
| Operating Cash Flow | 425.71M | 394.26M | 341.33M | 271.88M | 260.59M | 265.43M |
| Investing Cash Flow | -564.81M | -114.96M | -202.01M | -232.65M | -129.94M | -39.19M |
| Financing Cash Flow | 153.61M | -270.75M | -139.32M | -39.26M | -130.61M | -226.24M |
USA Compression Technical Analysis
Negative
26.53
Price Trends
27.52
Negative
27.20
Negative
25.07
Positive
Market Momentum
-0.51
Negative
41.72
Neutral
61.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USAC, the sentiment is Negative. The current price of 26.53 is above the 20-day moving average (MA) of 26.41, below the 50-day MA of 27.52, and above the 200-day MA of 25.07, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.45B | 19.85 | 22.28% | 3.08% | 22.66% | 55.80% | |
72 Outperform | $6.86B | 84.91 | 5.47% | 4.86% | 3.99% | 38.62% | |
68 Neutral | $3.82B | 26.03 | 651.13% | 9.11% | 12.18% | 45.56% | |
67 Neutral | $497.13M | 21.42 | 7.99% | 0.63% | 11.28% | 27.38% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
56 Neutral | $3.88B | 24.92 | 7.39% | 1.78% | -4.02% | -39.84% | |
53 Neutral | $4.94B | 68.72 | 8.08% | 1.07% | 86.29% | 96.31% |
* Energy Sector Average
USAC
USA Compression
25.51
3.01
13.37%
AROC
Archrock
36.53
13.29
57.16%
NGS
Natural Gas Services Group
37.49
13.26
54.70%
SEI
Solaris Energy Infrastructure
67.47
36.11
115.13%
LBRT
Liberty Energy
23.29
11.64
99.90%
KGS
Kodiak Gas Services, Inc.
66.23
34.90
111.40%
USA Compression Corporate Events
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...
Business Operations and Strategy
USA Compression to Present at J.P. Morgan Conference
Neutral
Jun 22, 2026
USA Compression Partners said its senior management will attend the J.P. Morgan Natural Resources Conference on June 23, where they plan to hold a series of meetings with members of the investment community. The partnership will post the presentat...
Business Operations and Strategy
USA Compression highlights investor outreach at upcoming conferences
Neutral
May 27, 2026
USA Compression Partners, LP said members of its senior management team planned to attend the RBC Global Energy, Power Infrastructure Conference on June 2 and the Bank of America Energy and Power Credit Conference on June 3, where they would hold...
Business Operations and Strategy
USA Compression Engages Investors at Key Finance Conferences
Positive
May 15, 2026
On May 19 and 20, senior management of USA Compression Partners planned to attend the 23rd Annual Energy Infrastructure CEO Investor Conference and the Barclays 30th Annual Leverage Finance Conference. During these events, executives were schedul...
Executive/Board Changes
USA Compression Adds Independent Director to General Partner Board
Neutral
Apr 30, 2026
On April 28, 2026, Energy Transfer LP appointed Jim S. Holotik as a director on the board of USA Compression GP, LLC, the general partner of USA Compression Partners, LP, formalizing his role in overseeing the partnership’s operations. The m...
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.