Key Highlights

  • Net income of USD 0.33 per diluted unit topped the consensus estimate of USD 0.32 and rose from USD 0.26.
  • Total revenues of USD 357.2 million rose from USD 250.3 million and beat the consensus estimate of USD 348.05 million.
  • Distributable Cash Flow reached USD 127.1 million, with a coverage ratio of 1.67x against 1.61x a year earlier.
  • 2026 adjusted EBITDA is guided to USD 770 to 780 million, distributable cash flow to USD 495 to 505 million.

USA Compression Partners, LP (TXSE:USAC) reported third quarter 2026 total revenues of USD 357.2 million, up from USD 250.3 million a year earlier and above a consensus estimate of USD 348.05 million. Net Income was USD 47.3 million, or USD 0.33 per diluted common unit, compared with USD 34.5 million and USD 0.26 a year earlier, and against a consensus estimate of USD 0.32 per unit. Adjusted EBITDA rose to USD 197.3 million from USD 160.3 million, and net cash provided by Operating Activities was USD 117.7 million against USD 75.9 million.

President and Chief Executive Officer Clint Green said the quarter showed sequential growth in revenue, adjusted EBITDA and distributable cash flow despite a challenging Commodity cost environment, and pointed to substantially completed integration activities and a larger executed contract pipeline across core markets.

Fleet Growth Outpaced Margin and Utilization

Average Revenue generating horsepower climbed to 4.48 million from 3.55 million a year earlier, and average revenue per horsepower per month rose to USD 23.14 from USD 21.46. Contract operations revenue was USD 308.4 million, parts and service revenue was USD 22.2 million and related party revenue was USD 26.5 million. Average horsepower utilization eased to 92.1% from 94.0%.

Margins moved lower as the fleet expanded: adjusted gross margin was 62.2% of revenue against 69.3% a year earlier and 63.5% in the second quarter, while adjusted EBITDA margin was 55.2% against 64.0% and 56.5%. Operating Income rose to USD 102.2 million from USD 83.9 million. Cash interest expense, net was USD 47.3 million.

Full Year 2026 Guidance and Distribution

The Partnership updated its full year 2026 guidance to adjusted EBITDA of USD 770 million to USD 780 million and distributable cash flow of USD 495 million to USD 505 million. Expansion capital expenditures are guided at USD 230 million to USD 250 million, including USD 32 million of non compression capital, and maintenance capital expenditures at USD 60 million to USD 70 million.

A third quarter cash distribution of USD 0.525 per common unit, equal to an annualized USD 2.10, is payable on November 6, 2026 to unitholders of record on October 26, 2026. The amount matches the distribution for the third quarter of 2025.

Quarterly Actuals Against Guidance, Prior Periods and Debt

Third quarter expansion capital expenditures of USD 87.7 million compare with full year guidance of USD 230 million to USD 250 million, and maintenance capital expenditures of USD 18.5 million compare with USD 60 million to USD 70 million. Distributable cash flow of USD 127.1 million compares with USD 125.3 million in the second quarter and USD 103.8 million a year earlier, while adjusted EBITDA of USD 197.3 million compares with USD 193.2 million in the second quarter. Revolving Credit Facility borrowings stood at USD 684.5 million, leaving USD 1.06 billion of unused availability, and the partnership had 155,000 large horsepower on order, of which 34,000 is scheduled for delivery within 12 months.